ORC to re-examine rates-payment system

Otago Regional Council ratepayers may soon be able to pay their rates bill by instalments.

At present, they must pay the amount in full, with a 10% penalty taking effect about two months later.

This year, the penalty was added on January 2 (but, as that was a public holiday, not activated until two days later). Penalties totalled $207,576, with $172,480 relating to 2011-12.

Corporate services director Wayne Scott said because the penalty date was so far from the due date, there was some attraction to wait until the penalty date, but it appeared accounts were put to one side and forgotten.

"If we look at the [penalty date], we might not have thousands of [ratepayers] ringing to say theirs was lost in the mail."

At a meeting of the finance and corporate committee this week, councillors suggested if the penalty date was reconsidered, the council should also look at giving larger ratepayers the option of paying by instalments, as most territorial local authorities did.

Chairman Stephen Woodhead said enabling those with large targeted-rate bills to make quarterly or six-monthly payments might assist, but having reasonable penalty dates would also help, as the "2nd or 4th of January is ridiculous".

Mr Scott said that had been suggested during discussions with Taieri ratepayers but the council noticed late payment was more of a problem with small demands.

Dispensation was available if people were having difficulty paying, and in some cases payment plans could be approved.

"It's the smaller ones with people on fixed incomes that are harder."

Those issues would be looked at before the next rate settlement process, Mr Scott said.

rebecca.fox@odt.co.nz

 

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