Council is required to value all properties for rating purposes under the Rating Valuations Act 1998 and the Local Government (Rating) Act 2002.
Who undertakes the valuations?
Quotable Value (QV), an independent valuation service, undertakes valuations and set values on behalf of Council every three years. Council stores details on every property in New Zealand such as floor and land area, age of buildings, condition and location.
QV determines the value of properties by looking at the sale prices of properties, and the value of building consents in the area. QV uses this data to determine a value trend to apply to different property groups.
Some properties are inspected throughout the year to make sure details are updated where changes have occurred; QV is notified about changes as part of the building consent process.
The valuations are a snapshot of the market as at 1 September in the year of revaluation, and rates are based on a valuation of a property.
How is my property valued?
Valuations are made up of:
Capital value: the approximate price that would be paid for the property at the valuation date. It’s the total of the land value and improvements value, the total value of your property. It excludes chattels, stock, crops, machinery or trees. Residential values include GST, other property types do not.
Land value: the approximate price that would be paid for the bare land. It includes work such as drainage and excavation.
Improvement value: is calculated by subtracting the land value from the capital value. It represents the extra value the buildings and other improvements (e.g. landscaping and fencing) add to the land. It doesn't indicate the actual cost of building or landscaping.
Why have rating values increased?
The collective sale prices of properties across New Zealand have increased, and Lower Hutt is no exception.
QV's valuations are a snapshot of the market as at 1 September in the year of revaluation. Council’s rating value should not be taken as a market appraisal.
How does this change impact my rating valuation (rates)?
Changes to your rates will not take effect until July 2017 upon the start of the 2017/18 financial year.
Rates are proportional, and any increase in rating values does not have a proportional effect on what is paid in rates. For example, the amount it costs Council to operate the city road network, parks and playgrounds, three waters (wastewater, storm water and freshwater), libraries, aquatic services, community services and other key facilities are not tied to any change in city-wide property values.
Council’s Annual Plan process is when Council announces new city-wide projects and initiatives and any likely implications to rates.
What if I disagree with my valuation?
Objection to the revised valuations must be lodged in writing or online at Ratingvalues.co.nz no later than 23 December 2016. Forms are also available from Council’s offices at 30 Laings Road, Lower Hutt or can be downloaded (PDF 301 kb).