To share the total cost of services fairly across the community, councils use official property valuations as the basis for levying rates. The Local Government Act states the value of the land is an indicator of the ratepayer's capacity to pay rates. These valuations are not set by your local council.
Every six years all properties in Tasmania are valued by the independent Office of the Valuer-General.
Under the Local Government Act, councils can choose to base their rates on one of three valuation methods:
- Land value: The value of the land only, not including any buildings or improvements.
- Capital value (CV): The estimated value of a property if it were sold on the open market. It includes the land and all buildings.
- Assessed annual value (AAV): This is the estimated amount of rent a property could earn in a year.
