Rhea Dasent: Two ways to reduce your rates

A neatly fenced QEII covenant, which could fetch a rates rebate.

Farms in Hastings have recently been revalued, and Federated Farmers has some tips for property owners about these notices.

Every property in New Zealand has a rating value, which is usually assessed every three years.

My family farm has had a whopping 28 per cent capital value increase from its 2013 valuation; our land value alone has jumped 30 per cent.

We haven't done anything of note to develop our property in this time so the increase will be based on sales in the area.

The Hastings general rate is based on land value, so the higher our land value is the more rates we pay.

Our rates have been revised to increase by 3 per cent based on this new valuation.

This is only based on the general rate struck at 0.3363 cents in the LV dollar in 2016, which is also vulnerable to being increased in next year's Annual Plan.

There are two things farmers can do to reduce their rates burden: object to their new value; and apply for remissions.

Property owners have until December 2 to object to their revaluations.

Objections are lodged with QV (Quotable Value) rather than with the council, and you fill out a basic online form.

Because QV bases their valuations on generic factors (for example, size, zoning, number of houses, recent sales) the value won't necessarily take into account the individual attributes of your property.

Lodging an objection ensures they take a closer look at your property.

Farmers can also apply for a rates remission for grassland titles that are used as part of your overall farming operation.

This will avoid being charged the $228 UAGC and $296 Community and Resource Management rates multiple times, as these rates are applied on a per property/per house basis.

You can also apply for these two rates to be remitted if you do have an extra house and it is either derelict, or occupied by family or employees.

Hastings farmers can also apply for a rates remission for protected land.

If you are an owner of one of the 257 QEII covenants in Hawke's Bay then this is worth following up.

Federated Farmers can help you lodge an objection or apply for the remissions. Give me a call on 0800327646.

- Rhea Dasent is a senior policy adviser for Federated Farmers