Media Release: Tuesday 2 June 2015

Rating system to be combination of Land Value and Capital Value

Horowhenua District Council is to change its rating system to a combination of both Land Value and Capital Value-based systems for the next 10 years.

The rating review was one of the key issues in the Draft Long Term Plan 2015 - 2025, due to be adopted by Council later this month.

As part of recent LTP consultation Council had proposed that the way it rates be changed from a Land Value-based system to one based on Capital Value..

There were around 180 public submissions received, with 122 wanting Land Value system to be retained, 45 supporting the proposal to change to Capital Value, and 10 in favour of a combination of both. A further four submissions stated no preference.

Horowhenua District Mayor Brendan Duffy says a combination of Land Value and Capital Value will still address Council objectives that include a fairer and more equitable rating system, but to a lesser degree.

Mayor Duffy says it introduces some Capital Value elements into the rating system now, while allowing future Councils the time to address the rating system to further enhance equity and fairness. This may be to increase the Capital Value component but may also include enhanced use of targeted rates, where particular costs are targeted to specific users.

The change to the rating system will see the General Rate based on Land Value (retaining the Rural Differential at 25%) while the Roading Rate will be Capital Value-based with two differentials (Business and District-wide Other). Differentials are used to identify specific areas required to pay different rates.

The Stormwater Rate will also be based on Capital Value and set on all urban properties (the same properties as the current urban Solid Waste Rate).

Council will introduce an “Availability” Differential on the Water and Wastewater Rate to be set at 50% of the fixed charges for each;

An Aquatics Rate would be set as a fixed charge District-wide, dispensing with the current extra Targeted Rate on Levin, Foxton and Foxton Beach.

All residential rest homes and retirement villages (excluding those set up under a body corporate that have individual rating units) will be contained within the Business Differential.

All other Targeted Rates would remain unchanged.

ENDS

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