New property valuations out this week

Press Release – Gisborne District Council

New property valuations out this week Property owners in the Gisborne district will find out their new rating valuation next week when revaluation notices are posted out. Values have dropped on average by 10% but there are variations throughout the …Media Release

www.gdc.govt.nz

New property valuations out this week

Property owners in the Gisborne district will find out their new rating valuation next week when revaluation notices are posted out. Values have dropped on average by 10% but there are variations throughout the district. Because the last revaluation was in 2008, at the height of the property boom, some decreases are significant. This does not mean rates will go down or that properties will be selling for cheaper prices.

Revaluations are one of the tools Gisborne District Council uses to calculate how 2012/2013 rates will be allocated throughout the district, says corporate services manager Mike Drummond. “Some people think that if the value of their property reduces by 10% their rates will go down by 10%. This is not how it works.”

“If your property’s value has decreased by the average amount – 10% – the valuation will have no affect on your rates. Some properties – farms, horticultural land, beachfront properties – have dropped a lot more than the average so their rates based on property value may go down a bit. The value of forestry land has increased by up to 25% so their rates based on property value will increase.”
“The cost to run the Council and all of the services we provide has increased and Council will need to collect about $50m in rates next year. Property values are just one way Council works out who should pay what portion of that $50M.”

“We are expecting lots of enquires about the revaluations. I encourage people to have a look at the frequently asked questions on Council’s website . These should help people understand how the revaluations could affect them they can also check out the valuation of any Gisborne district property on the website.”

Property values only affect the ‘undifferentiated capital value’ rates part of the rates bill. High-value properties pay more of these rates than low-value properties but it is only a portion of the rates bill, so the effects are muted.

The rates bill also includes a number of rates that are not affected by property valuations at all. These rates include:

• Charges for a service provided — city water, rubbish collection etc. You either get the service and pay for it, or you don’t get the service and don’t pay for it.

• The Uniform Annual General charge —every property pays the same regardless of its value. This charge covers library, cost of democracy etc.

• Targeted rates, such as flood control, etc, where the major beneficiaries pay the most.

Mr Drummond says we have to bear in mind these values are for rating purposes only and not are not a market value. “The revaluation exercise is mass valuation and unlike private valuations does not include a property’s chattels or a site visit to every property. People should not think the revaluations were a true reflection of their property’s value. The true value of a property can only be determined by the market,” he said. “For that you would need to engage a registered valuer or try and sell the property on the open market.”

How to object to your valuation

If you are the owner of the property and you don’t agree with your revaluation you can make an objection using the Rating Valuation Objection form available from customer services or Council’s website.

• Lodge your objection with Council before 5pm Tuesday 31 January 2011

• Your objection will be forwarded to Landmass valuers for review

• Landmass staff could contact you to discuss your valuation

• The onus of proof on any objection rests with the objector

• If you disagree with the review you can have your case heard by the Land Valuation Tribunal. A hearing fee is payable.

ENDS

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