Every three years councils must revalue all properties in their localities for rating purposes. Tauranga’s 2021 revaluation has been completed by independent valuation company Opteon, and new valuation notices are being sent to homeowners this week and the next.
The updated valuations are now available on Tauranga City Council’s website via the property search function and on the property values and sales map.
The new capital values reflect what each property might have sold for on 1 July 2021, excluding chattels. Opteon establishes these values using mass appraisal techniques – recent property sales data, resource/building consent data and sample inspections.
High-level results
The average citywide increase in capital value for residential properties between 2018 and 2021 is 50%. The average increase for all rateable properties (including residential, lifestyle, horticulture, commercial and industrial) comes in at 49%. Lifestyle blocks gained 51%, commercial properties 33% and industrial properties 70%.
More information and results by suburb are available at www.tauranga.govt.nz/revaluation
Impact on rates
The new rating values will be used to calculate everyone’s share of rates from 1 July 2022, once the council budget for 2022/23 has been set through the annual plan process.
A 50% valuation increase doesn’t mean 50% rates increase. Usually, only properties that have valuation increases that exceed the average increase for all rateable properties (estimated at 49%) will pay a higher proportion of rates from 1 July 2022.
During the annual plan process (from March/April 2022), ratepayers will have access to an online calculator that will give them an estimate of their rates for the following year, based on their new rating valuations and the draft budget for 2022/23.
Objecting to a valuation
If property owners feel their new valuation doesn’t reflect the value of their property at 1 July 2021, they can lodge an objection online at www.tauranga.govt.nz/revaluation, via email or post. The cut-off date for objections is Friday 25 March 2022.
Opteon will review all objections and evidence by 30 June 2022, working area by area.
Remember that rating valuations do not reflect a property’s current market value, and are only used to work out rates. They should not be used for insurance or mortgage purposes.
Key dates
- Electronic valuation notices to be sent 10-11 February (via email to those signed up)
- Paper valuation notices to be sent from 14 February (via post)
- Objection period closes Friday 25 March 2022
- New valuations used to calculate property owners’ share of rates from 1 July 2022