"But the reality is they haven't paid for two or three years," Mr Crimp said.
The council has also demanded payment of rates directly from the banks who are mortgagees for 45 properties.
Mr Crimp said once late penalties were added on to the unpaid debt, the bill added up.
"It quickly becomes sort of a big deal."
Mayor Adrienne Staples said there was a different attitude about paying rates bills compared with other bills.
"People pay their power bills because, if you don't, it gets cut off."
But the council could not cut off water and sewerage, she said.
The latest rate arrears table shows 863 ratepayers owe $1,033,000 - $836,000 is owed to SWDC and the remainder to GWRC.
It is the largest amount owed since June 2011 and has been gradually creeping up.
"It's disturbing to note it has been increasing," Councillor Julie Riddell said.
People are becoming less satisfied with the way rates are allocated, according to surveys carried out since 2003.
Surveys commissioned by SWDC showed 64 per cent of residents were satisfied with the way rates are allocated, 22 per cent are not very satisfied and 14 per cent did not comment.
This was an improvement from a survey held in 2010 (59 per cent) but a drop from the 2005 survey, which showed 77 per cent were satisfied with rates and in 2003, 75 per cent.
People not likely to be very satisfied were those aged over 45, Greytown residents or people living in a one- or two-person household.
The main reasons people gave for not being satisfied were the rates were too high for services received or the rating system was unfair. Greytown people were more likely to give those as main reasons.
Dissatisfied Featherston residents also gave those reasons but 9 per cent said allocation of rates was unfair and was spent elsewhere, not in their area.
More Martinborough residents said they were dissatisfied because the roads and footpaths could be better.
What do you think of rates? Comment on this story on our website, www.times-age.co.nz.