Rating Valuations

Rating Valuations are based on market values. They are a snapshot of the market at a fixed point in time. By law local authorities are required to update the values at least every three years. Quotable Value New Zealand is contracted by the Council to maintain the rating valuations in the District and carry out the revaluation. The revaluation process is audited by the Office of the Valuer General before new valuations are posted to owners. The values used for the 2011/12 rating year are set at 1 July 2008.

Because they are a snapshot at a particular time and because the market sometimes moves very quickly, rating valuations do not necessarily reflect current market value for long.

Land value is the market value of the unimproved land and capital value is the market value of the improved land, including any dwelling or buildings (but not including chattels – carpets, curtains, furniture etc.). The improvement value is merely the difference between capital value and land value and is not related to the construction or installation cost of any improvements.

What is the Rating Valuation Used For?

Land value is used as the basis for setting the Waimakariri District Council rates. Environment Canterbury use capital value as the basis for most of their rating.

Some rates are set on a uniform basis per property, regardless of value. This is illustrated in the current year where the average valued residential property derives only 35% of its total rates based on the land value. As the land value increases, a greater proportion of rates are calculated on land value.

How Does the Revaluation Affect My Rates?

Council rating revenue does not increase as the result of a revaluation but the incidence of rating between ratepayers can change.

Generally those ratepayers whose property value has increased less than the average increase will pay less rates and those whose property value has increased by more than the average will pay more as a result of the revaluation. For most ratepayers these changes are not significant unless their value change is significantly different than the average change.

The amount of rates on a particular property is also affected by the total amount of rates revenue required to fund the services and programmes approved by the Council in the annual budget, and the number of new properties created through growth.

Objections to Values

Property owners have a statutory right to object to their rating valuation following a revaluation. Information on the objection process and time frames for objection will be advised with the valuation notices.

Earthquake Damage

Damage to property caused by the Canterbury Earthquakes has required some changes to how the Council manages its rating valuations.

Some of the requirements of the Rating Valuations Act have been temporarily suspended and modified until normal rating valuation practice can be resumed.

• The triennial revaluation due on 1 July 2011 has been delayed by one year. The next revaluation will have an effective date no later than 1 December 2012
• Rating valuation roll updates for the 2011/12 year are limited to where:
• rating units are created or abolished, or the boundaries between rating units are adjusted;
• new work or building takes place which increases the value of improvements beyond that currently on the District valuation roll for that rating unit;
• errors exist that pre-date 4 September 2010;
• there are omissions from the District valuation roll;
• individual buildings on a rating unit have been totally demolished or total demolition has been ordered by the territorial authority, the Canterbury Earthquake Recovery Authority or the National Civil Defence Controller;
• changes have occurred to an operative District Plan; or
• administrative alterations permitted under rule 4.1 of the Rating Valuations Rules 2008.
• The Council is exempted from undertaking new valuations at the request of ratepayers until the next District revaluation.