Part 4: mineral hereditaments
The Valuation Office Agency's (VOA) technical manual for the rating of business (non-domestic) property.
1. Responsibility for valuation of mineral hereditaments – MV
MVs will be responsible for the valuation of the following list of hereditaments together with the buildings, plant and machinery assessed therewith as a single hereditament.
- BRICKWORKS AND PREMISES 032
- BRINE FIELD AND PREMISES 168
- CEMENT STORAGE DEPOT AND PREMISES 033
- CIVIC AMENITY SITE AND PREMISES 058
- COATING PLANT AND PREMISES 017
- CONCRETE BATCHING PLANT AND PREMISES 071
- CONCRETE BLOCK WORKS AND PREMISES 072
- CONCRETE PRODUCT WORKS AND PREMISES 073
- CONCRETE TILE WORKS AND PREMISES 051
- ELECTRICITY GENERATING PLANT AND PREMISES 149
- GAS FIELD AND PREMISES 174
- LAND USED FOR WASTE COMPOSTING 150
- MINE AND PREMISES 172
- MINE WATER TREATMENT PLANT AND PREMISES 093
- MINERAL DEPOT AND PREMISES 166
- MINERAL HEREDITAMENT AND PREMISES 178
- MINERAL HEREDITAMENT AND PREMISES 997
- MINERAL PROCESSING PLANT AND PREMISES 127
- OIL FIELD AND PREMISES 177
- PEAT FIELDS AND PREMISES 423
- PUMPING MINE 430
- QUARRY AND PREMISES 167
- QUARRY AND PREMISES 169
- QUARRY AND PREMISES 170
- QUARRY AND PREMISES 171
- QUARRY AND PREMISES 173
- QUARRY AND PREMISES 175
- QUARRY AND PREMISES 180
- QUARRY AND PREMISES 181
- QUARRY AND PREMISES 183
- SEA DREDGED AGGREGATE PROCESSING PLANT AND PREMISES 245
- SECONDARY AGGREGATE PROCESSING PLANT AND PREMISES 221
- SPOIL HEAP WORKING AND PREMISES 255
- TIPPING SITE AND PREMISES 176
- TIPPING SITE AND PREMISES 179
- WASTE INCINERATOR AND PREMISES 297
- WASTE RECYCLING PLANT AND PREMISES 298
- WASTE TRANSFER STATION AND PREMISES 299*
Hereditaments not themselves mineral-producing but consisting predominantly of buildings plant and machinery used for the primary treatment or processing of minerals or similar materials as dug e.g. a plant used for grading, washing, and crushing of materials from a number of mines, quarries or spoil heaps will be the responsibility of the MV.
Mineral properties have primary description codes in the series prefixed by IM (IM to IMX) and all will have suffix of M.
Quarry and premises
Mine and premises
Brickworks and premises
Concrete Batching Plant and premises
Tipping Site and premises
Spoil Heap workings and premises
Peat Fields and premises
(unclassified - non standard description to be used)
2. Cement works
Cement works, although mineral related, consist predominantly of factory premises where a process going beyond the primary treatment of minerals is carried on. These are dealt with by NSU (Industrial and Crown). The MV will, in these cases, be consulted on the value to be attributed to the mineral element to be included within the assessment.
In any cases where the MV is required to value a hereditament which includes any substantial item of site value, or of buildings, plant or machinery of a sort normally to be found in the general run of commercial or industrial properties, the MV should liaise with the VO on the level of value to be adopted for that item.
Consultation on site values with VOs will prove particularly useful. MVs, in the main, use ground rents or capital values of land and will need to seek evidence from VOs.
Additionally, where a hereditament includes buildings, plant and machinery of a type likely to be found in heavy or specialised industrial hereditaments subject to national co-ordination and of significant value, the MV should liaise with NSU (Industrials) through the Head of Minerals before finally deciding upon the level of value to be adopted.
