Ted Neill farms 5.7516ha of land valued at $310,000 in Otokia Rd, south of Dunedin.
The land has, in the past, been rated with a farmland differential.
Earlier this month, he received a letter from the council informing him that from July 1 his farm would be regarded as a "lifestyle block" with a residential differential.
As a result, Mr Neill's rates would rise from 0.1872c in the dollar to 0.2087c - an increase of about $148 per year.
A letter he received from council rates and revenue team leader Garner Doig said a review had been done and his property "more correctly" fitted the category of lifestyle block "as the principle use of the land is non-economic in the traditional farming sense . . ."
Mr Neil said his land, surrounded by a large farm, had been farmed as far back as 1962.
It supported 70 ewes, from which he expected a crop of about 100 lambs - each worth up to $100.
Mr Neill wanted to know how the council came to the conclusion his property was "non-economic".
"So, what sort of yardstick do you use . . . what are you basing an uneconomic unit on?"Mr Neil (68) said he and his wife lived off their pension and any extras came from the sale of their lambs.
The Otago Daily Times has received two other complaints that properties previously rated as farms were about to be rated as lifestyle units and has been waiting, since May 12, for answers from the council to nine questions.
Mr Neill, having complained to the council several times over the past few weeks, was this week surprised to find, on the council website, that his property had reverted to being farmland but with its land use defined as "lifestyle".
The rate increase would now be $81.44.
He regarded this as "a hollow victory" because he expected the council would "come back at us again".
The council letter he received noted owners of a $500,000 property undergoing the change to "lifestyle" could expect a rate increase of $107 a year.
Long-standing rural real estate agent John Lagan, who brought the issue to the attention of the ODT, believed more than 1000 city ratepayers, on small blocks of rural land, could be facing the same issue.
He believed a new "lifestyle" category was being introduced without proper public consultation.
"If they sneak it through as part of the annual draft plan I just feel it's an underhand way of doing things."
He believed owners of lifestyle blocks were already paying higher rates than those with farmland because lifestyle land was more valuable.
He gave the example of $50,000 per hectare or more for lifestyle land on the north Taieri Plains compared with dairy farm land elsewhere worth $25,000 per hectare and forestry land as low as $2000 per hectare.
He believed the new category was a "double whammy" for lifestyle block owners.
He wants to know who inspected properties to determine which were farms and which were lifestyle blocks.
The council letter sent to Mr Neill said the recent review of lifestyle properties by the council and Quotable Value Ltd followed the introduction of the "valuation rules 2008".
The rules, which apply nationally, were issued by the Valuer-general and came into force on March 31.
