Local Government (Rating) Act 2002

Amendments, savings, repeals of other enactments, and transitional provisions

Schedule 3: Factors that may be used in calculating liability for targeted rates

You could also call this:

"What affects how much you pay in targeted rates"

Illustration for Local Government (Rating) Act 2002

When calculating liability for targeted rates, you need to consider some factors. These factors are listed in the Local Government (Rating) Act 2002, which is empowered by s 18. The factors include the annual value of the rating unit, the capital value of the rating unit, and the land value of the rating unit.

You also need to think about the value of improvements to the rating unit, the area of land within the rating unit, and the area of land that is sealed, paved, or built on. The number of separately used or inhabited parts of the rating unit is another factor, as well as the extent of provision of any service to the rating unit by the local authority.

Other factors include the number or nature of connections from the land to any local authority reticulation system, the area of land protected by any amenity or facility, and the area of floor space of buildings within the rating unit. Additionally, you need to consider the number of water closets and urinals within the rating unit, as outlined in clauses 1 to 5, 8, and 10, and the specific calculations for clause 4 and clause 12.

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This page was last updated on 10 September 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM133537.

Schedule 2: Matters that may be used to define categories of rateable land, or

"Things that help decide how much rates you pay on land"

Schedule 3A: Lump sum contributions, or

"Payments for big local projects, like how much you might need to pay upfront"

3Factors that may be used in calculating liability for targeted rates Empowered by s 18

1

The annual value of the rating unit.

2

The capital value of the rating unit.

3

The land value of the rating unit.

4

The value of improvements to the rating unit.

5

The area of land within the rating unit.

6

The area of land within the rating unit that is sealed, paved, or built on.

7

The number of separately used or inhabited parts of the rating unit.

8

The extent of provision of any service to the rating unit by the local authority, including any limits or conditions that apply to the provision of the service.

9

The number or nature of connections from the land within each rating unit to any local authority reticulation system.

10

The area of land within the rating unit that is protected by any amenity or facility that is provided by the local authority.

11

The area of floor space of buildings within the rating unit.

12

The number of water closets and urinals within the rating unit.

For the purposes of clauses 1 to 5, 8, and 10, rating unit includes part of a rating unit.

For the purposes of clause 4, value of improvements is the value calculated in accordance with the following formula:

where—

is the capital value of the rating unit
is the land value of the rating unit.

For the purposes of clause 8, the extent of provision of a service to the land must be measured objectively and be able to be verified.

For the purposes of clause 12, a rating unit used primarily as a residence for 1 household must not be treated as having more than 1 water closet or urinal.