New chapter beckons for Cork commercial property rates
The old days: Women march to Cork City Hall in 1957 to protest over domestic rates. At the time, valuation levels had not changed for a century
A SIGNIFICANT and long-awaited transformation of commercial property rates is officially underway in Cork city and county, following the formal signing of a valuation order by Tailte Éireann.
This landmark order marks the commencement of a comprehensive revaluation process for all commercial and industrial properties in Cork, aimed at modernising and ensuring greater equity and fairness in the local tax base.
Cork city and county are the final two local authorities in Ireland to undergo a revaluation.
The process, undertaken by Tailte Éireann, will involve a detailed assessment of all commercial properties, from retail, offices, industrial, hotels, petrol stations, up to wind farms and airports, to determine their net annual value.
These valuations, based on current rental values, form the fundamental basis upon which commercial rates are calculated.
The primary driver behind this revaluation is to address inequities that have emerged from an outdated valuation system. Crucially, the exercise is not designed to increase the overall rates burden on rate-payers in Cork. Instead, it is a “revenue neutral” exercise, focused on ensuring the existing burden is fairly redistributed based on current market realities, creating a transparent, equitable, and uniform valuation list.
The revaluation process will officially commence this week, when every commercial occupier will receive a request for information form, either as a Section 45 or 46 notice.
These forms will demand crucial data, including lease details, rent paid, fit-out costs, turnover, and construction costs. Businesses are statutorily obliged to respond to these requests via Tailte Éireann’s online portal within the designated timeframe.
Following the analysis of all returned information, Tailte Éireann is expected to issue proposed valuation certificates in early 2027, outlining the proposed new valuations for each property. This stage is the optimal time for businesses to challenge these proposed valuations. Final valuation certificates are due to be issued in September 2027, with a further opportunity for appeal, before the new valuations become effective for rates purposes from January 2028.
While the revaluation is designed to be ‘revenue neutral’ at a local authority level, it will undoubtedly lead to shifts in liabilities for individual businesses. Once the new valuations are in place, Cork city and county councils will adjust their annual rate on valuation — the multiplier applied to the valuation to determine the final rates bill. This adjustment will ensure the revenue collected aligns with their budgetary requirements, taking into account the new aggregate valuation base.
This mechanism means while some property types — particularly those whose market rental values have increased — may face higher rates bills, others could see a decrease. Some may even remain unchanged, depending on how their new valuation compares to the average change across the city and county. As with all revaluation exercises, there will be winners and losers.
Analysis from the 2019 revaluation project in Cavan, Fingal, Louth, Meath, Monaghan, Tipperary, Wexford, and Wicklow, showed 66.74% of liabilities reduced, 30.14% increased, and 3.12% remained unchanged.
Ratepayers across Cork city and county are strongly advised to react to the communications from Tailte Éireann issued in July. Engagement from this very first step is crucial.
Accurately providing the requested information is vital to ensuring a fair and reasonable valuation, and consequently, a proportionate rates liability.
This revaluation marks a pivotal step towards a more equitable and transparent system of rates valuation for Cork’s commercial sector, promising a fairer distribution of the local tax burden for years to come.
Terry Devlin is head of business rates at CBRE Ireland
