What factors affect the rateable value of a property? How to make a request to Rating and Valuation Department for review of the rateable value?Rating and Valuation Department
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 2010-2011 rateable value, the designated reference date is 1 October 2009), assuming that the property was then vacant and to let. 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;
- transport facilities;
- 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.
Rateable Value Annual Revaluation
The rateable values are reviewed annually by the RVD in the general revaluation so as to reflect more precisely the up-to-date rental values of the properties. You will be notified of the new rateable values in the April to June quarterly rates and/or Government rent demand notes which will be issued at the end of March or early April. The “Valuation List and Government Rent Roll” listing the new rateable values of all assessed properties, will also be available for searching free of charge between late March and 31 May from the “ Property Information Online” website of the department.
Objections to Rateable Values
Any ratepayer who is not satisfied with the rateable value of his or her property can lodge an objection.
- For newly-built property assessed to rates for the first time
Ratepayer is notified of the assessment by means of a “Notice of Interim Valuation” (Form R6). The ratepayer may lodge a formal objection to an interim valuation on a “ Notice of Objection form” (Form R23A) (PDF). The ratepayer may also choose to submit the form electronically (e-R23A) on the website of the RVD ( www.rvd.gov.hk). Such an objection must be lodged within 28 DAYS after the service of the “Notice of Interim Valuation” (Form R6). Late objections will not be accepted.
- For other properties already assessed to rates
The ratepayer may object to the new rateable value following a revaluation in the form of a "proposal". He should complete a “Proposal Form” (Form R20A) (PDF, only available in late March until the end of May each year). The proposal must be submitted during the period when the “Valuation List and Government Rent Roll” is available for inspection between late March and May of the year in which the rateable value takes effect. For those paying rates and Government rent together they only need to object against the rateable value for rates provided the rateable value for charging rates and Government rent is the same. However, if the rateable value for rent is different they should object to both.
All objections will be carefully reviewed by the Department. The Department will issue a Notice of Decision. Even if an objection is lodged, rates and/or Government rent must be paid as demanded and late payments will be subject to a surcharge.
If the rateable value is amended after review, the alteration will be backdated to the relevant date the rateable value takes effect and adjustment to the rates and/or Government rent will be made in subsequent demand notes.