(This note is not part of the Order)
Under paragraph 3(2) of Schedule 6 to the Local Government Finance Act 1988, the Secretary of State may by order provide in the case of non-domestic hereditaments to be shown in the central rating lists for England and Wales that the normal rules of valuation for rating contained in paragraphs 2 to 2B of that Schedule shall not apply, and instead their rateable value shall be such as is specified, or determined in accordance with rules set out, in the order.
Article 4 provides that paragraphs 2 to 2B shall not apply in respect of railway hereditaments entered in the central rating list for England or the central rating list for Wales in accordance with the Central Rating Lists Regulations 1989 (S.I.1989/2263), and that the rateable value of such hereditaments is to be determined in accordance with the Order.
Part II provides for valuation of railway hereditaments occupied (or, if unoccupied, owned) by Docklands Light Railway Limited. In the years 1990/4 their rateable value is to be as specified in the Order. It is adjusted after 25th April 1992, the day on which the Isle of Dogs Enterprise Zone terminates. It is adjusted in years beginning on and after 1st April 1994 by reference to the number of passengers carried on the railway in the preceding year.
Part III sets out formulae for determining the rateable values of railway hereditaments occupied (or, if unoccupied, owned) by the British Railways Board, London Underground Limited and the Tyne and Wear Passenger Transport Executive, by reference to the figure in columns 1 and 2 of the Schedule to the Order. The amount specified in column 1 (the target amount) provides the basis for calculating the rateable value, and column 2 specifies an amount (the base amount) which has been calculated by reference to the amount payable by each railway operator by way of contributions in lieu of rates in the financial year 1989/90. For 1990/1 the rateable value of any class of hereditaments is the target amount, unless that amount exceeds by more than 20 per cent.(or is less than 89.5 per cent. of) the base amount divided by the national non-domestic rating multiplier applicable for that year under the 1988 Act, in which case it is the latter. Where the target amount does not apply in 1990/1, the transitional provisions of articles 11 to 14 apply for later years until the year in which they produce an amount which falls below (or exceeds) the amount produced by the standard formula (the target figure adjusted for that year in accordance with Part V). For that year and later years the standard formula applies.
Part V provides for annual adjustment by reference to variations in traffic.