department of natural resources and mines valuation systems & recent reforms presentation to the...
TRANSCRIPT
Department of Natural Resources and Mines
Valuation Systems &
Recent Reforms
Presentation to the
Local Authorities Revenue Management Association
Neil Bray (Valuer-General)
State Valuation Service
2© The State of Queensland, Department of Natural Resources and Mines, 2012
State Valuation Service
• 1.6 million annual statutory land valuations
• SVS valuers and administration officers are located in 19 offices across the State
• Valuations are used as a basis to calculate:
– Local government rates
– Land tax (OSR)
– State land rental for leasehold land (DNRM)
– Commonwealth Grants Commission
Statutory valuations annually raise over:
$1 billion in land tax
$2.5 billion in local government rates
$98 million in leasehold rents
3© The State of Queensland, Department of Natural Resources and Mines, 2012
Statutory Annual Valuation Cycle
Market SurveyConsultation with
LGs and keystakeholders.
Valuer-Generaldecides which local
governments tovalue
SVSundertakesvaluations
PeerReview/Quality
AssuranceValuations
issue60 day
Objectionperiod
Objectionsdecided
Appeals -Land Court
StatutoryValuation
Cycle
Valuationsentered intoQVAS and
prepared forissue
4© The State of Queensland, Department of Natural Resources and Mines, 2012
2012 Annual Valuation – Total $ Value
Queensland Total Value: $451,364,349,626
Value by land use
Vacant
Single Unit Residential
Rural Residential
Multi Unit
Commercial
Industrial
Primary Production
Other
$243.58b (55%)$56.18b (12%)
$27.30b (6%)
$46.86b (10%)
$20.19b (4%)
$23.47b (5%)$3.29b (1%)
$30.49b (7%)
5© The State of Queensland, Department of Natural Resources and Mines, 2012
SVS Business Groups
• Office of the Valuer-General– Quality Assurance
– Objections coordinator
• Policy and Legislation (Strategy and Planning, Operational Support)
• SVS Business Services
• QVAS
• Regional Operations
• Client Valuations
6© The State of Queensland, Department of Natural Resources and Mines, 2012
Role of the Valuer-General
Powers and responsibilities
•direct, control and manage the statutory valuation of land in accordance with the Land Valuation Act 2010
•oversee Quality Assurance and Peer Review activities
•implement ongoing improvements to the valuation system
•maintain the valuation roll
•issue annual and maintenance (subdivision, amalgamation rezoning) valuations
•supply valuation related information
•determine and administer valuation objection outcomes
•respondent in valuation related Court appeals
7© The State of Queensland, Department of Natural Resources and Mines, 2012
Quality Assurance
• Measure and report on the performance of the SVS including:– accuracy and uniformity of the
valuations produced
– efficiency and effectiveness of business processes
• Identify areas requiring improvement
• Make recommendations on how to improve
• Provide organisational focus on continuous improvement
8© The State of Queensland, Department of Natural Resources and Mines, 2012
Objections Coordinator
• monitor and report on the objection process throughout the State
• ensure consistent approach through procedures and consultancy
• liaise with Land Court
• manage the Independent Chairpersons process
Objection Lodged
Scanned into
QVAS
Initial Assessment
Properly
Made Test
Correction Notice
Final Assessment
Valuer Review
Decision on
Objection
Objection
Conference
9© The State of Queensland, Department of Natural Resources and Mines, 2012
Objections
• Landowners have 60 days to lodge an objection– must meet properly made test– subject to internal and external review
• Valuers investigate objection grounds and issue decision• Objectors can appeal decision to the Land Court
2012 objection statistics• 3,621 objections• Decided 2,949 objections (81.4%) (as at 3 September 2012) • Leaving 672 outstanding objections• This includes 299 objections over $5m (independent chair)• 39 currently not properly made
10© The State of Queensland, Department of Natural Resources and Mines, 2012
Objections*2004 – land tax valuation issue only
Objections lodged as a percentage of valuations issued 1999 to 2012
1.31
%1.
40%
1.13
%1.
16%
1.05
%
3.46
%
1.57
%1.
64%
0.59
%0.
59%
0.55
%
0.49
%
0.22
%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
1999 2000 2001 2002 2003 2004* 2005 2006 2007 2008 2010 2011 2012
year of valuation issue (date of effect 30 June)
% o
f an
nu
al v
alu
atio
ns
issu
ed
11© The State of Queensland, Department of Natural Resources and Mines, 2012
Policy and Legislation (Strategy and Planning, Operational Support)
• develop policies, procedures, work instructions and guidelines in accordance with LVA
• amend and interpret legislation
• consult and negotiate with key stakeholders
• develop communication and consultation strategies and preparing communication materials – notices, fact sheets, guides etc.
