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Farm rates are being reviewed.
A rates cut for farmers and higher transport levy for businesses are among the changes being considered by Auckland Council as part of its rating policy review.Last month, Council’s Finance and Performance Committee resolved to consult on three changes to the policy ahead of next year’s annual plan.
A policy to reduce the rates of large rural properties by 25 per cent, put forward by Franklin Councillor Bill Cashmore, is likely be part of the consultation process. Mr Cashmore says farmers pay some of the highest rates in the region but have poor access to Council services.
But the policy has been tweaked after a strong backlash from lifestyle block owners.
The original policy proposed paying for the rates cut by increasing rates for lifestyle block owners by an average of $73 a year. During initial consultation in September, more than 90 per cent of submissions opposed the proposal, with the majority of feedback coming from lifestyle block owners, who make up three-quarters of those affected.
The proposal has been amended, moving the burden of the change to all ratepayers, resulting in an average rates increase of $3 a year across the whole of Auckland. The changes have been supported by the Rodney Local Board.
Council is also considering reducing the transport levy paid by residential ratepayers at the expense of businesses. The levy is currently $114 for residential and farm/lifestyle ratepayers, and $183 for businesses. The proposal would increase the levy for businesses by $224 and cut the residential and lifestyle levy by $24 to make the share paid by businesses consistent with the differential for general rates. This would see the total share of the levy paid by businesses rise from 14.7 per cent to 32.7 per cent.
Changes to the fixed portion of rates, the Uniform Annual General Charge or UAGC, are also being floated.
The UAGC is currently set at $385. The public will be able to give feedback on changing the rate from between $350 to $650.
A Council report on the proposal said a higher UAGC would lower the rates burden on higher value property and increase rates on lower value properties.
The average UAGC for large NZ centres is $217, ranging from no UAGC in Wellington, Dunedin and Hamilton, to $800 in Tauranga.
The Local Board supports increasing the UAGC to between $450 and $500.
A report on the proposals warned that changing the rates policy would again result in wide variations in rate rises which have occurred every year under the Super city – if no changes are made, 2016/17 would be the first year all ratepayers would face the same rates increase.
The Governing Body will make the final decision on what will go to public consultation at its December 17 meeting.
Consultation on the annual plan will be in February and March next year, with the plan adopted in June.
