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What is Statutory Valuation
Statutory valuation is the type of property valuation that deals with key features like stamp duty, compensation, rating, and Property Gains Tax. It is used for enabling legislation and to furnish the requirements related to the valuation process. It is used for revenues through the authorities like local offices or state revenue. Statutory valuation outlines a framework for making, issuing, and storing valuations.
We can categorize statutory valuation into two types such as annual valuation and maintenance valuation. The annual valuation includes key aspects like annual land valuation notice, where the valuation amount is used to calculate the government rates and state land taxes. Statutory valuation is the valuation practice related to valuation and regulated by legislation valuer for rating and tax purposes.
On the contrary, maintenance valuation is all about the valuer-general's legislative authority to revise, create, or even cancel a valuation. It urges the valuer-general to conduct a valuation of the lands within a local government area on the predefined day or date of valuation.
It also effectively handles the valuation roll between the annual valuation period and revise an existing valuation or even create a fresh valuation reflective on the valuation date or in the current day. On the other hand, annual valuation updates the prevailing valuation to signify the land value as a new valuation day or even date of valuation. Maintenance valuation can be triggered on two dates, such as the current valuation day and new valuation day.
Practice Involved in Statutory Valuation
Statutory valuation is a valuation practice that handles legislation valuation, compulsory acquisitions, and rating and tax purposes. It follows a common practice such as
As failure to do so can the outcomes in claims of negligent practices made against the valuers
prices and fines can be conferred counter to an unsuccessful litigant
The API generates a guidance note with the specification for the practitioners to get familiarized with the legislative meanings and associated case law within the jurisdiction
FAQ on Statutory Valuation
What is the fundamental of valuation?
The fundamental of valuation is a statement of basic fundamental measurement assumptions of a valuation, and such standards specify the appropriate value of the basis. The bases of value depend on market value, market rent, worth and fair value. In this market, value is the basis of the highly essential value as it outlines an exchange between the parties who are not connected but operating easily in the marketplace. On the other hand, market rent is applicable for estimating a recurring payment instead of a capital sum.
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