Rates are based on a valuation of the property. The Council contracts Quotable Value to perform three yearly property revaluations to reflect changing market values. The valuations are a snapshot of the market as at 1 August in the year of revaluation.
To provide fair, transparent and independent property ratings, the Council uses standard rating valuations which are governed by legislation - the Rating Valuation Act 1998 - and audited by the Office of the Valuer-General.
You will receive a notice of your rating valuation from Quotable Value once every three years; the last revaluation was completed in August 2014. The new rateable values are reflected in the property Rates Assessment Notice from the following rating year, commencing 1 July.
Any changes to the rateable values that occur within the three year period because of a subdivision of the property, a building consent or kitchen/bathroom improvements will be determined at the common date of August 2014.
The next triennial revaluation will be determined in August 2017. Ratepayers will be notified in late October 2017 and will be able to lodge objections if they don’t agree with the new valuation. The updated valuation will apply to the calculation of the property rates from 1 July 2018. In advance of the revaluation, property owners have an opportunity to check their property details are up to date.
The main indicator of a property's value is its worth on the current real estate market. The value is determined by looking at the selling price of other similar properties in the area. Any chattels such as carpets, drapes or light fittings are excluded from the valuation.
Note that that increasing the rateable value of a property does not automatically result in the equivalent rates increase for that property. The total amount of rates collected by the Council each year are allocated across the community using a combination of land value, capital value and fixed charges, with differential rates applied in some cases. Typically, where a property’s revaluation exceeds the average revaluation increase in an area, the property will have a slightly higher rates increase than the average. Conversely, a property that has a revaluation below the average revaluation increase for that area will have a slightly lower rates increase than the average.
This is the probable price that would be paid for the property as at the date of the latest general revaluation. It does not include chattels, stock, crops, machinery or trees. Residential values include GST, other property types do not.
This is the probable price that would be paid for the bare land as at the date of valuation. The Land Value includes any development work which may have been carried out, such as draining, excavation, filling, retaining walls, reclamation, grading, levelling, clearing of vegetation, fertility build-up, or protection from erosion or flooding.
This is the difference between the capital value and the land value. It reflects the value of the property's buildings and other structures.
The most common types of these improvements are:
Council forwards details of all building consents to Quotable Value. Before 1 July or when renovation work is complete, Quotable Value inspects the property and amends the rateable capital valuation to account for the work. The ratepayer will receive an valuation notice from Quotable Value reflecting the revised rateable valuation.
If you've done major work on your home that didn't require a consent, for example some kitchen redecorating, you can contact Quotable Value to have the improvements considered in the next general revaluation.
If you are unhappy with either the land or capital valuation of your property, you can lodge an objection with Quotable Value. This only applies immediately after a revaluation or update due to changes to your property. The objection process and timeframes are clearly outlined on the back of your assessment notice.
Quotable Value will review the objection and re-inspect the property. The objector will be advised of the outcome in writing.
If you don't meet the objection deadline, Quotable Value will take your concerns into account on the next revaluation or you can pay Quotable Value to do an immediate revaluation but the results cannot be used for rating purposes until the next rating year.
For more information visit the Quotable Value website, www.qv.co.nz