Tauranga homeowners face 7 per cent rates rise

The median rates rise for Tauranga's residential properties is seven per cent. Photo: Supplied.

Tauranga’s median rates rise for residential properties is seven per cent after the commission signed off on the city’s long term plan.

This will be an extra $4.39 per week for median residential ratepayers from July 1, 2024.

The confirmed median rates rise is lower than the 11.1 per cent signalled during long-term plan deliberations in early March.

Tauranga City Council chief financial officer Paul Davidson said this was because of the impact of the 2023 property valuations approved by the Office of the Valuer General on March 27.

While the median rates rise is seven per cent, properties in the upper residential band will have a 15.3 per cent increase or an extra $28 per week.

Those in the low residential bracket will have a 9.6 per cent increase in rates, this will be an extra $3.68 a week.

The 2024-34 long term plan was adopted at a Tauranga City Council meeting on Monday.

Commissioner Stephen Selwood said the commission worked really hard to get a fairer balance of the rates allocation. Photo: John Borren/SunLive.

Commissioner Stephen Selwood says there aren’t many other councils around the country that can emulate the sevem per cent residential rates rise.

The city’s average rates rise, which includes residential, commercial and industrial properties, is 15.9 per cent.

The lower residential rates increase “reflects the shift in rates away from the residential ratepayer to the commercial business sector”, says Selwood.

The commission has worked really hard to get a fairer balance of the rates allocation, he says.

Commissioners introduced an industrial rating category this year, meaning industrial properties pay a larger share of rates than before. This reduced the residential rate by around three per cent.

Earlier in their term the commission increased the commercial differential - a ratio for how much more commercial ratepayers pay compared to residential.

Before the commission’s appointment the 2020 commercial differential was 1.2, so commercial properties paid $1.20 in rates for every dollar residential properties paid.

The commission increased this yearly and the commercial differential for 2024 is 2.1.

For commercial ratepayers, the median increase, is 10.7 per cent and for industrial ratepayers the median increase 37.7per cent.

The commercial and industrial rates increases don’t include the transport system plan Infrastructure Funding and Financing Levy.

Commission chair Anne Tolley said Tauranga was in “dire straits” prior to the commission’s appointment. Photo: Alisha Evans/ SunLive.

The median TSP IFF levy increase is 5.2 per cent for commercial properties and 6.1 per cent for industrial properties.

The average rates rise of 15.9 per cent and median residential rates increase of 7 per cent include the levy.

An IFF levy is a loan from crown infrastructure partners, and will be paid back through a targeted rate over 30 years.

Commission chair Anne Tolley says Tauranga was in “dire straits” prior to the commission’s appointment.

“There was no rating structure in place that relieved the burden on residents. In fact, the rates put all the burden on the residential ratepayer.

“The city was simply overwhelmed by the massive growth that had happened over a very short period of time.”

Tauranga’s rates increases will come into effect on July 1.

LDR is local body journalism co-funded by RNZ and NZ On Air.

4 comments

Hmmm

Posted on 24-04-2024 12:02 | By Let's get real

So what is the real total when you add in the Regional Council rates that were removed from the general rates a few years ago...?
How much can we save in the future, by not building enormous empty buildings and two museums, all of which will be climate controlled, cleaned, maintained, security patrolled and staffed, every day for years to come. Because once they're built they will never be removed (unlike Council offices).
But just like the buses, it doesn't matter if they're used or not, they are part of the empire and creating work at a higher rate of pay than the general population. Minimum wage for most - Living wage minimum for anyone on a council contract (even in the same company, ask any bus driver about that abusive practice).


Valuation went down

Posted on 24-04-2024 13:30 | By Paul W2

I got my new valuation for my house the other week and the last valuation was $1.2 mill and has dropped to 920K for this one yet my rates are still going up. Shouldn't I get a rate reduction as rates seem to be based on property values.


M. Mouse

Posted on 25-04-2024 09:31 | By M. Mouse

The only reason why this happened is
that the rates haven't increased over the years the elected members with self interest made sure not to agree to any increases .
Keep doing that for years on and your creating massive hole which now has to be filled in.


@ The Mouse

Posted on 25-04-2024 13:35 | By k Smith

I moved into my house 2013, my rates were around $1500 now around $2500 + environmental BOP about $600 + this year I believe which is another rates increase. What are you talking about?


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