Phase 3: Rating Policies Review

Consultation on the Rating Policies Review closed on 18 October 2023.

What are rating policies?

These policies define how the overall rates bill is divided up – that is, how the Council determines the proportion each property owner pays.

Each year, the Council sets its overall budget as part of the Long-term Plan and Annual Plan process. The rates-funded component of that budget is then collected from property owners.

The proportion each property pays depends on several factors, such as the property’s capital value, whether it is commercial or residential, and what services the property receives.

What is the review?

Councillors have agreed that the rating policy review will focus on:

• Transparency – Providing clear information so the rates system is understood (including the collection of Greater Wellington Regional Council rates and any levies set), and ratepayers know what they will need to pay. This includes being clear and transparent about the Council’s rates remissions and postponements policies.
• Fairness – Considering affordability relative to matters such as income, age, and geography.
• Efficient use of land – Considering how to address under-utilised land, low-density land use and land banking. For example, considering if land value is a more appropriate measure to base rates on than capital value, and/or whether a different rate should be set for vacant land.
• Māori land - Considering remissions for Māori land (not just Māori freehold land), working with mana whenua.
• Differential rates – Considering how different multipliers are applied to different categories. For example, if there is a need to separate out larger commercial premises from smaller commercial premises.
• Targeted rates – Considering the costs and benefits of targeted rates for specific purposes, such as climate change and development costs.
• Smoothing revaluation impacts – Considering options to smooth out the impact of property revaluations, including the costs and benefits of this.

The Council is not consulting on whether land value is a more appropriate measure to base rates on than capital value at this time. This review has been delayed until after the 2024-34 Long-term Plan has been adopted, to allow further progress on the District Plan (due to be operational in 2025) and to ensure enough time to consider the impact and engage further with the community, given the significance of any change in this area.

Key proposed changes include:

1. Reducing the proportion of rates paid by commercial, industrial and business ratepayers. Currently, a commercial property will pay $3.70 in general rates for every $1 that a residential property of the same value pays. It is proposed to reduce this to $3.25.
   
   
2. Increasing the proportion of rates paid on vacant land in the central city. Owners of vacant land in the central city would pay $4.50 in general rates for every $1 that a residential property of the same value pays. Currently there is no separate category for vacant land in the central city.

Have your say

Consultation is open until 18 October 2023. To submit feedback, read the engagement document then complete the submission form below or download a copy and post to us here. If you need help filling out a submission or would like to request a printed copy of the materials, please contact us at ltp@wcc.govt.nz

We look forward to receiving your submissions and working with you to help shape our city's future.

The Rating Policy Review is phase three of the 2024-34 Long-term Plan engagement process, following the Outcome and Priorities engagement and a Citizen’s Assembly on levels of service. More information about the plan is here: wcc.nz/ltp-2024-34