What are rates?

The amount you pay in rates doesn’t directly relate to the amount of things Council does for you personally.

Rates are not a ‘charge for services’, they are a tax on the value of your property. It is not a perfect system but it is one of the very few ways the Government allows Councils to collect revenue.

Rates provide 59% of the Council’s income. The other ways Council can get income to deliver on services and facilities are:

• user fees (30% of income)
• development contributions (6% of income)
• Government grants, subsidies, interest (5% of income)

What are Water Rates?

See the Water Rates page for information on Water rates.

Rates Information

• The rating year starts on 1 July each year to 30 June the following year.
• Rates and charges are inclusive of GST.
• Annual Rates are set in July each year.
• Rates are payable in two instalments and are paid in advance.

Each year an assessment is sent out to property owners on 1 August together with the first instalment invoice. Payments are due on the last working day in August.

The second instalment invoice is sent out to property owners on 1 February each year and is due on the last working day in February.

Note: Invoices to property owners who pay their rates by direct debit are sent out around a week after the1 August and 1 February to make sure that the monthly direct debits have been taken into account.

What are the charges for rates and how are they calculated?

Rates are a tax on the value of your property. The value of your property is set by an independent agency and is driven by national legislation.

Revaluations are done every three years. The most recent was done on 1 July 2012 and revaluation notices were sent to property owners on 14 November 2012. 

What do General Rates pay for?

Rates are used to pay for a wide range of services and capital projects such as new roads, storm water, libraries, reserves and so on.

Council’s Ten Year Plan is a good place to find out more about how Council plans to spend rates income.

Where are my rates spent?

In the 2012/13 financial year, it will cost the Council approximately $165 million (in round figures) to deliver you the services and infrastructure this growing city needs. Of this, $102.76 million is to be generated from rates.  View how the Council spends your rates. (290kb pdf)

The Local Government Act 2002 requires Council to consider the environmental, cultural, social and financial impacts of its decision making.

Some Rates Statistics

We have around 48,000 residential customers and 3,000 commercial customers. This year we are collecting around $103 million (excluding $10.5 million regional rates collected on behalf of Bay of Plenty Regional Council and excluding $16 million water rates).