Recommendation on Rating Differentials Welcomed

Wellington Businesses Welcome Recommendation on Rating Differentials

The recommendation from the Local Government Rates Inquiry that rating differentials be removed from the Local Government (Rating) Act is good news for business, according to the Wellington Regional Chamber of Commerce. The Local Government Rates Inquiry report was released today.

“We have long had a problem with differential rates being used to shift the burden of rates onto businesses and hope that government adopts this recommendation,” said Chamber CEO, Charles Finny.

“Differentials are commonly applied to property used by business ratepayers so that they pay more than residential ratepayers per dollar of rateable property irrespective of the benefit received.

“For example, in Wellington City businesses pay 4.2 times as much as residential ratepayers per dollar of ratable property. This contributes to Wellington City levying 50% of its total rates on the business community - the highest in New Zealand according to the Report, while business consumes a relatively small proportion of council services.

“Wellington City Council recently backtracked on its commitment and slowed the agreed phase-down of the business differential.

“In a recent questionnaire we have asked all WCC candidates to outline their views on differentials and to say how they would justify them.

“The report of the Local Government Rates Inquiry should be compulsory reading for all aspiring candidates for local government in the upcoming elections,” Mr Finny concluded.

ENDS

© Scoop Media