Calculation of Rates
Method used to value land
The Council adopted to continue to use Capital Value as the basis for valuing land within the Council area. The Council considers that this method of valuing land provides the fairest method of distributing the rate burden across all ratepayers on the following basis:
- the equity principle of taxation requires that ratepayers of similar wealth pay similar taxes and ratepayers of greater wealth pay more tax than ratepayers of lesser wealth
- property value is a relatively good indicator of wealth and capital value, which closely approximates the market value of a property and provides the best indicator of overall property value
- the distribution of property values throughout the Council area is such that few residential ratepayers will pay significantly more than the average level of rates payable per property.
Differential General Rates
The Council adopted to impost differential general rates varying according to the locality of the land and its use.
All land use within the Commercial (Bulk Handling) Zone as described in Council’s Development Plan as consolidated 1 December 2011, is set at 0.9612 cents in the dollar.
Land outside the Commercial (Bulk Handling) Zone with the following land uses are set at:
- Residential 0.3930 cents in the dollar
- Commercial – Shop: 0.3930 cents in the dollar
- Commercial – Office: 0.3930 cents in the dollar
- Commercial – Other 0.3930 cents in the dollar
- Industrial – Light 0.3930 cents in the dollar
- Industrial – Other 0.3930 cents in the dollar
- Primary Production 0.3930 cents in the dollar
- Vacant Land 0.3930 cents in the dollar
- Other 0.3930 cents in the dollar
Council’s budget contains rate revenue of $1.76m, net of rebates.
This represents a 2.5% increase on total general rates raised (net of rebates) compared to 2014-15.
The average residential rates payable is budgeted to be $1,172.
The Council adopted a fixed charge of $256. This remains at the same level levied for 2014-15 year. The fixed charge is levied against the whole of an allotment (including land under a separate lease or license). Only one fixed charge is levied against two or more pieces of adjoining land (whether intercepted by a road or not) if they are owned by the same owner and occupied by the same occupier. The reasons for imposing a fixed charge is the Council considers it appropriate that all rateable properties make a contribution to the cost of creating and maintaining the physical infrastructure that supports each property.