General revaluation 2022

Rates won’t be affected until 1 July 2023. Subject to any owner or ratepayer objections, the new valuations form the basis for rating for the 2023/24 financial year.

Council rating valuations are one component in determining what portion of the District’s total rates you will pay. The total rates revenue that is required is set each year through council’s annual planning process. This total is then apportioned across ratepayers using a combination of factors, including fixed charges and the value of your property.

Not necessarily. An increase in your capital value does not automatically mean that your rates will increase.

All rate accounts are made up of rates based on the capital value (CV) of a property as well as rates charged as fixed amounts (fixed charges).

The rates impact on individual properties varies depending on whether the property CV has changed by more than, or less than, the overall increase in CV.

The final impact will also depend on the total amount of rates revenue that is required for the 2023/24 year and what the fixed charges increase by.

Rating valuations are calculated using mass appraisal techniques. They are not individual valuations of every property like those undertaken by private valuers. Mass appraisal valuations are used for all rating valuations in New Zealand.

When the value of your property is assessed, the valuer considers a number of factors, including:

• what properties are selling for in your neighbourhood
• type of property: house, town house, factory, shop, etc.
• changes to improvements made since the last valuation
• information about industrial and commercial rental trends obtained from market surveys

Value levels will be determined relative to 1 July 2022 market levels.

• Capital value: The assessment of the most likely selling price had the property (including building/s and all other improvements on the land but excluding chattels) been sold on 1 July 2022.
• Land value: The assessment of the probable price that would have been paid for the bare land as at 1 July 2022. It includes development work such as drainage, retaining walls and leveling, but disregards any buildings or other improvements to the property.
• Value of Improvements: This is the difference between the capital value and the land value. It reflects the value of the property’s buildings and other structures.  It is important to note here it does not mean the replacement cost of buildings and services on a property.

Capital value is an estimate of market value (excluding chattels) of the property as at 1 July 2022. Council valuations are used for setting rates and as such, they are not intended for other purposes such as for marketing or for mortgages. We strongly recommend that private registered valuations be obtained for these purposes.

Capital Values (CV) are for rating purposes. The CV is the likely price you could sell a property for at the date of your local council’s last general revaluation (this differs for each council across NZ). Market valuations are different to capital valuations or rating valuations in that it is the probable price that would have been paid on any given date.

When your property's rating value is reviewed there is a period after the revaluation is issued that you can submit an objection if you disagree with the new rating valuation. Objections must be in writing and can be lodged on line at ratingvalues.co.nz, on an objection form available from the Council, or by writing to QV. You may phone QV on 0800 787284 to discuss your revaluation values.

Any objection needs to include the following details:

• The valuation reference number
• The address of the property you’re objecting about
• A daytime contact telephone number
• Your postal address
• Your reason for objecting

• An estimate of what you believe is the true value of the property

For rating valuation purposes, potential rental income of a property is a factor that valuers need to consider when valuing an industrial or commercial property as these properties often sell on the basis of rental return relative to sale price. Rental information is not readily available in the public domain, hence this request is made under the provisions of Section 45 of the Rating Valuations Act 1998. This information will be treated as confidential except as required in a Court of Law. Any information provided will assist us to produce accurate rating valuations.

The Valuer General audits rating valuations to ensure the values and processes undertaken meet the standards set out in the Rating Valuations Rules. The Valuer General’s office, which is part of LINZ – Land Information New Zealand, checks the data and undertakes an audit of the council’s revaluation process to ensure its robustness and that it meets all legal requirements. Only when the Valuer General, is satisfied is approval to publish the proposed rating valuations given.