Small landholders fear size of rates leap

BY TRACY NEAL

A grounswell of opposition is likely from the owners of small land holdings in Nelson who may bear the brunt of proposed changes to Nelson's rating system, Wakapuaka landowner Murray Gill says.

His property is one of 494 categorised as a small holding and facing an average 20 per cent rates rise, or $365 a year, as the Nelson City Council considers a recommended rating review in its annual plan process.

The increase would ease the burden marginally on Nelson's 17,534 residential ratepayers, who could see a $10 decrease in their annual rates bill.

"It's a bit rich to impose such an increase, and I think it would be extremely difficult to handle under the current economic climate," Mr Gill said.

"With everything people have been through in the last 18 months, this would be a major adjustment."

The title his house sits on falls within the small holding category, defined as properties over 5000 square metres and less than 15 hectares, and which are not farms.

His 120ha farmlet surrounding the house is not included in the proposed rating review.

However, if he was to subdivide the land to lifestyle blocks, they could be subject to the proposed rates change.

The 494 small holdings scattered around the city fringes from Champion Rd to Nelson north and a couple on the Port Hills, make up 2.4 per cent of Nelson's total 20,177 rateable properties, including residential, rural and commercial properties.

They are exempt from paying stormwater charges, but if the rating category was abolished as proposed, owners of these properties, except for those east of Gentle Annie in north Nelson, will pay the charges, city councillors heard at this week's draft annual plan discussions. Mr Gill's property is just inside the boundary, but it is not connected to the stormwater or sewerage network, and has a septic tank.

The council's rating review working party has been assessing ways to overhaul the city's land-value rating system. It decided not to adopt major changes, such as switching to a capital-value rating system, which is used in the Tasman district.

Eight owners of urban farm land on the city fringes are also facing rates increases of up to 7.4 per cent, or $141 more a year, as the council moves towards aligning them with residential rating levels.

A proposal to introduce a new fringe commercial differential, which would include the Tahunanui business area and commercial areas around the central city, was this week sent back to the drawing board after flaws were discovered.

Differentials were used to make the system fairer, and to ensure that commercial ratepayers paid 25 per cent of the total, excluding water charges, a report to councillors said.

Currently, the inner-city differential applies to commercial properties inside Nelson's four ring roads and central Stoke.

Stoke was included because the council had supplied a car park to serve businesses there.

The working party looked at extending the area of the inner-city differential to include properties that benefited from initiatives to make the central city more vibrant.

Councillor Rachel Reese said the proposal to extend the boundary contradicted plans to keep the heart of the city tight. She also questioned the impetus for including Tahunanui in the review.

The recommendation to abolish the urban farm land and small holdings rating categories will now be put through the annual plan process for public discussion.

RATES FACTS

Annual rates collected off Nelson's 494 small holdings: $902,792.

Proposed 19.95 per cent rise, including stormwater charges: an extra $364.61 per property.

Projected total rates collected: $1.08 million.

Annual rates collected off eight urban farms: $15,281.

Proposed 7.4 per cent rise: an extra $141.38 per property.

Projected total rates collected: $16,412.

Annual rates collected off 17,534 residential properties: $28.9m.

Proposed 0.63 decrease: $10.42 less per property.

Projected total rates collected: $28.7m.

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