Your rates, explained

Like all councils in New Zealand, we face rising costs due to inflation, high interest rates and more expensive insurance.

The August 2022 weather event had a major impact on finances. Council is building back better to make our infrastructure more resilient. The estimated cost is $87.2 million, with some paid for by insurance and central government. That leaves about $60 million for us to pay.

Council is keenly aware of the pressure on everyone’s finances. Our plan is to keep rates rises as low as possible while maintaining core services, paying for recovery, and continuing to invest in projects that make the most difference to Nelson’s future.

 
With all this in mind, the average rates rise this year will be 8.2% plus a $300 (including GST) Storm Recovery Charge (combined, this represents a 15.3% rates increase in 2024/25). The rates increase is an average and may vary for individual properties depending on individual rate charges that make up the rates assessment. Average rates rises over the next nine years are expected to be between 1.7% to 5.4%.
 

The storm recovery charge 

We will pay for recovery works over the next 10 years. We have chosen this length of time as we expect more intense storm events in the future. Paying off this debt faster means higher short-term costs. A targeted rate of $300 (including GST) for 10 years for all separately used or inhabited parts of a rating unit (SUIP) is the most transparent way to pay for the recovery. A uniform charge is appropriate when considered with other rating changes relating to stormwater and flood protection.
 

Splitting the stormwater and flood protection targeted rate

Council will now charge two separate rates for stormwater and flood protection.
This was combined as a uniform charge for all ratepayers (excluding most rural rating units). Multiple weather events have resulted in an increase in flood protection costs, so as we invest in resilience works it is fairer to split the rate into two. 

We have extended the flood protection rate to cover the entire Nelson region (excluding Saxton Island) to reflect areas benefiting from flood protection work we are doing. This rate will be based on the land value of the property.
The stormwater targeted rate continues as a uniform charge per rating unit, excluding units in the rural zone.

Could you be eligible for a rates rebate? 

Depending on your income and rates bill, you may be able to get a rates rebate of up to $790. Check online at https://www.nelson.govt.nz/building-and-property/rates/postponements-and-rebates/ or contact us on 03 546 0200. The New Zealand Government website has a rates rebate calculator available: https://www.govt.nz/browse/housing-and-property/getting-help-with-housing/getting-a-rates-rebate/rates-rebate-calculator/

 
Can I spread payments on a Direct Debit?
Yes, and we encourage this. There are no additional charges for direct debits. Please mention this to our staff if this is an option you would like available.

 
Rates information 

Remission Council has a number of rates remission policies for certain special situations: 

1. Remission for community, sporting and other organisations. Rating units that are owned and occupied by non-profit organisations and used exclusively for sporting, recreation, or other community purposes may qualify for a rate remission. 

2. Remission for social and kaumātua housing. Rating units that provide social or kaumātua housing to the benefit of the city may qualify for a rates remission. 

3. Remission of penalties. Rating units that have incurred penalties due to late payment as a result of a family disruption or circumstances beyond the ratepayer’s control may have penalties remitted. Each application will be considered on its merit and the remission of the penalty will be at Council’s discretion. 

4. Remission for residential properties in commercial areas. This policy ensures that properties used for residential purposes that are located in commercial areas will be rated on the basis of their residential use. 

5. Remission for land protected for natural, historical or cultural conservation purposes. Rating units that have some feature of cultural, natural or historical heritage and are voluntarily protected may qualify for a rates remission. 

6. Remission of charges for excess water arising from leaks. Rating units that are charged excess metered water rates as the result of a leak in the internal reticulation system may receive a remission upon application. 

7. Remission for low valued properties. Council will not collect rates on rating units which have a land value of $10,000 or less.

8. Remission on Māori Freehold Land. Council may provide rating relief on Māori Freehold Land that does not provide any income. 

9. Rates postponement. This policy provides older ratepayers with the choice to postpone the payment of the rates until the sale of the property or the death of the ratepayer. 

10.Remission for golf practice greens. Council will provide rating relief on golf practice greens. Any remission will be at Council’s discretion. 

11. Remission for households with dependant relatives in an additional unit. Council will provide rating relief for households where a dependant adult relative is housed in an additional unit. 

12. Remission for land affected by natural calamity. Council may provide rating relief to properties that have been detrimentally affected by natural calamity. 

13. Remission of rates on separately used or inhabited parts of commercial rating units less than 20m2. Council will provide rating relief for very small separately used or inhabited parts of commercial rating units.

 
For more information about these policies, including conditions and criteria, contact Customer Service on 03 546 0200.