Rates remission

We are proposing to amend the wording of the remission of targeted rates on property under development or earthquake-strengthening. This is to allow for rates remission on an identifiable part of a property which is under development or earthquake-strengthening. The current wording of the policy has the potential to incentivise property owners to vacate the entire property where part of that property is under development or earthquake-strengthening. The amendment to the policy is proposed to allow property owners to remain in the habitable portion of their property while still eligible for a rates remission on the portion of the property that is under development or earthquake-strengthening.

Below is an excerpt from the current policy with the proposed changes highlighted.

Remission statement

The Council may remit part or all of the commercial sector targeted rate, Business Improvement District targeted rate and downtown targeted rates on land classified under the Council’s ‘Commercial, Industrial and Business’ differential as defined within our Funding Impact Statement Rating Mechanisms, where the property is deemed to be ‘not fit for purpose’ due to the property being under development or due to the existing building being earthquake-strengthened.

The Council may remit part or all of the ‘Base’ sector targeted rate on land classified under the Council’s ‘Base’ differential (including residential) as defined within our Funding Impact Statement Rating Mechanisms, where the property is deemed to be ‘not fit for purpose’ due to earthquake-strengthening.

Policy objectives

To provide rates relief for property temporarily not fit for purpose due to the property undergoing development or earthquake-strengthening and therefore not receiving the benefits derived by contributing to the commercial, residential or downtown targeted rates.

Conditions and criteria

To enable the remission statement above, ‘not fit for purpose’ is defined in this policy as where:

i. the property (rating unit), or an identifiable part of the property, will not hold sufficient consents to permit occupation; and

ii. the property (rating unit), or an identifiable part of the property, will not be used for any purpose, apart from the construction of buildings, premises or associated works, or earthquake-strengthening works; and

iii. the property (rating unit), or an identifiable part of the property, will not generate any revenue stream.

iv. the remission will be granted on a pro-rata basis for the identifiable part of the property to which the above criteria (i – iii) apply, for the purpose of the remission this will be calculated based on the portion of the total floor area of the rating unit which is deemed ‘not fit for purpose’.

v. The above criteria apply to, and must be met by, an entire rating unit as identified in the Council’s rating information database (RID), or a clearly identifiable portion of the rating unit, and apply only for the period the building is not ‘fit for purpose’.

We are proposing to amend the wording of the remission of targeted rates on property under development or earthquake-strengthening. This is to allow for rates remission on an identifiable part of a property which is under development or earthquake-strengthening. The current wording of the policy has the potential to incentivise property owners to vacate the entire property where part of that property is under development or earthquake-strengthening. The amendment to the policy is proposed to allow property owners to remain in the habitable portion of their property while still eligible for a rates remission on the portion of the property that is under development or earthquake-strengthening.

Below is an excerpt from the current policy with the proposed changes highlighted.

Remission statement

The Council may remit part or all of the commercial sector targeted rate, Business Improvement District targeted rate and downtown targeted rates on land classified under the Council’s ‘Commercial, Industrial and Business’ differential as defined within our Funding Impact Statement Rating Mechanisms, where the property is deemed to be ‘not fit for purpose’ due to the property being under development or due to the existing building being earthquake-strengthened.

The Council may remit part or all of the ‘Base’ sector targeted rate on land classified under the Council’s ‘Base’ differential (including residential) as defined within our Funding Impact Statement Rating Mechanisms, where the property is deemed to be ‘not fit for purpose’ due to earthquake-strengthening.

Policy objectives

To provide rates relief for property temporarily not fit for purpose due to the property undergoing development or earthquake-strengthening and therefore not receiving the benefits derived by contributing to the commercial, residential or downtown targeted rates.

Conditions and criteria

To enable the remission statement above, ‘not fit for purpose’ is defined in this policy as where:

i. the property (rating unit), or an identifiable part of the property, will not hold sufficient consents to permit occupation; and

ii. the property (rating unit), or an identifiable part of the property, will not be used for any purpose, apart from the construction of buildings, premises or associated works, or earthquake-strengthening works; and

iii. the property (rating unit), or an identifiable part of the property, will not generate any revenue stream.

iv. the remission will be granted on a pro-rata basis for the identifiable part of the property to which the above criteria (i – iii) apply, for the purpose of the remission this will be calculated based on the portion of the total floor area of the rating unit which is deemed ‘not fit for purpose’.

v. The above criteria apply to, and must be met by, an entire rating unit as identified in the Council’s rating information database (RID), or a clearly identifiable portion of the rating unit, and apply only for the period the building is not ‘fit for purpose’.