Palmerston North city's land value-based rating system is up for review.
The council's finance and performance committee has agreed to hold a workshop after the long-term plan is signed off next month to consider changes.
Finance strategy manager Steve Paterson said the review would have to look at the impact of the present system on the 1100 properties affected by the boundary change with Manawatu.
It would also have to analyse what this year's three-yearly revaluation of city properties was likely to do to relative rates burdens.
Councillors needed to understand the system of differentials, in which a weighting was added to the rates demanded from various types of properties.
The rates system also includes a collection of uniform charges, in which everyone pays the same amount for services regardless of property values.
The advantages and disadvantages of capital value and land value as the underlying measure for applying rates was up for consideration.
Palmerston North is among a minority of councils still using land values. Manawatu uses capital values.
The council has received several submissions to the long-term plan asking for a change to capital value rating from people with properties with high land values but modest houses.
Some of them pay more rates than people with expensive homes in cheaper areas.
- © Fairfax NZ News
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