Scott's Own Sea Scouts has been paying full rates on its property at Oamaru Harbour because it slips between legislation allowing sports clubs a 50% discount.
On Wednesday, the Waitaki District Council's finance, audit and risk committee moved to correct that by recommending the scouting group be rated as a sports club and get 50% discount on some of its rates.
The 60-member group had written to the council asking for rates relief for its den and storage at the harbour. Costs such as rates were paid from membership fees or fundraising and a relief from rates would provide more money for activities for the 5 to 15-year-old members.
The council's chief financial officer, Paul Hope, said the Rating Act allowed sports groups, except horse or greyhound racing, to be charged 50% rates.
Though the Sea Scouts would sail, row and be involved in games as part of their activities, they had not been considered a sports organisation.
''If they were renamed the Sea Scouts and Sailing Club, it would immediately qualify,'' he said.
However, the council had the discretion to grant a 50% rates reduction which, while creating a precedent, was applicable to only a small number of ratepayers.
The 50% reduction does not apply to non-service rates and charges. For the Sea Scouts, it would reduce their rates by $610 this financial year.
