Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Property revaluations for council rates must be reformed

Property revaluations for council rates must be reformed.


Opportunity to bring controls on rating value changes and more equitable level of annual rates increase

Early indications of the latest 3-year revaluation for council rating purposes show that once again there are going to be winners and losers when next year’s rates are set.

Despite loud noises about rates reform from Auckland’s Mayor and other councils, and promises of action from Local Government New Zealand, nothing looks like changing, and the property revaluation exercises every three years only increases the level of unfairness in the current system.

Most councils receive more than 60% of their operating costs from rates and water rates, despite warnings that such a level of rates income will soon make rates unaffordable for many ratepayers.

Reform is needed and soon, and a start should be made on the revaluation system which causes rates to rise disproportionally and affecting ratepayers who have had no or little change in their financial circumstances.

In any reform of local government funding it is inevitable and generally accepted, that some form of property tax will form part of a total funding package.

With that in mind I suggest a change in the valuation process, initially for residential properties.

Call the new system Council Tax Value.

· All residential properties would be given a Council Tax Value [CTV] as at the latest revaluation date.
· Each year all values would be increased by 2% on the previous year’s value.
· Values of individual homes would also be changed when they were sold and the actual sales price would become the new CTV.
· The CTV would also be changed if additions or alterations requiring a building and/or resource consent were carried.
· The change would generally be upward to reflect increase in value from the additions, but would apply if property was subdivided and value reduced as a consequence. In that event the new property created would be given an initial CTV.
· This process would remove the requirement for tri-ennial revaluations, and would avoid the swings in Rating Valuations under the present system which leads to, often significant, changes in rating incidence on individual properties.
· Under the CTV system most residential ratepayers would face percentage rate increases very close to the average.
· This would result in a more stable valuation environment without the three-yearly bout of stress faced by many ratepayers who appear bewildered by the justification for changes to their rates bill.
· It would be imperative under a CTV system that Real Estate Agents were prohibited from using the CTV as a guide to market value. [Real Estate agents amass their own sales statistics for use in marketing and selling.]

Furthermore…

The CTV system also offers an opportunity to set limits to rate rises by setting a percentage of the CTV as the fixed annual increase a council can levy for a specified period.

This is similar to the so-called Proposition 13 arrangement in California.

For example a levy of 0.3% on a property with a CTV of $450,000 would produce $1350. The following year the annual 2% increase on CTV would add $9000 to the value and the tax would increase to $1377.

This type of approach could be used to reduce the reliance of councils on rates and concentrate everyone’s efforts to finding alternative funding sources.

ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Pre-Caucus Audio:
David Cunliffe And
The Future Of The
Labour Party

David Cunliffe met with the press today after Saturday’s disappointing election result for The Labour Party.

“We are all deeply concerned by the result of our party vote. I want to be clear that I, as leader, am responsible for that result” Cunliffe said. Although he called the results “deeply disappointing” Cunliffe said “the voters are always right”.

He felt that Labour needed to make improvements and take action: “We don’t need months to get feedback from members of the public, we've had a lot over the past 48 hours”. More>>

Update: After a seven hour caucus meeting David Cunliffe has announced Chris Hipkins and Carmel Sepuloni as new party whips and said the Labour council will hold an independent review into the election result. He did not comment on any leadership vote.

 

Gordon Campbell: On Labour’s Very Bad Year

While Labour leader David Cunliffe still appears to be in denial about the extent of Saturday night’s debacle, there was hardly a single redeeming feature about the election results for the centre-left... More>>

ALSO:

General Election NZ: National Win

Election Night: With almost all votes counted National and John Key have won a third term and are close to being able to govern alone if they so choose. Key has indicated he will still reach out to form a Government with ACT, United Future and Maori Party. More>>

ALSO:

Perfectly-Timed Anniversaries: Suffrage Day Is Last Chance To Enrol

“The last chance to enrol is Friday 19 September. You can’t enrol on election day.” More>>

ALSO:

Gordon Campbell: On First Time Voting (Greens)

For the last two days, I’ve turned my column over to a couple of guest columnists who are first time voters… Today’s guest columnist is Ana Avia-O’Connor, who will be casting her first time vote on Saturday for the Greens. More>>

ALSO:

Meddling: Aussie Liberals Embroiled In Key Campaign

John Key needs to explain why Australia’s Liberal Party is interfering in New Zealand domestic politics and is encouraging Kiwi voters across the ditch to vote for National just days out from the election, Labour’s campaign spokesperson Annette King says. More>>

ALSO:

SURVEILLANCE:

Election Ad Soundtrack: Rapper Eminem Sues National Party Over Copyright Breach

US rapper Eminem is suing the New Zealand National Party for alleged copyright infringement over unauthorised use of the rapper’s ‘Lose Yourself’ song in an election campaign advertisement. More>>

ALSO:

Big March: Call For An End To Domestic Violence

Hundreds of protesters marched down Lambton Quay to Parliament Monday calling for an end to domestic violence. Wearing white facemasks, waving banners and calling for “safety” for the women and children of New Zealand.. More>>

ALSO:

Pre-Election Chartering: Four New Partnership Schools To Open

Education Minister Hekia Parata today announced the Government has signed contracts to open four new Partnership Schools in 2015. More>>

ALSO:

Werewolf 50 Out Now - The Election Issue: Loss Leaders

Gordon Campbell: A third term requires a mature decision, with eyes wide open. It calls for a conscious vote of confidence… Without trying hard here are about 19 reasons, in no particular order, for not ticking ‘party vote’ National. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news