The Differential Rating System Details

Details of the current differential rating system are as follows:

Differential Rating Details

Each rating unit is allocated to a differential rating category (based on the land use) for the purpose of calculating the general rate, or any specified targeted rate based on capital value.

Set out below are the definitions used to allocate rating units to categories, together with details of the differential rating relationships between each category of rating units for the purposes of setting and assessing the general rate. The relationships are calculated to produce, as near as is practicable, the correct proportion of general rate revenue from each group, as is indicated by the Council's Funding Impact Statement.

For the 2010/2011 rating year, only the general rate will be set using these differential categories and relationships.

(A) Definition of Rating Categories

Category	Description
Residential (RE)	All rating units in the City which - are used primarily for residential purposes; or are used or set aside for reserve or recreational purposes (other than East Harbour Regional Park); excluding properties categorised as Rural.
Rural (RU)	All rating units in the City which are- used primarily for any purpose other than residential, commercial, industrial, recreational or reserve; or used primarily for residential purposes, having an area in excess of 3,000m², but not connected to both water and sewerage reticulation; or East Harbour Regional Park.
Business Accommodation (BA)	All rating units in any part of the City, other than the area which was formerly the district of the former Eastbourne Borough, which are used primarily for commercial accommodation.
Business Central (BC)	All rating units which are located within the Central Area Parking District and which are used primarily or predominantly for commercial and/or industrial purposes, excluding properties categorised as: Utility Networks; or Business Accommodation
Business Suburban (BS)	All rating units in any part of the City which are used primarily or predominantly for commercial and/or industrial purposes, excluding properties categorised as: Community Facilities; or Business Central; or Utility Networks; or Business Accommodation
Utility Networks (UN)	All rating units, which comprise all, or part of a utility network.
Community Facilities 1 (CF1)	All land in the City which is non-rateable in terms of the Local Government (Rating) Act 2002; or All land in the City which is 50% non-rateable in terms of the Local Government (Rating) Act 2002.
Community Facilities 2 (CF2)	All rating units in the City occupied by charitable trusts and not for profit organisations which either: Use the land for non-trading purposes for the benefit of the community; or Would qualify as land which is 50% non-rateable in accordance with Part 2 of Schedule 1 of the Local Government (Rating) Act 2002 if the organisation did not have a liquor licence; But excluding any rating unit used for residential purposes.
Community Facilities 3 (CF3)	All rating units in the City occupied by not for profit community groups or organisations whose primary purpose is to address the needs of adult members for entertainment or social interaction, and who engage in recreational, sporting, welfare or community services as a secondary purpose.

For the purposes of these definitions:

Rating units which have no apparent land use (or where there is doubt as to the relevant use) will be placed in a category which best suits the activity area of the property under the Proposed District Plan.
Rating units which have more than one use (or where there is doubt as to the relevant primary use) will be placed in a category with the highest differential factor.
Central Area Parking District means the Central Area Parking District as defined in the Proposed District Plan City of Lower Hutt.
For the avoidance of doubt, "commercial purposes": includes rating units used:

(a) as a hotel, motel, inn, hostel or boarding house; or
(b) primarily as licensed premises; or
(c) as a camping ground; or
(d) as a convalescent home, nursing home, rest home or hospice operating for profit; or
(e) as a fire station; or
(f) by a government, quasi-government or local authority agency for administration or operational purposes; or
as an establishment similar to any of the kinds referred to in paragraphs (a) to (f) above except to the extent that any such rating unit is non-rateable land in terms of the Local Government (Rating) Act 2002.
A "utility network" includes:

          (a) A gas, petroleum or geothermal energy distribution system;
          (b) An electricity distribution system;
          (c) A telecommunications or radio communications system;
          (d) A wastewater, stormwater or water supply reticulation system.

7. Commercial accommodation" means the provision of accommodation for more than 5 persons (with or without any care, medical or other treatment or services) in the course of business, and to that extent includes:

         (a) a hotel, motel, inn, hostel or boarding house; or
         (b) any licensed premises where the provision of accommodation is the              primary use; or
         (c) a camping ground; or
         (d) a convalescent home, nursing home, rest home or hospice operating for profit

Subject to the right of objection set out in section 29 of the Local Government (Rating) Act 2002, it shall be at the sole discretion of the Council to determine the use or primary use of any rating unit in the City.

(B) Relationships of Differential Categories

The rate in the dollar made and levied in respect of each specified category of rating units shall vary from the rate in the dollar in respect of any other specified category of property as set out below:

Category	Differential Factor
Residential (RE)	1.00
Rural (RU)	0.65
Business Accommodation (BA)	3.00
Business Central (BC)	3.70
Business Suburban (BS)	3.40
Utility Networks (UN)	2.50
Community Facilities 1 (CF1)	1.00
Community Facilities 2 (CF2)	0.50
Community Facilities 3 (CF3)	2.50