Rates

No.  The increased value itself doesn’t mean rates go up.  It’s all about dividing up the pie amongst ratepayers. The “Pie” is the amount that the Council needs in rates revenue to cover its planned expenses each year.

No.  The increased value itself doesn’t mean rates go up. It’s all about dividing up “the Pie” i.e. the total Council expenditure budget.  What is important is how much your property has increased compared to others.    If all valuations went up by the same percentage, then nothing would change as a result (though in reality there are always changes, due to things like the changes to Council expenditure budget, but the valuation change ALONE does not mean a change in rates).

The Long-Term Plan (LTP) Council consulted on last year estimated that the total amount the Council needs to collect from rates for 2022-23 would increase by 4.04%.   So, the LTP forecast that in general, rates would go up.  The LTP then had differing estimates for the effect of that overall increase on different examples/categories of ratepayers, as there are a variety of different charges and targeted rates within the overall rates.  Targeted rates are for specific activities such as water and sewerage, and depend on usage and/or property location.  Examples of “categories” are Residential-Urban, Farm semi-rural, Lifestyle blocks – semi-Rural, and Commercial.

With the unprecedented variation in property value increases we have just had, the result will be that some properties will experience a rates increase greater than the total rates increase – and some will have a decrease in rates, despite their valuations going up (because their share of the “pie” is less).

They will not affect the total rates needing to be collected, but they will affect how much each individual ratepayer pays.   Valuations are just one of the factors affecting your rates each year – the Council’s budgets being another main one.  There is nothing Council can do to eliminate the effects of the valuation.  It’s just the effects will vary a lot – because we are seeing a wide range of changes in valuations, from small increases in capital value (< 5%), to massive increases in some cases (> 75%).

The LTP estimated an overall increase in the amount the Council needs to collect in rates of 4.04%.  Currently our modelling of the actual increase in the Annual Plan shows the total increase will be between 4.3% and 4.9%.

This shouldn’t be confused though, with the actual rates increases that individual properties will experience.  Each year the share of “the Pie” alters as there are more properties to collect rates from, through various subdivisions and new houses being built, and some adjustments to individual properties … and these properties then start to pay their share of “the pie”.  There are also minor changes to council budgets that affect some properties and not others – through changes in targeted rates for example.

Let’s assume an increase in total rates of 4.7% to allow some examples.  With the valuations varying so much, whilst most rates changes will vary between a reduction of 7% and an increase of 9% (most town residential rates will increase between 1% and 5%) there will be a small number of properties who will face a double-digit increase.  An example would be a residential semi-rural property – where the valuation has increased by 76.5%.  We are still working through the detail – but a property in that category, and that has increased from $255,000 to $450,000 could face a 23% rates increase.  This is compared to a residential property in town with an increase in value of 31%, from $580,000 to $760,000, it’s rates increase is looking like it will be less than 2%!

Here is a table showing what the variations in rates might look like, assuming an overall total rates increase of 4.7% (note the rates include GST). 

Click image to enlarge view

We’ve tried hard to minimise the impact of inflation on rates, and this includes keeping our budgets “no frills”, using some of our reserves that have accumulated over several years – plus we’ll borrow for capital projects where that is appropriate.  For some activities that will be funded from a fixed external grant amount, the scope of the project may need to be revised to fit within the grant envelope.

 * Rates information is displayed for 2020/2021. 

Lookup your rates online using the property address or VG number

The Rating Information Database contains a record of all information required for setting and assessing rates. The database for the Kaikōura District Council and Environment Canterbury (Kaikōura District properties only) may be inspected without fee at the Council’s reception, Level 2, 96 West End, Kaikōura between the hours of 8.30am to 4.30pm, Monday to Friday, excluding public holidays.

Rating Areas

Kaikoura has three rating areas; urban, semi-rural and rural. Properties are allocated to an area based on how close they are to urban services  Commercial properties (those used exclusively or primarily for business purposes) also pay specific rates.

• Download a map of the Urban Area (properties within Kaikoura Township, storm water management area and incorporating properties in the Seaview and Ocean Ridge subdivision areas and the Kaikoura Peninsula.)
• Download a map of the Semi-Rural Area (all properties within a 10 kilometre radius of the town centre including Peketa and Hapuku villages, Inland Road up to but not including Kowleigh, and the Kaikoura Flats, but excluding all property within the urban area.) 
• Download a map of the Rural Area (all property outside the urban and semi-rural areas.) 

