Property valuation increases and rate hikes needs sorting, Auckland Chamber of Commerce
City councils need reminding that skyrocketing property values don’t change the level of council services and therefore shouldn’t result in higher rates, the Auckland Chamber of Commerce warns.
The Auckland Chamber of Commerce, together with the New Zealand Chamber, is leading an initiative calling mayors and councillors for an improved home rating model that decouples the link between property valuations and setting rates.
Auckland Chamber chief executive Michael Barnett said it is wrong and unfair for a council to impose rate increases just because the value of a property has increased – especially when the level and cost of services provided by councils don’t change.
“All that does is treats ratepayers as cash cows, and is a form of progressive tax,” Barnett said.
Previous calls to individual councils, especially Auckland Council, for a change in the link between property valuations and rates have reportedly been ignored.
However, with the recent increase in Auckland residential property values by an average of 46% – with some in south Auckland up by a whopping 151% due to rezoning from rural to residential – a review of the impact this will have on homeowners’ rates bills next year is urgently needed, he said.
“A fairer, more transparent rates system is long overdue, and achieving that is what mayors and councils should focus on.”
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The Auckland Chamber of Commerce, together with the New Zealand Chamber, is leading an initiative calling mayors and councillors for an improved home rating model that decouples the link between property valuations and setting rates.
Auckland Chamber chief executive Michael Barnett said it is wrong and unfair for a council to impose rate increases just because the value of a property has increased – especially when the level and cost of services provided by councils don’t change.
“All that does is treats ratepayers as cash cows, and is a form of progressive tax,” Barnett said.
Previous calls to individual councils, especially Auckland Council, for a change in the link between property valuations and rates have reportedly been ignored.
However, with the recent increase in Auckland residential property values by an average of 46% – with some in south Auckland up by a whopping 151% due to rezoning from rural to residential – a review of the impact this will have on homeowners’ rates bills next year is urgently needed, he said.
“A fairer, more transparent rates system is long overdue, and achieving that is what mayors and councils should focus on.”
Related stories:
New government impacts on the property market
Warnings against spending spree based on CVs
