Revaluation what does it mean for you?
Why was my property revalued?
The law requires that every City or District Council must complete a revaluation of the properties in its area at least once every three years. As Nelson was last revalued in 2021 new rateable values must be set in 2024.
The Council has contracted Quotable Value Ltd (QV) to undertake this task.
What are rateable values and why do they matter to me?
Rateable values are gathered for the Council and used as the basis for setting general rates. Every property in the City has been valued at a common date - 1 September 2021. Rateable values have three parts:
Capital value - an assessment of the probable price for the property if it had been sold on 1 September 2021. The capital value does not include chattels.
Land value - the probable price that would have been paid for the land on 1 September 2021.
Value of improvements - in this context is just the difference between the assessed capital and land values. It does not relate to insurance assessments or build costs.
How have the new values been assessed?
QV has reviewed all sales over recent months then using mass appraisal techniques has applied these to other similar properties. They have also reviewed properties for which building consents have been issued.
Owners of non-residential properties have been surveyed to obtain up to date information about rental income.
What are the overall changes in values over the last three years?
Residential property values have increased significantly since the last revaluation in 2018. This has been driven by low interest rates, and a high-performing economy.
Land values have been particularly strong with demand outstripping supply. Lifestyle properties have increased in value but to a lesser degree than residential property.
A strong regional economy particularly in industries such as horticulture, forestry, fishing, tourism and construction have buoyed the commercial and industrial markets. The Nelson CBD remains a popular and tightly held investment location.
What impact will the new values have on my rates?
The new values will be used as the basis for assessing rates as from 1 July 2022.
The Council uses the land value as the base for its General rates. The revaluation does not generate any additional revenue for the Council. Rather, the updated base means rates will be spread between ratepayers in different proportions than before. If your land value has decreased this will usually mean your rates increase will be lower than the average and in some instances rates may decrease. If your land value has increased by more than the average for the city you can expect your rates to increase by more than the average.
How do I make enquiries?
If you wish to find out more about your rating value visit ratingvalues.co.nz.
Enquiries about the new valuations can be made by calling QV on 0800 787 284 (0800 QV Rating).
If your enquiry is about a rates issue, please contact Nelson City Council on 546 0200.