By Eric Allen, ContributorIN THE light of the current debate regarding the value placed on properties in the recent revaluation exercise the Association of Land Economy and Valuation Surveyors wishes to outline, in the public interest the process involved in determining the valuation base for the purposes of property taxation.
To begin, land is valued on the "Unimproved Value" basis as defined by the Land Valuation Act. "Unimproved Value" in non-technical language is the market value of land without improvements, for example, the market value of a vacant residential lot, vacant commercial site or agricultural holding without crops or farm improvements. In some jurisdictions, "Unimproved Value" is also referred to as "Land Value" or "Site Value".
The valuation process used in arriving at the "Unimproved Value" of land of each parcel of land throughout the island, is one that has been applied in Jamaica in similar exercises over the past 10 years and is recognised and well established in other Commonwealth Jurisdictions.
The valuation process em-braces the following:
IDENTIFICATION OF EACH PARCEL OF LAND
This is achieved by the use of a unique parcel numbering system supported by the Land Valuation Maps as well as a computerised database of land information to facilitate the capturing, the updating and retrieval of relevant data.
INVENTORY OF EACH PARCEL OF LAND
This relates to on-site inspection to establish features such as size, configuration, topography and soil type (where applicable).
ANALYSIS OF MARKET TRANSACTIONS
In the recent revaluation exercise, investigation and analysis are primarily targeted at recent sales transactions.
CLASSIFICATION OF PROPERTIES
Properties are grouped taking into account factors that include geographical location, land use, physical infrastructure, availability of public utilities and community facilities within the locality.
EVIDENCE OF MARKET VALUE
The most reliable evidence of value is that of the sales of vacant sites at the "Valuation Date". Sales of improved parcels of land may also be analysed as supporting evidence.
VALUE STANDARDS
Based on sales evidence, a unit value per lot, per site, per sq. metres (per sq. ft.), per hectare (per acre) etc. is established and used as the basis for establishing the value of comparable parcels of land or effecting adjustments where considered requisite.
THE REVIEW PROCESS
It is of interest to note that the Land Valuation Act provides for landowners who may be dissatisfied with their valuations to raise objections not only to value, but to other aspects including ownership or particulars of the property appearing on the
NOTICE OF VALUATION.
This review process affords the opportunity for direct dialogue at the local level where discrepancies as to issues of value, ownership, parcellation and other matters relevant to the valuation process can be resolved.
The valuation process is aimed at establishing a fair and equitable base for property tax purposes and the Association expresses confidence in the recent Revaluation exercise in the knowledge that proper professional methods were employed in the preparation of the Valuation Roll.
Eric Allen is the Secretary of the Association of Land Economy and Valuation Surveyors. The Association was incorporated in 1974 and includes in its membership, persons drawn from the valuation profession, a number of whom are also member of the Royal Institution of Chartered Surveyors, an international body of surveying professionals.
