Differential rating system

Rates are calculated using a differential rating system that is based on land use.

Aerial view of Wellington.

Differential rating categories

The Council classifies a property (or part of a property) as one of two principal differential rating categories:

  • base differential (includes residential properties)
  • commercial, industrial and business differential

Base differential

The base differential rating category shall be applied to the following rating units:

  • Separately rateable land used for one or more household units; excluding those properties that provide short stay (28 days or less) commercial accommodation for which a tariff is charged.
  • Vacant land zoned residential.
  • Land used as farmland and lifestyle blocks which is included in the rural activity area in the District Plan.
    Note:
    Farmland is defined as land used exclusively or principally for agricultural, horticultural, pastoral or silvicultural purposes, or for the keeping of bees or poultry or other livestock but excluding commercial dog kennels or catteries.
  • Separately rateable land occupied by a charitable organisation which is deemed by the Council to be used exclusively or principally for sporting, recreation or community purposes and that does not generate any private pecuniary benefit.

Commercial, industrial and business differential

The Commercial, Industrial and Business differential rating category shall be applied to the following rating units:

  • Separately rateable land used for a commercial or industrial purpose
  • Vacant land zoned commercial, industrial or business
  • Land used for offices, administrative and/or associated functions
  • Land used for commercial accommodation for which a tariff is charged and where the principal purpose is the provision of short stay (28 days or less) accommodation
  • Business-related premises used principally for private pecuniary benefit
  • Any rating unit not otherwise categorised within the Base Differential.

Within each of the above two principal differential rating categories, there are sub categories. These categories indicate whether the property receives targeted rates or whether the property is fully or partially non-rateable. For more information, see:

Billing categories