Dorset residents are set to pay extra next financial year after the council raised its general rates by 5.7 per cent.
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This will come with the introduction of a maximum increase cap so that an individual's rate increase from 2023-24 to 2024-25 cannot exceed 15 per cent.
It was prompted through dramatic increases to land values for residential properties across the municipality.
The hike falls slightly below the rates income target of six per cent set out in the Dorset Council's long term financial plan.
Commissioner Andrew Wardlaw said while these changes were a reflection of the current market, they also presented a challenge in ensuring rate rises were equitable for everyone.
"We understand the burden that any substantial increase may place on our community and are committed to addressing this effectively and fairly," he said.
Dorset properties were recently subject to a Fresh Valuation by the Valuer-General, resulting in significant changes to land values across all categories.
Residential lots now hold a greater share of the region's rates burden after primary production, commercial and community services land categories were lowered in value.
Non-vacant residential properties meanwhile increased by 38 per cent on average, with a further 1500 properties seeing even greater jumps up to 471 per cent.
The new maximum increase cap will ensure this impact is passed on to ratepayers incrementally at just 15 per cent with the exception of major property changes such as new construction.
"This approach allows for a gradual adjustment to new property valuations," Mr Wardlaw said.
"We expect most ratepayers to be out of the cap after three years."
Without intervention, the average increase for non-vacant residential land would have been $210 per year, while some would be facing up to $1900 per year.
Properties used for short term accommodation will continue to receive rate variation alongside two new variations for forestry and the Cape Portland wind farm.
Commissioner Wardlaw said despite decreased valuations, the earning capacity of these industries and impacts on council infrastructure remained unchanged.
"These measures are essential to ensure fairness and maintain equity across our community," he said.
"We are dedicated to supporting our ratepayers through this transition."