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: 28/11/2016 8:31 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.

Differential rating categories

All separate rating units in the District are allocated to the most appropriate rating category as determined by Council’s valuation provider. Land value applies to all categories.

Category 1 – Residential

All rating units which are used principally for residential or lifestyle residential purposes, including retirement villages, flats etc; but not including those rating units classified under Category 2 – Multi-Unit. 

Category 1(a) – Residential Step 1

All separate residential rating units described in Category 1 (above), on that portion of the property value, where the land value exceeds the District average residential land value from  approximately three point five times to approximately seven times. 

Category 1(b) – Residential Step 2

All separate residential rating units described in Category 1 (above), on that portion of the property value, where the land value exceeds the District average residential land value by over approximately seven times.

Category 2 – Multi-Unit

All separate 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 financial reward, including, but not limited to, hotels, boarding houses, motels, tourist accommodation, residential clubs, hostels, but excluding any properties which are licensed under the Sale of Liquor Act 1989.

Category 3 – Rural

All separate 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 4 – Commercial and Industrial

All separate rating units used principally for commercial, industrial or related purposes, which are not categorised as multi-unit or rural; or zoned for commercial, industrial or related purposes, but 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.

Category 5 – Miscellaneous Properties

All separate rating units being any other property not otherwise categorised.

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 Annual Plan. Follow the link below.

Definition of Separately used or inhabited part of a rating unit

A separately used or inhabited part is defined as a clearly identified part of a property (rating unit) that is capable of separate use or capable of being separately inhabited or occupied.   For a commercial rating unit this includes a building or part of a building that is, or is capable of being, separately tenanted, leased or sub leased.  For a residential rating unit, this includes a building or part of a building which is used, or is capable of being used, as an independent residence.  An independent residence means a self contained dwelling containing separate cooking and living facilities; separate entrance; and separate toilet and bathroom facilities.

Examples include:

  • Each separate shop or business activity on a rating unit is a separate part. 
  • Each dwelling, flat, or additional rentable unit (attached or not attached) on a residential property which is let (or capable of being let) is a separate inhabitable part.
  • Individually tenanted flats, including retirement units, apartments and town houses (attached or not attached) or multiple dwellings on Māori freehold land are separately inhabited parts.
  • Each block of land for which a separate title has been issued, even if that land is vacant.

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