The Court of appeal has found in favour of Gisborne District Council around the issue of whether growing gold kiwifruit on a property adds to the capital value of the property.

Council Chief Executive Nedine Thatcher Swann says this is a very significant decision and it is good to have clarity around this issue.

“The Court agreed with the Council and the Valuer-General when we submitted that rating valuations ought to align broadly with market realities.”

The Court found that capital value is a proxy for fair market value. Where the amount a purchaser would pay for a property is higher due to the presence of a licence or consent, such as the SunGold licence, that additional value is to be included in a capital valuation.

In its decision the Court dismissed the appeal by the Bushmere Trust to the Council’s 2020 valuation that the gold kiwifruit licence was an improvement and benefit to the land and thus justified a rates rise.

Bushmere Trust represents all golden kiwifruit growers in Tairāwhiti and was granted the right to take the appeal to the Court of Appeal last year.

“Gisborne was the first local authority to undergo a triennial revaluation to adjust land valuation for growers of the golden variety based on the value of the growing licence,” says Ms Thatcher Swann.

“We understand nearly 50 local growers will be affected by the decision.”

The outcome is also likely to have implications for those growing the gold kiwifruit variety outside of the region but those decisions will come from each council responsible for the rating valuations in a particular area.

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