How does the Rating and Valuation Department determine the rateable value?

Rateable value is an estimate of the annual rental value of the property at a designated valuation reference date (generally on 1 October of the previous year, e.g. For the 2021-2022 rateable value, the designated reference date is 1 October 2020), assuming that the property was then vacant and to let. Rates are then charged at a percentage of this amount.  Rates percentage charge is determined by the Legislative Council every year. When assessing the rateable value, all factors which affect the rental value of the property are considered, such as -

• open market rents around the valuation reference date, for similar properties in the locality;
• age;
• size;
• location;
• floor;
• direction;
• transport facilities;
• amenities;
• quality of finishes;
• building maintenance & repair;
• property management, etc.

If there is no Government water supply, the rates payable will be reduced by 15%, and where the Government water supply is unfiltered, the reduction in rates payable will be 7.5%.

Rates are a tax on occupation. The basis for charging rates will be the same no matter if the property is vacant, occupied by an owner-occupier, or occupied by a tenant.