'No democracy, no rates': Tauranga resident's rates revolt

A Tauranga woman is locked in a row with council over unpaid rates because she believes the city was "denied democracy" when the commission was reappointed.

Jan Gyenge has taken the stance "no democracy, no rates", so hasn't paid them since March 2022 when the commission's reappointment was announced.

She didn't want to reveal the unpaid amount, but the council's website shows her rates for March 2022 to June 2024 as $8770. Unpaid rates can incur a 10 percent penalty so the amount owed could be $9647.

The four-person commission led by Anne Tolley took over running Tauranga City Council in February 2021 after the previous dysfunctional council was sacked.

In March 2022, former Local government Minister Nanaia Mahuta reappointed the commission until July 2024 and cancelled the election set for October 2022.

Gyenge said the community should have been consulted about the reappointment.

"Every resident's rights matter collectively."

The commission's 2021 exit plan recommended their term be extended so they could complete their work, including restoring trust in the council and creating a robust long-term plan.

At the time, Mahuta said their reappointment would provide stability as the council still faced substantial infrastructure and funding challenges.

[SUB HEAD "It's about us all"]

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

"An election is one aspect of the democratic process. Democracy is to be observed on a daily basis by the council. It's about how decisions are made and how information is garnered.

"It's about us all - not just a few people."

The Bethlehem resident is asking the council to "put it right" and write the unpaid amounts off and stop the court action against her.

The council has begun legal action to recover the unpaid rates, Gyenge said. If the rates remain unpaid the council can sell the property to recover the debt.

The Local government Act required rates were paid but councils must also deliver democracy.

Gyenge said she would challenge the council on this point.

"What happened was not right. If no one takes a stand and feels some pain about it, then other people… feel disenfranchised."

Now the council has elected members, Gyenge said she would pay her rates from now on.

Activist Penny Bright took a similar stance, refusing to pay rates on her Auckland property for 11 years due to a perceived lack of transparency in council spending.

In 2018, before her death, Bright paid Auckland Council her outstanding bill to stop the property being sold.

The DIA's stance

A Department of Internal Affairs spokesperson said the law required property owners to pay their rates.

"Attempts to avoid paying rates that fund essential services for our cities and towns can take precious time and resources and is something we would strongly discourage, especially at a time when ratepayers are facing rising cost pressures."

Tauranga's commission performed the same functions and powers as elected representatives, they said.

The commission was accountable to the community and were required to follow local government processes, including consultation, the spokesperson said.

Council's rates policy

Tauranga City Council rating policy and revenue manager Jim Taylor didn't comment on Gyenge's case specifically.

Rates provided around half of council's income and were used to fund council activities and services, he said.

It was important everyone paid their share, but the council understood some ratepayers might not be able to pay their rates by the due date, Taylor said.

The rates collection team worked with many ratepayers each year to help them catch up on their rates, he said.

If payments are overdue, the council contacts the property owner to organise a payment arrangement.

If payment is not received by the end of the year and there's a mortgage on the property, the council contacted the bank. If the outstanding amount wasn't received within 90 days the bank pays the rates, which is added to the mortgage.

If there isn't a mortgage on the property the council uses Baycorp, its collection agency, to pursue the debt.

If Baycorp was unsuccessful, council can begin legal action.

If the debt remained unpaid, the property can be sold through a rating sale.

Taylor said council preferred to reach an arrangement with the ratepayer rather than sell the property.

"Paying all outstanding rates and penalties, and any costs, interest or disbursements, would immediately stop all proceedings."

LDR is local body journalism co-funded by RNZ and NZ On Air.