The Dunedin City Council is considering a new rating category to ease the financial pressure on some Dunedin bed and breakfast operators.
Fletcher Lodge owner Keith Rozecki-Pollard praised the move while speaking at the first day of the council's annual plan hearings yesterday.
In a written submission, he had called on the council to move towards a new rating classification for B and Bs that protected their largely residential status, but fell somewhere between residential and commercial rates.
The call came after Mr Rozecki-Pollard criticised a new council rating plan, announced earlier this year, which introduced a transition rate for B and B owners reclassified as commercial entities by Quotable Value.
Under the new policy, owners would be required to pay 50% of the higher rating category's charges for the first year, followed by full commercial rates from the second year.
The council's move followed a decision by QV staff last year to change the classification of five B and B operations in Dunedin, meaning the council would charge them commercial rates.
That prompted three to close after facing a sudden tripling of their rates bill, while others - including Mr Rozecki-Pollard - reduced their operations to avoid the extra charges.
Yesterday, Mr Rozecki-Pollard said since writing his submission he had been informed the council's rates and funding working party was considering a new category falling somewhere between residential and commercial rates.
Deputy mayor Chris Staynes - the working party chairman - asked Mr Rozecki-Pollard if such a move would "sit reasonably well with you".
Mr Rozecki-Pollard said the "devil is in the detail", but the idea had his support. Without the new category, the change in classification would increase his rates bill and have knock-on effects in other areas, such as insurance, that would make closure "by far a cheaper option".
