Understanding your Rating Valuation
The Role of the Valuer-General
The Valuer-General audits Rating Valuations to ensure the processes undertaken to determine
the new values meet the standards set out in the Rating Valuation Rules. Staff from the ValuerGeneral’s office check the data and undertakes an audit of Council’s Valuation Service
Provider’s revaluation process to ensure it is robust and meets all legal requirements. Only when
the Valuer-General is satisfied with the new values will final approval to publish the proposed
Rating Valuations be given.
What is a “Valuation Service Provider (VSP)”?
All councils are required to appoint an approved valuation firm (known as a “Valuation Service
Provider”) to conduct the triennial (3-yearly) general revaluation of their City/District, plus to
maintain the values where sub-divisions, amalgamations, building consents etc have changed
properties. Rotorua District Council’s current Valuation Service Provider is Landmass
Technology Limited of Tauranga.
How often are valuations issued?
Every property is required to be revalued for rating purposes at least once every three years in
accordance with the Rating Valuations Act 1998. Valuation notices are also issued between
revaluations when changes are made to properties.
Changes include:
Subdivision of land
Changing land use
Amalgamation of more than one piece of land
Changing land use
Erecting new buildings
Adding/altering/demolishing existing buildings
Changes in Resource Management Plans
Is the Rating Valuation lower than the market value?
While rating valuations are based on market sales, they are a snapshot of the property market at
a single point in time (e.g. current revaluation date 1 July 2011). As real estate prices generally
fluctuate over time, a rating valuation should only be used as a starting point to determine what
the market value of a property might be.
It needs to be understood that a sale price usually includes chattels, whereas rating valuations
do not. The value of chattels can vary considerably between adjacent properties, as it usually
includes items such as carpets, curtains, heat pump, oven, dishwasher and light fittings, and may
even include other items sold with the property such as furniture, pool tables etc.
Why do properties get revalued?
Current rating legislation requires all Councils to use rating valuations (either land value, capital
value or annual value) to collect at least part of any general rates set by the council.
How are Rating Valuations assessed?
When the value of your property was assessed, the valuers considered a number of factors
including:
What properties are selling for in your neighbourhoods around the date of the revaluation
The demand to buy or rent property in your neighbourhood
The type of property, ie: house, townhouse, factory or shop
Any known changes to the property since it was last valued
This is shown on the revaluation notice as Land Value, Value of Improvements, and Capital
Value. The values are then subject to an audit process by the Office of the Valuer General prior
to rating valuation notices being sent out to all property owners.
How does a Full Current Market Valuation differ from a Council Rating Value?
A Current Market Valuation provides you with the professional estimation of the registered valuer
you have employed of how much, in their opinion, your property is worth in today’s property
market.
A Council Rating Valuation is undertaken by Council’s Valuation Service Provider to establish
property values at a specific point in time to enable council rates to be assessed, and excludes
the value of chattels. Council currently arranges for revaluations to be conducted every three
years, and hence a rating value is only an accurate measure of a property’s relative value at the
date of the current revaluation, which is currently 1 July 2011.
Who decides the new valuation for a property?
Every council is required to appoint a valuation service provider (VSP) to review and maintain its
district valuation roll. Rotorua District Council has contracted Landmass Technology Ltd of
Tauranga as its VSP
When will I be advised of my 1 July 2011 valuation?
The Revaluation Notices were posted out during the first week of October 2011.
Where can I view the 1 July 2011 values?
The revised values are available for public inspection, free of charge at the Rotorua District
Council Civic Centre Monday to Friday 8.00 am to 5.00 pm from Wednesday 28 September 2011
on our public terminals.
These can also be inspected on the Rating Information Database from 28 September 2011 on
the Rotorua District Council Website.
Do Rating Valuations include GST?
Rating Valuations do include GST, if any, for residential property. However in most residential
transactions the parties are not registered for GST. For all other property types GST is excluded.
What does 'Capital Value' mean?
This is the assessed probable price that would be paid for the property as at the date of the latest
general revaluation. It does not include chattels, stock, crops, machinery or trees. Residential
values include GST, other property types do not.
