Rates 101
What are rates?
- Rates are a tax
- Rates are independent from the levels of benefit received (often an indirect visibility of benefit)
- The Local Government Rating Act 2002 is NZ’s rating statute or rules on how rates can be set
- The Rating Valuations Act 1998 underpins property valuations used to set rates
Factors that are consider in formulating how a council sets a rate policy:
- Equity
- Affordability
- Simplicity
- Visibility
- Stability
- Adequacy
- Comparability
- Efficiency
What are the main types of rates?
- General Rate - Based off the value of a property and applies to all rateable properties
- Uniform Annual General Charge (UAGC) - Fixed annual amount that applies to all rateable properties
- Targeted Rate - Set for one or more specific activities and may be applied to all properties or to a subset of properties (area of benefit)
Rates are a little complicated. But if you'd like to find out more - Try This!
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