It’s not correct to say that the proposed adjustment to the differential means commercial ratepayers will be required to pay proportionately more of the city’s rates bill next year.
The facts are that the Council has just completed a city-wide revaluation process which has seen residential land values increase by an average of 60 percent over the three years since the previous city revaluation, compared to commercial property values which have increased by an average 36 percent.
The Council has resolved to maintain the same proportion of rates that are currently paid by the residential and commercial sectors. To achieve this outcome, the general rates differential for commercial property owners will need to be slightly increased because of the shifting property valuations. However this does not translate into a higher rates increase for the commercial sector compared to the residential sector.
If the Council does not shift the differential, it will mean our residential ratepayers will receive a significantly higher rates increase than the commercial sector.
Watch our video to find out more.