You may have noticed a change to the capital value of your property on your recent rates notice, this is due to the Valuer General releasing adjustment factors for Clarence. Property valuation under the Local Government Act is the responsibility of the Office of the Valuer General but we wanted to provide some further information for our community on what this all means.
The average adjustment factor that has recently been applied across Clarence is 45 per cent for residential properties. This adjustment factor is only applied to the capital and annual assessed value (AAV) of the property but not the land value. Land value will change when we have a full revaluation in 4 years’ time.
The increase in property value does not change the amount of rates revenue required and it does not result in a windfall gain to Council. We use a property’s capital value as the basis for the apportionment of rates to individual properties. As such, while the revaluation does not affect the total amount raised in rates by Council, it does result in a change in relative shares of the rating burden experienced among ratepayers. Broadly, the greater the difference between a property’s valuation increase and the average increase, the greater the variation (either increase or decrease) in rates that will be experienced.
For more information on the updated valuations and adjustment factor please see the VG’s website – https://dpipwe.tas.gov.au/land-tasmania/office-of-the-valuer-general.