Residents in Wellington overcharged regional council rates for four years

Ratepayers in Wellington city have been hit with a rates error which overcharged residents and undercharged businesses.

Residential and rural ratepayers were overcharged while central city and business ratepayers were undercharged, because rating differentials were applied incorrectly. The error began in 2019.

Greater Wellington Regional Council announced the error this afternoon and said it was discovered during a modelling exercise. Chief executive Nigel Corry said it was an “unfortunate error”.

On average, residential ratepayers have been overcharged by $30 per year, and rural ratepayers by $36 per year, while central city business ratepayers have been undercharged by $583 per year, and businesses by $160 per year.

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While the total amount of rates collected was correct, businesses should have paid more and residents less.

The problem is limited to Wellington city and does not affect other areas in the Wellington region. The Wellington City Council collects the rates in its area on behalf of Greater Wellington.

Corry said the error resulted from a miscommunication between Wellington City Council staff and the regional council, which “did not sufficiently convey” there was a change in rating policy during the 2019 year.

“Both councils immediately established new checks and balances on discovery of the error to ensure it cannot happen again.”

The regional council was still figuring out how to correct the mistake and advice would go to councillors later in the month.

City council chief executive Barbara McKerrow said the city council was working with Greater Wellington to correct the error and tighten communications.

More to come.