District value increases, but residential value drops
Wednesday, November 21, 2012
However the increase was largely driven by the rural sector with dairy properties seeing an average 8.2% increase in value, while residential property values actually decreased by 3.6%.
South Taranaki District Council manager of corporate services, Phillippa Wilson, says it’s important to remember that while rating values are based on market sales they are only a ‘snapshot’ of the market at a single point in time.
“Because real estate fluctuates over time a rating value can’t be expected to represent the market value for an extended period, which is why the district is re-valued every three years,” she says.
The latest rating values, which South Taranaki property owners received in the mail last week, reflect the value of their property (excluding chattels) as at 1 September 2012.
They are prepared on behalf of the Council by Quotable Value (QV) using a process called ‘mass-appraisal’; a methodology used all over the world.
Basically, rating valuers consider relevant property sales from the area around the time of the valuation. A market trend is established and applied to similar properties in the area. The mass-appraisal process is also supported with a proportion of valuation assessments done on specific individual properties every year. The process for calculating rating values is then audited by the Office of the Valuer General, an independent authority which is part of Land Information NZ. Rigorous quality standards must be met before a revaluation is confirmed.
Mrs Wilson says the calculation of rating values and how they impact on your rates is complex.
“Just because your rating value may show a change, doesn’t necessarily mean that your future rates will change proportionately. Rating values are just one component which is used to determine the share of the total rates that individual ratepayers need to pay and the total amount of rates collected does not change as a result of the total value of properties in the District,” she says.
“Put simply, your rates will only be affected if your property value has increased or decreased by more than the average across the District.”
Mrs Wilson says the new rating values will not be used for rating purposes until 1 July 2013 when the new financial year begins.
“If you think that your rating value is not accurate, you should object. You can object online at www.qv.co.nz or call Quotable Value on 0800 787 284 to get an objection form. The last day for objections in South Taranaki is 20 December2012. If you have any other questions call the Council’s finance department on 0800 111 323,” she says.
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