Rates Relief and Rebates

Rates remissions

You may be eligible for Nelson City Council Rates remission rates remission if your property meets certain criteria. A rates remission is a reduction in the amount of rates you have to pay.

The objective of our Rates Remissions and Postponement Policy is to ensure the fair and equitable collection of rates from all sectors of the community by:

• Providing financial assistance and support to ratepayers
• Addressing any rating anomalies.
• Ensuring the environment is protected.
• Recognising the particularities of ownership, and other factors specific to Māori freehold land.

The Rates Remissions and Postponement Policy provides information on the rates remissions available to ratepayers, the objective and the criteria and conditions for each remission type.

Rates remission policies

See the Rates Remission Policy 27 June 2024.

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 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.

Whenua Māori

The Local Government Act 2002 (sections 102(3) and 109) enables Council to adopt a rates remission policy. Section 102(3A) states that the policy must also support the principles set out in the Preamble to Te Ture Whenua i Act 1993. This policy generally supports the principles, as it enables the remission of rates:

• On land owned by Māori where the criteria are met
• For Kaumātua housing where the criteria are met
• For rating units that have some feature of cultural, natural or historical heritage that is voluntarily protected.

It does not, however, apply to Māori freehold land, as such land is considered and dealt with under Council’s Policy on the remission and postponement of rates on Māori freehold land.

The Nelson City Council has decided to remit all or part of the rates on properties covered by this Remission Policy.

Policy on remission and postponement of rates on Māori freehold land

The policy shall apply Māori freehold land, which meets the relevant criteria as approved by Council. Council may delegate the power to approve rates remission to Council Officers under section 132 of the Local Government (Rating) Act 2002.

Any ratepayer granted rates remission is required to meet all remaining and applicable rates in full that are owed in addition to the amount eligible for the rates remission.

Read for more information on the Māori Freehold Land Rates Remission Postponement Policy 2024.

Rates postponement

Are you a senior citizen and having difficulty paying your rates? Would postponing your rates assist you in staying in your home? Council offers a Rates Postponement Scheme for older homeowners that lets you defer paying rates – for the rest of your life or until you sell your home.

The objective of the postponement scheme is to enable Council to provide older ratepayers with more options and flexibility. It lets older ratepayers decide how best to manage their finances and also gives older ratepayers the opportunity to stay in their houses for longer. Read the rates postponement policy for more information.

Do you qualify?

The following conditions and criteria apply:

• The ratepayer must be over the age of 65 (or over the age of 60 if on a benefit)
• The property must be insured
• The postponed rates must not exceed 80 per cent of the available equity in the property. The available equity is the difference between the Council’s valuation of the property (the capital value at the most recent revaluation) and the value of any encumbrances against the property, including mortgages or loans.
• The property must be the prime residence of the ratepayer and owner occupied.

How much does it cost?

The cost of the scheme is paid entirely by those whose rates are postponed – it is not subsidised by other ratepayers or funding. In addition to the annual rates, you will also pay:

1. There is an initial one-off application fee of $300.00, which includes the cost of Council registering the Statutory Land Charge on the property title
2. Interest will be charged on the postponed rates six monthly at Council’s marginal rate (to cover the current cost to Council of borrowing the required funds)
3. A $100.00 yearly administration charge is payable by the property owner
4. 0.25% annual reserve fund levy on the total rates that are postponed is payable by the property owner.

Find out more

We’ve put together a brochure that explains the rates postponement scheme in detail, along with an eligibility form. You can get a copy from Nelson City Council at Civic House or download the Rates Postponement Brochure here.

Rates rebates

The Nelson City Council, on behalf of the  Department of Internal Affairs, administers the rates rebate scheme. You may qualify for a refund of a portion of your rates. There is a sliding scale for this rebate which links income level to rates levied. The more rates you pay the higher income you can earn and still qualify.

You can apply for a rates rebate if the following is applicable to you:

• You pay the rates on the address that you live at, and
• You were living at that address at 1 July 2024, and
• Your name is on the rate account

The rebate will be calculated based on your income, rates and the number of dependents living with you.