RATES INFORMATION - FAQ

Rates Information 

FAQ Question Links:

• Rates Rabate information (external link)

• Bank Account details for the Waitaki District Council

• Baycorp – I have received a letter from Baycorp

• Business Rates – Why are some business rates higher in certain areas?

• Can I get any penalties remitted?

• Can I pay my current installment, if I have previous rates outstanding?

• CV and LV – What are these amounts,

• Direct Debit or Automatic Payment options?

• GV – What is this?

• How are rates determined?

• How much do I owe – how do I find out?

• I have a new Bank Account.

• I have changed Banks.

• Penalties – When are they applied?

• Property Information – Information available to the general Public!

• Property Information – Information for Solicitors and Real Estate Agents!

• Refuse payment – Why do I pay for Refuse in my Rates?

• Sewerage Scheme Payments. – How much, how long, how often?

• Tenants - Can rates be sent to, and or paid by the tenant?

• Totara Hall - Why am I still paying this Hall Rate?

• What are rates?

• What happens if I don’t pay my rates?

• What happens if I have more than one property?

  • Are my rates reduced?

• What is “contiguous” property?

• What is the ‘bare land rates remission”?

• When, and how often do I need to pay rates?

• Who pays rates?

• Who sets the amount of rates to pay?

• Why are old penalties shown on my current rates demand?

  • How can I tell if the penalty was paid?

 

 

 

FAQ QUESTION AND ANSWERS

What are rates?

• Rates represent the cost of providing the agreed level of service that the community wants (agreed in the Annual Plan).
• If the community changes the level of service the rates will change.
• This District expects similar services to other Districts, but has a fraction of the population.
• We also have the 3^rd largest Roading Network in New Zealand.

Who sets the amount of rates to pay?

Council sets the amount of rates to pay in accordance with the requirements of the Local Govt Act 2002.

Council determines the funds required to carry out the services required by the community as outlined in the Waitaki Community Plan. The plan also provides a funding impact statement, which shows what rates council is changing, the reason for the change, the activities the rates will be funding, and the new amount for the rate.

How are rates determined?

Rates are a mix of uniform charges, and variable charges based on either land value, and or capital value of the property.

The total cost of the services required by the community is divided up between all the rate payers in the district based on the about calculation, and the resulting cost is referred to as Rates.

Who pays rates?

As prescribed in the Local Govt (Rating) Act 2002…

The person named as the Ratepayer in the Rating Information Database, and District Valuation Roll, is responsible for paying the rates. (Both database and roll are maintained by the Council)

Usually this means the owner of the property is responsible for paying the rates.

However, anyone can physically pay the rates on a property, but it will be the owner that is held responsible for any outstanding payments, or any penalties applied.

Can Rates be sent to, and paid by the Tenant?

NO.

• As part of the new Rating Act as from 1 July 2003, the owner is liable for the rates on the property

• Rates invoices will be sent to the owner only.

• This also means that if an owner owns a block of shops on one title, the owner will be sent one assessment and he/she will need to calculate what his or her tenants need to pay.

• The Council will have no involvement in this.

• If the Owner wants to set up a Direct Debit from the tenant’s bank account, this can be done, but it will be the responsibility of the Landlord/Owner to ensure payments are kept up to date.

HOWEVER

There are some exceptions to this if the lease is registered on the title. Please contact a Rates Specialist.

When, and how often, do I need to pay rates?

Council invoices quarterly.

You will receive four Rate Instalment Notices for each rating year.

Invoice One due by 25^th August - Penalty applied thereafter Covers 1 July – 30 Sept

Invoice Two due by 25^th November - Penalty applied thereafter Covers 1 October – 31 December

Invoice Three due by 25^th February - Penalty applied thereafter Covers 1 January – 31 March

Invoice Four due by 25^th May - Penalty applied thereafter Covers 1 April – 30 June

Payments after the above dates will have 10% added to the invoice amount that remains outstanding.

• Ratepayers do not have to wait until the due date to pay rates.

• Payment can be made once the Invoice has been received.

What happens if I don’t pay my rates?

When are penalties applied?

• A 10% penalty is added on the next business day to so much of any installment not paid by the due date.

• A further 10% penalty is added to Rates that remain unpaid from the previous years.

• This will be added on 1-July of each year, or 5 working days after Council has passed the rates resolution.

• A further 10% penalty is added to Rates that remain unpaid from the previous years.

• This will be added 6 months after the penalty made in accordance with Section 58(1)(b).

Can I get any penalties remitted?

You must apply in writing, if you are requesting to have penalties remitted!

NOTE:

• A wrong address is NOT a reason, to get your penalties remitted.

It is the Customers responsibility to inform the WDC, in writing, of any change to their contact details.

There are many things to consider when the Council considers a Penalties remission.

You MUST send in a written application explaining the reasons you believe why you should get a penalties remission.

Address the letter to : Chief Financial Officer

Waitaki District Council

P.O Box 50058

Oamaru

Can I use Direct Debit or Automatic Payments options?

YES.

• Direct Debit is preferable. Council will provide customer with notification on how much will be deducted from the nominated account and they will not need to worry about installment due dates.

• The rates are calculated over the number of months left in the rating year and payments set up accordingly.

• There is no extra charge for this and they pay the same amount of rates.

• Automatic Payment is one that the customer sets up with their bank. The customer is completely responsible for all aspects of the Automatic payment (amounts, timings, cancellation etc).

• The Council takes no responsibility for a customers rate account if on Automatic Payment.

• Waitaki District Council's bank account details are:
  BNZ Account
  02 0940  0156400  00
  
  You MUST put your RID (Rates Information Database ID) as a reference.

