Options available to reduce rates bills says council

While most Rotorua ratepayers will receive their first quarter property rates invoices in the mail later this week for the new 2010/11 year, council officials are telling property owners they can actually reduce the total amount they have to pay if they make payments early.

Rotorua District Council (RDC) corporate services director Jean-Paul Gaston said that while RDC had worked hard to hold its rates increases to under inflation levels at around 1% to 2% for most properties, the government’s recently announced GST increase and the Bay of Plenty Regional Council’s rates hike of 13% mean total rate bills for many Rotorua residents will be up around 5%.

“However there are ways of avoiding some of these increases,” said Mr Gaston.

"If ratepayers can pay their full year’s rates by 25 August when the first quarterly installment is due, they will not only receive a 2% discount they will also avoid having to pay the extra 2.5% in GST which comes into effect from 1 October.

“We certainly understand that many people aren’t in a position to pay their year’s rates in advance to take advantage of this, but for others it will be a welcome option that may save them something like $75 to $100 on an average residential property.”

Mr Gaston also pointed out that for many low income property owners there is additional support available through the government’s Rates Rebate Scheme.

“If you are on a fixed low income and you think you might qualify for a rebate then call Rotorua District Council and arrange an appointment to come in and discuss your eligibility with our rates advisers.”

Current first quarter rates payments are due by 25 August and Mr Gaston said late payment penalties of 10% automatically apply after that date.

He is also encouraging anyone having real difficulties in meeting their rates responsibilities to contact the council to discuss their situation before penalties kick in.

“We may be able to make some arrangements to help you with budgeting and scheduling of payments if you make contact with us ahead of the penalty deadline,” he said.