Cantabrian facing a 500% rates hike on Stewart Island
A Christchurch person who owns a section on Stewart Island/Rakiura is staring down the barrel of a 500% rate increase, despite the land lacking key council services.
The person — who is unnamed in a recently released Southland District Council report — contacted the organisation in October 2023 querying why their rates had ballooned from $348.68 to $1,743.95 in the space of one year.
Labelling the increase “drastically unfair and unjust”, they pointed out there had been zero increase to the value of their section in that time.
“No services have been added to the section in the ratable period,” they wrote to the council. Rata St still remains the only road within 1km of the city centre that is in its disgraceful gravel state. Every other road on the island with the same vicinity to the city centre as mine has been sealed. So close to the centre and not sealed is abhorrent.”
The person also informed the council that they did not use Southland roads due to living in Christchurch and did not own a car on the island.
According to a staff report prepared for a full council meeting today, the main reason for the increase was due to a change in ownership in June 2023. That alteration moved the property from paying partial rates as an adjoining property to fully rated, the report said. It also confirmed the property was without amenities.
“The section has no services — no water, no sewage, no stormwater retention, no power, a gravel/muddy road with no footpath or streetlighting."
Despite a rates reduction request from the owner for the current period, staff recommended no rate remission be applied to the property. It said the new owner could have discovered what was at stake if they obtained a LIM report prior to purchase, and feared the granting of a remission would set a precedent for other properties.
Councillors will vote on two options at today’s meeting — to confirm that no remission be applied, or to agree to a partial remission of 40% for the 2023/24 financial year.
If the latter was approved, the property owner would pay a total $697.91 for the 2023-24 financial year, with full rates to apply from this coming July.
The issue was escalated to elected members following a request from the person to speak to a higher authority on the matter, the report said.