Rates

Abstract

The aim of my project, "Rates!", is to review the basis from which rates demands are calculated. The question to be asked: is a property value base in fact the most equitable basis for assessing rates? Many agricultural regions of New Zealand are under pressure from changes to alternative land use. This is therefore reflected in the Capital Value of that land, as Capital Value is based on current market value. As rates are a "fee for service" provided by the councils, the question remains if Capital Valuation reflecting a proposed land use change, is an equitable base to be used for establishing rates, when the demand for service from the existing use has not changed? My objectives are to understand the terms of the rating act and the powers that currently exist within the local bodies to apply a differential rating system. I also will look at how this issue has been addressed in America by use of differential rating formulas, including Agricultural assessments.