How we set rates and valuations

Find out how Hutt City Council sets rates and valuations.


Rates and valuations

Property rates are based on an independent property valuation which takes place every three years.

Council must value all properties for rating purposes under the Rating Valuations Act 1998 and the Local Government (Rating) Act 2002.

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.

Valuations are a snapshot of the market as at 1 September in the year of revaluation. Rates are then based on that property valuation.

2019 valuation dates


Valuation task

Date

Rating valuation date

1 September

Public notification of revaluation

5 November

Owners notices posted to property owners

11 November

Objection close date

23 December

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 (eg, landscaping and fencing) add to the land. It doesn't indicate the actual cost of building or landscaping.

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.

For an easy explanation of how the revaluations affect rates, check out this brochure (3.48MB)

Changes to your rates take effect at the start of the 2020/21 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.

Please contact our valuers, QV on 0800 787 284 or visit ratingvalues.co.nz for more about the Objections Process. QV will discuss with you any issues you may have or assist you in submitting an objection. There is a cost involved for this if it is outside the normal three yearly objection period. Objection forms are available from Council’s offices at 30 Laings Road, online at ratingobjection.qv.co.nz or download the objection to valuation form (PDF 96.4KB).

QV have a Rating Valuations Guide (237KB) that includes the answers to questions like:

  • How are Rating Valuations different to Full Market Valuations?
  • I have re-roofed my property recently. Does my Rating Value need to be updated
  • What do I need to do if I have just completed an extension to my property and would like my Rating Value to be updated?

We have also put together some answers to frequently asked questions (272KB) including:

  • What do Capital Value, Land Value and Improvement Value mean?
  • What do these new valuations mean for me?
  • What's a rates rebate?

For more information please download the Lower Hutt Revaluation 2019 presentation (982KB) by QV and the General Revaluation Brochure (3.48MB).

Find out about our rating system and how to look up rating information.

Your rates are calculated based on a number of factors, based on the value of your land and its uses.

Finding rating information for a property

You can find all Lower Hutt’s rating information on our property enquiry system.

This includes full information about a property, including how it's rated. This doesn’t include the name or postal address of the owner.

How can I find out an owners name and postal address?

To access these details you'll need to come in to our office and talk to us in person.

The Local Government (Rating) Act allows these details to be made available to the public, unless there's been a specific request to withhold them. The person requesting the information has to personally come into Council and make a request.

How do I withhold my name and address details?

If you'd like your name and postal address to be withheld from our public rating information, you'll need to make a request in writing, providing details for each property concerned. You can change this back at any time by writing to us.

Things to note are:

  • If there's more than one owner for a property and you request to withhold details for it, all owner information will be withheld
  • Even if you withhold details, they will still be publicly available as part of a property’s Record of Title Information, which is available through Land Information New Zealand

How the rating system works

Each rating unit (or property) is placed within a differential rating category, based on land use. Rates are calculated using these differentials.

For full details of how rates are calculated see the funding impact statement including rates for 2021-2022 (PDF 222.3 KB).

How is the current differential rating system calculated?

The following categories have been given differential weightings as outlined below:

Category

Differential rating

Charge per $ of capital value per rating unit (cents)

General rate

  

Residential (RES)

1.000

0.257612

Rural (RUR)

0.747

0.192436

Business

  

Commercial Central (BUC)

2.997

0.772187

Commercial Suburban (BUS)

2.781

0.716327

Utility networks (UTN)

2.842

0.732137

Community Facilities 1 (CF1)

1.000

0.257612

Community Facilities 2 (CF2)

0.500

0.128806

Community Facilities 3 (CF3)

2.344

0.603842

This means that the rates are set by the rate in the dollar multiplied by the differential rating.

Calculating your rates

How are my rates calculated?

The fixed charges (including GST) on each separately occupied portion of a property are:

Water supply

Serviced

$520.00 per part

Serviceable but not connected

$260.00 per part

Wastewater

First WC or urinal per rating unit

$559.00 each

For commercial properties: second and each subsequent WC or urinal per rating unit

$279.50 each

Recycling charge

Rating units in the residential and rural category receiving or able to use the recycling collection service

$105.00

Refuse charge

Rating units in the residential and rural category receiving or able to use the refuse collection service

80ltr $105.00

120ltr $144.00

240ltr $288.00

Residential and rating units able to be serviced but not receiving services $105.00

How are the rates in the dollar on the capital value broken down?

Your rates are broken down, based on your differential group, as follows:

 

GWRC rates* figures below are in cents

Differential group

WRS**

WGW**

General

Transport

Rivers

Residential (RES)

$16.10

0.1500

0.04359

0.04959

0.01715

Rural (RUR)

$32.20

 

0.04359

0.01250

0.01715

 

Business:

Commercial Central (BUC)

0.0802

 

0.04359

0.06120

0.01715

Commercial Suburban (BUS)

0.0802

 

0.04359

0.06120

0.01715

Utility networks (UNT)

0.0802

 

0.04359

0.06120

0.01715

Community Facilities 1 (CF1) (50%)*

$16.10

 

0.04359

0.04959

0.01715

Community Facilities 2 (CF2)

$16.10

 

0.04359

0.04959

0.01715

Community Facilities 3 (CF3)

$16.10

 

0.04359

0.04959

0.01715

*Hutt City Council collects rates on behalf of the Greater Wellington Regional Council (GWRC).

**Wellington Regional Strategy (WRS) funds the WRS including part funding of the economic development agency - Grow Wellington.

**Warm Greater Wellington (WGW) is the rate is set on those properties that utilise the WGW assistance to help install clean heat or insulation in their homes as a targeted rate of 15.00 cents per dollar of cost incurred (each year for nine years).

The Jackson Street Programme is a community based initiative to help reorganise and revitalise commercial activity in Jackson Street, Petone.

Business properties situated on Jackson Street between Cuba Street and Hutt Road are charged an additional rate, levied on the capital value at 0.074897 cents in the dollar to cover costs of the programme.

An example of a rating calculation

Let’s say your property is in differential class "residential" (RES), and has a capital value of $600,000. Your rates would be worked out as follows:

Hutt City Council rates:

Charges

$600,000 X 0.257612 divided by 100 =

$1,545.67

Water charge

$520.00

Waste water

$559.00

Recycling charge

$105.00

Refuse charge

$144.00

Total Hutt City Council rates

$2,873.67

GWRC rates:

Charges

$600,000 X 0.110346 divided by 100 =

$662.08

Wellington Regional Strategy Rate

$16.10

Total GWRC rates

$678.18

Total all rates

$3,551.85

Council contracts Quotable Value New Zealand to undertake the valuation process. For more information, visit their website or call 04 576 4455.

We collect rates on behalf of the Greater Wellington Regional Council (GWRC). You can find out more about these on the GWRC website.