CHANGING METHOD OF VALUATION OF LAND

INTRODUCTION

Under section 6.28 of the Local Government Act 1995, the Minister for Local Government is responsible for determining the method of valuation of land to be used by a local government as the basis for rates.

In determining the method of valuation, the Minister is to have regard to the general principle that the basis for a rate on any land is to be:

• Where the land is used predominantly for rural purposes, the Unimproved (UV) value of the land; and
• Where the land is used predominantly for non-rural purposes, the Gross Rental Value (GRV) of the land.

 

Rural purpose is defined by the Department of Local Government, Sports and Cultural Industries to mean, “a purpose pertaining to agriculture and agriculture is defined to mean the use or cultivation of land for any purpose of husbandry or horticulture, including the raising of livestock and the growing of crops”.

 

It is the Local Government’s responsibility to review the predominant use of land and apply to the Minister to have the method of valuation changed where appropriate.

 

An initial review by Shire officers has identified properties in the following rating categories as potentially requiring transition from UV to GRV valuations:

UV Rural Residential - 185 properties

UV Commercial/Industrial - 59 properties

UV Rural Agricutlure 1 - 3 properties

UV Rural Agriculture 2 - 17 properties

 

Land use surveys have been sent to the owners of these properties requesting the completion and return of the forms to the Shire within 21 days.

 

OVERVIEW OF THE PROCESS FOR CHANGING THE METHOD OF VALUATION

1. Identifying Land Use Changes that may Affect Predominant Use

There are several ways the Shire identifies and records changes to land use for rating purposes. These include, but are not limited to the following:

(a) Development and other statutory approvals

(b) Property inspections

(c) Land use surveys

2. Reviewing Predominant Use

Shire officers will review the land use information received and a decision made on the appropriate valuation method to be used.

3. Consulting Affected Parties

Affected landowner will be advised of the outcome of the review and given 28 days to lodge an objection.

4. Recommendation to Council

After considering any objections received, Council will consider the recommendations for changing the method of valuation and an application for submission to the Minister for approval.

5. Changing the Method of Valuation

The application will be submitted to the Minister for approval to change the method of valuation.

Following Ministerial approval GRV valuations will be obtained from the Valuer General. These valuations will then be supplied to the Department of Local Government, Sports and Cultural Industries for publication in the Government Gazette.

Rate modelling will then be undertaken and the rate in the dollar determined with the intention to apply the Gross Rental Valuations with an effective date of 1 July 2019.

The Council decision from the August Ordinary Council Meeting can be accessed by clicking here 12.4.1. Changing Method of Valuation of Land