Auckland: Up to 21 per cent rates rise

The average increase in Auckland residential property values in 2002 was 14.4 per cent. It was 9.4 per cent for non-residential or business properties, and 4.9 per cent for CBD non-residential.

Mr Hay says: "Unfortunately, how the total rates bill is split among individual ratepayers depends on the valuation of their properties. The total value of the city went up 11.7 per cent.

"However, a large number of properties went up considerably more than this and will face rates increases of larger than 2.5 per cent. A large number increased by much less than 11.7 per cent and will receive rates reductions.

"Changes in valuations do not have any effect on total rates collected. Wildly fluctuating valuations resulting in large changes for individual properties shows how unfair it is to collect rates solely on a valuation basis," he says.

"It is for this reason Auckland City will be moving towards collecting a bigger portion of its rates by way of fixed annual charges, and a smaller portion based on valuation."

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