Proposals are being drawn up to progress the reform of the Isle of Man’s domestic rating system.
The move is in response to a recommendation made at the October sitting of Tynwald during a debate on a Select Committee report into the issue.
Tynwald Members will be asked to support a Treasury motion in January 2015 to fund the revaluation of the Island’s domestic housing stock.
Subject to approval of the motion, the views of the public and local authorities will be sought before work starts on drafting the required legislation.
It is proposed that the revaluation of domestic properties will be based on a capital banding system, using existing data held by the Valuation Office. A dedicated project management team will be established to carry out the work, with funding made available from central reserves rather than through a new charge on the rates.
Chief Minister Allan Bell MHK said:
‘Tynwald Members have expressed a desire to reform the current rating system and have recommended that a revaluation of the domestic housing stock be carried out by February 2016. The timescales for delivery are extremely challenging, not only in relation to the valuation process but to introduce new primary legislation. However, we will endeavour to meet the wishes of Tynwald, with a view to implementing a new rating system by April 2016.’
He added:
‘It would be impractical to carry out physical inspections of more than 40,000 domestic properties by the February 2016 deadline. Consequently, it is intended that Valuation Office records will be utilised and valuations based on capital values across nine different bands.
‘Reform of the rating system has been talked about for many years. It is an emotive issue and local authorities and Island residents will have an opportunity to have their say on the proposals via a public consultation early in the New Year.’
The proposed revaluation will focus on domestic housing stock. Other properties would continue to be valued in accordance with rental values under the existing 1953 Act.