12© The State of Queensland, Department of Natural Resources and Mines, 2012
SVS Valuation Service Delivery
Registered valuers
•located in 19 offices across the State
•provide professional and technical valuation expertise in
– statutory valuations
– State land asset management
– asset valuations
– market rental assessments
– acquisitions and disposals
•determine objections
•defend Land Court appeals on behalf of Valuer-General
13© The State of Queensland, Department of Natural Resources and Mines, 2012
Annual Valuation process
• valuers analyse sales information for each land use category
• market movement determined for property types and applied to similar properties
• new values entered into QVAS
• checks and balances undertaken
• QVAS prepares for issue
• Annual Valuations issue (prior to 31 March)
14© The State of Queensland, Department of Natural Resources and Mines, 2012
Market survey and consultation
• Survey the property market – if little or no market movement in
an LGA then an annual valuation may not occur for that LGA
• Consultation with local governments and key stakeholders following market survey
• Results of consultation with LGs and industry groups and market survey informs Valuer-General’s annual valuation decision
15© The State of Queensland, Department of Natural Resources and Mines, 2012
SVS Client Valuations
• specialised valuation and property advisory service to clients
• clients – Local, State and Commonwealth Gov’t agencies and GOCs
• valuations include asset, easement, resumptions, acquisitions, disposals and market rental assessments
• generated $2,666,315 in revenue in the 2011-2012 financial year
16© The State of Queensland, Department of Natural Resources and Mines, 2012
QVAS – Electronic Valuation Roll
• valuation methodology used – site value or unimproved value
• owner’s name and address for service
• sale price and date of sale of each property
• statutory land value and date of effect for each valuation
• land area, location and legal description
• property identification number
• amount of deduction for site improvements (if applicable)
• amount of offset (if applicable)
• other information that the Valuer-General considers appropriate
17© The State of Queensland, Department of Natural Resources and Mines, 2012
QVAS Business
Systems,Business &
ClientServices
Systems
DepartmentalBusiness
DepartmentalClients
SystemServices
forClients
BusinessServices
for Clients
SystemServices for
Business
System Services for BusinessCalculations (Qcalcs)Mass AppraisalSales AnalysisRural Sales Analysis (CASA)vMaps
Business DeliverablesStatutory ValuationsClient ValuationsValuation RollRecord managementAuditingCommunication StrategyPolicy
Systems, Business & ClientServicesGrievance managementSearching and ReportsCommunication with Govt AgenciesMass Appraisal Statistical Tools (MAST)Automated Basis Report
Business Services for ClientsValuation and sales extracts to ClientsCounter ServicesCommunication with LandholdersCorrespondence LettersValue Added Data Reseller Management
Departmental ClientsAccess to Valuation and PropertyInformation and displaysStatisticsReportsData
System Services for ClientsPublic AccessDirect Access (DMZ)Electronic DataSmartMap
Queensland Valuationand Sales database(QVAS)Valuation RollSales history
18© The State of Queensland, Department of Natural Resources and Mines, 2012
Valuation Reform in Queensland
• Valuation Reform Reference Group (VRRG) established by the Government as part of the reform process
– ongoing consultation with key stakeholders
• VRRG effected
– legislative changes: Land Valuation Act 2010
– Peer review panel to independently review reform implementation
– Quality Assurance team established to provide continuous improvement in process and practice
19© The State of Queensland, Department of Natural Resources and Mines, 2012
Land Valuation Act 2010
• came into force on 20 Sept 2010
• replaced the Valuation of Land Act 1944 (VoLA)
• brought:
modernity
strength
consistency
transparency
equity
20© The State of Queensland, Department of Natural Resources and Mines, 2012
Land Valuation Act 201
• Introduced:
• re-instatement of the position of Valuer-General
• Site Value for non-rural land
– brought Queensland inline with other States
– similar to market value of the land
• annual valuation cycles
• streamlined objection and appeal processes
• Independent chairpersons for objections to valuations > $5M
• mitigation methods
– deduction for site improvement
– offset allowance
21© The State of Queensland, Department of Natural Resources and Mines, 2012
Independent Peer Review Panel
In 2012 the Independent Peer Review Panel conduction a review of the operation of SVS and the initial year of operations of the Queensland Land Valuation Act 2010
It is reasonable to believe that, on the
foundations now established, the statutory valuation
system in Queensland can be at least as good as the
best of other Australian states, a claim that could not
have been contemplated two years ago.”
Moving Forward
22© The State of Queensland, Department of Natural Resources and Mines, 2012
Business Vision
Electronic Valuation
Notice
Online Objection Lodgement
Online Valuation
Roll
Electronic Service Delivery
2011
2013
2014?
Electronic Service Delivery
23© The State of Queensland, Department of Natural Resources and Mines, 2012
SVS challenges
• Continue to delivery a quality valuation service
– maintain momentum of reform
• Delivering an annual valuation cycle in a rising or falling property market
– Interpreting a complex market and respond to landowner objection and appeals
• Capturing corporate knowledge before experienced staff leave SVS
• Expert peer review process for complex valuations
24© The State of Queensland, Department of Natural Resources and Mines, 2012
SVS Challenges
• Clear points of contact for our clients
– Developing an MOU between the Valuer-General and local governments
• Improving Service Delivery
– Electronic Service Delivery
• Valuation Reform Reference Group
– Increasing expectation from stakeholders for information –communication and consultation
• Valuation concessions review by December 2012