Based on the information collected, the Inland Revenue officers will determine the value of your property. This is done using a formula, which is influenced by property sales in the same area. There may be other unique factors that influence the value. The value determined is the Market Value.
If the property is unique, that means there are no other similar properties that exist on the area or island, hence no sales data, then the department will use the Replacement Cost Approach. This is the cost to replace the property minus any depreciation. When the valuation is complete, the Department will issue a Certificate of Value (COV which will contain the specifics of the property, and the value on which the tax will be determined.
Periodically, property values will change as the market changes. The Inland Revenue Department will notify the owner of the revaluation. Officers from the Department may visit the property, to update the property information so the new value is based on the most accurate data. The owner will be sent a new COV stating the new value. The last revaluation was done in 2007.