1 site value taxation workshop in riai, 10 th march 2010 svt: the information implications dr. wp...

1Site Value Taxation Workshop in RIAI, 10th March 2010

SVT: The Information Implications

Dr. WP PrendergastLecturer, Department of Spatial Information Sciences,

Dublin Institute of Technology

A. Results of the SVT Mapping Study

B. Preliminary Examination of the Suitability of current Public Information Resources for SVT


SVT Mapping Study - Introduction

Feasta (The Foundation for the Economics of Sustainability) provided funding for a 10 week study to research the information requirements of the implementation of SVT and the production valuation maps using Irish data

Research was conducted by Ms Elaine Monaghan BA (Geography) & MA (Spatial Analysis) NUIM and supervised by myself and Tom Dunne, Head of School of Real Estate and Construction Economics, DIT Bolton Street

Methodology used was to attempt an evaluation of SVT for a small sub-urban area to indentify and investigate some of the information issues - Dunboyne selected for the study

Research study report to be published next Monday 15th March - electronic version should be available from the Feasta website at www.feasta.org next week


SVT Mapping Study - Methodology

Study was restricted to dwelling houses in the sub-urban area of Dunboyne because:

the calculation of valuations for commercial properties (retail, office and industrial) was considered too complex and beyond the scope of this short term study

there was a lack of valuation information for agricultural properties within the selected area.

One off houses were excluded due to their unsuitability for comparable valuation techniques

The www.MyHome.ie and www.Daft.ie websites were used to source details of properties for sale in the town - some overlap between both websites - this information was expanded to a final sample size of 44 properties using property lists from local auctioneers


SVT Mapping Study - Locations of Sample Sites

Base maps courtesy of Ordnance Survey Ireland

No sample points in other areas

No sample points in other areas

Many sample points in some areas

Many sample points in some areas


SVT Mapping Study - Data required for Re-building Costs

1. Substitute Site Coordinates for Address

2. Compute Floor areas using OSi building areas & reduce by 20% for Eaves & Walls

3. Reduce Asking Price by a factor to give Market Value - 10% used

1. Substitute Site Coordinates for Address

2. Compute Floor areas using OSi building areas & reduce by 20% for Eaves & Walls

3. Reduce Asking Price by a factor to give Market Value - 10% used


SVT Mapping Study - Computation of Site Value

Society of Chartered Surveyors insurance guide used to compute re-building costs - negative Site Values computed for 6 properties - these were given a value of €20,000 - inherent base land value??

One Site Value (highlighted above) nearly twice the next highest (€163, 359) - property type and area did not warrant this high valuation, so excluded from further analysis


SVT Mapping Study – Results A

Photographic ground survey in Jan 2010 to identify similar house types

Photographic ground survey in Jan 2010 to identify similar house types


SVT Mapping Study - Results B

Identifies different housing developments by different developers

Identifies different housing developments by different developers

2 valuations for detached houses and 3 valuations for semi-detached

2 valuations for detached houses and 3 valuations for semi-detached


SVT Mapping Study - Results C

Some errors in the data - 2 or 3 property areas combined

Some errors in the data - 2 or 3 property areas combined

Mean value per m2 applied

Provides a better indication of the relative values

Mean value per m2 applied

Provides a better indication of the relative values


SVT Mapping Study - Conclusions Results are considered inconclusive because of lack of involvement

by local auctioneers (critical) within the short time period available for (a) areas of the town which the selected sample did not cover, and (b) advice to amend methodology used to take account of local nuances - This could be overcome with additional time and further funding

However, the study was able to identify some of the critical information necessary to compute Site Values & implement SVT

Site Details - area, address, geo-code, owners name, owners address Building Details - type, stories, floor area, & link to site Valuation Details - pre bubble or mean market value & link to site Zoning Details - as it applies to individual sites Infrastructure Details - proximity to public services - impact on value?

This information was then used to assess the suitability of official government information resources in supplying the information necessary to implement a property tax based on Site Value in Ireland


SITE Details - Area, Address, Geo-code & Link OSi maps & Geo-Directory or LR

maps & folios Boundary differences - non OSi

detail & ownership to centre of road Area & geo-code from digital maps

& property address from folio, but areas derived from non-conclusive boundaries - accuracy enhancement

1.9M properties registered - 88% of total & 93% of land area - missing 12% in Registry of Deeds (0.2-0.3M)

Extend CFR to 24 Counties on 1/1/2010

Dublin & Cork ?

