Will Capital Value rating win the day?
SWDC is considering a major change to its rating system _ to move from land value as the basis of its annual charges to properties to use capital value as the key _ in other words moving from a “bare land” rating base to rating both “land and improvements.”
If you haven’t seen the statements on the issue, check out: https://swdc.govt.nz/wp-content/uploads/Final-SoP-and-Draft-Policies-for-Consultation.pdf
In summary, it includes the following:
In its statement on the well-advanced rating review it has under way, SWDC notes:
“Capital value is the total value of the land and improvements, i.e. the land and any buildings on the land.
“Land value is the value of the bare land.”
It asks: “Do you agree with council’s proposal to change the general rate to capital value from land value?”
Already many rural dwellers, slugged by 29% rate rises this year, are calling for this change as offering a more equitable system than the current one.
Council also adds: “No system is ideal, however on balance, council believes that capital value is fairer than land value. Considering the overall rating impacts across different groups of ratepayers and individual properties, council considers capital value represents a better correlation to ability to pay than land value.”
Given it says “fairness” is another a critical part of the rating review process, it notes it is “considering affordability relative to matters such as access to services, land versus capital value.”
Transparency is a further key principal guiding its review, which it says means “providing clear information so the rating model is understood, and ratepayers know what they will need to pay.” … Continue Reading
Recent Comments