Churches’ rates bills ‘a debacle’
Auckland Council is scrambling to contact hundreds of churches that received rates bills for the first time, telling them not to pay until councillors have discussed the matter.
A review of non-rateable properties by council staff identified 402 churches requiring changes to their rating. This resulted in rates bills, some large, going out this month.
The review found a lot of church property was not being used for religious purposes, which is not subject to rates, but instead was being used for business purposes, which is.
After complaints to councillors, it was discovered the finance and performance committee had been briefed on progress of the review, but no political decisions had been taken to approve a new rating policy for churches. Pastor Rob Markley, of the
Birkenhead Baptist Church, was surprised to receive a rates bill for $1080 after the church had previously only received a waste management charge of about $150.
He said it appeared the council was dividing up the property between places used for worship and commercial purposes, but there was nothing on the rates demand to say how the council had determined it.
He said the church, in a low socioeconomic area, hired its facilities for dance lessons, indoor bowls and Weight Watchers for a small fee. “We are not running a business”. Finance committee deputy chairwoman Desley Simpson said she had called for a full report on churches and their rateable status following concerns from some.
“There are churches out there, for the very first time, have been sent a rates bill and there has been no political direction,” Simpson said.
The council began contacting churches this week to tell them not to pay the rates until councillors had had the opportunity to consider the issue.
Papakura-Manurewa councillor Daniel Newman said it was a “bloody debacle” charging rates to churches without a political mandate.