Rates error impacts 602 households in the Tararua District

Tararua District Council apologises for a rates error that impacts some of the most vulnerable households in the area.

“Our council recently discovered a faulty process for recalculating direct debit payments of rates that dates back to 2018. This error impacts those who pay by direct debit and receive a rates rebate,” says Mayor Tracey Collis.

321 households have not been charged enough for rates, with arrears ranging between $0.01 to  $6,747.42. Another 281 households have been overcharged and Council will credit back between $0.01 and $3,983.55to these ratepayers.

There are 602 impacted households, who have their rates subsidised through the Rates Rebate Scheme.

“We know how difficult economic times are for people in our area and are deeply sorry that this impacts the people in our community who are most financially vulnerable,” says Mayor Collis. “We take full responsibility and, as Mayor, I want to offer a heartfelt personal apology.”

The error was caused by a systems failure, where Council’s rates rebates process was not lined up with the direct debit system. Incorrect direct debits have since accumulated over time.

“We are doing a full and thorough investigation to find out how this faulty process occurred and to put a robust process in place to make sure the error can never happen again in the future,” says Mayor Collis.

By law, Council needs to recoup the money that is owed. Part of addressing the problem is Council’s proposal to give directly impacted households' options to postpone the payment of their outstanding rates. This would be done through the adoption of a Rates Postponement Policy.

“We are offering impacted households the option to defer payment until their house is sold or goes into trust, no matter whether that is months or decades into the future,” says Mayor Collis.

Council is promising to individually consult with everyone impacted to agree on tailored solutions for each household. It will not charge any penalties, fees, or interest on the rates arrears owed, due to the error.

Council staff hand delivered a letter to each of the impacted 602 households on Friday 20 September. They will follow up this letter with phone calls, in-person visits and local community meetings.

“We are committed to being open and honest as we work through this with the people who have been impacted and the wider community,” says Mayor Collis.

There are a total of 10,471 ratepayers in the Tararua District.

If you think you may be impacted by the rates error, please contact the Tararua District Council contact care team on (06) 374 4080 or (06) 376 0110 or email info@tararuadc.govt.nz