Glossary of rates terms

Capital Value
A reflection of a property's market value, being the amount that a willing seller can expect to get at 1 August 2007 from a willing prudent purchaser. This excludes the values of any chattels such as carpets, drapes and light fittings.

Land Value
What a willing seller could expect to get if the bare land was sold at 1 August 2007, to a willing, prudent buyer. This valuation can include more than a stretch of bare dirt however, and encompasses excavation work, drainage and retaining walls

Valuation
The valuation is compiled by statute, under the Rating Valuations Act 1998, mainly as a uniform basis for levying local authority and regional council rates. They also serve as a useful guide for property owners and other interested parties, which is impartial and independently assessed. In Christchurch, valuations are issued every three years, and are carried out by State Valuation Office.

Value of Improvements
This is calculated by subtracting the land value from the capital value, and represents the extra value the buildings and other developments give to the land. For a residential property this figure would generally represent the value of the house, garage and any site development