Rating Valuations Act 1998 (RVA) Orders in Council

About the Orders in Council

In greater Christchurch, the extent of earthquake property damage makes it extremely difficult for councils to perform rating valuation functions in the required time.

To deal with this the three Orders in Council took effect on 30 June 2011. The Orders temporarily suspend and modify the RVA requirements on councils to perform some rating valuation functions, including: updating District Valuations Rolls (DVRs), producing general revaluations within statutory deadlines and the section 16 RVA right to request a new valuation.

The Orders give affected councils certainty about rating income for 2011/12 so they can provide essential services. The Orders also focus Council resources on the next general revaluations.

A. Limited application of Section 14 (of the RVA) Updates to DVRs

• Each Order limits the type of DVR adjustments (updates) required under section 14(1) of the RVA. They permit DVR adjustment due to changes in property boundaries and from new building that will be part of general improvements or the recovery process.
• The Orders also remove the value of improvements from the DVR, where buildings have been totally demolished or their demolition has been ordered. 
• The Orders provide that where properties have received moderate to severe damage but are not required to be demolished, rates will still be assessed on pre-earthquake values. Ratepayers are advised to contact their council about rate remission policies.  

B. Delay general revaluations and suspend section 16 (of the RVA) rights

• General revaluations are legally required every three years. The Orders  delay the affected councils’ next general revaluations so that rate-setting property values reflect changes attributable to the earthquakes and other market factors.
  • The Canterbury Earthquake (Rating Valuations Act—Waimakariri District Council) Order 2011 extends the next general revaluation date for the Waimakariri District from 1 July 2011 to an effective date no later than 1 December 2012.
     
  • The Canterbury Earthquake (Rating Valuations Act—Christchurch City Council) Order 2011 extends the next general revaluation date for Christchurch City from 1 December 2011 to an effective date no later than 1 December 2013.
     
  • The Canterbury Earthquake (Rating Valuations Act—Selwyn District Council) Order 2011 does not extend the general revaluation date of 1 July 2012 for Selwyn District.
• Section 16 of the RVA allows a ratepayer, at his or her expense, to request a new property valuation and to have the matter heard by the Land Valuation Tribunal. The Orders suspend the application of section 16 of the RVA until the next general revaluation. This intervention is only for a limited period until normal valuation practices can be resumed.