department of natural resources and mines valuation systems & recent reforms presentation to the...

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


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


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%)


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


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


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


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


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


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


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.


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


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)


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


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


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


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


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


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


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


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


Business Vision

Electronic Valuation

Notice

Online Objection Lodgement

Online Valuation

Roll

Electronic Service Delivery

2011

2013

2014?

Electronic Service Delivery


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


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

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