An analysis of the distributive effects of the 1997 non‐domestic rating revaluation in Northern Ireland

On 1 April 1997 the rating revaluation of non‐domestic property in Northern Ireland came into force, representing a period of 19 years since property values were last reviewed. During that period commercial property values have changed significantly across property types and locations. The primary purpose of the revaluation is not, as one might expect, to increase the total amount of revenue to be raised, but rather to ensure that value‐based relativities between properties are fairly reflected. Results from the analysis of changes in Net Annual Values indicate substantial changes in retail and office property values and in addition significant increases in rate liability. Measures the shifts in assessed values and rates liability impact across District Council areas and examines the implications of introducing a transitional relief scheme to cushion the impact of the revaluation. Concludes by recommending that as an ad valorem tax, rates should be based on the regular revaluation of the tax base.