Appeal No. VA92/1/015
AN BINSE LUACHÁLA
AN tACHT LUACHÁLA, 1988
VALUATION ACT, 1988
Justin Brady APPELLANT
Commissioner of Valuation RESPONDENT
RE: Shop, Store, Yard and Garden at Lot No. 64.66/Unit
3 Main Street,
Ballybofey, Stranorlar, Co. Donegal
B E F O R E
Padraig Connellan Solicitor (Acting Chairman)
Brian O'Farrell Valuer
Veronica Gates Barrister
JUDGMENT OF THE VALUATION TRIBUNAL
ISSUED ON THE 20TH DAY OF MAY, 1992
By notice of appeal dated the 12th day of February, 1992 the appellant
appealed against the determination of the Commissioner of Valuation in
fixing a rateable valuation of £25.00 on the above described hereditament.
The grounds of appeal as set out in the Notice of Appeal are that:-
(a) the valuation is excessive and inequitable.
(b) the valuation is bad in law.
(c) no account has been taken of the net annual value as on the 30th November,
1988 in determining the Rateable Valuation assessment.
(d) (i) The valuation is bad in law as a fraction of 0.63% being applied
to the agreed net annual value is excessive and does not comply with with
the requirements of Section 5 of the Valuation Act 1986.
(ii) The valuation is bad in law as a different fraction is being applied
in rural and urban districts in Co. Donegal.
(iii) The valuation is bad in law as a fraction that is being applied
is not in agreement with the fraction that is being applied in similar
rating authority function areas which is necessary to provide "...One
uniform valuation of lands and tenaments in Ireland". (Preamble to
Valuation (Ireland) Act 1852)
The property consists of the ground floor and lock-up retail shop in a
two storey terraced building located on the northern side of the Main
Street in the town of Ballybofey, Co. Donegal. The property consists of
a shop of 225 square feet with a garage at the rear of 400 square feet.
Prior to the renovation of the premises in 1989 the subject was valued
as a private house at £5.50 rateable valuation. At the 1990 revision
the valuation was increased to £32. Following first appeal to the
Commissioner of Valuation this was reduced to £25. It is against
this determination of the Commissioner of Valuation that the appeal now
lies with the Tribunal.
A written submission was received on the 7th May, 1992 from Mr. Patrick
Mc Carroll, Chartered Surveyor Auctioneer and Estate Agent of Market Place,
Carndonagh, Co. Donegal on behalf of the appellant. In this written submission
Mr. Mc Carroll outlined the description of the subject property. Mr. Mc
Carroll said that valuing within the provisions of the Valuation (Ireland)
Act, 1852, Section 11 and Section 5 of the Valuation Act, 1986 and valuing
as on the 30th November, 1988 in his opinion the rateable valuation on
the subject property should be £12 which he discounted as follows:-
Shop 225ft² @ £8 p.s.f. £1,800
Garage £10 per week £ 520
£2,320 x 0.5% = £11.60
Mr. Mc Carroll provided two comparisons as follows:-
(1) Brian Mc Dermott, Main Street, Ballybofey, Chip Shop. Rateable Valuation
Mr. Mc Carroll said that the net annual value of this property in 1988
was estimated to be £45,000.
(2) Unit 30/11 Main Street, Ballybofey. Rateable Valuation £26.00.
Mr. Mc Carroll provided a break-down showing the percentage between net
annual value and rateable valuation as being .5%.
A written submission was received on the 12th May, 1992 from Mr. Jim
Gormley, Chartered Surveyor and District Valuer in the Valuation Office
on behalf of the respondent. In this Mr. Gormley comments on the appellants
grounds of appeal and says that the valuation of £25 is fair and
equitable when compared with the valuations of premises of similar function
and location which have been recently revised. He said that the computation
of rateable valuation is based on Net Annual Value and with regard to
the fraction of .63%. Mr. Gormley says that there has been no agreement
on Net Annual Value in this case and that the reduced valuation of £25
represents .5% of the Net Annual Value which has been assessed on the
basis of rent passing on the two adjoining units. He said that the conversion
factor being applied in Donegal varies from .5% to .63%. Mr. Gormley set
out his calculation of the Rateable Valuation as follows:-
Ground Floor Shop 225ft² x £13.00/ft² = £2,925
Store at Rear 400ft² x £ 6.00/ft² = £2,400
= R.V. £26.50
Mr. Gormley supplied comparisons of unit 1 and Unit 2 of the same Centre
and provided details of their ground floor area, Net Annual Value and
Rateable Valuation. He submitted that as all three properties are comparable,
are of similar function (being retail units), similar location and all
were revised on the same date that the relationship between Net Annual
Value and Rateable Valuation should be the same in all three cases. He
referred to three other premises in Ballybofey which have recently been
revised and which he said were relevant as comparisons and they are:-
(1) Mc Elhinneys Shop, 41 Main Street, R.V. £680
(2) Francis Reid, 29a Main Street, R.V. £17.00
(3) Cathal Mc Hugh, 78a Main Street, R.V. £38
The oral hearing took place in Letterkenny on 19th May, 1992. Mr. Patrick
Mc Carroll, A.R.I.C.S. M.I.A.V.I represented the appellant and Mr. Jim
Gormley, Chartered Surveyor and District Valuer represented the Commissioner
of Valuation. Both the appellant and the respondent relied during the
hearing on their written submissions.
Mr. Mc Carroll in his oral evidence relied on the fact that the rent
should be backdated to 1988 with allowances made for insurance and the
short leases. He also stated that Mr. Gormley made his original submissions
based on a ratio of .63% and that he was now juggling his valuation to
suit a ratio of .5%.
Mr. Gormley in his oral evidence stated that no evidence had been offered
by Mr. Mc Carroll, of any increase in rents from 1988 and 1990 to support
a 20% discount.
The Tribunal feel, in this case that a rent of £11 per square foot
is appropriate for the shop and a net annual value of £1,100 is
appropriate for the garage/store given its location and use. This gives
a total N.A.V. of £3,575. Therefore, the Tribunal finds that the
correct R.V. on the subject property is in the sum of £18.