This case study explores the importance of correctly identifying the unit of property to be assessed and its category of use, to ensure that the method of rating valuation adopted is properly applied to large complex undertakings.
Instead of valuing Dublin Airport as a single “relevant property”, the Commissioner decided, as part of a 2019 revaluation, to cause Dublin Airport to be valued as three separate relevant properties namely:
The main airport, comprising the terminal buildings and their associated piers, the taxiways and runways; and
i. The car parks; and
ii. A miscellaneous range of buildings around the Dublin Airport campus.
The combined net annual value was €186,550,000.
That led to three appeals to the Valuation Tribunal. Whilst the Tribunal set out that:
“The whole of the Airport premises, including the External Buildings and the Car Parks are under the sole control of daa. The Tribunal finds as a fact that each building, the Car Parks and the lands comprised in the relevant property the subject matter of each of the three appeals is an integral part of the Airport and is used and occupied by the daa for airport business purposes.”
The Valuation Tribunal said that it had no jurisdiction to hear an appeal on the unit of assessment (the composition of the relevant property) at revaluation. That led to a Judicial Review.
In the High Court, Phelan J highlighted the importance of first identifying the unit of assessment stating that:
“… valuation decisions are not made in the abstract but by reference to actual or real properties using established methodologies provided for under the legislative scheme.”
“Identifying the appropriate unit of property is relevant to determining which of the distinct valuation methodologies prescribed under the 2001 Act or combination thereof should properly apply.”
The originating appeals were remitted to the Valuation Tribunal for rehearing. Dunlop Heywood provided expert valuation advice and McCann Fitzgerald provided legal advice to Dublin Airport Authority.
The full judgement can be found here.
