Proposal to increase rates on vacant central city land

We propose setting higher rates on some vacant land, initially in the central city’s commercial area, that has no active or consented use. A rates remission will be available where land is kept in an improved and maintained state.

Project status: Closed for feedback
Open for feedback: 11 March 2022 to 18 April 2022

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How we rate property now 

General rates provide a large proportion of the Council’s funding – especially for services like roads and footpaths, recreation and sport, parks, libraries, art galleries and more. General rates are set on all land other than non-rateable land like schools, reserves, cemeteries and churches. The amount of general rates that a property pays depends on its rateable capital value (the value of the land and improvements). The higher the capital value, the more the property pays.

We set rates after considering how the benefits of our activities funded by the general rate are distributed across the community. We have determined that business properties tend to benefit relatively more than other properties, including residential properties. Consequently, we apply a differential multiplier of 1.697 to business properties. This means that a business property with a capital value of $1 million will pay general rates that are 1.697 times the general rates that a $1 million residential property would pay. This differential only applies to the value-based general rate, not to other rates.

Similarly, we have determined that remote rural properties benefit relatively less than standard properties, so a differential of 0.75 is applied to remote rural properties.

Note: There are in fact two general rates: a value-based general rate which is based on a property’s capital value, and a small uniform annual general charge (UAGC) which is based on the number of separate dwellings within the property. The differentials discussed in this paper are differentials on the value-based general rate. They do not apply to the UAGC.

The problem

Feedback from our Long Term Plan 2021-31

Our proposed change

What does this mean in practice?

Alternative options we considered

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Who to contact

John Meeker,
Principal Advisor Urban Regeneration

How the decision is made

  • Closed for feedback

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