How your rates are calculated

Hastings District Council's rates are charged based on a property's land value, rating area and applicable targeted rates.

Property values are supplied by Quotable Value Limited

The collection of rates enables Council to pay for programmed works and services detailed in the district's Long Term and Annual plans. Rates are levied as a tax on property in compliance with the statutory provisions of the Local Government (Rating) Act 2002.

For details of the rates for the current financial year (including categories and costs), see the Rates Charges page of our website.

1. Rating areas
2. Differential rating

General rate

Two factors are used to determine the share of the general rate charged to individual properties:

1. Rating areas
2. Differential rating

Rating areas

Hastings District is divided into two rating areas: Rating Area One Urban and Rating Area Two Rural.

The rating areas are based on:

• The Department of Statistics broad definition of an urban area.
• The relative closeness of urban-based facilities and therefore the opportunity to make regular use of them; within an approximate 10-15 minute drive of central Hastings.
• Hastings District Council planning zones, which govern the ways land can be used.

The costs of Council's various activities are shared out to the two rating groups using formulae which reflect, as near as possible, the costs of providing services to each of these areas. In particular, some costs (within the Community Services Group) are charged at a reduced rate to Rating Area 2 (rural) to reflect remoteness and therefore less access to these facilities.

The differential system

Within each rating area in the district, the Council recovers the general rate requirement on a differential basis, calculated on the land value of a property.

Differentials are used to allocate costs between different groups of properties based on the broad level of service and benefit they receive. The higher the differential, the greater the perceived level of service and benefit those groups of properties receive.

Uniform annual general charge

Council also levies a uniform annual general charges across all rating units in the district. The rate applies to each separately used or inhabited part of a rating unit. The activities paid for from the charge are: Leadership Rate Collection, Civil Defence (50%), Economic and Social Development (65%), Waimarama Seawall (10%) and Wastewater Treatment (20%).

Targeted rates

Targeted rates are charged in addition to the general rate, based on things like connection to services such as water, wastewater and storm water, and access to services including refuse and recycling. They can, where applicable, include specific items such as funding the costs of Cyclone Gabrielle recovery, inspections for properties with private swimming pools, business support rates or car parking rates.

How property values effect rates

The share of general rates is based on a property's land value. So when a property's land value changes, it can impact on the share of the total rates.

Generally speaking:

• If your land value increases by about the average amount, you’ll have an average rates increase.
• If your land value increases more than the average, you’ll have a greater-than-average rates increase.
• If your land value increases by less than the average, you’ll have a lower-than-average rates increase.

You can lodge an objection to your valuation with QV by visiting their website.

Contact

For more information on your rates, please contact our rates department on phone or email (rates@hdc.govt.nz).