Lifestyle property, B&B rates may rise

Lifestyle block owners and bed and breakfast establishments face increased rates under changes to Dunedin's rating system, while farmers look set to pay less of the overall rate take during the next nine years.

But the Dunedin City Council, stung by recent criticism of a lack of consultation over issues like parking, was yesterday keen to make sure that did not happen again.

Cr Chris Staynes introduced a report on the issue to the council's finance and strategy committee yesterday.

The change to lifestyle blocks, which would mean owners of those properties pay residential rather than farmland rates, follows a backdown on the issue earlier this year.

In June, the council withdrew plans to change the way those properties were rated, after writing to some landowners in May, informing them their farm properties were being designated as lifestyle blocks, and they would be rated as residential rather than as farmland.

The change would mean their rates would rise from 0.1872c in the dollar to 0.2087c.

The council fielded more than 100 letters, emails and phone calls, and several owners of small blocks of rural land also complained to the Otago Daily Times.

As a result, the council sent out another letter to 600 property owners explaining that it would retain the status quo for the 2009-10 year.

At the time, council financial controller Maree Clarke said the lifestyle rating issue was sparked by Quotable Value through changes it made on behalf of the Valuer-general.

The report said there were 2281 properties with a land-use code of "lifestyle".

The change for bed and breakfast establishments meant all those categorised residential and providing accommodation of less than one month at commercial rates would be charged a flat rate of $500.

Other changes were a reduction in the share of general rates for non-residential ratepayers over 10 years, and a $500,000 decrease in their general rate in 2010-11, but the introduction of a $500,000 targeted rate for tourism and economic development for that year.

There would be decrease in the percentage of the total rate take paid by farmland ratepayers, introduced over nine years.

The proposals will be considered during consultation at next year's annual plan hearings.

david.loughrey@odt.co.nz

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