Property value hikes hit ratepayers

Property owners concerned about paying their next rates instalment are being urged to review alternative payment options, such as rates rebates or remissions, on the council’s website.

The call comes after numerous property owners contacted elected members and the council’s rates team expressing surprise and anger at increased rates revealed by invoices sent out last month. Many say their first rates bill for the new financial year is significantly more than the 6.78 per cent total rates increase promoted by the council in July.

Kōwhai Deputy Mayor Kelly Stratford says that like other councillors she has fielded many calls from Far North property owners confused and concerned about the increases.

“They are telling me they are already struggling to make ends meet due to inflation and other cost of living increases and are dismayed by increased rates. People are facing real hardship and I’m urging them to contact our rates team to discuss payment options. But, please be patient as staff work through these requests.”

She explains that rising Far North land values are responsible for the lion’s share of increases seen by some ratepayers and that this has been repeated in many districts across Aotearoa. The council uses land value to calculate the general rates portion levied against individual properties. Land value does not affect targeted rates charged for services such as sewerage or water. All properties must be valued every three years, according to The Rating Valuations Act 1988, to help set the local council rates. The council appointed Quotable Value (QV) to undertake these property revaluations and its assessments reflect a property’s likely selling price on 1 October 2022.

“The value of some land types has increased dramatically since valuations were last conducted in 2019. For example, land zoned industrial in the Far North has increased in value by 120 per cent, horticulture by 54 per cent and residential by 77 per cent.”

However, this has not been spread evenly, she says. “Residential land values in Kaikohe have increased by close to 150 per cent, 176 per cent in Kaitāia-Awanui and 197 per cent in Moerewa-Kawakawa.”

The increases have resulted in a high volume of queries regarding rates to council staff, highlighting confusion about the impact of recent property revaluations. Stratford points out that increased land values do not mean the council is seeing a windfall in rates revenue.

"This does not change how much we have already budgeted to provide services to our communities. This has already been set through the Annual Plan and the Long-Term Plan. What it does change is the portion of the total general rates bill each landowner pays. This is determined by land value. If your property has increased in value more than the district average, the council is obliged by the Local Government (Rating) Act 2002 to increase the share you pay.”

Ratepayers struggling to pay their rates can find information about payment options on the Rates webpage. These include:

• Rates rebate scheme for low-income earners - with a maximum $750 rebate.
• Paying rates as a direct debit payment - you can pay weekly, fortnightly, monthly, or quarterly to spread payments evenly over the year.
• Remission policies and application forms to apply for this assistance.

You can also contact our Customer Services Team on 0800 920 029 for assistance.

You can still lodge an objection to QV regarding your property valuation. However, all late objections will only be approved if the following applies: 

• The property owner was out of the country between the objection notice and close dates and can provide proof of this (e.g. flight tickets).
• Proof can be provided that a change of address was requested but not actioned before notice.
• Other extenuating circumstances apply (e.g. recent extreme weather events).

Key facts

• The council does not collect more rates because of property revaluations.
• Your rates can only be changed if an error has been made or you have lodged an objection to your property revaluation with QV before 29 June 2023.
• QV is currently working through more than 1,000 objections, more than twice the number of previous revaluations and has sent extra valuers to inspect properties and process objections as quickly as possible.