Explaining rates

Your rates are used to help pay for community services and facilities. A property with a higher rateable value will pay more rates.

Rates for a property are calculated based on:

Land value – the rateable land value determined on a common date.
Capital value – the rateable capital value determined on a common date
Fixed charges
Differential rates – applied in some cases.

All Councils are required to have properties in their areas revalued at least every three years. Properties in the Kapiti Coast District were last revalued in August 2020. The next districtwide revaluation is scheduled for August 2023.

The amount of money collected through rates is based on the funding Council needs to deliver its services to the district. This is set each year through the annual plan (in years 2 and 3) or long-term plan (in year 1) process. These costs are then allocated across the community using a combination of land value, capital value and fixed charges, with differential rates applied to some rates.

Where a property’s revaluation increase is larger than the average increase, the property will have a slightly higher rates increase than average. A property that has a revaluation increase lower that average will have a slightly lower rates increase than the average.

Before rates start to be based on the new valuations, Council will be looking at the impact of the revaluations on rates and affordability as part of our rating review. Following this, any proposed changes to how we spread rates costs across the district will be shared with the community for their feedback. This will take place alongside community consultation on our draft long-term plan.

You can check out your current rates at Property search.

Rating unit

The Valuer-General determines what a rating unit is. It is generally a property that has one Record of Title, but can include two or more Record of Titlea or part record of Title, depending on whether the land is:

owned by the same person or persons
used jointly as a single unit
contiguous (sharing a common border).

Separately used or inhabited part of a rating unit (SUIP)

‘Separately used or inhabited part’ means any part of a rating unit that’s separately used or inhabited by the owner (or any other person with the right to use or inhabit it through a tenancy, lease, licence or other agreement). This includes separately used parts (whether or not they’re occupied at any particular time) used by the owner for rental (or other form of occupation) on an occasional or long-term basis by someone other than the owner.

The land or premises of the separately used or inhabited part must be able to be inhabited or used by someone for conducting a business.

A rating unit that has a single use or occupation is treated as having one separately used or inhabited part. A rating unit with one or more vacant lots of land is treated as having one separately used or inhabited part.

Examples of separately used or inhabited parts include rating units with multiple offices, shops, commercial units, dwellings or flats, rating units with a dwelling and a consented family flat or minor flat, dwellings that contain more than one kitchen as defined in Councils’ operative District Plan, and dwellings used as a home and place of business where the above requirements are met.

In relation to motels, hotels, hostels, lodges, camping grounds, Licensed hotels and taverns, separately used or inhabited parts of a rating unit includes the following where a commercial business provides part of their rating unit:

for separate use as an entertainment area or for conference activities and/or any type of residential accommodation by virtue of an agreement requiring payment of a fee,
for accommodation (with or without fixed cooking and food preparation facilities) and
for parking areas for caravans/mobile homes with an electric power source and access to washing/toilet facilities.

Accommodation/hospitality

Means rating units used principally or exclusively as motels, camping grounds, hotels, hostels, lodges, licensed hotels and taverns.

Commercial

Means rating units used principally or exclusively for commercial, industrial, business or utility network puproses. This includes rating units used for:

Commercial or industrial purposes
Retail purposes
Offices, administrative and/or associated functions including administrative or operational rating units of Central and Local Government
Accommodation/hospitality
Utility networks
Business-related premises used principally for private pecuniary benefit

In situations where a change in use does not require a Council consent, but warrants a change in rating category, the onus is on the ratepayer to inform Council. Any change in use during a rating year will apply from 1 July of the following rating year.

Differential rating system

Rates are calculated using a differential rating system based on land use or rating category. This means the amount of rates levied on a property will depend on its use, size, location, and other factors.

Districtwide general – differential categories

Differentials have been applied to the rural area for the Districtwide General rate to reflect its lower population density, and lower demand for services. The Districtwide general rate is based on land value.

The differentials are:

Urban rating area	Percentage of urban rate
U1 All rating units	100%
Rural rating area	Percentage of urban rate
R1 Rural rating units less than 50 hectares	38%
R2 Rural rating units equal to or greater than 50 hectares plus (rating units less than 50 hectares, where a combination of these properties total greater than 50 hectares and form part of one farming operation)	22%
R3 Rural village rating differential units as identified in the rural village differential rating area maps.	70%

Districtwide water supply rate fixed rate – differential categories

For the purposes of water supply rates the following differential categories apply. The districtwide water supply fixed rate is charged as a fixed charge per separately used or inhabited part of a rating unit (SUIP):

General	Means per separately used or inhabited part of a rating unit that is connected to the district's water supply (excluding medium and large scale and accommodation/hospitality)
Medium scale	Means rating units connected to the district's water supply where the number of rating units or separately used or inhabited parts of a rating unit are 10 or more, but less than 20 units, whose water meters and individual check meters have not been installed
Large scale	Means rating units connected to the district's water supply where the number of rating units or separately used or inhabited parts of a rating unit are 20 or more units whose water is collectively supplied through one or more water meters and individual check meters have not been installed
Accommodation/Hospitality	Means per separately used or inhabited part of a rating unit connected to the district's water supply and used principally or exclusively as motels, camping grounds, hotels, hostels, lodges, licensed hotels and taverns.
Serviceable	Means rating units not connected to the district's water supply, but within 100 metres of a water main and capable of being connected.

Wastewater disposal rate – differential categories

For the purposes of certain wastewater rates the following differential categories apply. The wastewater rate is charged as a fixed charge per rating unit or wc/urinal depending on the differential category:

General	Means all rating units connected to the sewerage systems with one water closet or urinal other than rating units in the "Community" or "Educational" or Recreational" or "Large Scale Commercial/Residential" categories. A rating unit used primarily as a residence for one household will not be treated as having more than one water closet.
Community	Means rating units connected to the sewerage systems and used principally or exclusively as places of religious worship and instruction, marae hospital and welfare homes, community health services and charitable institutions that provide maintenance or relief.

Educational	Means rating units connected to the sewerage systems and used exclusively or principally by schools (with the exception of school houses), colleges, polytechnics, children's health camps and early childhood centres
Recreational	Means rating units connected to the sewerage systems and used princpally or exclusively by recreational, sporting, other community organisations and Council community properties
Large scale commercial/residential	Means rating units connected to the sewerage systems and used for large scale commercial or residential purposes as characterised by having more than one water closet or urinal and residential rating units connected to the sewerage system and used primarily as a residence for more than one household
Serviceable	Means rating units not connected to the sewerage systems but within 30 metres of a sewer main and capable of being connected.

Note: The Council does not assess a Uniform Annual General Charge.