As the owner, do you want to know how the local goverment calculates the annual municipal expenses for the residence?
There will be some key data on the owner's payment notice: "Land value", "net Annual value", "Total Rent value" and / or "goverment valuation". What does all this data represent? Why are there so many different values?
Who cares about the value of real estate?
Many agencies are concerned, including the city's goverment, Water Conservancy Bureau and fire department. Based on these values, they calculate the local municipal services payable by the owner.
Many different data will appear on the owner's municipal payment notice based on these values, including goverment's valuation of (CIV), 's net annual value (NAV), total rental value (GRV), and / or land value. It is important to note that in calculating municipal costs, the goverment of each Australian state and territory is calculated using different valuation data.
Interstate difference
Alex Makin, the previous mayor of Maroondah, said that in Victoria, residential and commercial land was valued by the city goverment under the 1960 Land valuation Act, (VAL), to calculate annual municipal fees.
These valuations will be based on research, such as a comparison of the recent price of a property. On January 1st of each even-numbered year, local goverment uses goverment valuation (CIV) or net annual value (NAV) to calculate the municipal cost of each house.
In calculating municipal costs, the goverment of each Australian state and territory is calculated using different valuation data.
The Victorian State Revenue Authority calculates land taxes based on the value of the land (land does not include any buildings). (if applicable)
The local goverment department in New South Wales said that when calculating city fees, goverment could choose the following values as the basis for calculation: land value, fixed amount of land value (depending on property) or land value (with minimum amount limit).
In WA, the total rental value of the property is updated every three years by the Bureau of valuation (GRV).)
The total rental value, (GRV), is assumed to be an annual gain from renting out the property, which is used by the City goverment to calculate the city cost of the property.
What is goverment valuation?
Goverment valuation (CIV) refers to the value of land and all capital appreciation, including buildings.
Seventy-three of the 79 regions of Victoria goverment, use goverment valuation (CIV) as a "method of calculating municipal expenses," Makin said. The remaining six use the net annual value of (NAV) to calculate city fees.
What is the net annual value?
If a city has a large number of leased properties, the local goverment usually uses the net annual value of (NAV) to calculate the city cost of the property. In Murben, for example, including the central business district, Makin explained that the city's goverment uses the annual rental value of properties as the basis for its calculations, and its statutory net annual value of (NAV) is equivalent to 5 percent of the market value of residential properties. In the case of commercial property, the net annual value of (NAV). Is usually calculated on the basis of annual rent
What is the total rental value?
In Western Australia, the total rental value (GRV) data is determined by the Bureau of valuation. The data refers to the expected annual income from the assumption that the property is rented out and updated every three years.
This year's municipal fee is calculated by multiplying the "rate in the dollar" set by the local goverment's annual budget by the total rental value of (GRV),.
So how does rate in the dollar know?
The cost to owners depends on the market value of their property, but it is also related to other factors, such as the annual budget of the local goverment for infrastructure, services and organizations.
"the city goverment uses these data to determine the rate in the dollar. of the property," explains Makin.
In general, each goverment first determines the amount of tax to be levied for the current fiscal year, and then divides this amount by the total value of all taxable properties in the city to calculate the rate in the dollar, Then multiply the data by the net annual value of each house (NAV) or goverment to value (CIV) or the total rental value of (GRV), to calculate the city fee.
Examples to prove
Here is an example of life: in 2014-2015, Murben collected A $399 million in taxes, including A $226.5 million in municipal fees. Using the net annual value of (NAV) as a calculation basis, the amount to be paid for residential property is 4 percent of its net annual value of (NAV) and the amount for commercial property is 4.6 percent of its net annual value of (NAV).
Sometimes, the latest city fees may be lower than the previous one, so what's the reason?
Although goverment estimates the total rental value of (CIV), (GRV), net annual value (NAV) and land value reflect the value of the real estate from the side but do not necessarily represent real-time market capitalization. In other words, a property's goverment values an (CIV) of A $ five hundred thousand, and a buyer may be willing to bid A $ six hundred thousand or A $ four hundred thousand when the property is being sold, depending on recent market conditions.
Local and domestic news events, closure and opening of businesses can quickly cause house prices to soar or plummet, but biannual municipal assessment reports do not reflect that.