What is 'Land Value'?
This is the probable price that would be paid for the bare land as at the date of valuation. The
Land Value includes any development work which may have been carried out, such as draining,
excavation, filling, retaining walls, reclamation, grading, leveling, clearing of vegetation, fertility
buildup, or protection from erosion or flooding.
What does 'Value of Improvements' mean?
This is the difference between the capital value and the land value. It reflects the value of the
property’s buildings and other structures.
Who can I talk to about my rating valuation?
Ratepayers can phone (07) 348 4199 to speak with a Customer Advisor.
What if I disagree with my property's rating valuation?
Objections have now closed for the 1 July 2011 rating valuation. However if you have received a
Notice of Rating Valuation due to changes to your property (e.g. due to sub-division or building
work), the time-frame for lodging an objection is on the front of the notice, and details of how to
object are on the reverse.
In other cases you have the option of requesting a new valuation by paying a fee to Council's
valuers, although this does not mean the values will necessarily change. Please contact Councils
Customer Service Centre on (07) 348 4199 for further details on this process.
When do objections for the 2011 General Revaluation close?
Objections to the current General Revaluation closed on Monday, the 14th of November 2011.
How do I lodge an objection to my Rating Valuation?
Objections to the 2011 rating revaluation closed on Monday, 14 November 2011.
If you have missed this deadline you cannot lodge an objection. However, if you have reason to
believe that the rating valuation of your property as at 1 July 2011 differs unreasonably from the
rating valuation of other similar properties in your area, you can apply to Council for a new
valuation.
Rates Office staff will discuss with you what your options are, but please be aware that there is a
fee payable to Council’s valuers, Landmass Technology Limited, for lodging a request for a new
rating valuation. The amount of the fee is available by contacting Landmass on (07) 571 8593
and providing your property’s address, and if possible, the Valuation Number.
Please note that the fee is payable prior to the review of the rating valuation taking place, and
lodging a request for a new valuation does not mean that the values will necessarily change at
all.
Should you not be satisfied with the outcome of the new rating valuation you are entitled to lodge
an objection within the time frame specified.
How can you value my property without thoroughly inspecting it?
It is not feasible to undertake an inspection of every property in the district and for rating
valuation purposes it is not necessary. At the time a dwelling or building is constructed a valuer
will make an onsite inspection and make file notes for use in future valuations.
Every building consent is sent to the valuer, although generally only work valued at more than
$10,000 will be inspected.
Where there are significant variations between actual market sales data and expected rating
valuations values, inspections are also made.
How does Council know when changes have been made to my property?
Council has copies of all survey plans and building consents. If changes are made to a property
which are likely to affect its value, but which are not covered by either of the above approval
processes, Council should be notified so that their records can be updated, and the property’s
value amended if necessary. If the values are changed a new valuation notice is issued.
Can the Valuer just walk onto my property without my permission or an appointment to
value my property?
Yes - under the Rating Valuations Act 1998 (No. 69) ("the Act") a valuer may enter the property
without permission from the owner. The Act also states the Valuer must produce written
evidence of authorisation to enter. e.g. Identification must contain a reference to section 45 of the
Act, the name of the authorised person and a statement of the powers conferred by subsection
(1) on the authorised person. Rating Valuations Act 1988
We've built a new house (or we've altered our house) (or we've added a garage) but you
haven't valued it?
Council forwards copies of all building consents through to the valuers at Landmass Technology.
Whilst every effort has been made to get as many new buildings and alterations on the roll prior
to a revaluation, it is not possible to get them all on. Once the cut-off point for the general
revaluation is reached, new building and alterations that were not included will be issued
separately as soon as possible, and the date for seeking clarification or lodging an objection to
that valuation will relate to the date of issue, not to the closing date for the general revaluation.
I objected to the previous valuation and it has not been settled yet. Will my objection
automatically carry over to this year's valuation?
No. Council will require a fresh objection to be lodged, which will be passed on to our Valuation
Service Provider for action.