Wellington City Council said it was not consulting on whether land value was a more appropriate measure to base rates on rather than capital value. Photo: RNZ / Richard Tindiller
Wellington City Council could slash rates paid by commercial, industrial and business ratepayers as part of an overhaul to its rating policies.
It is one of two changes proposed in its formal public consultation process.
Commercial sites currently pay $3.70 in general rates for $1 that a residential property of the same value pays.
The rates would instead be cut down to $3.25.
The second proposal includes increasing the rates on vacant land in the central city.
There is no separate category for vacant land in the central city but the change would mean owners would have to pay $4.50 in general rates for every $1 that a residential property of the same value pays.
But council said it was not consulting on whether land value was a more appropriate measure to base rates on rather than capital value.
Council sets its overall budget as part of the long-term plan and annual plan process each year. The rates-funded component of that budget is then collected from property owners.
The amount of money paid depends on factors such as the property's capital value, whether it is commercial or residential and what service the property receives.
Long-term plan, finance, and performance committee, councillor Rebecca Matthews said rates need to be adjusted to match with the current climate.
"It's been a long time since the council has reviewed the rating policy. We face different challenges today, so we want feedback from Wellingtonians to ensure rates are allocated in the best way to meet our current and future needs," Matthews said.
The Rating Policy Review is the third phase of the 2024-34 long-term plan but it has been delayed until after it has been adopted to allow more work on the District Plan and give time to consult with the public.
Feedback can be submitted through the council website until 15 October.
Oral hearings start on the 1 November.