Extract:

• The covid-19 pandemic has impacted employment and preferences about where people choose to live or work.
• Auckland Council has requested that the three-yearly revaluation of properties be delayed a year to allow the re-establishment of the market. At current low sales volumes post-pandemic it is extremely challenging to show the medium-term trajectory of the market or credibly revalue properties.
• Auckland currently uses a capital value (land value plus improvement value) based ratings system to collect property rates. The variable component of the rates bill is based on the capital value of the property.
• Given the accelerated change in how people live and work, the challenging financial environment that councils are in from the covid-19 shutdown, the timing of the property revaluation process, and the incentives to more efficient use of land that a switch would provide, one option may be to switch to a land value based rating system.
• A land value based system would see around 59% of Auckland households pay less in rates. ...

June 2020