Understanding the Recent Rates Valuations for the Western Bay of Plenty District
As kiwifruit growers in the Western Bay of Plenty District, we understand you may have concerns regarding the recent surge in rates valuations. To shed light on this complex situation, NZKGI met with the Mayor and Deputy Mayor of the District Council this past Monday. Our primary objective was to delve into the details of the valuation movement, especially as it relates to our growers.
The meeting gave us insightful data that we believe will help allay some of your worries. Our findings revealed that the average capital value increase for the kiwifruit property type stands at 54%. Conversely, the average land value rose by 47%.
To put this into perspective, consider a kiwifruit property that was previously worth $1,000,000. Given the current increase in capital value, it is now estimated to be worth $1,540,000. Similarly, an empty piece of land that was valued at $1,000,000 has seen its value rise to $1,470,000.
It was interesting to discover, that these rises are not unique to kiwifruit properties. All types of properties within the district have experienced an average capital and land value increase of 51%. This confirms that the surge in rates is an across-the-board phenomenon, and not discriminatory against kiwifruit growers.
It is important to note that an increase in your overall rates valuation does not necessarily translate to an equivalent increase in your annual rates bill. The way rates are calculated involves a variety of factors beyond valuation alone.
Rate increases can be viewed as a relative game. Given that land values have risen by 47% percent in the Western Bay of Plenty, it’s only those with proportionately higher increases in valuation that might see a larger rates increase.
In light of this, we highly recommend growers to review their preliminary rates bills available on the councils website linked here. This proactive step will help you grasp the nitty-gritty of these valuations before raising any objections. Objections for the Western Bay of Plenty region must be received by QV no later than Thursday 3rd August.
If you have any further questions pertaining to the above, please contact our Senior Policy Advisor, Abby Van De Ven here.