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New UCV valuations planned to commence in July 2018

posted 29-Jun-2018

New UCV valuations planned to commence in July 2018.

The Valuer General has planned for the Unimproved Capital Value (UCV) revaluation of properties in Katherine to commence following the closing of a tender on 27 June 2018. This revaluation will assess property UCV’s as at 1 July 2019.

The tender process currently underway invites industry valuation professionals to bid for the service, and is independent to the Valuer General.   The provision of the UCV valuation of properties will include on ground inspections of properties and research to establish a fair Unimproved Capital Value. This process will be undertaken over a period of 11 months. Towards the end of 2019 property owners should expect to receive a Notice of Valuation in the post. If property owners disagree with the 1 July 2019 dated valuation assessment, the Notice of Valuation details the contact phone number for property owners to discuss the matter direct with the Valuer-General.  If the enquiry cannot be immediately resolved, then the matter can be elevated by a formal objection in writing to the Valuer-General within 30 days after the date of posting of the notice of valuation, and then also may object to the Chairman of the Valuation Board of Review Panel if dissatisfied with the Valuer-General’s decision.

Some of the characteristics for valuing land include most valuable use, zoning, heritage restrictions, location, size, shape, supply and demand. The valuers review transactions in the property market (generally those that have concluded over the past 3 years), recording and analysing sales in the local area to determine Analysed Land Values (ALV) for each property. All non arms length sales are identified and excluded from the analysis process.

For further information on the process for property valuation please see the following link:

https://nt.gov.au/property/homeowners-and-landlords/property-valuations

The Valuer General provided a presentation to Council on 12 February 2018 setting out how and when revaluations are undertaken together with an overview of the associated revaluation methodology.  A copy of the Presentation is available from Council or the Valuer General.

Following on from the completion of the valuation process, the revised UCVs will be used to levy rates in 2020.

Rates represent over 68% of Council’s income and the amount that is required to be raised is set by the budget process and is fixed for the year. Chapter 11 of the NT Local Government Act contains the authority to levy rates. The Valuer General is required by the Valuation of Land Act to revalue all land every three (3) years. Although the UCVs will change, the total amount of rates required stays the same (as budgeted). The use of the UCV in calculating rates is to provide equitable rating charges, which means higher value properties pay proportionally more than lower value properties. The basic principle is to divide the total amount of rates required to be raised by the total of all rateable properties UCV.

This principle was applied subsequent to the 2016 revaluation. Council identified the amount of revenue required for the budget and long term financial plan. There was an increase in the total of all rateable properties UCV which when combined with the then current multiplier (the amount the UCV is multiplied by to fix a rate levy) set by Council, would raise additional revenue (and rates) by more than the planned increase. To adjust the rates levy to meet the planned revenue, Council reduced the multiplier used to calculate rates. The process is a balance between the amount of revenue required for services and works, and the zoning, multiplier, and the use of the UCV of land, to equitably adjust rates.

The rates levied are to provide services to the community, and to maintain and restore our existing infrastructure with a long term focus of financial sustainability.