The Dunedin City Council is considering filling in for central government to fix an anomaly which means owners of retirement village units cannot apply for rates rebates.
At present, central government funds rates rebates of up to $610 for low-income households, but retirement village residents who own units through occupational right agreements (ORA) are not eligible.
Councillors at today's finance committee meeting will discuss whether the council should develop a policy to fill in for central government when it comes to this "anomaly''.
The vote comes after Grey Power Otago, local retirement villages and MPs made submissions on the issue as part of this year's annual plan process.
A report to be tabled at the meeting estimated it would cost the council $77,417 should it provide rates relief for people who owned such units.
The estimate was based on a survey of five Dunedin retirement villages, which found there were 417 units owned through ORAs, and an assumption 35% of owners would be eligible for rates relief.
A private member's Bill was being developed to change the definition of ratepayer in central government policy to include owners of such units, but in the meantime other councils including Auckland and New Plymouth had stepped in.
Council staff recommended councillors waited until an update was provided to the next council on progress of the private member's Bill before deciding whether to develop a policy to provide rates relief for unit owners.
The other option was to develop a policy right away, but the cost was not included in the budget for this financial year and would need be funded from savings.
Grey Power Otago Jo Miller said at May's annual plan hearings the legal anomaly meant elderly people who sold their houses to buy units in retirement villages could no longer apply for rates relief.
Grey Power and other organisations were fighting for a national law change to fix the situation, but the council needed to step in until a change was made, Mrs Miller said.
