What is the valuation period?
1 July 2017 however these values will not be used for rating purposes until 1 July 2018
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. Rotorua District Council rates on a Capital Value basis. 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. 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.
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.
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.
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 Opteon Technologies 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.
- Subdivision of land
- Changing land use
- Amalgamation of more than one piece of land
- Resurveyed area
- 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. 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. Rating valuations are completed according to rating valuations legislation which is different to market valuations. Rating valuations for example can be compiled form analysing recent sales data and a desktop adjustment done to similar type properties where as a private valuation obtained from a registered valuer will include a full property inspection. This means that rating valuations may not be as accurate as a private valuation. 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.
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 Opteon Technologies Limited of Tauranga as its VSP.
When will I be advised of my revised valuation?
The Revaluation Notices were posted out during the first week of October.
Where can I view the revised 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 4 October 2017 on our public terminals or via Council's 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?
There is a statutory limited period during which you may object to your valuation at no cost. Please refer to the valuation notice you have received for information on this, the time-frame for lodging an objection is on the front of the notice, and details of how to object are on the reverse.
You may lodge an objection outside the statutory objection period however this will be processed at your cost (approximately $300 residential and Commercial, Rural on a case by case basis). There is no guarantee the values will necessarily change as an outcome. Please contact Councils Customer Service Centre on (07) 348 4199 for further details on this process.
When do objections for the 2017 General Revaluation close?
Objections to the General Revaluation close on Friday, the 17th November 2017.
How do I lodge an objection to my Rating Valuation?
Objections can be lodged via the Rotorua District Council website or emailed to firstname.lastname@example.org with "Valuation Objection" in the subject line. The last day for lodging an objection to the revised valuations is Friday, the 17th November 2017.
Alternatively objection forms are available by phoning either (07) 348 4199 if in the Rotorua District, by emailing Council at email@example.com or from the Civic Centre, 1061 Haupapa Street, Rotorua.
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 Opteon Technologies . 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.
What is the process once I have submitted my objection?
All objections submitted, both online and hardcopy, will receive confirmation from Rotorua Lakes Council by letter.