A fairer rating system could be coming to Central Otago, the district’s mayor says.

Central Otago Mayor Tamah Alley said options in front of the community for a new rating system would allow the community a genuine chance to shape a fairer rating system better suited to the district’s future.

“This isn’t about how much rates revenue council collects overall — that’s decided through the long-term plan and annual plan processes.

"Instead, this review looks at how that total is divided up between ratepayers,” Mrs Alley said.

Public consultation on the Central Otago District Council rates review has entered its final week. 

Residents have until Friday to have their say on how rates are shared across the district. 

“Option A” would switch the general rate from being calculated from land value to capital value, meaning the total value of the property would be used instead of land value alone, with targeted rates still applying to waste management and ward-based grants. 

“Option B” includes everything in option A, with an added differential applied to commercial properties. 

“Option C” would retain the current land value approach for calculating the general rate, with adjustments to the Uniform Annual General Charge to keep it under the legal maximum. 

Council chief financial officer Paul Morris said a shift toward capital value would reflect how much the district has changed.

“Capital value gives a more complete picture of a property’s worth as it reflects the land and everything on it, with some exceptions,” he said.

“Land value alone doesn’t account for the buildings and improvements that make properties what they are today.

“As our district has grown and developed, the gap between land value and capital value has widened, and we felt it was time to look at whether land value alone was still the fairest basis for sharing rates.”

Mr Morris said the impact would vary from property to property, which was why the council built an online rates calculator.

“Properties where capital value is significantly higher than land value — such as newer builds or properties with substantial improvements — may see an increase under Option A.

“Properties where land value makes up the bulk of the total value may see a reduction,” he said. 

Community response had been mixed, Mr Morris said. 

People were “on both sides”.

But community engagement had been encouraging, as people were asking good questions and taking the time to understand what the changes would mean for them, he said.

Once consultation closes on Friday, feedback will be collated and presented to council. 

Any changes to the rating system would take effect from July 1, 2027.

carys.trotter@alliedmedia.co.nz