Why are my rates changing?
There are several factors that may affect your rates this year, but for most properties the two biggest changes are:
Annual Plan rates increase of 3.97%
Council adopted an average 3.97% rates increase through the 2026/27 Annual Plan. To help keep this increase as low as possible, some fees and charges were increased so users pay a greater share of the cost of services.
This change affects the total amount of rates Council collects to fund services and infrastructure across the district.
Find out more about the Annual Plan rates increase
The move from a Land Value (LV) to a Capital Value (CV) rating system
From 1 July 2026, Thames-Coromandel District Council changed the way general rates are calculated, moving from a Land Value (LV) system to a Capital Value (CV) system.
This change does not affect the total amount of rates Council collects. Instead, it changes how general rates are shared between properties.
The rest of this page explains what the move from LV to CV means, why it was introduced, how the decision was made, and what it could mean for your property.
Some properties may also be affected by targeted rate changes or changes relating to second dwellings.
LV to CV: what changed?
From 1 July 2026, Council's rates moved from being calculated using Land Value (LV) to Capital Value (CV).
- Land Value (LV) is the value of the land only. This doesn’t consider things like houses, commercial building or other structures.
- Capital Value (CV) is the value of the land and any improvements on it, such as houses, commercial buildings and other structures.
Under the previous system, rates were based on the value of the land.
Under the new system, rates are based on the value of the land and improvements combined.
This doesn't affect the total amount of rates Council collects. Instead, it changes how those rates are shared across properties.
Other changes from the Rating Review
The move from Land Value (LV) to Capital Value (CV) was one of several outcomes from the 2025 Rating Review.
Council also made a small number of changes to targeted rates and approved changes relating to some properties with second dwellings.
These changes affect a much smaller number of properties than the move to Capital Value rating, but they may contribute to changes in some rates assessments.
What stays the same?
Council services remain the same, and Council still collects the amount of rates required to fund agreed services and infrastructure.
Many targeted rates and charges continue to be collected separately from rates. These rates are based on the services provided and may be applied differently to different properties.
The change from LV to CV only affects how rates are shared across properties.
Wait, why didn't I know about this?
How the community had a say
The move from Land Value to Capital Value followed a rating review process that included community consultation.
Throughout the review, the community had opportunities to learn about the options, understand potential impacts, and provide feedback.
Community engagement
Council provided:
- Information about the rating review
- A Fair Share Calculator
- Community engagement opportunities
- Public information resources
- A formal submissions process
More information on this can be found here.
How decisions were made
Council considered community feedback alongside financial, legal and strategic factors before making a final decision in 2025.
The decision-making process included:
- Rating review investigations
- Community consultation
- Public submissions
- Deliberations by elected members
- A final Council decision
Does this mean Council is collecting more rates?
No.
One of the most common misconceptions is that moving from LV to CV means Council is collecting more rates.
It doesn't.
Think of rates like a pie:
- The amount Council collects is determined through Council's budgeting and planning processes, including the Annual Plan.
- The move from LV to CV does not increase the size of that pie.
- Instead, it changes how the pie is divided between properties.
The two changes explained
Annual Plan increase
- Changes the size of the rates pie
- Increased rates revenue by an average of 3.97%
LV to CV change
- Does not increase the size of the pie
- Changes how the pie is shared across properties
What this means
Some properties will contribute a larger share of rates than they did previously.
Some properties will contribute a smaller share.
Others may see very little change.
The overall amount Council collects remains unchanged by the move from LV to CV.
Why did Council make the change?
A rating review was undertaken
Council periodically reviews how rates are distributed across the district to ensure the rating system remains appropriate.
Following the review and consultation process, Council decided in 2025 to move from Land Value to Capital Value for calculating rates.
Why Capital Value?
It's the system that over 65% of councils across New Zealand use.
Different systems distribute the rates burden differently between property types. The move aims to make rates fairer by better reflecting ratepayers’ ability to pay. Moving to a capital value-based system is the fairest way to share the cost of services that are set through the rate.
Council considered community feedback alongside financial, legal and strategic considerations.
The decision reflected Council's view of how rates should be distributed between different property types both now and into the future.
What does this mean for me?
Every property is different
Because properties have different land values and capital values, the move from LV to CV affects properties differently.
Some properties will pay more. Some properties will pay less. Some will see very little change.
District-wide impacts (not taking into account rates increases as a result of our Annual Plan)
District-wide impacts including rates increases as a result of our Annual Plan
Find out what it means for your property
You can:
Why do rates changes vary between properties?
The impact depends on the relationship between a property's land value and its capital value.
Properties with similar land values can have very different capital values depending on the buildings and improvements on them.
Frequently Asked Questions
Why has my rates invoice changed?
Your rates may have changed because of the Annual Plan increase, the move from LV to CV, or a combination of both.
Will everyone pay more?
No. Some properties pay more, some pay less, and some see very little change.
Is Council collecting more rates because of LV to CV?
No. The move to CV changes how rates are shared across properties. It does not increase the total amount collected.
What if I have a second dwelling on my property?
As part of the Rating Review, Council approved changes relating to some properties with multiple habitable units, including qualifying minor dwellings. These changes relate to Separately Used or Inhabited Parts (SUIPs) and may affect some targeted rates and charges. If your property contains more than one habitable dwelling, contact Council for advice on how these changes may apply to your situation.
My rates changed by more than the Fair Share Calculator suggested. Why?
Your rates assessment may also be affected by the Annual Plan rates increase, targeted rates, uniform charges, and SUIP-related charges or remissions where applicable. These factors combine to make up your total rates bill.
Where can I get help?
Contact Council's rates team if you need assistance understanding your rates assessment.
My CV is higher than my LV: will I pay more rates?
Need help?
Contact our Customer Services team on 07 868 0200 or email customer.services@tcdc.govt.nz.