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DAVID UNWIN/Stuff
Jonathan Procter was one of the seven councillors opposed to the change in the rating system.
The Horowhenua District Council will maintain the land value system it uses to determine rates after councillors were divided on what the fairest method was.
An attempt to change the council’s rating system to capital value was scuppered at Wednesday’s council meeting after councillors voted 7-6 against the motion.
They instead voted 7-6 to maintain the land value status quo. Council staff will review the rates remission and rates postponement policies next year and consider options to address affordability.
A council spokesperson said an average rates increase of 7% was approved, acknowledging the increase fell differently across the region as a result of valuation changes and by making service reductions in the draft Long Term Plan Amendment 2021-41.
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Changing to capital value was dubbed a fairer system by some councillors at the meeting, but others said it would place more of a burden on people whose land was worth more.
Of the 333 submissions, 235 were in favour of keeping the status quo, 74 wanted the capital value system, 23 wanted to use capital value but include a rural differential, and one had another proposal.
Councillor Jonathan Procter said capital value was based on cities and urban areas.
“Not our district. It unfairly shifts urban costs to farming areas with the assumption they have the ability to pay for it.”
He said it would target the middle income earners of the district.
“You should have looked at these models 10 years ago. It’s too late.”
He said it was arrogant to say the majority of submitters who were against the change didn’t understand.
Cr Sam Jennings said the capital value system was a wealth tax and would put more of a burden on perceived wealth and the perceived value of property.
Land value rated people on the actual use of the land, rather than speculation, he said.
Cr Clint Grimstone said the change was not targeted enough and would shift the cost to rural ratepayers, which was not fair.
WARWICK SMITH/Stuff
Horowhenua mayor Bernie Wanden wanted the council to use capital value as a way to determine rates. But the motion was lost.
However, mayor Bernie Wanden backed the change and said 71% of councils around the country used the capital value rating system.
“Those that aren’t in CV system are thinking about changing it. It is considered by most to be the fairest system there is.”
Deputy mayor David Allan said 11,000 of the district’s 18,000 ratepayers would be better off if capital value was used.
“Which is the fairer system, to rate on part of the picture or the whole of the picture?”
He said it was not a wealth tax, and it would not discourage people from developing in the region.
Waiopehu ward councillor Rogan Boyle said the change would have likely affected his constituents the most, but it was in the best interests of the district to make the change.
Cr Piri-Hira Tukapua was for the change and was worried about affordability for people in the region, particularly with high levels of depravation. She believed they were genuinely trying to achieve the fairest way to distribute rates.
She said the rural share of general rates was now 23%, but it would have been 20% with the change.
Councillors for the change to capital value: Tukapua, Tamihana, Nina Hori Te Pa, Boyle, Allan and Wanden.
Councillors against the change: Procter, Jennings, Mike Barker, Alan Young, Paul Olsen, Grimstone and Ross Brannigan.
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