Procedure to change rating differential

Press, 18 February 1986, Page 5

Procedure to change rating differential

The procedure to change the rating differential — part of the sweeping changes approved last year by the Christchurch City Council for its rating system —

started last evening. A Special Order resolution was passed by the council to bring about the changes for the next financial year, beginning on April 1. The changes mean that the City’s business premises will now pay 40 per cent of the total rates take, and residents 60 per cent.

Previously, businesses have met 35 per cent, and residents, 65 per cent.

The effect of this on each business property will vary because of the $l5O uniform general charge introduced for all properties. The changes also include adjustments to the

differential paid by owners of multi-use properties. For each extra unit on a property another 10 per cent will be charged, with no limit on how many units. This is a doubling of the previous differential and, in spite of the uniform charge, most properties in this category will face increases.

Ratepayers who own single residential units and other properties not classed as multi-use are luckier. The group as a whole will face a reduction, although the uniform charge may offset this in some cases.

The Special Order wih now go before the April council meeting. Perhaps the most significant change in the rating system — a switch to capital value rather than land value — has still to be put before the public later in the year.