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Part 9 of the Act provides councils with the legislative power to raise rates and charges.
Section 86B of the Act sets out that a council’s rates and charges policy must contain –
A council's rates and charges policy in relation to the making or varying of a rate must take into account the principles referred to in section 86A(1) of the Act; that is:
In other words, the policy should reflect that a council has considered the principles of taxation, including the burden that raising of rates places on ratepayers and how it should be distributed. The value of a rate payer’s land (land value, capital value or assessed annual value) should be considered as an indicator of the capacity of ratepayer to pay rates.