Hamilton Adopts a Capital Value Rating System

27 November 2014

For Immediate Release

At its meeting today Hamilton City Council voted to change from the current land value (LV) rating system to a capital value (CV) rating system.

Under CV rates are calculated based on the value of the land plus what is built on the land, rather than just the land value.

The Council believes a capital value rating system is the fairest and simplest way to calculate rates. Under CV rates are applied to the full value of each property so rates generally align better with people’s incomes and ability to pay.

The change will bring Hamilton into line with other major cities in New Zealand who use a capital value rating system.

To help make the transition to the new system as smooth as possible, and to reduce the impact to ratepayers whose rates will increase, the new system will be rolled over ten years.

All ratepayers will receive Information about the change to capital value and how the new system will affect them with their rates notices from July 2015. Ratepayers heavily affected by the change will be contacted directly by the Council.

The motion was passed 9-2 with Councillors Tooman and Yeung voting against. Councillor Macpherson was absent from the meeting. Councillor King abstained from the vote based on a conflict of interest.

ENDS

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