What do rates pay for?

Rating system

Rates are a charge against a property (rating unit) and set by your local and regional councils.  Rates are a blend of "tax" and service charges.  Councils levy rates to fund services and facilities that the community has asked for and to fund services that Government requires councils to provide.

Service charges are costs that can be measured and charged directly to those who benefit from them.  These include services such as water and wastewater.  Most other rates, either targeted or general, are essentially a "tax".

We use a capital value rating system.  The valuation of the city is done every three years.

Upper Hutt City Council rates are calculated using the property value and the use of the property, such as residential, business and rural.  Council's Annual Plan or Long Term Plan decides the work to be done, how much it will cost and the total amount of rates that are needed to pay for it. 

More information on how your rates are apportioned to these areas is available in our Annual PlanLong Term Plan and Rates Resolution(PDF, 151KB).

Local rates

Rates that are collected for Upper Hutt City Council fund programs and services in the following categories:

  • Community services
  • Economic development
  • Planning and regulatory services
  • Leadership
  • Stormwater
  • Water supply
  • Land transport
  • Waste water and solid waste
  • Facilities

Some properties may have additional rates as a result of having a separately used or inhabited part (SUIP).  Separately used or inhabited parts of a property are parts that can be separately used or occupied in addition to the principal habitation or use, except where the use of the part is ancillary to principal use.  In the situation where a rating unit contains both commercial or industrial uses, and a residential or agricultural use, they will be treated as two or more separate uses except where the residential part is occupied for purposes of the principal use of the rating unit.  One of the most common examples of a property with two SUIPs is a property that has a house and a flat with independent kitchen facilities. More examples can be found in the LTP 2021-2031 page 222.

Regional council rates

We collect rates on behalf of the Greater Wellington Regional Council - that's why you'll find us both on your rates invoices.  When you pay your rates invoice, including when you set up a direct debit, you're paying both councils.  It's less administration for you, and saves time and money on payment processing on our end.

You can find out more on the GWRC website.