Councillor: new rates system could produce 27% reduction

Working in a district with rising rates and housing unaffordability, Queenstown Lakes District Councillor Cody Tucker wants to discuss a "systemic change" of the rates system from capital to land value rates.

In theory, the switch would mean a drop in rates for residents who own property in the district, with those holding onto vacant land picking up the tab.

"It seems like it may not work for everybody [every NZ council], but Queenstown Lakes may be positioned uniquely for it to be effective in addressing the housing,"Councillor Tucker says.

Analysis by Wellington-based rates advocacy group Common Ground Aotearoa revealed the median residential property in Queenstown Lakes could see a 28.6 percent decrease in rates under the new model.

And on the flip side, the median vacant property would get a rates increase of 20.9 percent. 

"The main thing is, if you zoom out, is that we've got such limited powers at the council and there's not much we can do for achieving objectives."

"But the one thing we can do is choose how we charge rates."

Whilst clarifying he's not certain about whether it's a good or bad idea, Councillor Tucker wants to open up a discussion and attempted to do so with his council late last year.

He tried to fly Common Ground Aotearoa co-founder Jesse Richards from Wellington for a consultation with fellow councillors and council staff, but it didn't eventuate. 

There was a reluctance to "open the bag of worms," Councillor Tucker says.

"It was one of those things that didn't get support... especially with the LTP (long term plan) coming up and all of that change in government and the chaos that the staff are trying to cope with."

Mayor Glyn Lewers recently shared with Wānaka residents that the first two years of the long-term plan were looking lean, and are about focussing on the basics.

Most of the spending was on critical infrastructure, particularly for three waters, Mayor Glyn Lewers told attendees at a Wānaka Chamber of Commerce breakfast meeting.

Currently in the district, rates are based on the property's capital value (house and land) within the Queenstown Lakes District, but Councillor Tucker thinks there may be positives to switching it up.

"The people who benefit are the ratepayers because their rates would be subsidised, and the people who don't are people who hold land that could be developed but who are choosing not too."