18 January 2021
Rating valuations of gold kiwifruit properties now include both the added value of the licence to grow the vines and the planted vines.
Rating valuation providers and the Valuer-General met in August 2020 to discuss the definition of Value of Improvements, which reflects the value buildings and improvements add to bare land. The valuers reached a view that the rating valuation had to include the licence to grow gold kiwifruit vines and the planted vines.
The Valuer-General accepted this view as reasonable based on the Rating Valuations Act 1998 definition of Value of Improvements, which requires the assessment of the value of all work done on or for the benefit of the land.
Growers must have a licence to farm G3 gold kiwifruit vines. Without the licence, the vines would need to be removed. Together the licence and the planted vines generate added value, which is recognised in market transactions.
The change will mean an increase in the Capital Value and Value of Improvements for rating value assessments of gold kiwifruit properties. These values will then be used for rating purposes, subject to various councils’ rating policies.
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