Different types of rates

There are rules around setting rates which Council must follow. These are set out in the Local Government Act and the Local Government (Rating) Act.

All Councils set their rates differently depending on the wants and needs of the communities within the district or city. This makes comparing rates between districts very difficult.

As well as rates, Council seeks income from other sources such as fees, user charges and subsidies or grants from central government or other funding partners.

The Uniform Annual Charge – a fixed amount charged to all rating units (or separately used or inhabited part of a rating unit). This is not affected by the capital value of a property. This ‘flat fee’ covers things Council believes all ratepayers benefit from equally such as the general operations of Council including governance (Mayor and Councillors), library services, sports fields, playgrounds, cemetery, walkways, public halls, civil defence and waste management.

General Rate – an amount you pay based on cents in the dollar of the rateable capital value of your property that pays for the general operations of Council. The rate includes a differential, so that rural and semi-rural ratepayers pay slightly less than urban. This includes community services, environmental planning, planning, building control, dog control, community facilities, general parks and reserves, a portion of public toilets and traffic control.

Targeted rates - rates that are charged to pay for specific things.  These are often charged to a selection of properties and the amount charged will vary depending on the rating area, location and other aspects of the property. (Sewerage and water are good examples).

Differentials –a way of splitting the cost of some of our rates/charges across our rating areas to make sure that different areas pay different amounts. For example for a differential of 1 urban:0.5 semi-rural : 0.25 rural, urban properties pay twice as much per dollar of capital value than semi-rural properties do, and four times as much per dollar of capital value than rural properties do. 

Most properties also pay water charges - you can find out more about these here 

For the following rates, different rating areas pay a different amount. Generally, those benefiting most from the service provided pay more, with people living further away benefiting a little less and therefore paying less.

Rates are broken down into four equal installments and invoiced quarterly. The last day for payment of each installment is shown below;

• Instalment 1: 20 September
• Instalment 2: 20 December
• Instalment 3: 20 March
• Instalment 4: 20 June

If you don’t pay your rates installment on time you will receive a penalty of 10%. To help avoid penalties we recommend setting up a direct debit or automatic payment for your rates. There are several payment options including fortnightly or monthly - see 'Pay your rates' below for more information.

You can choose from the following payment options:

• Via direct debit. This is the easiest way to pay your rates, fill out the form (link below) and we'll set it up so you don't need to worry when your rates are due. This way also avoids any late payment penalties. We can set this weekly, fortnightly, monthly or quarterly. Bank fees may apply, please contact your bank for further information on their fees and charges.
• To set up a direct debit download the form.
  Then email it to rates@kaikoura.govt.nz or post it to
  PO Box 6 
  Kaikōura 7340
• By automatic payment through internet banking. Our bank account details are:
  Kaikōura District Council
  02-0856-0011698-000.
  
  Please use your Rates Valuation Reference Number found on the front of your rates notice eg: 21070/11124
• In the office - come in and see us to pay by credit card, cash or eftpos.
• We are no longer able to provide credit card payments online due to credit card scams through our online portal, because of this BNZ have ceased this option. We apologise for any inconvenience. 

What is it?

To assist people on low incomes with housing costs, central government offers rates rebates if you meet certain requirements. The paperwork is done by Council and central government pays the money onto the rate account, Council then deducts the amount of your rebate from your rates bill. You must apply before June 30.

How much you can claim depends on: how much your rates are — this includes local, regional and water rates, your income, and, whether you have any dependants, such as children, living with you.

If your gross (before tax) income is $25,000 or less you can often claim the full amount The most you can get is $665 for the current year. If your income is higher you may still be able to get all or part of the rebate depending on: how much your rates are, and how many children or other dependants are in your household.

If you have dependants, your income can be $500 more for each one. For example, if you have 2 children, then you would still be able to get the full rebate of $665 if your income is less than or equal to $26,000.

You can read more about the rebates, and find an application form here.

How to apply

1. Download the Rates Rebate Form - you can also ask for a paper copy of this at the front desk of Council.
2. Fill it out with all the correct information
3. Call 03 319 5026 for an appointment to get the application form signed by an authorised Council Officer

Council has a Rates Remission Policy which reduces the rates bill for properties in certain situations including;

• where a ratepayer is facing a significant rate increase in the capital value rates due to the 2018 revaluation
• where late payment was beyond the ratepayers control
• land protected for natural, or historical or cultural purposes
• following a Civil Defence Emergency
• Maori Freehold Land

Contact us to apply

• Click here to fill out our form and get your Rates invoices sent via email