Relieving rates burden explored

Council calls for submissions on proposals for providing rates relief for those who are truly struggling

Horowhenua District Council wants to help residents who struggle with their rates and is proposing a number of measures to do so, but they come at a cost.

An amendment to the LongTerm Plan 2021-2024 has triggered this proposal.

The council already has a rates remission policy, but wants to make the following changes: postponement, so those facing financial hardship can delay payment for a while, but at a cost — administration fees and interest fees will accumulate on the outstanding amount.

The council also proposed a one-off reduction (up to 100 per cent) for the financial year, for which strict criteria must be met. This will only be available in exceptional circumstances.

Second dwellings on your property which do not generate rental income may qualify for a remission on the fixed charges.

Buildings that require earthquake strengthening and are not used could qualify for remission. Properties affected by natural hazards may generate a more flexible response to rate-paying.

The sting in the tail is that other ratepayers will have to pick up the tab for the remission offered to those in trouble; therefore, the council does not want the total amount of those receiving remission to exceed $50,000 per year.

As postponements could ultimately affect the council’s ability to borrow money now and in the future, a cap of 0.5 per cent of operating income is proposed. For the year 2023-2024, this limit will be close to $360,000.

“With 25 per cent of our population aged 65 and over, our households are earning on average 35 per cent less than the rest of Aotearoa per year, according to Stats NZ, and with some of the highest proportions of mortgages and rent comparative to income in Aotearoa, our community are feeling the pinch more than most,” Horowhenua District Mayor Bernie Wanden said.

“These proposed changes aim to help community members that may otherwise find it challenging to pay their rates bill.”

The council would like to hear your opinion on this.

Visit www.letskorero.horowhenua.govt.nz/RRPP to learn more and make a submission. Consultation opened on Monday, October 20, 2023 and closes at 5pm on November 20, 2023. Submissions will be heard on November 29, and the council will prepare to adopt the final Rates Remission and Postponement Policy on December 13, 2023.