Manukau City Council 'rates' error

[Heg]

I just got a letter from MCC and another from QV informing me that they had got my Rating valuation wrong and could i stump up another$1057.35
QV informed me that they base their rates on an annual rental value and not on land value and they had stuffed up but it is me who has to pay. My CV is still the same as before.
Anyone else had this happen?

[whitt]

last year yes.
tell them you want to pay it off and they will let you with monthly installments.

[Heg]

Are they the only council that charge rates based on estimated rental income? I have never heard of this before.

[whitt]

Not sure.
But it makes it hard for places with minor dwellings.

I pay nearly $3000 rates on one place.

[Heg]

ok - just had a heated discussion with the guy at QV.
MCC rate on around 4% of 80% of GV OR 4% of 80 % of annual rental assessment. They then charge you whichever is the higher. Nice!
and when they make a mistake - you have to pay up.

[pl]

pretty sure that's the same way Auckland city calculates their rates too.

[Heg]

So us investors get hit hard if we have more than one property on one title. Be interesting to see how they base my rates when my subdivision comes through...

[muppet]

Hi Heg

South Waikato District Council is the same.

Our rates here were about $1200 per year until we had built a minor dwelling unit/Granny Flat on the same site.

The rates in the next year went to $2100. The biggest expense was for the extra toilet on the site.

Should just have had an extra bedroom and ensuite built. The rates may have stayed the same.

Regards

ps We do get an extra set of rubbish bags however.

[spurner]

An interesting way to rate property. Unfortunately it effectively results in an additional tax on people who prefer to live in multi-unit properties, presumably who are doing so because they are on lower incomes.

MCC rate on around 4% of 80% of GV OR 4% of 80 % of annual rental assessment. They then charge you whichever is the higher.

How/when could the annual rental assessment ever exceed the GV? You would have to collect more in rent than the value of your property is?!

[Heg]

How/when could the annual rental assessment ever exceed the GV? You would have to collect more in rent than the value of your property is?!

Correct. However that is what the guy from QV told me. Like I said, we had a heated discussion because I can't figure it out either