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Revaluation and how it affects rates
A revaluation of properties across the Queenstown Lakes District was completed earlier this year. The new valuations are as at September 2021 and form part of a broader toolkit for working out everyone’s share of rates payable. They have been used for the assessment of rates from 1 July 2022.
How has the revaluation impacted the rates I pay?
Although the total capital value (CV) has grown by around 52%, the impact of the revaluation on rates is more pronounced for some types of property.
If a property experiences a rating value change of significantly more or less than the 52% average, rates payable will change up or down according to the degree of difference.
The main issue that has arisen from the revaluation is that Commercial properties are now picking up 0.8% more of the rates burden whilst Accommodation is paying 1.0% less overall.
To maintain a closer alignment with pre-existing rating apportioning, Council has adjusted the rating differentials to decrease the overall contribution of Commercial property types and to increase Accommodation property types.
These adjustments have the following impact on the allocation of rates: the allocation for Accommodation is now to 13.4% (up 0.6%) whilst Commercial is now 13.1% (down 1.1%). This more closely matches the pre-existing allocation using the current (2017) CV.
Rating valuations are usually carried out on all New Zealand properties every three years to help local councils set rates for the following three-year period. This rating revaluation for Queenstown Lakes District was originally scheduled to take place in 2020, but was deferred due to COVID.
More detailed information on the revaluation and how it affects the rates you pay can be found in the recent Council report to set the 2022-23 rates.
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