What basis for property valuations can councils use for rating purposes?
Councils have the choice of three types of values as their valuation base for the purposes of rating under the Local Government Act 1999 (s151): • Capital value – the value of the land including improvements • Site value – the value of the land without structural improvements • Annual value – a valuation related to the rental potential of the property. (Detailed definitions are contained in the Valuation of Land Act 1971) Most councils use the capital value basis of valuation. Under section 167, a council may choose to use property valuations: • Supplied by the Valuer-General; or • Made by a qualified valuer (or firm or consortium of valuers) employed or engaged by the council; or • Sourced from a combination of both the Valuer General and council employed valuer, but all valuations for land within a particular land use category which a council uses as a basis for differential rating (for example, residential use) must come from the same source, either the Valuer-General or the council
