Christchurch home owners with homes to be demolished need only pay rates on land value, not entire property, govt says

Christchurch property owners whose homes have been demolished, or are scheduled to be demolished, will only have to pay council rates on their land, Minister for Land Information Maurice Williamson says.

Williamson said the rating valuation systems for two Canterbury councils had been changed from 30 June 2011 following the devastating earthquakes that have struck the region. The next general revaluation for Christchurch City Council was been extended to 1 December 2013 and 1 December 2012 for Waimakariri District Council. The July 2012 date for Selwyn District Council remains unchanged.

Government legislation also amended the circumstances for altering rating values between general revaluations.

"That means owners of homes that have been demolished - or are scheduled to be demolished - will only be required to pay rates on the land itself," Williamson said in a media statement.

"This allows councils to continue to maintain a working rating valuation system, and ensure they have the necessary rates income to provide essential services," Williamson said.

The process would not affect the Government's offers of purchase to property owners in the designated residential red zone.

"This is a critical period in the recovery of greater Christchurch. We need to keep resources focused on getting services and processes back to normal, rather than determining interim value changes to partially damaged properties," Williamson said.

"This legislation is a practical measure that will offer assurance to councils around funding, and property owners concerned about how the rating valuations system will be applied in the short term," he said.

For more information on the rating valuation system, visit http://www.linz.govt.nz/valuation/role-of-valuer-general/rating-valuations-act-1998-orders-in-counci