Earthquake rates relief
Christchurch City Council has adopted a range of rates relief packages aimed at helping residents and property owners worst-affected by the earthquakes.
Rates relief has been offered to properties that are unable to be occupied as a result of the earthquakes. There are various reasons why properties may be unable to be occupied, including cordons or structural defects, and Council staff can work through eligibility with individual property owners.
In addition, the Council is seeking permission from Central Government to change the way rates are levied throughout the year. The aim is to allow the Council to reduce the rates levied to land value only once a building has been demolished. Rates are calculated on the combined value of the land and any structures on that land (the capital value). At the moment, the rates can not change throughout the year even if structures are removed that would reduce the capital value.
Different rates relief packages have been offered to residents in different parts of the city, depending on circumstances. Rates cover more than just services supplied directly to homes – such as rubbish collection, water supply and sewer services. They also pay for all the other city services people use, including libraries, parks maintenance, recreation and sports centres, community facilities, public transport infrastructure and road maintenance. This is why rates remissions are generally not 100 per cent.
Rates relief packages available now are outlined below.
Annual Plan 2011/12
The rates remission policy adopted in the Annual Plan 2011/12 offers:
• 40 per cent rates remission for residential properties that are unable to be occupied.
• 30 per cent rates remission for businesses located within the cordoned Red Zone.
• 30 per cent rates remission for businesses outside the Red Zone that can not be occupied because they are adjacent to dangerous buildings.
Please note: residential rates relief and some commercial rebates are only available on application. The residential package applies to churches and other non-rateable properties.
Port Hills properties
Properties that have been issued section 124 notices prohibiting entry for geotechnical reasons do not have to pay rates while residents can not access their homes.
On 15 December 2011, the Council amended its rates remission policy to give 100 per cent rates remission to owners of properties at risk of rockfall, cliff collapse, unsafe access and who have been instructed by the Council to leave their properties under section 124 (1) (b) of the Building Act.
This remission was put in place automatically, so residents should not have to do anything to receive it. It was be back-dated to the time the property first received a section 124 notice, and a credit placed on the property’s next rates invoice.
The Council considered that because residents are not entitled to occupy properties where section 124 notices have been issued for geotechnical reasons, and because Council is obliged to enforce these notices, that full remission on rates
was appropriate in these cases.
Further information about the Rates Remission Policy as it applies to at risk residential properties.
Environment Canterbury rates
Environment Canterbury has adopted rates remission policies that mirror those of Christchurch City Council.
Application forms
Please note: Residential relief and some commercial rebates are only available on application.
Application form for residential rates relief [PDF 249KB]
Application form for commercial rates relief [PDF 238KB]
Questions and answers about the rates application process after the Sept 4, 2011 earthquake
Will my rates change or increase after rebuilding? What about if property values have fallen? In what way will rateable values be affected by damaged communities or properties?
A process is in place to assess property values. Rates are adjusted annually and revaluations occur every three years - the latest was scheduled for spring 2010. However, due to the earthquakes, this rates revaluation has been rescheduled to occur by December 2013. Adjustments to your property value will be made through the building consent process. You can talk to the rates team about your property valuation if you feel the property is significantly undervalued.
Why do I need to pay rates if I have had no services or cannot live in the house?
Most rates pay for services that are not delivered to the door, for example library access, city events and low-cost access to sport and recreation facilities. For this reason, Council expects most property owners will continue to contribute towards citywide costs regardless of whether they are able to occupy their homes. The rates relief policy discounts 40% of rates on those properties that are unable to be occupied because of earthquake damage. This removes the cost for Council services that are delivered directly to a property such as water, wastewater, and waste collection.
My house has been demolished. What will happen to my rates?
Rating legislation requires that rates be set on 1 July each year and does not allow the Council to change them during the year. This means that, currently, if your house was still standing on 1 July, Council must charge you rates and cannot reduce your rates when it is demolished. The Council recognises that this inflexible rating legislation is not appropriate following the Canterbury earthquakes and has asked central Government for a change in the law that would allow Council to reduce rates when a house has been demolished and increase them when a new house is occupied, regardless of the date.
