Rates and Payments
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Rating System

Image for the Rating System page.
 
This page contains information on how land use affects the rates that are charged on your property.
Updated: 1/07/2018 12:00 a.m.

Rates are calculated using a differential rating system that is based on land use.

The system first classifies a property as either:

  • residential or lifestyle
  • multi-unit 
  • rural farming
  • commercial and industrial
  • miscellaneous

The property is further classified to indicate whether it receives targeted rates, a rates remission or is fully or partially non-rateable.

Rates

These rates are based on the funding requirements set out in the Long Term Plan (LTP) together with the land values, capital values and property numbers included in the Council's Rating Information Database.

General Rates

General rates are set under Section 13 of the Local Government (Rating) Act 2002. Council proposes to set a general rate for all rateable land in our District.

The general rate will be made up of a uniform annual general charge (UAGC) and a value-based general rate.

Value Based General Rates

The value-based general rate will be assessed on the land value of each rateable rating unit in our District.

The general rate will be set on a differential basis based on the category of land use or, in certain circumstances, land zoning.

Where a property is used for more than one purpose the value of the property will be apportioned between the different categories.

Subject to legal rights of objection, it shall be at the sole discretion of Council to determine the use or principal use of any rating unit.

The value-based general rate for a given property will be assessed by multiplying the land value of the rating unit by the rate per dollar that applies to the category of land use.

Differential Basis

All rating units in our District are allocated to the most appropriate category based on the use to which the land is put or, in specified circumstances, the land's zone. The categories are:

Category 1: Residential

All rating units which are used principally for residential or lifestyle residential purposes, including retirement villages, flats and apartments.

Category 2: Multi-unit

All rating units used principally for residential purposes and on which is situated multi-unit type residential accommodation that is used principally for temporary or permanent residential accommodation for commercial purposes, including, but not limited to hotels, boarding houses, motels, tourist accommodation, residential clubs, hostels, but excluding any properties which are licensed under the Sale and Supply of Alcohol Act 2012.

Category 3: Miscellaneous properties

All rating units being any other property not otherwise categorised.

Category 4: Rural

All rating units which are used principally for agricultural, horticultural, forestry, pastoral or aquaculture purposes, or for the keeping of bees, poultry or other livestock.

This does not include properties which are used for non-economic lifestyle residential purposes, generally 20 hectares or less, and where the value of the land exceeds the value of comparable farmland.

Category 5: Commercial and industrial

All rating units used principally for commercial, industrial or related purposes or zoned for commercial, industrial or related purposes, and not otherwise categorised.

For the avoidance of doubt, this category includes properties licensed under the Sale and Supply of Alcohol Act 2012; and private hospitals and private medical centres.

50% Non-rateable

Includes land referred to in Part 2, Schedule 1 of the Local Government (Rating) Act 2002.

This land is 50% non-rateable for all rates except for specific targeted rates (e.g. sewer and water) which are fully rateable.

Non-rateable

Includes land referred to in Part 1, Schedule 1 of the Local Government (Rating) Act 2002.

This land is non-rateable for all rates except for specific targeted rates (e.g. sewer and water) which are fully rateable.

Local Government (Rating) Act 2002, Schedule 1 (NZ Legislation website) Opens in a new window.

For further definitions of categories please refer to the Funding Impact Statement in our Long Term Plan.

Definition of Separately used or inhabited part of a rating unit

A separately used or inhabited part is defined as:

  • any part of a property (rating unit) that is separately used or occupied, or is intended to be separately used or occupied by any person, other than the ratepayer, having a right to use or inhabit that part by virtue of a tenancy, lease, license, or other agreement
  • any part of a rating unit that is separately used, or occupied, or intended to be separately used or occupied by the ratepayer.

Examples include:

  • each separate shop or business activity on a rating unit
  • each occupied or intended to be occupied dwelling, flat, or additional rentable unit (attached or not attached) on a rating unit
  • individually tenanted flats, including retirement units, apartments and town houses (attached or not attached) or multiple dwellings on Māori freehold land on a rating unit
  • each block of land for which a separate title has been issued, even if that land is vacant.

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