‘No democracy, no rates’: Tauranga residents protest rates

A Tauranga woman is in a dispute with council over unpaid rates because she believes the city is “being robbed of democracy” when the committee is reappointed.

Jan Gyenge’s position is “no democracy, no interest rates”, so he has not been paid since March 2022, when the commission announced his reappointment.

She did not want to reveal the outstanding amount, but the council website shows her rates are $8770 for March 2022 to June 2024. Unpaid rates can attract a 10 per cent penalty, so the amount owed could be $9647.

A four-member committee led by Anne Tolley took over Tauranga City Council in February 2021 after the previous dysfunctional Tauranga City Council was dissolved.

In March 2022, former Local Government Minister Nanaia Mahuta reappointed the commission until July 2024 and cancelled elections originally scheduled for October 2022.

Ginger said the community should be consulted on re-election.

“The rights of every resident are collective.”

The Commission’s 2021 departure plan recommends extending their terms so they can complete their work, including restoring confidence in the Commission and developing a strong long-term plan.

At the time, Mahuta said their reappointments would bring stability as the commission still faced huge infrastructure and funding challenges.

(Subtitle: “This concerns all of us”)

Gyenge said she hoped to change the behaviour of commissioners and Tauranga City Council by withholding rates.

“Elections are one aspect of the democratic process. Parliament observes democracy every day. It’s about how decisions are made and how information is gathered.

“This is about all of us, not just a few.”

The Bethlehem resident asked the council to “correct its mistakes,” write off the outstanding balance and stop the lawsuit against her.

Mr Gyenge said the council had begun legal action to recover the outstanding taxes and if the taxes remained unpaid the council could sell the property to pay off the debt.

The Local Government Act requires rates to be paid, but councils must also be democratic.

Ginger said she would question the council on this point.

“What’s happening is not right. If no one speaks out and feels the pain, then other people … will feel disenfranchised.”

Now that the council has elected its members, Gyenge said she will pay council tax from now on.

A similar stance has been taken by activist Penny Bright, who has refused to pay council rates on her Auckland property for 11 years because of what she sees as a lack of transparency in council spending.

Before 2018 Her DeathBright then paid the outstanding bill to Auckland Council to stop the property being sold.

The Defense Intelligence Agency’s Position

A spokesman for the Ministry of the Interior said property owners were required by law to pay the levy.

“Trying to avoid paying the fees that fund essential services in our cities and towns could waste valuable time and resources and we strongly oppose this approach, particularly at a time when taxpayers are facing rising cost pressures.”

They said the Tauranga council performed the same functions and powers as elected representatives.

The spokesman said the council was accountable to the community and had to follow local government processes, including consultation.

City Hall’s Tax Policy

Tauranga City Council rating policy and taxation manager Jim Taylor did not comment specifically on Gyenge’s case.

He said taxes make up about half of the council’s revenue and are used to fund council activities and services.

Taylor said it was important that everyone paid their share, but the council also understood that some taxpayers might not be able to pay their taxes by the due date.

He said the tax collection team works with many taxpayers every year to help them pay back taxes.

If payment is overdue the Council will contact the owner to arrange payment.

If payment is not received by the end of the year and the property has a mortgage, the council will contact the bank. If the outstanding amount is not received within 90 days, the bank will pay interest, which will be added to the mortgage.

If the property does not have a mortgage, the council will use its debt collection agency Baycorp to recover the debt.

If Baycorp fails, Parliament could take legal action.

If the debt remains unpaid, the property can be sold at a rated auction.

Mr Taylor said the council would prefer to reach an agreement with ratepayers rather than sell the property.

“Payment of all outstanding rates and penalties, as well as any fees, interest or expenses, will immediately cease all proceedings.”

LDR is a local news organisation jointly funded by RNZ and NZ On Air.