Read pages 74–87 in our consultation document, Securing our future [PDF 8.41 MB], to learn more about rates.
The realities are:
We’ve received strong feedback from our community that while people would prefer lower rates increases, they do not wish to see services and facilities cut to reduce rates. Some of what we’re consulting on in this Long-term Plan signals how we might be able to reduce this dependency in the future.
Our average proposed rates increase for Kāpiti Coast District rates for 2021/22 is 7.8 percent; however, increases will vary for different properties in the district. This is not only because of differences in property type, value and location – your rates may also be affected by changes in your property value after last year’s revaluation, the proposed changes to our rating system, and Greater Wellington Regional Council’s rates.
As explained, Council is proposing an average rates increase of 7.8 percent for 2021/22. However, the rates increase will vary for different properties across the district. This is because of:
The new rates for 2021/22 are decided by Council when they adopt the Long-term Plan 2021–41 in June 2021, after they have considered all the feedback received on the proposed changes. The first rates instalment of the new rates will be sent out in August 2021. We’re sending letters to all ratepayers explaining this, and putting the information on our website.
You can see the proposed rates for your property along with the difference that your property revaluation has made and the proposed changes for the coming year. Visit our proposed rates section.
You can also check out your proposed rates for 2021/22 in our calculator below. You will need your property's valuation number for this; you can find that in the property rates search.
Once you've entered your valuation number and clicked the Submit button, you'll see a graph displaying your current rates for the 2020/21 year, and the rates you'll pay under the proposed rates system for 2021/22. The 2021/22 figure reflects the impacts of the August 2020 revaluation, proposed rating system changes, proposed rates increase and GWRC’s proposed rates increase.
The information used for this calculator was taken as of 15 March 2021.
In August 2020, all properties in the district had their three-yearly revaluation by Quotable Value, and owners will have received notices of their new valuations in early November 2020. Along with the rest of the country, our properties have risen significantly in value. Rising property values in the district don’t affect the total amount of rates we collect, however they do affect how rates contributions are shared. If the value of your property has increased by more than the average across the district, then your ‘share’ of the rates will go up, and if your property value has increased less than the average, your rates 'share' will be less than before, making your increase less than the average.
As a result of its review, the Council is proposing some small changes to improve equity. The key changes are to:
These changes would help alleviate some affordability issues, and move closer to the target rating system proposed in 2017, by reducing rates collected through land value charges from 37 percent to 34 percent and increase rates collected through capital value charges from 15 percent to 18 percent. We want to hear the community’s views on the proposed changes to the rating system.
The impacts of the proposed changes (based on the 2020/21 rates requirement and new rating valuations) would see residential ratepayers paying $250,000 more in rates compared with $450,000 under the status quo option of the current rating system.
According to the 2007 independent inquiry into local government rates report, rates shouldn’t be more than five percent of household income. Council looks at affordability as part of its considerations. The latest affordability statistics provided by economic consultancy firm Infometrics indicate some areas – Waikanae West, Ōtaki and Paraparaumu Central – are still more likely to have rates over five percent of household income than households elsewhere in the district.
To help address affordability, both the Government and Council offer support for lower-income ratepayers on a case-by-case basis through the government rates rebate scheme and Council’s rates remission (assistance). See our rates section for more information.