Who should be exempt from rates?

The Press reports:

Churches and charitable groups could be asked to start paying rates as councils look at new ways to raise money.

Pressure is also mounting on the Government to pay rates on hospitals, schools and conservation land.

A discussion paper released this week by Local Government New Zealand (LGNZ) considers alternative funding options for councils as many are finding it increasingly difficult to pay for infrastructure and services amid population decline and growing costs.

Churches and charitable groups say paying full rates would prevent them providing much-needed services in the community. …

Christchurch city councillor Raf Manji, who was a member of the working group that helped develop the paper, said it was “an interesting idea”.

He said he did not see why religious groups should be exempt from paying rates.

Land used for religious worship, religious education or for charitable purposes are all classed as non-rateable under existing legislation. Councils can levy targeted rates for water, sewerage and refuse collection but not any other type of rate.

Land for religious worship or education is exempt from rates. I’m not aware that land used for charitable purposes is exempt. There is an exemption though for land used “for the free maintenance or relief of persons in need” which is a much narrower definition than just being charitable. Also there is a limit of 1.5 hectares.

I’m of the view that churches should be treated on the same basis as other charities. If the Red Cross pays rates on its buildings, then churches should also. I do not regard preaching belief in a God is a basis for not paying rates. If a church provides charitable services such as soup kitchens, emergency shelters and the like – then they should be treated on the same basis as any other charity.