What is the approximate amount of the rate reduction? Is it done on a 'pro rata' basis based on land area? For example, my current annual rates for the whole property is total $2,500; if I covenant say 75% of the total land, is the rate payment reduced by 75%?
The rate reduction is not pro rata. The value of the “non-covenanted area”, say 25%, and the improvements on this part of the property are the aspects which attract rates charges. The reduction occurs against those items that are based on ‘land value’ – see typical rates charges below. The items in bold are the ones that are affected by rating relief, the other items are not affected by the covenant so that full figures still apply.
COUNCIL - FNDC rates
RUAC - Roading Rate Uniform Rate
RLIFE - Roading Rate Lifestyle Differential - LV - Land Value
06U01 - General Rate Uniform Annual General Charge
06U5C - Ward Service Rate
06WSG - General Rate General Differential - LV - Land Value
EXTERNAL - Regional Council rates
NRCSERV - NRC Council Services Rate
NRCH2O - NRC Fresh Water Management Rate
NRCPEST - NRC Pest Management Rate
NRCFLOOD - NRC Flood Infrastructure Rate
NRCCIV - NRC Civil Defence and Hazard Management Rate
NRCEMSERV - NRC Emergency Services Rate
NRCSPORT - NRC Sporting Facilities Rate
NRCBUS - NRC Far North Transport Rate
06NR2 - NRC Land Management Rate - Far North District
NRTI - NRC Infrastructure Rate - Far North District
Once the covenanted area has been established, the covenanted and non-covenanted areas will be revalued. Bearing in mind that the non-covenanted area is the ‘developed area’ and will have the greater value, even if the covenant covers the greater proportion of the land, that land may have a lower valuation than the relatively small ‘developed’ land area.