Glossary of Rates Terms
Capital Value
This is the valuer’s assessment of the probable price that would have been paid for the property in an arm’s length transaction, (e.g. willing buyer, willing seller) if it had been for sale at the date of the general revaluation (e.g. last revaluation date 1 July 2008). However the capital value of a property does not include any chattels, stock, crops, machinery, goodwill or plantation trees.
Land Value
This is the valuer’s assessment of the probable price that would have been paid for just the land in an arm’s length transaction, (e.g. willing buyer, willing seller) if it had been for sale at the date of the general revaluation (e.g. last revaluation date 1 July 2008).
The land value will include any development work which may have been carried out, such as drainage, excavation, filling, construction of retaining walls, reclamation, grading, levelling, clearing of vegetation, fertility build-up, or protection from erosion or flooding.
Value of Improvements
This is the difference between the capital and land values. It reflects the additional value given to the land by any dwellings, buildings, other structures or cropping trees and vines present on the property, plus any landscaping that adds value to the land.
Ratepayer
The owner is the ratepayer, unless the owner can prove that there is a lease in place that meets the statutory definitions for the lessee to be the ratepayer (e.g. registered lease or licence for entire rating unit for minimum period of ten years, and agreement states lessee/licence holder is to be entered on the Rating Information Database as ratepayer –refer Section 11, Local Government (Rating) Act 2002).
Valuation Service Provider
The Valuation Service Provider is the company appointed by a council to conduct it’s three-yearly revaluations, plus keep the District Valuation Roll up to date with changes due to sub-division, new building work, etc. Rotorua District Council’s current Valuation Service Provider is:
Landmass Technology Limited
P O Box 169
Tauranga
P: (07) 571 8593