Rates are the residual funding source of both operational and capital expenditure (i.e. rates fund the balance of Council costs once all other funding sources are taken into account).
Christchurch City Council sets rates under Clause 10 of Schedule 10 of the Local Government Act 2002 and Section 23 of the Local Government (Rating) Act 2002.
Council’s rating policy is set out in full in the Long Term Council Community Plan
Valuation system used for rating
Where rates are set based on the rateable value of a property, Christchurch City Council uses capital value (the value of the land plus any improvements).
The Local Government Commission determined in 1989 that capital value was to be the rating basis for Christchurch. Since then Christchurch City Council, along with the majority of other territorial authorities, has continued to use capital value. Research shows the use of capital value helps to ensure rating equity because there is a strong correlation between capital value and household income and therefore ability to pay rates.
The value of each rating unit is set by independent valuers and based on values as at 1 August 2007. A rating unit is the property which is liable for rates and is generally a separate property with its own certificate of title. The date of the next revaluation has not been determined yet as the real estate market is not settled enough as a result of the earthquakes.
Inspection of rates information
The capital values, the District Valuation Roll, and the Rate Information Database information, along with the estimated liability for 2009–10 rates for each rating unit are available for inspection on the Council’s Internet site (www.ccc.govt.nz) under the heading ‘Rates info’ or by enquiry at any Council Service Centre.
Rates Remission Policy
The Council has a Rates Remission Policy for the remission of all or part of the rates. An example is where there is a significant public good in the use of the land. Such as where the land is used by ‘not-for-profit' clubs, associations and churches, for sport or for community benefit.
- 100% remission of all rates (except excess water supply targeted rate) may be made for ‘not-for-profit' organisations occupying Council land under lease where there is predominant community benefit.
- Remission of rates on other than Council-owned land where it is used by ‘not-for-profit' community or sports organisations may be granted on the basis of:
- Up to 100% remission of general rates and uniform annual general charge, and
- Up to 50% (i.e. of the rate that would be payable if they were fully rateable) remission of targeted rates for water supply, sewerage, and land drainage rates
- The remission does not apply to any excess water supply targeted rate or targeted water supply fire connection rate
Please read the Rates Remission Policy and the Rates Postponement Policy
