"Receiving rates from these entities would share the rating load for our community. It would need to be recovered by our national tax system, but this would be shared more evenly by those more able to pay."
She said the rule that exempted Crown land had been in place since 1867. "I think it's well overdue for change."
Another proposal the Wanganui council supported was a call for LGNZ to talk to the Government in a bid to have the water and wastewater subsidy schemes reintroduced. And it will also ask that the funding available be at least $20 million per annum for water supply schemes and the same for wastewater schemes.
Ms Main said Wanganui supported the principle that all New Zealanders needed access to water and wastewater infrastructure facilities whether they lived in a large urban centre or a small rural town.
"Compliance with water standards and the provision of wastewater processing and disposal in regions with more than one small urban centre can be out of the reach of smaller councils. The previous subsidies provided at least a portion of that cost," she said.
Local Government NZ president Lawrence Yule said LGNZ's view was this funding would support better water quality requirements under the Government's National Policy Statement for Freshwater Management.
"Most importantly, these subsidy schemes will provide important funding support for small communities who cannot afford to upgrade their water and wastewater infrastructure," Mr Yule said.
"This represents the reinstatement and top-up of subsidy schemes established in 2002 and 2005."
He said it also emphasised the importance of appropriate funding for local government where costs were imposed by central government.
"Our communities have spoken. We now have a strong mandate from local governments and the communities they represent to move forward and work with the Government to progress these matters," he said.