Rates and Valuations

Quotable Value (a Government department) has recently posted out revised rateable valuations to the owners of all properties in the Waimakariri District.

Note that Waimakariri rates on land value, whereas most Canterbury councils, including ECan, Christchurch, Selwyn and Hurunui, rate on capital value.  This can make it difficult to compare Waimakariri rates with our neighbours’.

People often think that when their valuation goes up in one of these exercises, that their rates will also go up.

This is not necessarily the case.

If your property goes up in value, but less than the rise in the value of the average property, your rates will actually go down.  If your value is the same as that of the average property, your rates won’t change.  It is only if your propery goes up by more than the average rise in value that your rates will go up.

The same sort of formula works if your property and/or the District average goes down in value.

There are, however, a number of other reasons why your rates can change (either up or down) in any particular year.  The most obvious one, of course, is that the Council wants more or less money in the coming year as compared to the previous year.  Other reasons include a change in the mix of uniform charges and rates-in-the-dollar of-property-value.  If the council were to change from land value to capital value based rating, that would also cause some rates to rise and others to go down.

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