The crippling Wellington business rates

The Herald reports:

Wellington City Council is being called on to review its rating system over fears high costs are driving investment out of the capital and dragging down an already struggling local economy.

Newly released figures show Wellington’s average commercial rates bill is $47,881. That compares to $20,716 in Auckland, $18,059 in Christchurch, $24,768 in Hamilton, and $25,670 in Tauranga.

That’s an astonishing difference. Almost two and a half times of Auckland and Christchurch.

Arcus said the Chamber’s analysis shows Wellington businesses are paying about 48% of the city’s rates burden, compared with Auckland and Canterbury where that number is closer to 30%.

No wonder so many businesses are closing in Wellington, with the joint burden of fewer carparks and massive rates.

On average, Auckland council rates for commercial land use are 0.72% of the building’s Capital Value. In Wellington, this is 1.5% for both city and regional council rates.

Those 20% rates increases add up, plus the massive business:residential differential.

In 2023, Wellington City Council officers agreed the city’s commercial rates differential was too high, recommending it be brought down from 3.7:1 to 3.25:1.

That proposal was voted down by councillors.

And Councillors wonder why businesses are closing.