Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search


Property Valuation Increase And Rate Rise Link Needs Sorting

Property Valuation Increase And Rate Rise Link Needs Sorting

Councils need reminding that skyrocketing property values doesn’t change the level of a Council’s services and therefore shouldn’t result in higher rates.

With the New Zealand Chambers of Commerce, the Auckland Chamber is leading an initiative calling on Mayors and councillors to seek an improved rating model that clearly decouples the link between property valuation and setting rates.

“Rates pay for services delivered by councils. If the level and cost of services provided don’t change, then it is wrong and unfair for a council to impose rate increases just because the value of the property has increases.

“All that does is treats rate payers as cash cows, and is a form of progressive tax,” said Michael Barnett, Auckland Chamber CEO.

Previous calls to individual councils, especially Auckland Council, for a change in the link between property valuations and rates have been ignored, he noted.

But with this week’s confirmation that Auckland residential property values have increased by an average of 46 percent – with some in south Auckland up by a whopping 151 percent due to rezoning from rural to residential – a review of the impact this will have on homeowners’ rates bills next year is urgently needed.

Property values are reviewed every three years, and the effect on an individual property’s rates will depend on how the property’s change in land value compares to each council areas average change.

“That’s not a straight forward calculation. There needs to be greater transparency to ensure that a Mayor or Council who has promised to keep annual rate increases at 2 or 3 percent during its 3-year term does so based solely on service change and/or inflation, and doesn’t take advantage of a property’s increased property value.”

“A fairer, more transparent rates system is long overdue, and achieving that is what Mayors and Councils should focus on, concluded Barnett.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Compelling Case For Meatless Meat

Talk about living in a bubble. As vegetarianism and veganism become normalised – there are more options on restaurant menus! - it can be easy to think that the whole world is gradually giving up on meat. Alas, the reverse is true. Americans for instance consumed 100 kilograms of meat and poultry in 2018, up from 75 kilograms in 1960, according to the US Department of Agriculture figures... More>>


Government: Hundreds Of New Electric Cars For State Sector

Total of 422 new electric vehicles and charging infrastructure across the state sector $5.1 million for the Department of Conservation to buy 148 electric vehicles and install charging infrastructure $1.1 million to help Kāinga Ora buy 40 electric ... More>>

Pay Policy: CTU Public Service Unions Meet With Public Service Minister

The Council of Trade Unions and affiliated public service unions, met with the Minister for the Public Service Hon Chris Hipkins this afternoon to discuss the pay expectations of those working in our public services. CTU President Richard Wagstaff said it was ... More>>

Government: Further Action Against Gang Crime

The Government will make it illegal for high risk people to own firearms by introducing Firearms Prohibition Orders (FPOs) that will strengthen action already taken to combat the influence of gangs and organised crime to help keep New Zealanders and their ... More>>


Child Poverty: Reports Highlight Need For Ongoing Action

The Government has released the first Annual Report for the Child and Youth Wellbeing Strategy and the second Child Poverty Related Indicators (CPRI) Report, both of which highlight improvements in the lives of children as a result of actions of the Government, ... More>>


PM: Statement On The Speaker And Annual Review Debate

“The serious issue of alleged sexual assault and harassment at Parliament was poorly managed and inappropriately politicised last night. The tone of the debate did not reflect well on Parliament as a whole,” Prime Minister Jacinda Ardern said. ... More>>

Parliament: Mallard Fails To Give Taxpayers A Straight Answer

Trevor Mallard has confirmed he is unfit to be Parliament’s Speaker by failing to answer several important questions relating to the false rape accusation saga that cost taxpayers more than $330,000, Shadow Leader of the House Chris Bishop says. ... More>>

Local Government: Independent Review To Explore Future

Local Government Minister Nanaia Mahuta says an independent review of local government will explore how councils can maintain and improve the wellbeing of New Zealanders in the communities they serve long into the future. More>>





InfoPages News Channels