What is a rating valuation?

Rating valuations are required by law to provide councils with a uniform basis for levying certain local authority and regional council rates. They are completed by independent valuers appointed by Council via a tendering process, and must be completed for the Rotorua District once every three years (e.g. current revaluation date 1 July 2011, next revaluation date 1 July 2014). The valuations are audited by the Office of the Valuer-General, and must meet the requirements of the Rating Valuations Act 1988, the Rating Valuations Regulations 1998, and the Rating Valuations Rules.

The 1 July, 2011 Rating Valuation Notices were issued to property owners during the first week of October 2011. 

Rating valuations can also be a useful guide for property owners and prospective purchasers to use as a starting point to determine the current market value of a property, as they are based on the local property market at a fixed point in time. However the capital value of a property does not include any chattels, (e.g. carpets, curtains, heat pump, stove, dishwasher and light fittings), stock, crops, machinery, goodwill or plantation trees.

Council's Valuation Service Provider, Landmass Technology Limited, has supplied summary details of the percentage changes from the 2011 general revaluation (i.e. comparing the 1 July 2008 values to the 1 July 2011 values). This information shows both a district-wide and locality by locality view of rating valuation percentage changes, and can be accessed via the following link.

2011 Revaluation Indicative Percentage Changes in Value  (26.7KB)

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 Valuer-General’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. 

Notice of approval of the Valuer-General (1MB)

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 Lakes 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 Lakes 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 Lakes 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 Lakes 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.

Page reviewed: 02 Jul 2018 11:31am