The Gisborne District Council is not backing down in its bid to increase the land value of gold kiwifruit orchards in the region.
In 2020 the council decided licenses to grow gold kiwifruit - which cost hundreds of thousands of dollars per hectare - constituted an increase in value to the land, and therefore a rates increase.
But last week the Land Valuation Tribunal found a kiwifruit license should not be seen as an improvement to the land - much to the relief of the kiwifruit industry.
The council is appealing the decision.
Council chief executive Nedine Thatcher Swann said the decision to appeal came on the advice and support of the Valuer-General, who considered the tribunal's decision inconsistent with past decisions.
"Given the significance of the backing of the Valuer-General and issues raised, there is an obligation on council to appeal.
"Council included the value of the vines without a deduction for licenses from the capital value of gold kiwifruit orchards in our district, this approach was advised by the Valuer-General," Thatcher Swann said.
The costs of the council's appeal, which will be heard in the High Court, will be fully funded by the Valuer-General.