South Wairarapa Council Looks To Redefine Rateable Extra Dwellings

Thursday, 6 March 2025, 9:20 pm
Article: Emily Ireland - Local Democracy Reporter

After a rating system overhaul last year, South Wairarapa District Council is set to redefine how it will charge rates for extra dwellings on properties.

The council currently charged extra rates to all SUIPs - separately used or inhabitable parts - and the onus was on ratepayers to ask for a remission if they fit criteria.

Remissions were available where SUIPs were used by the ratepayer’s dependent family member not paying market rent, or if they were used for employee accommodation on farms.

A remission was also available for SUIPs on retail properties if they were occupied by the ratepayer.

The council’s 2025-34 Long-Term Plan consultation document said this system had been described as “confusing and difficult”.

“We have heard from some people that this system of charging all SUIPs and then asking the ratepayer to apply for a remission is confusing and difficult and doesn’t cover all circumstances, such as essential workers for horticultural properties.

“To address this, we have reviewed the definition of a SUIP and propose to add exclusions which would mean that the additional SUIPs aren’t charged uniform charges in the first place, thus removing the need for those remissions sections in the policy.”

The council has proposed adding explicit exclusions which would include dwellings occupied by dependent family or buildings used for recreation purposes such as home gyms or hobby studios if they weren’t run as businesses.

Its proposed definition said a SUIP does not include buildings that were predominantly or solely used for: occupation by dependent family members who were paying nominal or no rent; recreational, hobby, or leisure activities that were not for the purpose of providing income; and occupation by workers essential to the operation of the commercial, agricultural, or horticultural business that are the main use of the property.

Alternatively, the community could ask the council to keep the current SUIP definition with remissions.

Last year, SUIPs were charged an additional $3322 to cover the Uniform Annual General Charge, refuse and recycling, roading charge, water supply, and wastewater.

As part of the 2025-34 Long-Term Plan consultation, the council was also proposing charging each rating unit for refuse and recycling, instead of each SUIP.

Last year, the charge per SUIP for refuse and recycling was $493 a year.

The consultation document said overwhelming feedback was that ratepayers with extra SUIPs were paying extra rates for secondary bins which remained unused.

“We propose to return the refuse and recycling charge to being based on the rating unit, with an additional charge for those who require an extra general recycling and glass bin.”

The per rating unit charge was proposed to be $522 for the 2025-26 year.

If the community wanted a charge for each SUIP to remain, it would be $508 per SUIP.

Visit haveyoursay.swdc.govt.nz/long-term-plan to read the consultation document and complete an online submission form.

Local Democracy Reporting will continue to report in more detail on South Wairarapa’s “Big Decisions” in a multi-part series.

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