How we set rates and valuations

We base your rates bill on your property value. Under the law, we need to update our record of property values in Lower Hutt every three years; we last did this in 2019, so we’re due to do it again in 2022. We’ll be keeping this page updated with frequently asked questions and other useful tools as we start to issue revaluation notices.


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.

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.

Valuations are a snapshot of the market as at 1 September in the year of revaluation. The last time we went through revaluation was 2019, and we’re now doing it again in 2022 as we’re required under law to do this every three years.
Your updated property value is used to calculate your rates bill in the next financial year. In 2022, this means we’ll update your property value based on what we estimate your property would have sold for on 1 September 2022. The updated property value will then be used to calculate your rates bill from 1 July 2023.

Quotable Value (QV), an independent valuation service, undertakes valuations and sets values on behalf of Council every three years. Council records details such as floor and land area, building age, condition and location, on every property in New Zealand.

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.

Once we issue your revaluation notice, you’ll have the opportunity to object to your updated property value. We’ll add more information about the objection process soon.

We’ll be adding more information and tools as we start to issue notices of revaluation. If you’d like to read more about revaluation in NZ generally, head to QV’s website

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

Your rates are calculated based on different factors, depending 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 an owners name and postal address?

To access these details you'll need to come in to our office and request the information 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.

How can I withhold my name and address?

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:

  • In cases where a request to withhold is made, and there's more than one owner of  the property, all owner information will be withheld
  • Withholding details 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).

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