4. Application of the Non-Domestic Rating (Miscellaneous Provisions) Regulations 1989
The responsibility for applying Regulation 5 of the Non-Domestic Rating (Miscellaneous Provisions) Regulations 1989 normally rests with the MV. However, VO caseworkers should ensure that the provisions of these Regulations are applied to hereditaments that they are responsible for, and a mineral element is included in the valuation as required.
Regulation 5 makes provision for the valuation of mines and quarries and applies to any hereditament –
a. which consists of or includes a mine or quarry; or
b. the whole or part of which is occupied together with a mine or quarry in connection with the storage or removal of its minerals or its refuse
In arriving under paragraph 2(1) of Schedule 6 to the Local Government Finance Act 1988 at an amount of estimated rent for qualifying hereditaments the value attributable to the mineral element of assessment together with any rental value placed on land occupied for the purposes of the winning and working, grading, washing, grinding and crushing of minerals shall be reduced by one half of the total.
The rental values of buildings, structures, roads, shafts, adits or other works which are themselves occupied for those purposes are excluded from the reduction as will the rental value of land not occupied for the defined purposes and the value attributable to rateable plant and machinery.
5. VO to consult MV
Where VOs are responsible for hereditaments that include a mineral element they must consult the MV as to the extent of land occupied for the purposes of the winning working grading washing grinding and crushing of minerals to ensure uniformity of application of the Regulations to all hereditaments. Cases presenting difficulty should be submitted to the Valuation Officer personally who will consult with the Head of Minerals.
6. Forms of return - annual revision VO 6061
NSU Ops Support hub at Leeds will issue forms of return, VO 6061, during the first two weeks of January for those hereditaments where annual revision of assessment is required. The forms of return are required by MVs to revise assessments within the rating year and it is essential that these forms should be dealt with expeditiously.
7. Use of VO 6060 and 6003
The Valuation Officer or MV on behalf of the VO should issue forms of return, VO 6060 or VO 6003, to be completed in connection with a newly opened hereditament, revaluation, or a proposal that has been made for the alteration of the rating list, or with a view to making an alteration. Form VO 6060 should be used in these cases where there is mineral production or waste disposal. Form VO 6003 should be issued in respect of hereditaments where no mineral or waste disposal element is included in the assessment.
8. Unit case creation and references to MV
a. The unit will initiate a case reference and inform the MV:-
(i) on receiving a proposal;
(ii) on receiving a report from a billing authority; and
(iii) on information coming to the VO’s notice which leads the VO to suppose that a Notice of Alteration to the Rating List should be made.
9. Proposals (interested persons, Billing Authorities and new Ratepayers)
Upon receipt of a proposal the VO should initiate a reference and send the IPP to the MV. It is the responsibility of the VO to ensure that documents are transmitted to the VT within the statutory time limit.
10. Proposals challenging a VO Notice of Alteration
Proposals received by the VO should be sent immediately to the MV as stated in para 9 above.
11. MV case creation
The MV will initiate case references for
(i) Annual revisions
(ii) New properties
(iii) Structural alterations
12. Agreement procedure
The MV will carry out all negotiations, progress and clear all cases in respect of hereditaments listed above in sub para 1.
It will be the responsibility of the MV to seek the agreement of the BA where this is required. If agreement by a BA is not forthcoming, the case must proceed to a VT hearing.
13. Appeals to VT
The Valuation Officer (or a representative) may attend the hearing in order to introduce to the Tribunal the member of MV’s staff who will conduct the case. The MV must request the relevant Valuation Officer to issue an authority worded as in Rating Manual Appendix 1.1.2 prior to any VT hearing.
It will be the duty of the MV to agree as many facts as possible with the other parties prior to the hearing.
The MV should take notes for memorandum of evidence.
14. Stages to be notified to MV
The VO should inform the MV of:-
a. the date, time and place of the hearing by the VT, and the mineral appeals listed;
b. the decision of the VT;
c. any appeal to the LT made by another party;
d. a withdrawal by any party at any stage of the proceedings (if the MV is notified directly of the withdrawal, the VO should be informed accordingly).