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Commercial Rate

Commercial businesses use, and contribute to the need for, certain services that a residential household or rural property does not.  In removing the 300% differential that had applied to commercial properties, a new commercial rate ensures that these properties continue to contribute to the costs of activities and services that they benefit from.

Who will be charged the Commercial Rate?

All rateable properties in the district that are;

• Used principally or exclusively for commercial and/or industrial purposes, (not being farmland as defined in section 2 of the Rating Powers Act 1988); or
  
• Used principally for visitor accommodation for commercial reward for not less than five persons, and for the avoidance of doubt, including any motel, hotel, motor lodge, hostel, camping ground or “boarding house” (as defined in the Kaikoura District Plan); or
  
• Used as licensed premises under the Sale of Liquor Act 1989.

What does the Commercial Rate pay for?

This rate funds the net costs of tourism and economic development, the annual grant paid to the visitor centre, and a portion of traffic control, harbour facilities and public toilets.

See the adopted rates and charges for the value of this rate.

Note that all Commercial properties will also pay the Public Rubbish Bin Charge, and may also pay the Registered Premises Charge, or Commercial Sewer Pan Charges, if these are applicable.  Properties that provide visitor accommodation, but do not meet the definition of a commercial property, will be charged the Accommodation Sector Charge.  A property that provides visitor accommodation can expect to be charged either the Commercial Rate, or the Accommodation Sector Charge, but not both.