Federated Farmers latest local government rates survey has revealed two farms paying over $100,000 in rates this year and a further six paying over $50,000. The self selecting survey, conducted in late August, garnered 520 responses. It discovered rural property rates have increased by an average of 12.5 percent in 2009/10 - significantly higher than the current inflation rate of about 2 percent. "The survey vigorously reinforces the Federation's call for local government funding reform," says Don Nicolson, Federated Farmers President. "We undertook the survey in response to a high number of members' complaints about hefty rates increases following significant property revaluations. Farmers have been hit particularly hard by these revaluations, as councils still rely on the archaic and fundamentally flawed property-value rating system. "Two farms, both under Maori trusts, face $100,000 rates bills this year. Another North Island farm, also run by a Maori trust, is staring down the barrel of a 50 percent rates increase just because it farms a coastal property that could be sold or subdivided. It pays rates based on the "˜potential' value of the land rather than its current and future economic use as a farm. "While district council rates are the biggest component of a farm's total rates bill, your average farmer receives very little in return. Apart from roading, the vast majority of farmers receive less benefit from council funded activities than the average ratepayer - yet we pay so much more.
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