Central Otago District Council adopts new rating system
Central Otago District Council (CODC) has adopted a new method for calculating rates, to take effect from 1 July 2027. Option A: Re-thinking our approach to rates, shifts the basis for calculating the general rate from land value to capital value, removes most of the differentials, and simplifies what is included in the general rate.
The decision followed a comprehensive review of the district's rating system and receiving 225 submissions though a public consultation process. 57% of submitters indicated support for change from the current, land value-based system, by selecting Option A or Option B.
Council considered the full picture – including the modelling, the financial evidence, and the impact across the district – and determined that the fairest and simplest approach was to move to capital value and treat all ratepayers the same way. Capital value also expands the rating base, meaning costs are spread more widely across the district. Council deliberated whether a differential should be applied to business properties but ultimately decided against it, recognising the important role businesses play in the local economy.
Mayor Tamah Alley says the decision was made in the best interests of the broadest number of ratepayers. “We're grateful to everyone who engaged with this review,” she said. “While we recognise there are winners and losers in every scenario, around 75% of ratepayers will be better off under Option A, and rather than imposing a higher share of rates on businesses, we want to encourage investment and growth across the district.”
Paul Morris, Chief Financial Officer, says the rates calculator proved valuable during the review process. “We're proud of the tool the team developed,” he said. “The calculator allowed people to see exactly how each option would affect their property, and maybe it meant they didn't need to make a submission.”
The new rating system will take effect from 1 July 2027.
Ratepayers will soon be able to use the updated rates calculator at Let’s Talk to see an indication of what the change means for their own property.
