Christchurch city councillor Raf Manji, says he did not see why religious groups should be exempt from paying rates.
Manji was a member of the working group that prepared a discussion paper released last week by Local Government New Zealand (LGNZ).
The paper 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.
At present 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.
Crown land used for conservation and recreation, not-for-profit early childhood centres, schools and tertiary institutions and land owned or used by district health boards are also exempt, along with land used for transport infrastructure, including roads, wharves, railways and airports and some Maori land.
The LGNZ Funding Review report said there was a “lack of any rational basis for the current exemptions”.
“Central government sets the exemptions but local communities pay for them, as the rates burden in each area is spread over a narrower base” the report said.
Christchurch Methodist Mission executive director Jill Hawkey said charities and churches would have to either raise the additional money or cut services if they had to pay rates.
“It would have a huge impact. I really encourage the council to recognise the community services provided by churches and charitable organisations.”
Christchurch Anglican Church spokesman Jayson Rhodes said churches, which were also meeting places for various community groups, were hit hard in the quakes and to start charging rates now would have a big effect.
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