Significant to complete


SITE Details - Owners Names & Addresses & Link

It is assumed that landowners, not occupiers, will be responsible to pay the Site Value tax

Names of landowners should be available via a link to the spatial definition of the parcels/properties within the land registration system, but Ireland has a dual system - Land Registry & Registry of Deeds

Land Registry should be able to supply names of current landowners (1.9M), however the data may not be up-to-date due to current practices, such as transfers to developers taking place without registration to eliminate the need to pay stamp duty (NAMA legislation expected to close this loophole) and farms passing from generation to generation without registering new owners

Registry of Deeds can only identify the names and addresses of ‘reputed owners’ after much searching of paper documents (0.2-0.3M) - self assessment by landowners in Registry of Deeds??


BUILDING Details - Type, Stories, Floor Area & Link

Ireland does not currently have a ‘Buildings Register’ from which this information can be sourced

Geo-Directory (jointly owned by An Post & Ordnance Survey Ireland) contains a ‘geo-code’ for all buildings and a postal address and ID for 1.87M properties which includes 196,000 business addresses (Jan 2010)

Property Registration Authority estimate 2.1 - 2.2M properties & many properties have multiple buildings, so why the mismatch of figures? - many properties & buildings without postal addresses excluded from Geo-Directory

Recently three academics (DIT, NUIM & UCD) estimated that there are approximately 0.3 - 0.35M unoccupied dwellings in the State

Major information deficiency for methodology using residual valuation technique - so initial implementation may need to survey


VALUATION Details - Good Market Value & Link

Valuation Office - valuations of commercial lots only for collection of rates by Local Authorities

Residential properties halted in 1978 arising from an election promise and agricultural properties on foot of Supreme Court ruling in 1983

Valuation based on original Griffiths valuation of 1840s and extrapolated forward in time now being replaced by modern market rental valuation - revaluation proceeding slowly & some reluctance to accept new valuations

Properties may be sub-divided into several lots by different occupiers

Stamping Office in Revenue Commissioners receive declarations from solicitors for assessment of stamp duty

Details supplied include - date of transfer, names, addresses and PPSNs of vendors & purchasers, address & folio number of property being transferred and the price paid

Solves two problems identified in Dunboyne study - supply actual prices paid rather that asking prices & historical data (to date?)


ZONING Details - land Use designation & Link

SVT applied to all land including State land?

Zoning designations used to discriminate between higher and lower value uses

Light blue areas are zoned residential - open space and public roads are zoned as residential - who pays the tax on these?

SVT to stimulate re-zoning / de-zoning to limit tax liability - creation of LAPs has started this already

SVT applied to all land including State land?

Zoning designations used to discriminate between higher and lower value uses

Light blue areas are zoned residential - open space and public roads are zoned as residential - who pays the tax on these?

SVT to stimulate re-zoning / de-zoning to limit tax liability - creation of LAPs has started this already


SVT: Information Implications - Conclusions

Link?? - all of these information systems use different property numbering systems - integration of this information will require the harmonisation of numbering systems across multiple Departments or the development of a Cross Reference Register

Link?? - all of these information systems use different object/feature definitions - integration of this information will demand agreement and adoption of common object definitions

Best approach may be a phased approach PPP between public information resources and property professionals to

quickly gather the missing data required for initial launch of SVT

Develop new specification for future data holdings - INSPIRE compliant

Co-ordinated and accelerated programme to complete the databases to the new specification

Programme of quality enhancement of database information in collaboration with property professionals - declarations, surveys, etc


SVT: Information Implications - Conclusions

Significant information issues for implementation of SVT - however these should not be used as obstacles, but as a challenge to integrate these core national Land Administration Systems - perhaps establish SVT project as a flagship project under EU INSPIRE Directive to provide stimulus to collaborate?

SVT should provide a goal to complete database conversion and database integration within an urgent timeframe - needs to be resourced (re-deployment), managed and co-ordinated with Ministerial responsibility (across Departments) for successful outcome

Dunboyne study although short was very useful to identify some of the data and data integration issues - more research required

Needs to think of the data from two perspectives - the data required to initially launch SVT and in the longer term the data required to make the system more robust to withstand appeals


Many thanks for your attention

Dr. WP PrendergastLecturer, Department of Spatial Information Sciences,

Dublin Institute of [email protected]

1 site value taxation workshop in riai, 10 th march 2010 svt: the information implications dr. wp...

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