General Valuations 2021
The Rating Valuations Act 1998 requires that every property in New Zealand is revalued for rating purposes at least once every three years.
The last revaluation for the Waitomo District occurred in September 2018 and therefore the revaluation is due to be undertaken again in September 2021. The new values will be first used for rating purposes from 1 July 2022.
Rating values are assessed on behalf of Council by Quotable Value using a ‘mass-appraisal’ process. This method is used all over the world and takes into consideration your property’s attributes and the value of local sales.
The Capital Value reflects the probable price that would be paid for the property if it had been for sale at the date of the general revaluation. This valuation does not include chattels, dairy company shares, stock, crops, machinery or trees. The valuation is deemed to include GST (if any) for residential property, and exclude GST for other property types.
Highest and Best Use
The valuation is made on a “highest and best use” basis, rather than the existing use. For example, a smaller pastoral block may have a higher value as a lifestyle residential property, and a smaller farming property on the outskirts of a larger urban township may have a higher value as a residential subdivision.
Will the new valuations affect my rates?
All owners and ratepayers will receive notice of their revised values in December this year. These notices detail the new Capital Value of your property as at 1 September 2021. You property’s capital value is just one of the components used to calculate your rates. A change in a property’s capital value does not automatically mean that your rates will increase or decrease by a similar percentage.
For most urban properties, only a small portion of the annual rates is based on property value. Uniform Annual General Charges (UAGC) and uniform charges for water supply, wastewater, solid waste collection and recycling make up a larger part of the annual rates and these charges are not based on property values.
However, the revaluation can result in a change to the rates charged to individual properties with some increasing and some decreasing because the rates charged on the basis of capital value are split among properties proportionally.
If you think of Council’s rate income as a pie, the size of the pie does not increase because of the revaluation. However, an individual ratepayer’s slice of the pie might get bigger or smaller depending on how their property value has changed in relation to the average change for the district.
Once you receive your valuation notice in December, you will have the opportunity to object if you disagree with your property’s new valuation.