Remission of Rates Policy consultation

South Wairarapa District Council is seeking feedback on the remission of rates, in certain circumstances, related to separately used or inhabited parts (SUIP’s) on the same property. This consultation is being carried out under Section 82 of the Local Government Act 2002 (LGA).

As part of the Rating Policies Review undertaken in 2023, Council decided to move to a charge per Separately Used or Inhabitable Part (SUIP) base for several fixed charges.

Definition of separately used or inhabited part (SUIP) of a rating unit

A SUIP includes any portion inhabitable or used by the owner or a person other than the owner who
has the right to use or inhabit that portion by virtue of a tenancy, lease, licence, or other
agreement.

It includes separately used parts, whether or not actually occupied at any particular time, which are used by the owner for rental (or other form of occupation) on an occasional or long-term basis by someone other than the owner.

A rating unit that has a single use or occupation is treated as having one separately used or
inhabitable part. Identification of “dwellings” is taken from the nature of improvements provided by Quotable Value (Council’s Valuation Service Provider) and includes but is not limited to dwelling, granny flat, bach, cottage, flat. Further clarification can be sought from QV on studio, sleepout or others if required.

A decision was also taken to combine all remission policies into one policy, and in doing that, Councils
intention to adopt a policy to provide remission of the Uniform Annual General Charge (UAGC) and Uniform
Targeted Rates in certain circumstances was not as clear as it could have been.

As the basis of the policy was not included in the Remission of Rates policy in its final format opened or
opened for public consultation, Council has decided to consult separately on a Remission of UAGC and
Uniform Targeted Rates for Separately Used or Inhabitable Parts (SUIP’s) policies.

Why are we doing this?

To allow rate relief where it is considered fair and reasonable to do so, Council is required to adopt a policy
specifying the circumstances under which rates will be considered for remission. There are various types of
remission, and the circumstances under which a remission will be considered for each type may be different.

The additions to the Remission of Rates policy have four distinct objectives in relation to SUIP’s.

  • To provide relief to ratepayers with more than 1 SUIP where 1 or more SUIP’s are occupied by dependent or other family members.
  • To provide relief to ratepayers where a property is a retail unit and has a residential SUIP occupied by the owner of the retail unit.
  • To provide relief to ratepayers of dairying or pastoral farming properties where 1 or more SUIP’s is an
    unoccupied or unused farm building that is no longer required for the operation of the farming activity.
  • To provide relief to ratepayers of dairying or pastoral farming properties where 1 or more SUIP’s is
    accommodation used by workers essential in the day-to-day operation of the farming activity.

The amended policy guides how decisions are made to remit rates once set, and how customers can apply
for remission.

Council needs your feedback so we can ensure our policies reflect the views of the community

Background

The Rating Policies review took place 15 September – 15 October 2023, and included a review of the remissions policies, proposing to combine the Remission of Rates Policy, Water by Meter Leak Write-off Policy and the Coastal Erosion Policy into a single Remission of Rates policy. Full details can be found here: Rating Policies Review

How you can share your feedback

  • Fill out the online feedback form
  • Email your feedback to submissions@swdc.govt.nz
  • Paper copy – print off this form and;
    – Email it to us at submissions@swdc.govt.nz or
    – Post to PO Box 6, Martinborough 5741 or
    – Drop it in to the Council office or any of the South Wairarapa libraries.

This consultation is not a Special Consultative Process (SCP) and will not require hearings or deliberations to take place. The feedback given will be provided to the Council as background information to aid decision making in relation to the new policies.


Important dates
22 July – feedback open
5 August – feedback closed
4 September – hearing of written and verbal feedback at Strategy Working Committee meeting

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