This would include SA water rates and your emergency service levies. What can we do to challenge the general valuation process? To answer these questions, we must first explore what the general valuation process is. How does the government derive how much you pay on council rates, emergency service levies and water rates?

A government entity such as the Valuer-General is tasked with doing the valuations. This generally entails providing a site value and a capital value on every property within the state. This process happens every 5 years. Capital value is everything you see on the property which includes the land and the building. The capital value would also include the highest and the best use of the property. In conclusion, capital value should equate to the market value. Site value on the other hand, is the value of the land. This includes things like retaining walls and levelling but excludes any other improvements such as buildings.

It is important to understand the difference between site value and capital value to understand the taxes and expenses that relate to them. Land tax is based on the site value while the majority of the other fees are based on the capital value. Therefore, council rates, emergency services levies, SA water fees are based on your capital value. Based on that, if your capital value is higher you would expect to pay higher rates.

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