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Rates News

For many ratepayers, October 2003 was the first time that they received a rate account directly from the Regional Council.

These rates are not new - what is new is how urban ratepayers in Napier and Hastings would now pay their rates.

Previously, these people paid their Regional Council rates via the Napier and Hastings Councils, which separately identified the amount on their rates accounts. The Councils then paid the Regional Council the amount collected on our behalf.

 

Napier.jpg

Napier City looking north

Q. Why have we changed our method of collection?

A.The costs of collection were going to be similar so Councillors felt collecting Council's own rates would increase the accountability and awareness of the Regional Council.

Q. Does this mean ratepayers will pay more rates?
A.
The Council’s rate is not an additional or new charge. However the amount of rates needed are debated each year through the draft Annual Plan which means the actual amount may fluctuate from year to year. If the valuation of your land increases, it's likely your rate will increase. This will result in an increased regional rate.

Q. How will direct invoicing of regional rates affect ratepayers?
A.
Each year all ratepayers will receive an itemised rates assessment from the Regional Council. In the past, district and city councils have combined the regional council ratable activities into one or two totals on their rates invoices.

Ratepayers will receive more information about what the Regional Council does, hopefully leading to an increased understanding of regional council activities. We expect that this will result in greater community involvement in our Annual Planning and financial planning processes.

Ratepayers will receive more information about what the Regional Council does, hopefully leading to an increased understanding of regional council activities. We expect that this will result in greater community involvement in our Annual Planning and financial planning processes.

Q. Why do we only get one instalment?
A. Because of the cost of collection. Most ratepayers pay about 10% of their property rate as rates to the Regional Council, so we decided it was affordable to pay in one instalment by 31 January. If you think you'll have trouble paying in one instalment, refer to the payment options and contact our Rates staff as early as possible to discuss alternatives.

Q. What rates do urban ratepayers in Napier, Taradale, Hastings, Flaxmere and Havelock North pay?
A. This differs from area to area...

  • Every ratepayer will pay a general rate to Council. This is calculated on adjusted land value with no differentials applying and is $43.70 per $100,000 adjusted land value.
  • Ratepayers who live on the flood plain will pay Heretaunga Plains Flood Control Scheme direct and indirect benefit rates which collectively amount to $14.76 per $100,000 adjusted capital value.
  • Most ratepayers will pay drainage area rates (either Karamu tributaries or Napier/Meeanee/Puketapu) which help maintain the drainage network in these areas. Rates are about $50 per $100,000 adjusted land value with industrial properties paying more due to their higher levels of runoff.
  • Every ratepayer will pay a subsidised public transport rate which helps meet the cost of subsidised public and disability transport. The rate is $19.80 per $100,000 adjusted land value.

Changes to Rating

The local Government (Rating) Act 2002 that's now in force, has introduced new concepts for rating that you need to aware of.

Owner Liability

One of the main changes is a shift to owner liability. The owner of a property, rather than the occupier, is now the ratepayer and is the person responsible for ensuring rates are paid. For leased properties the owner will be invoiced and will need to pay the rates. There are a few exceptions where a lease is over ten years and states that the lesee is to pay the rates, and in these cases lessees will be invoiced directly.

One Rates Assessment for each Rating Unit

This means that part of property, such as one shop in a block of five, will not be separately rated. The owners will receive one invoice for their entire property. Again, exceptions will only apply for leases over ten years.

Rating Unit Basis

In most cases, a rating unit is the area specified in the Certificate of Title. Exceptions may apply where a property is used as one farming operation, a significant improvement straddles the boundary of two titles, or where the titles are legally required to sold together.

Copyright © - Hawke's Bay Regional Council, 159 Dalton Street, Private Bag 6006, Napier 4110, New Zealand. Ph: (06) 835-9200, Fax: (06) 835-3601.
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