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Rates Payment Opportunities Not Being Taken Up

Rates Payment Opportunities Not Being Taken Up

Manukau City Council’s City Manager Colin Dale says many Manukau ratepayers could benefit from the opportunity to delay rates payments, but are not doing so.

He is urging them to consider taking advantage of the scheme which allows payments to be delayed, if necessary until death, after which the estate will meet the payments.

Rising property valuations in much of Manukau have led to those properties attracting higher rates, as rates are based on land value as determined by the market. However the formula for determining rates is governed by legislation.

Over the last three years the value of property in Manukau went up by 16% on average, although some areas actually went down. The average rate for the current year is $1356 or $3.71 per day, which includes the cost of dealing with sewerage. Other councils in the region have separated out their water treatment component from the general rate and charge for it separately.

Manukau City Council allows rates payments to be deferred if meeting those payments imposes undue financial strain. Currently, $2.5 million in payments has been deferred, most of it linked to farmland rather than urban homes.

Colin Dale says, “We have a number of residents who have very valuable

properties but relatively low incomes, and do not want to sell. They are asset- rich and cash-poor.

“Essentially, this option is intended to help people on low incomes, in particular superannuitants. It means they will not have to deny themselves just because they happen to own a highly valuable property, and their children can meet the payments from the estate after their death.”

Anyone interested in this option should contact the Council call centre on 2625104. Rates deferment is not granted automatically and the final decision is determined by the applicant’s financial situation including assessments of income and outgoings.

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