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Published by Greer Herbison on July 30, 2019
Categories
  • Clients
Tags
  • Property law

Why do we pay rates?

Rates provide income to councils around NZ to help fund services and facilities that benefit the public. Rates are collected for the overriding purpose of helping and improving local communities. Some of these services may include:

  • road works, and new infrastructure
  • waste collection, and water supply
  • maintaining public grounds
  • running community facilities such as libraries
  • protection of buildings and general promotion for safer communities
  • property information and advice

Councils calculate the annual rates for each property based on their respective valuations (including land and buildings) and the use of the property. Generally, these valuations are based on the current market value and are usually reviewed every three years. The use of a property generally falls into one of the three main categories being rural, commercial or residential.

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