Rates provide income to councils around NZ to help fund services and facilities that benefit the public. Rates are collected for the overriding purpose of helping and improving local communities. Some of these services may include:
road works, and new infrastructure
waste collection, and water supply
maintaining public grounds
running community facilities such as libraries
protection of buildings and general promotion for safer communities
property information and advice
Councils calculate the annual rates for each property based on their respective valuations (including land and buildings) and the use of the property. Generally, these valuations are based on the current market value and are usually reviewed every three years. The use of a property generally falls into one of the three main categories being rural, commercial or residential.