Rating Policy Changes

Rates Remission for Secondary Dwellings

The Council is looking to introduce a Rating Remission Policy to make it easier for ratepayers eligible for a rates reduction for their second dwelling to apply for the reduction.

The Council sets several rates as a fixed charge per separately used and inhabited part of a rating unit. This allows a separate set of fixed charges to be set on multiple dwellings on a single piece of land. One set of fixed charges is applied to each dwelling.

The Council provides an exemption “where the second dwelling is occupied by a member of the ratepayer’s household, or the second dwelling is not let or available to be let.”

The current process requires an annual application and rates relating to the second dwelling to be removed from the rates invoice altogether, prior to setting rates.

Council wants to change this process to a remission policy. Under a remission policy the multiple charges will remain on the rates assessment and a remission credit will be applied for second dwellings that meet the eligibility criteria. The rates invoice will be for the net amount of rates less remission.

This change in process will allow for greater transparency, eliminates manual rates adjusting, the criteria can be targeted easier, as well as less administration.

Discount for early payment of rates

Ratepayers that pay their annual rates (including arrears) by the date of the first instalment penalty date are currently eligible for a 4% discount on some rates (as defined below).

Under the policy, rates that can be discounted are the General Rate and Uniform Annual General Charge, roading rates, community parks and reserves, Pegasus services rate, community libraries and museums, community swimming pools and Canterbury Museum rates.

As an example of the savings that can be made per property, the median value of the discount received in 2024/25 was around $82 per property. The reduced income to Council because of the discount was estimated to be $195,000 for the 2025/26 year.

Waimakariri is unusual in offering a discount for early payment of rates and staff have only been able to identify two other councils that currently offer discounts, both are in the North Island and they offer 2% and 2.5% discounts.

The Council proposes to amend its Rates Policy to remove this discount (section 4) from the Policy. Early payment discounts tend to favour ratepayers that have the means to pay early, and the cost of the discount is met by the balance of ratepayers.

If this is done no discounts will be available for the early payment of rates payable for the 2025/26 year.

Ratepayers not utilising this discount can still pay their rates as usual.

You can find the draft changes to the rating policy in the documents folder.