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 North Shore City to 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 2009/10 rating year are set at 1 September 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?
In North Shore City land value is used as the basis for setting rates. Not all rates are set on the value basis. 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. The higher the land value of a property, the greater proportion of its rates are calculated on land value.
How will the 1 September 2008 values affect my rates?
One of the most misunderstood parts of the revaluation process is the effect on rates. Council rating revenue does not increase as a result of a revaluation but can change the incidence of rates between ratepayers.
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.
Business land values have tended to increase significantly more than residential for a variety of reasons. This will not, however, result in a higher proportion of rates being paid by the business sector as the council collects 26.5 per cent of total rates from the business sector regardless of values. As for residential however, the revaluation may change the incidence of rates between ratepayers.
What rates you pay next year will also be affected by the total amount of rates revenue required to fund the services and programmes Council approved when it adopted the 2009-2024 City Plan.
Can I object to the new values?
Property owners have a statutory right to object following a revaluation if they feel they have grounds. The notification of the 2008 revaluation was posted on the 29 October 2008 and the last day for objection of the September 2008 values was 4 December 2008. The Revaluation Notice included contact details for lodgement of an objection.
Who can I speak to?
If you have questions about the valuation process, or wish to make an objection you need to call Quotable Value on 0800 787 284 or (04) 499 2571. You can also write to Quotable Value Ltd on PO Box 5019, Wellington. Please be aware that the official objection period closed on 4 December 2008 so there is no longer an automatic right of objection.
