The calculation of rating values (previously know as Government Valuations) and how they affect rates is complex and varies between council regions.
It is one of the factors used to calculate the rates that individual ratepayers need to pay.
The process we use to determine rating valuations is called mass appraisal and is used worldwide. We consider property attributes and relevant local sales around the time of the council revaluation. From this a market trend is established and then applied to similar properties.
Your chattels such as carpets, drapes, light fittings and other removable items are not included in the rating value.
A Property’s rating valuation is determined on a specific date – this is outlined in your owners notice as the effective date of the revaluation. It is the freehold market property valuation as at that date. Your rating value is typically updated every three years so it can vary from the current market value as time passes, particularly when the market changes. Property sales such as mortgagee/forced sales are not included in the sales analysis when we complete revaluations, so they don’t have any influence of dropping or increasing the values in your properties area.
The entire process is then audited by the Valuer Generals office and when finalised you are sent an updated owners notice for your property.
An owners notice, among other things, lists your property’s rating valuation. When we complete rating valuations we determine your land value and capital value based on the market sales. The value of improvements is the difference between the two of these. Value of improvements is not an estimate of the replacement cost and should not be used for insurance purposes. Click here to see an example of an owners notice.
During the review of your property there is a period you can object if you feel your rating value is not correct. This can only be done during your council’s revaluation period. Check our revaluation schedule or your Owner's Notice to see the date objections close.
If your objection period has closed and you want to update your rating valuation you have the option to do this. Find out more about Urgent Rating Value Reviews.
For more information and FAQ’s on rating values, mass appraisals, see our Understand your Rating value flyer. This information is also available in Maori, Samoan, Chinese and Tongan.