An undeveloped section on Stewart Island/Rakiura has seen its rates jump by 500 percent in the past year, but Southland District Council says the hike is justified. Photo: Otago Daily Times / Stephen Jaquiery
A Stewart Island/Rakiura ratepayer on the receiving end of a 500 percent rates hike received little sympathy from the district councillors this week.
On Monday, the unnamed person made headlines after appearing in a Southland District Council report for contesting a jump in their rates from $348.68 to $1743.95 in the space of one year.
Arguing their undeveloped section sat on a neglected section of road with no council services available, they labelled the sharp increase "drastically unfair and unjust".
But on Wednesday, councillor Jon Spragoon - an appointee to the Stewart Island/Rakiura community board - questioned some of the ratepayer's claims about a lack of services at his Rata St property including no sewerage, power and lighting.
"It won't get street lights in the sense that we're a dark sky sanctuary. He refers to a muddy track, well it's just a standard gravel road," Spraggon said.
"I've spoken to half the community board, and they back the council stance that no remission be given."
The issue was escalated to elected members after the ratepayer was unsatisfied with the reason given by staff for the increase - a change of ownership in June 2023.
The section had previously come under the umbrella of an adjacent property, meaning it had only been charged partial rates as a contiguous property.
In its report, council staff pointed out the nature of the land would have been highlighted in a LIM report, showing what was at stake with the rating situation.
"Had the information not been contained in the LIM, we'd probably be having a different conversation now . . . the reality of the situation was there and available for the purchaser to see," Mayor Rob Scott told those gathered.
Councillor Matt Wilson hoped the council would take opportunities to educate potential buyers, and asked if it was possible to include additional information in the online rate search tool.
The council said it was exploring that further.
Ultimately, councillors voted for no rates remission to be applied to the Rata Street property for the 2023/24 financial year.
The section in question has a capital value of $50,000.
The average rates increase for Southland district for 2023/24 was 13 percent.
LDR is local body journalism co-funded by RNZ and NZ On Air.
