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Farmers in Rodney could be looking at a 20 per cent cut in their rates bill if a proposal put forward by Franklin Ward Councillor Bill Cashmore is adopted.The proposal is being considered as part of the development of Auckland Council’s next annual plan, and feedback has been sought from rural local boards and the Rural Advisory Panel.
A meeting will also be held in Warkworth on Tuesday September 22.
Properties classed as farm/lifestyle blocks currently pay 80 per cent of the urban residential general rate, recognising that the properties generally have poor access to Council services.
But under the proposal, rates on rural properties would be struck according to the size of the property.
Large farm/lifestyle properties over 50 hectares would pay 60 per cent of the urban residential rate, while properties smaller than six hectares would have a small rates increase and pay 83 per cent of the urban residential rate. Rates for properties between six and 50 hectares would remain unchanged.
This could mean the average large property would pay $1350 less in rates, or 22 per cent, while small farm/lifestyle properties would have an average rates increase of $73, or 2.6 per cent.
The proposal would affect 21,100 properties – 19,900 properties smaller than six hectares and 1200 properties larger than 50 hectares.
The changes are cost neutral, so the total amount of rates collected from farm/lifestyle properties would not change.
Advisory Panel chair Mr Cashmore said the Auckland property boom had driven up the price of rural land, which was inflating rates, although he acknowledged that farm/lifestyle rates in rural Rodney had dropped 8.8 per cent on average in the past year. He said farmers wanted more equitable rates.
“This is their chance to show their support for it,” he said.
A public meeting on the proposal will be held in at Shoesmith Hall in Warkworth on Tuesday September 22, starting at 6pm.
Feedback can also be provided at shapeauckland.co.nz/consultations/rural-rates-2015
Discussion document
An Auckland Council discussion document written by policy analyst Beth Sullivan said large rural properties generally had poor access to Council services. Council facilities make up about 30 per cent of rates spending, but only five per cent of large properties were within 5km of a Council library and 30 per cent were more than 20km from a library, the report said.
Rural properties also benefitted less from transport spending. Around 18 per cent of rates fund local roads, but only four per cent of large properties are on sealed roads. A further 15 per cent of rates are spent on public transport, but 90 per cent of large properties are in areas where public transport use is below average.
The report suggested Auckland farmers were already getting a better deal than farmers in Northland and Waikato. In a comparison of rural rates charged by nine other councils, Auckland farmers had the third lowest rates bill. An Auckland farm with a capital value of $3 million would pay $6420 in rates compared with $12,350 in the Far North, $10,210 in Kaipara and $8990 in Waikato. South Wairarapa and Waimate had the lowest rates at $5990 and $6070 respectively.
Properties that were more isolated also tended to have lower property values per hectare, resulting in lower rates.
Council’s Rural Advisory Panel has unanimously voted to support the proposal.
However, panelist and Vegetables NZ chairman Keith Vallabh was concerned some landowners who farmed several smaller properties would be punished under the changes.
“Market growers who have a series of small blocks are going to be penalised, because they will be paying extra for every plot of land.”
Council financial policy manager Andrew Duncan said landowners had the ability to amalgamate land to be rated as a single property.
Feedback on the proposal can be emailed to ruralrates@aucklandcouncil.govt.nz
