A Stewart Island/Rakiura land owner is staring down the barrel of a 500 percent increase to their rates, despite their section lacking key council services.

The person — who is unnamed in a recently-released Southland District Council report — contacted the organisation in October 2023 querying why their rates had ballooned from $348.68 to $1,743.95 in the space of one year.

Labelling the increase “drastically unfair and unjust”, they pointed out there had been zero increase to the value of their section in that time.

A street view of the empty section taken in 2015. In an email sent to the council, the land owner said the section had not been altered: "no buildings, no caravan, nothing". Photo: Google Maps/Screenshot

“No services have been added to the section in the ratable period,” they wrote to the council.

“Rata St still remains the only road within 1km of the city centre that is in its disgraceful gravel state.

“Every other road on the island with the same vicinity to the city centre as mine has been sealed. So close to the centre and not sealed is abhorrent.”

The person also informed the council that they did not use Southland roads due to living in Christchurch and did not own a car on the island.

“The section has no services — no water, no sewage, no stormwater retention, no power, a gravel/muddy road with no footpath or streetlighting,” a council report said, summarising the resident’s concerns.

According to the report, the main reason for the increase was due to a change of ownership in June 2023.

That alteration changed the property from coming under the umbrella of another property, meaning it was no longer paying only partial rates.

Despite a rates reduction request from the owner for the current period, staff recommended no rate remission be applied to the property.

It said the new owner could have discovered what was at stake if they obtained a LIM report prior to purchase, and feared the granting of a remission would set a precedent for other properties.

Councillors will vote on two options at Wednesday’s meeting — to confirm that no remission be applied, or to agree to a partial remission of 40 percent for the 2023/24 financial year.

It said the new owner could have discovered what was at stake if they obtained a LIM report prior to purchase, and feared the granting of a remission would set a precedent for other properties.

Councillors will vote on two options at Wednesday’s meeting — to confirm that no remission be applied, or to agree to a partial remission of 40 percent for the 2023/24 financial year.

If the latter was approved, the property owner would pay a total $697.91 for the 2023-24 financial year, with full rates to apply from July 2024.

The issue was escalated to elected members following a request from the person to speak to a higher authority on the matter, the report said.

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