Differential Rating System - Introduction

Rates are calculated using a differential rating system that is based on land use.

The system first classifies a property as either a base differential (includes residential properties) or commercial, industrial and business differential.

The property is further classified by a billing category to indicate whether it receives targeted rates, a rates remission or is fully or partially non-rateable.

Base Differential

Properties falling within the base differential include:

• Residential - separately rateable property used solely for one or more households. Excludes properties that charge a tariff for short-stay commercial accommodation.
• Vacant land - zoned for residential purposes.
• Rural land (including farmland and lifestyle blocks) - administered by Council under the District Plan. Excludes properties zoned for rural industrial purposes.
• Charitable - separately rateable property occupied by a charitable organisation for the principal use of sport, recreation or other community purposes that do not generate any private pecuniary profit.

Commercial, Industrial & Business Differential

Properties falling within this differential include:

• Commercial / industrial - separately rateable property used for a commercial or industrial purpose.
• Vacant land - zoned for commercial, industrial or rural industrial purposes administered by the Council under the District Plan.
• Offices - administrative and associated functions.
• Commercial accommodation - for which a tariff is charged, where the principle purpose is the provision of short stay accommodation (28 days or less).
• Business related premises - used principally for private pecuniary benefit.
• Utility networks.

50% Non-rateable

Includes land referred to in Part 2, Schedule 1 of the Local Government (Rating) Act 2002. This land is 50% non-rateable for all rates except sewerage and water rates for which this land is fully rateable.

Non-rateable

Includes land referred to in Part 1, Schedule 1 of the Local Government (Rating) Act 2002. This land is non-rateable for all rates except sewerage and water rates for which this land is fully rateable.

Department Details:
Rates & Billing Services (Financial Transactions Bureau)