Will the rates remission continue? If so, for how long?
The Council has adopted this rates remission policy for the 2011/12 financial year and will reconsider it as part of its 2012/13 Annual Plan (July 2012 to June 2013). Consultation on the Draft 2012/13 Annual Plan will take place in March and April 2013, and anyone interested expressing their views on rates relief is encouraged to make a submission to the Council.
What about ECan (Environment Canterbury) rates?
ECan has adopted rates remissions policies that mirror those adopted by the Christchurch City Council. If you qualify a discount on your Christchurch City Council rates you will automatically qualify for the same discount on your ECan rates.
The rates relief application asks me for evidence to support my application – but I have nothing in writing. What should I do?
If you qualify for rates relief because you are unable to occupy your home, your insurance company is able to issue a standard letter which provides the information required by the Council.
Why does the Council want evidence about the timing of residents vacating their property?
The remissions policy provides rates relief for ratepayers who are required to vacate their properties. However, occupants who chose to vacate a property that is not unsafe or unsound do not qualify for rates relief. Staff therefore need to verify the reason that an occupant has moved out.
I am in an EQC “Red” Zone – does that automatically qualify my property for rates relief?
Many properties that qualify for rates relief will be in EQC’s Red Zone. However, this alone does not qualify a property. Rates relief is granted to those who are unable to occupy their homes because of earthquake damage. If you are still living in your home, you are expected to contribute towards the ongoing cost of maintaining water, wastewater and other services and will be required to pay your rates.
I have a section 124 notice requiring me to vacate my home because of the risk of rock-fall or land-slip. Do I qualify for rates relief?
Council has adopted a specific rates remission policy for those residential properties considered by the Council to be at risk of rock-fall, cliff collapse, unsafe access or retaining wall issues and where the occupant has been instructed by the Council to vacate the property and issued with a notice under section 124(1)(b) of the Building Act 2004.
Click here for further information about this policy.
I am experiencing financial hardship – what should I do?
Ratepayers experiencing hardship are urged to take up available support. You can contact the Red Cross Canterbury Earthquake Commission or apply to the Mayor’s Welfare Earthquake Relief Fund. Businesses can access support through Recover Canterbury.
Residential and commercial property owners can also contact the Council about rates payment options. Consider setting up a direct debit “Rates Easypay” service. This will spread your payments and make each payment more manageable.
Why doesn’t the Council have the information available to automatically apply rates relief to my property?
Wherever possible staff are using existing Council information to process applications for rates relief (this mostly applies to commercial properties).
I’ve been told I don’t qualify for rates relief but I believe that I should. What should I do?
Contact the Council and explain the situation (in a letter or email if possible). Rates staff are keeping track of cases in “grey areas” that seem to warrant further consideration on the basis of fairness or consistency.
How many properties does the Council think will qualify for rates relief?
We estimate this to be approximately 6000 properties.
Background
Rates make up over 50 percent of Council revenue and are used as a funding source for most of Council’s operating activities as well as funding the renewal and replacement of fixed assets. Specific targeted rates collect revenue for water, wastewater, waterways and land drainage, and organics and recyclables collection. The General Rate and Uniform Annual General Charge (UAGC) funds activities such as Streets and Transport, Regulatory Services, Parks, Libraries, and Recreation and Sports Services.
The Christchurch City Council does not normally waive or remit rates payable on properties damaged during a rating year, such as by fire. This practice is based on the fact that rates are legally payable and that insurance cover provides alternative accommodation for the owners/occupiers of that property.
Only a small proportion of Council’s services are delivered directly to a property. Water, wastewater, refuse collection and, to an extent, land drainage services are provided directly to properties. Residents and ratepayers access all other Council services such as libraries, recreational facilities and roading remotely from their properties. These are funded through the General Rate and UAGC.
