Abstract
Local governments in New Zealand raise approximately 60% of revenue from property taxes to fund the delivery of local services. With local government given the legislative power to choose the basis of their property tax, this research provides empirical insight into variations between local governments and the property tax system employed. As several local authorities have opted over the last twenty years to change their rating system, the paper investigates if there are factors common to those authorities that could help explain these shifts. The research uncovers a pattern that relates the choice of rating system to the level of mean income within local authorities. Some tentative conclusions and implications are suggested both for New Zealand local public finance and for the use of property, and particularly land taxes more broadly.