In late December 2017, the Tauranga City Council voted to approve two changes to the way rates are levied on commercial and industrial ratepayers in the city.
The Council’s proposal includes the introduction of a rates differential between commercial and residential properties over the next three years.
If ratified by the Council, it will result in the increase of rates for commercial, industrial and retail properties located in the Tauranga area (including suburban areas).
For some commercial properties it may mean a 60% increase in rates by 2021.
At PMG we’re invested in creating value for people in property. We are supportive of an equitable tax collection across business and residential ratepayers. We believe this proposed increase disproportionately burdens businesses and commercial property owners and is not acceptable. We favour a targeted rating system where those who pay receive the benefit; this works well in many other regions such as the Waikato.
PMG is the manager of a number of properties and looks after over 100 tenants in the Tauranga region. We take this role very seriously and pride ourselves on working in support of local businesses (our tenants), to help them thrive. Hence, on behalf of our property owners, investors, and tenants, PMG is formally opposing this increase.
PMG is working closely with the Tauranga Chamber of Commerce and the Property Council of NZ to develop a united response to the Council’s plans including engaging in meetings with the Council.
As many of you know, the proposal for a rates differential is not a new concept. The Property Council (formerly BOMA) successfully fought against a similar proposal in Tauranga 15-20 years ago. Other New Zealand cities currently have differential rates but are in the process of reducing or removing it due to the inequitable burden it places on businesses.
PMG is in the process of preparing a public submission which it will submit to the Council in March.
We will be reaching out to a number of you, our property owners and tenants, for input into the submission in February.
If you have any concerns or questions regarding this, please contact us directly. For property owners, investors or landlords please contact Scott McKenzie. For tenants please contact Brian Berry – both are available on 07 578 3494.
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