NOTE: Most Banks charge for the AP service.

The Forms.

Direct Debit and Automatic Payment forms are available from the Council offices, or they can be posted out.

Call Customer Services (03 433 0300)

I have changed Banks.

I have new Bank Account details.

You will need to complete a new Direct Debit Authority. There is no charge for this service.

Automatic Payment changes are entirely the responsibility of the customer.

They will have to make their own arrangements with the Bank for the change. The Bank will charge a fee for this

 

NOTE:

- Direct Debits do not transfer over with property sales

- Direct Debits are automatically cancelled by Council on receipt of a 'Notice of Change of Ownership'

.

How do I find out how much I owe?

• Contact either of the following offices, and the staff will be able to give you up to date information about you property.

- Customer Services Unit at the Council (03) 433 0300

- Waihemo Service Centre (03) 465 1106

• You should be able to provide your name, address, and RID number.

• You will need to be the named rate payer to get detailed financial information.

Can I pay my current installment, if I have rates outstanding?

NO.

Outstanding rates and penalties must be paid first.

You cannot pay off new rates until you have paid any outstanding charges, as all payments are applied to the oldest debt first.

 

 

What are the CV and LV amounts?

CV = Capital Value of the property (Total Value of the Property)

LV = Land Value

The difference between Land and Capital value is the ‘Value of Improvements” (VI)

VI = Value of Improvements. These include buildings, fences etc

What is the GV value all about?

This is now called “Rateable Value”.

• The council has contacted Quotable Value NZ to value all rateable properties in the District.

• This process is undertaken every 3 years.

  • Initial assessments are in May and June.

  • Proposed values are then sent out ,

  • objections called for

  • Rateable Values confirmed in September.

• More information about the valuing system is available on the QV Website.

Information available to the General Public?

Members of the general public are entitled to know:

• Name, address, contact details

• Annual Rates

• Land and Capital Value

• But NO FINANCIAL details regarding payments/arrears etc.

Information for Solicitors and Real Estate Agents?

Solicitors and Real Estate Agents have the right to obtain all rates information.

• ALL details must be provided in writing, and faxed or emailed.

• At no time should any financial details be given out via the phone.

• It is imperative that the Council look ahead when giving information of this nature, and look for things such as:

  • Is settlement date after the due date, so will a penalty apply?

  • Are there arrears on this property?

  • Are the ratepayers on a Direct Debit/Auto Payment that will need to be cancelled?

  • Is this past the due date but arrears not showing on the screen yet?

  • Are there any relevant financial memo’s?

 

What is “contiguous” property?

Definition:

• ‘Contiguous land’ - side by side, or joins at some point on a common boundary.

• The only thing that can divide these pieces of land is a road, water, or rail.

Rates Option

• ‘Contiguous land’ is rated as if it is one property.

Two or more Rated units must be treated as 1 unit if those units are:

• Owned by the same person or persons as defined in the DVR (District Valuation Roll) must be identical!

• Used jointly as a single unit.

• Contiguous, or separated only by road, rail, drain, water race, river, or stream

Rate Payers NEED TO APPLY for this adjustment option.

What is the ‘bare land rates remission”?

Definition:

• ‘Bare land’ can only have a fence (or similar) around the perimeter.

• It may contain trees or irrigation (that may include a pump shed) but no other buildings of any description.

Rates Option

• ‘Bare Land’ attracts a remission to the ‘Uniform Annual General Charge’ and the ‘Ward Charge’.

These charges will remain on the assessment but show as a negative “bare land remission” in the levy codes.

Rate Payers NEED TO APPLY for this adjustment  option by the 31 May for the rating year commencing 1 July following

 

Sewerage Scheme Payments: How much? Often? Long?

 

The Oamaru Sewerage Scheme was upgraded in May 1993, and a twenty year loan repayment was introduced.

The Moeraki Sewerage Construction Loan was initiated in June 1999, and a twenty year loan repayment was introduced.

Council will accept early repayment of the these loans.

If payed out, the removal of the loan code will not show up until the 1-July following the payment

Council reviews these charges annually, as is specified in the Annual plan.

Totara Hall – Why am I still paying this Hall Rate?

Even though the Totara Hall is no longer available for public use, a new Hall is being built and funds required for this, so it will still be rateable.

Baycorp – I have received a letter from Baycorp.

Payments made, with reference to your correspondence from Baycorp, will be accepted by the WDC.

The Customer Services Unit will forward a copy of your receipt to the Accounts Receivable Officer who will in turn advise Baycorp.

Payment options, for direct payments to Baycorp, are itemised on their correspondence.

Why are Business rates higher in certain areas?

• The boundary for the Oamaru Business Area has been moved a little.

• Businesses in this area will pay more rates than businesses outside the area.

• The difference results from higher property values in the Oamaru Business Area and the fact that properties in the Oamaru Business Area pay for benefits that they get by virtue of their location, for example foot traffic from the library, museum and gallery.

• As well, properties in this area used solely for residential purposes have been excluded.

Why do I pay for Refuse in my rates?

Waste Collection has been made available to most residential Customers by the Council and thus is charged in the annual rates. Whilst the Council can appreciate that some of our customers may seek an alternative method of refuse collection, it is not in the position to change the rates per property on this basis.

The $1.50 charge for the official black rubbish bag covers the cost of the bag and the contractor picking it up and taking it to the landfill. Communities serviced by the kerb side collection service pay an additional rate for the service.

Rates are for the availability of services within a community. Wherever possible, we charge users of our service