Rates rebate plan in works for villages

An increase to a rates rebate scheme could be on the way.

Auckland Council has asked the Albert-Eden Local Board for feedback on a plan to increase the rates rebate for retirement villages from $385 to $500.

This is in response to the recent rate increases to cover the $114 targeted transport levy the council is implementing in July.

The discussion around the targeted rate led to a concern that people on fixed incomes would be unfairly impacted.

People who own a house in a retirement village under a ‘‘licence to occupy’’ agree- ment are usually responsible for paying the rates but are not technically the ratepayer.

That means they are not eligible for the Governmentfunded rates remission scheme. It will cost the council an estimated $146,000 to implement the increase which will be met through the council’s existing budget for remissions.

In 2012 the council adopted a policy where licence to occupy owners could apply for a separate rebate. In 2013 this was expanded to papakainga housing.

This year the amount that can be claimed back is $385. The proposal, which will be decided on in June, is to increase the rebate to $500.

Across Auckland there are 5965 dwellings owned under a licence to occupy agreement. Last year 20 per cent applied for the rebate.