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What do rates pay for?

Rates are a tax on the value of your property. Rates provide around half of Council’s income and this money pays for new roads, stormwater systems, libraries, water pipes, parks and reserves and so on.

In the 2019/20 financial year it will cost the council approximately $261 million in operations to deliver the services the city needs. A further $187m is planned to be spent on capital. 

Of the operational costs, $179 million is generated from rates which are collected from about 54,901 residential customers and 3,460 commercial customers. The capital costs (including new and renewed infrastructure) are funded from capital revenue such as development contributions and grants, as well as from borrowing.

Rates breakdown 2019/20

What will my rates pay for

My rates newsletter (347kb pdf)

How rates are set

Rates are calculated using the property value and the use of the property, such as residential, commercial or rural. Council’s Annual Plan or Long Term Plan decides the work for the year ahead, how much this will cost and the total amount of rates that are needed to pay for it.

The value of your property is set by independent valuers, Opteon. Revaluations are done every three years. The most recent citywide revaluation was done on 1 July 2018 and will be used to calculate rates from 1 July 2019. 

Where Council income comes from:

Council’s total income includes both operational income ($245m) and asset development revenue ($102m) for a total of $347m. This revenue comes from:

  • rates 49% of income 
  • user fees - 16% of income
  • development contributions - 8% of income
  • government grants, subsidies, interest - 12% of income
  • other revenue – 15% of income.

Regional Council rates

We collect rates on behalf of Bay of Plenty Regional Council – that’s why you’ll find both in your rates invoice. When you pay your rates invoice, including when you set up for direct debit, you’re paying for both your Tauranga City and your Regional Council rates. It’s less admin for you, and saves time and money on payment processing at our end. 

Last Reviewed: 19/08/2019


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