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 2020/21 financial year it will cost the council approximately $277 million in operations to deliver the services the city needs. A further $258m is planned to be spent on capital.
Of the operational costs, $190 million is generated from rates which are collected from about 55,690 residential customers and 3,642 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 2020/21
My rates newsletter (101kb 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 ($248m) and asset development revenue ($76m) for a total of $342m. This revenue comes from:
- rates 59% of income
- user fees - 14% of income
- development contributions - 5% of income
- government grants, subsidies, interest - 11% of income
- other revenue – 10% 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: 28/07/2020