What does revaluation mean for me?

Local authorities use information on individual properties, contained in the district valuation roll, to set rates.

Every property in New Zealand must be revalued for rating purposes at least once every three years according to the Rating Valuations Act 1998. QV Rating is contracted by the council to assess each property’s capital value and land value for rating purposes. The latest valuations are as at 1 September 2007.

Valuation notices are also issued between revaluations when changes are made to properties. These include:

• Subdivision of land
• Amalgamation of more than one piece of land
• Changing land use
• Erecting new buildings
• Adding/altering/demolishing existing buildings
• Changes in Resource Management Plans

How does the council know when changes have been made to my property?

The council has copies of all survey plans and building consents. If you make changes to your property which are likely to affect its value, but which are not covered by either of these approval processes, please advise us so we can update our records and amend the property’s value if necessary.

Will revaluation increase my rates?

Changes in valuations may result in changes to your rates as a result of:

• Changes to the legal description as a result of subdividing
• Changes to the land area
• Improvements on a property
• Changes in Resource Management Plans

Local authorities levy rates in different ways. They can levy rates based on:

• Capital value
• Land value
• Annual value
• A combination of capital and land values
• The use of rating differentials and uniform annual charges
• The Wanganui District Council uses a combination of capital and land values plus applies some rating differentials and uniform annual charges.

Changes to your rates are most likely to occur when the change in rateable value for an individual property is different from the average change in rateable value for that class of property.

What is capital value?

This is the assessment of the probable price that would have been paid for the property if it had been for sale at the date of the last general revaluation (as shown on your Notice of Rating Valuation). A capital value does not include chattels, stocks, crops, machinery, goodwill or plantation trees.

What is land value?

This is the probable price that would have been paid for the land as at the date of valuation. The land value includes any development work which may have been carried out, such as draining, excavation, filling, retaining walls, reclamation, grading, levelling, clearing of vegetation, fertility build-up, or protection from erosion or flooding.

What does ‘value of improvements’ mean?

This is the difference between the Capital and Land Value. It reflects the additional value given to the land by any buildings, other structures or cropping trees and vines present on the property, and any landscaping that adds value to the land.

What is annual value?

Annual Value (where assessed) is the greater value of either the estimated gross annual rental less 20% (or 10% if there are no buildings on the land) or 5% of the property’s Capital Value.

Who is the ratepayer?

The owner is the ratepayer, unless the owner can prove that there is a lease in place that meets the statutory definitions for the lessee to be the ratepayer (Section 11, Local Government (Rating) Act 2002).

The valuers consider all property sales which occurred in your immediate area around the date of the latest general revaluation to assess land value and capital value. When assessing annual value, the valuers consider market rental evidence for properties in your immediate area around the date of the latest general revaluation. For all these value types, a market trend is then established and applied to all like properties in your area.

You can object to the valuation of your property and, when there has been a general revaluation, you may object to the valuation of any other property appearing on the district valuation roll. If there is any data on the Notice of Rating Valuation which is incorrect, please advise us so that we can correct it.

You are encouraged to telephone QV Rating on 0800 787 284 to discuss your concerns first. If you wish to pursue the matter, you will then need to lodge an objection in writing before the closing date for objections shown on the front of your Notice of Rating Valuation. The objection can be either on an official form (available from QV) or in a letter. In your objection you will need to state the valuation reference number, the address of the property, a daytime contact telephone number, your mailing address, your reason for objecting, and an estimate of what you realistically believe the value should be. You may appoint someone else to act on your behalf.

What happens if I lodge an objection?

A valuer may contact you to arrange an appointment to reinspect your property to verify the property records and update them where necessary. You will be advised in writing of the decision on your objection. If you are still not satisfied, you may seek to have your objection heard by the Land Valuation Tribunal. You will need to pay a hearing fee.

At the Land Valuation Tribunal hearing, you will be required to state your estimate of the value and provide evidence to support your claim. This evidence would normally be information about sales of similar properties which occurred at, or near, the date of the valuation being objected to. The Land Valuation Tribunal will make a decision based on the evidence presented.