Proposed Rates Remission & Postponement Policy

The Proposed Rates Remission and Postponement Policy aims to provide ratepayers in Horowhenua with some financial assistance, where they might otherwise have difficulty meeting their obligations to pay rates. It also addresses circumstances where the way we have decided to rate (the rating system) results in anomalies.

During the Long Term Plan 2021-2041 Amendment (LTPA), we reviewed the way that we share rates across the district. Through conversations with the community, we were asked to look at additional options for supporting those that are struggling to pay rates.

Because this policy is a significant part of our funding and financial policies, it's important that we ask for feedback from our community.

What we're proposing

We're proposing to introduce the following changes to our Rates Remission Policy:

• The option for rates postponement – A rates postponement is a way of delaying the payment of your rates. Rates postponement can help you if you're on a fixed income and cannot afford to pay your rates, or if you have a financial hardship that makes it difficult for you to pay your rates.
  However, rates postponement doesn't mean that you can avoid paying your rates. You'll still have to pay them eventually, and the amount will increase over time due to interest and administration costs.
• Special circumstances remission to allow ratepayers to apply for a one-off reduction (up to 100%) in rates for that financial year if they meet certain criteria. This relates to exceptional situations that affect the ratepayer’s ability to pay rates.
• Remission for second dwellings on a property to reduce the level of fixed charges that properties may need to pay if they have a second dwelling (separately used or inhabitable part) on the property that is used for family purposes and doesn't generate any income.
• Remission for Buildings Requiring Earthquake Strengthening to provide rates relief for properties temporarily not fit for purpose due to the property undergoing development or earthquake strengthening by reducing the level of general rates.
• Provide more flexibility for remissions in the case of properties affected by natural hazard disasters and emergency events. This provides options for the Council to be more flexible when such events occur.

How could this impact our community and who would be affected? 

The proposed changes to the Rates Remission Policy provide opportunities to reduce the immediate burden of rates for some members of our community who are struggling.

The remission provided would however require funding from existing ratepayers.

What's the cost, impact on rates and impact on debt? 

It's difficult to estimate the full amount required for remissions, but the table below provides some scenarios:

¹ Separately used or inhabited part of a rating unit (SUIP)

There are currently around 513 rating units with two separately used or inhabited part of a rating unit (SUIP). Not all rating units will be eligible for the remission for second dwellings as a number of them will be earning some form of income.