Capital Value transition

​​​​​At a meeting on the 27 November 2014 the Council decided to change from the current land value rating system to a capital rating system, where rates are calculated on the value of the land and what's built on the land, rather than just the land itself.

The change will bring Hamilton into line with other major cities in New Zealand who use a capital value rating system.

2017/18 is the third year of the ten year transition from land value to capital value rating.  This year 70 per cent of the total general rate collection will be set based on land value and 30 percent will be set from capital value, in the form of a targeted rate.

Key facts about the change to capital value

  • Under capital value, the way rates are divided amongst property owners will change but the overall rates revenue collected by the Council will not.
  • The percentage of rates collected from each sector will also stay the same (residential 65%, commercial 34% and rural 1%).
  • Property owners will pay their share based on capital value within each sector.
  • Some property owners will receive a rates increase and some will receive a decrease. ​

Click here to read FAQs following the decision in November 2014.​​

Page reviewed: 25 Oct 2017 4:43pm