Backlash over rise in commercial rates

Shelley Deeming

A commercial rates bill that nearly doubled to just over $27,000 has the property owner saying she will sell up if things don't change under a Whangarei District Council rating review set for next year.

WDC said while an "updating" of the number of Separately Used and Inhabited Parts (SUIPs) on each commercial premises had stung some, others would be now be paying less.

The woman - who wants to remain anonymous - owns a building on Cameron St. After being treated as one SUIP in the last ratings year, it now has six SUIPs. Her bill has gone from about $14,000 to just over $27,000.

"It's ridiculous, I was just about beside myself when I got the bill," she said.

The woman said some of the rooms considered "separate parts" by council were small rooms occupied by small businesses or freelancers. Her situation echoed that of businessman Wally Yovich, who saw rates on one of his Cameron St properties balloon from $12,233.30 for the 2012/2013 year, to $22,368 for the 2013/2014 year. Mr Yovich declined to comment as he was challenging the increase. The increases have come about as a result of WDC deciding in 2014 to update the information on the number of SUIPs in each building. WDC used to invoice separate businesses in a building, but following public consultation in 2003 moved to the SUIP system.

A council spokeswoman said that "for a range of reasons" the information WDC had about the number of SUIPs on each property had not kept pace with how the buildings were used.

"Sometimes owners have combined previously separate units into fewer units, or have created more separate units since the information was initially gathered."

But the Cameron St property owner said the layout of her building, particularly upstairs where she had small business tenants, had not changed since she inherited it in the 1980s.

Thirty of the 373 commercial premises reviewed by WDC had gained five or more SUIPs.

Councillor Shelley Deeming - who heads WDC's Finance Committee said the system had been changed to make it "fairer all round".

"...There will be some ratepayers who feel disadvantaged and some who feel advantaged - and we want it to be fair to all. For several years [some] have been charged less than their share of the commercial rates. That is unfair on other ratepayers, and we want to fix it."

She said council had recognised that this year's bill had caused "some pain for a number of ratepayers", thus a review of WDC's rating policy was scheduled for the 2016/17 annual planning process.