Commercial Rates
Dail Éireann — 2026-05-21
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Frankie Feighan (FG), Sligo-Leitrim

It was King George IV who introduced the valuations in Ireland 200 years ago. There has been a lot of change on the island of Ireland. Maybe we need to look at the rateable valuation of all property a bit more closely.
A valuation for commercial rates purposes is arrived at by estimating the net annual valuation, NAV, of a property, at a specified valuation date during the revaluation of a local authority area. The term "net annual value" has a legal definition and is set out in section 48 of the Act:
The rent for which, one year with another, the property might, in its actual state, be reasonably expected to let from year to year, on the assumption that the probable average annual cost of repairs, insurance and other expenses (if any) that would be necessary to maintain the property in that state, and all rates and other taxes payable in respect of the property, are borne by the tenant.
This definition of NAV is applied to all rateable properties across the State. The assessment of the NAV of any property is grounded in analysis of the available market evidence at the valuation date and relative to other properties on the list in the relevant rating authority area.
Estimating the NAV of a rateable property, including determining the appropriate valuation methodology, is an evidence-based exercise. The floor area of a property is only one of many factors considered when arriving at a net annual value. During a revaluation, Tailte Éireann analyses relevant market rental transactions for all rateable properties in accordance with the legislation and well-established valuation principles as well as case law arising from the independent valuation tribunal and the higher courts.
Various methodologies may be used in estimating the NAV, which is the rental value of a property. The most common methodology used is direct comparison with other similar properties which, by necessity, includes consideration of the floor areas. In some instances, the receipts and expenditure method of valuation, which relates to the turnover - or potential turnover - generated by a trading property, is particularly relevant in the assessment of NAV.
In other cases particularly for highly specialised properties, a construction cost-based approach in accordance with the provisions of section 50 of the Act may be employed. For the majority of properties such as retail units, offices and industrial units, rental evidence at or close to the valuation date is collected and analysed to establish the appropriate valuation levels to be applied on a rate per square metre basis to similarly circumstanced properties. The rates have been evaluated since 2001. I have heard it myself on the ground that a lot of businesses are quite unsatisfied and that it should perhaps be on turnover. It is a system that perhaps need to be looked at again.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2026-05-21/debate/main
Retrieved: 2026-08-14T04:54:58+00:00
Sitting date: 2026-05-21