Auckland Council’s review of non-rateable properties has hit the headlines this week. Here’s what you need to know.
The non-rateable review
Between April 2016 and April 2018, Auckland Council’s rates team undertook a review of all non-rateable properties in Auckland.
This was done to ensure the council complied with legislation, because different legacy council areas in Auckland applied it differently.
“The review was about fairness and to ensure all properties across Auckland were being treated the same as per the legislation," says Debbie Acott, Auckland Council’s head of rates valuations and data management.
“We reviewed 10,500 non-rateable properties, and of these we discovered 950 were non-rateable because they were used for religious education and worship. There were 516 properties with no change to their rating, 20 made fully rateable and 392 had their rating adjusted.
“The review revealed examples of property being used as a business, for example, a car park being used for commercial purposes in the central city, and where an undertaker’s business was being operated from within the property,” says Ms Acott.
“It also found community halls and office areas that were liable for rates. The identification of these parts of the properties then required that these parts be treated as rateable.”
Clear lines of communication
Each property was contacted asking for details of the use of the property use when the review started.
“Once the review was complete, we wrote to all the properties again advising of the outcome and the changes to each property rates”, says Ms Acott. “At that stage we also advised that each property owner could object to the new rates.”
The council’s rates team also provided quarterly updates to the council’s Finance and Performance Committee, either through a report or memo to the committee.
Next Steps
“Previously community facilities like halls would have been eligible for a partial rates remission, they were still required to pay some rates with the remission amount dependent on the legacy remission policies. This support is now being provided by a community grant,” says Ms Acott.
“For these properties that have been identified in the review, we don’t have any policy for rates relief, so the council is contacting all the properties advising them that they can defer their rates until the council agrees a new policy.”
Get in touch
For all Auckland’s ratepayers though, one message is clear.
“If someone is having difficulty or thinks they will find it difficult paying their rates then please get in touch with us to discuss your options,” says Ms Acott.