Business To Pay Same Proportion Under New System
Business To Pay Same Proportion Under New
System
The Mayor has confirmed that
business will pay the same proportion of rates as under the
combined legacy councils and that rates differentials will
reduce over the next decade.
In addition, thousands of
businesses in Auckland will receive a rates reduction as a
result of changes to the business rating
system.
"The government's creation of Auckland
Council required a single rating system across the region.
We have tried to be as fair as possible by keeping the same
proportion coming from businesses as under the old
councils," says Len Brown.
"For some businesses,
that will mean an increase. However our policy means 11,000
businesses across the region will get a reduction in
rates
“What's more I am committed to reducing the
business differential each and every year for the next ten
years.
“And to ensure the government’s changes
are manageable, any rise in business rates rises will be
staggered over a three-year
period.
“Auckland’s legacy councils all had
different business differentials and the ratio of 2.63 to 1
will be retained meaning business will continue to
contribute the same proportion of rates revenue across the
region as it did under the old councils.”
The
council is proposing average rate increases in the coming
financial year of 3.6 per cent, which compares with
government figures showing an average eight per cent annual
increase across legacy councils between 2002-2010.
"We are focused on managing the transition fairly
and keeping costs down for Auckland businesses and
homeowners,” says Len
Brown.
ENDS