84-year-old hit with rates rise of $4725

Mt Eden Rd looking up towards Mt Eden. Photo / Sarah Ivey

Family of elderly mother say council’s method based on property values flawed.

A family are livid at a $4725 rates rise for their elderly mother and say it points to a fundamental problem with property rates.

The 84-year-old woman, who the Herald has agreed not to name for health reasons, is facing a rates bill of $14,543 this year, up 48 per cent on last year, and 62 per cent more than three years ago.

She has lived in a 1914 villa at Grange Rd in Mt Eden for 48 years, raising 11 children and five foster children.

The villa sits on a large 3040sq m section, which accounts for $5.4 million of the property's $5.6 million value.

One of her sons, Nicholas, said his mother could afford to pay the rates, but the family were livid at getting "absolutely whacked", particularly when their mother hardly used any council services.

Nicholas said he had bought into the Super City vision and had some sympathy for Mayor Len Brown facing severe financial constraints and hurdles to meet Auckland's growth and infrastructure costs.

The National Party voter said the rates system was fundamentally flawed and he was disappointed that John Key recently dismissed alternative funding mechanisms.

"The basis for setting rates is so far out of whack. We have to have a serious look at how to collect revenue," said Nicholas, who suggested a stamp duty on property being made available to councils.

"Just hitting us with a 48 per cent rates rise. Give us a break.

"Len can't be proud of this," said the son.

In a statement, Mr Brown said no one liked the fact some Aucklanders were facing significant rates increases.

"Unfortunately, that is a consequence of the current rating system based on property valuations in a time of dramatic and varied price rises," he said.

Mr Brown said everyone had sympathy for seniors on fixed incomes facing big rates increases and encouraged them to consider options such as the postponement of rates.

Local Government Minister Paula Bennett is overseas and could not be reached for comment about alternative funding mechanisms to property rates.

Find your rates for this year at aucklandcouncil.govt.nz/rates