Some residents pay more in proposed rates change
Rural properties in Horowhenua could pay more rates due to a council proposal reshuffling the general rates distribution.
The general rate pays for council services where there are benefits to the district as a whole, or a public benefit for the wider community.
The general rate is currently based on land value where rural properties, including all businesses in the rural zone, pay 25 per cent of the general rates income and district wide ratepayers pay 75 per cent.
The Horowhenua District Council is proposing a change that puts rural properties into the district wide category of ratepayers.
The new differential would only apply to farming properties, and would be calculated on a dollar value. For every $1 the district wide ratepayers pay, farming properties would pay 50c.
The farming use category applied to those identified as arable, dairy, forestry, but not protected forestry, horticultural, pastoral and with specialist livestock.
Chief financial officer Jacinta Straker said the change was done to make sure the rural sector didn’t end up paying an unfair amount of rates.
‘‘If the urban areas grows more at the same rate we expect, then the rural sector will be a lesser portion of the rating base then it was before.
‘‘It future proofs it so the rural sector won’t pay more than they are currently paying in terms of share.’’
Businesses operating in the rural area, that are not farms, would pay more rates to match businesses in urban areas. They were previously
treated the same as farms, even though they did not have the same large footprint or land value, giving them an advantage over urban-based businesses. ‘‘Those that may need to pay more are properties that are classed as rural properties but are not farming,’’ Straker said.
Neither option would increase the general rate income, instead changing the distribution of who pays.
Council recommended the change because it was fair, applied only where there would otherwise be an unreasonable rating burden and future proofed for expected growth.
People were asked to give their thoughts on the proposal and could complete the online form, emailed to recordsprocessing@horowhenua. govt.nz or delivered to a council customer service centre.