These are Council's guidelines for deciding what constitutes a SUIP.
The first guidelines are included in the LTP. The second interpretation notes are a guide for Council staff.
Separately Used Inhabited Part (SUIP) Guidelines (here)
Council's Interpretation Notes (here)
The council defines a separately used or inhabited part of a rating unit as:
Separately used or inhabited part of a rating unit includes any portion inhabited or used by a person other than the owner, and who has the right to use or inhabit that portion by virtue of a tenancy, lease, licence, or other agreement. For the purpose of this policy, vacant land and vacant premises offered or intended for use or habitation by a person other than the owner and usually used as such are defined as 'used'.
The following are examples of where there may be application of multiple charges for Separately Used or Inhabited Part of a rating unit:
• single dwelling with flat attached
• two or more houses, flats or apartments on one Certificate of Title (rating unit)
• business premise with flat above
• commercial building leased to multiple tenants
• farm property with more than one dwelling
• Council property with more than one lessee
• where part of a rating unit that has the right of exclusive occupation when more than one ratepayer/owner.
Council proposes to apply uniform charging on a Separately Used or Inhabited Part of a rating unit basis for the following rates:
• Uniform Annual General Charge
• Roading Targeted Rate
• Wastewater Network Targeted Rates
• Water Supply Targeted Rates
• Mangawhai Harbour Restoration Targeted Rate
• Ruawai Tokatoka Hall Targeted Rate
Draft Implementation Guidelines
Detailed below are draft implementation guidelines. These would be subject to subsequent confirmation by Council should it decide to proceed with the implementation of the SUIP policy as part of the final LTP decision-making process.
• Each separate shop or business activity on a rating unit is a separate use where they have separate owners.
• Each dwelling, flat, or additional rentable unit (attached or not attached) on a residential property which is let for a substantial part of the year to persons other than immediate family members is a separately inhabited part of a property. A substantial part of the year is considered to be three months or more (this total period may be fragmented, and may occur at any part of the rating year).
• Each non-residential activity which has, in addition to its business or commercial function, co-sited residential units which are not a prerequisite part of the business or commercial function and are not occupied by the owner are a SUIP and will pay additional uniform charges.
• Individually tenanted flats, including retirement units, apartments and town houses (attached or not attached) or multiple dwellings on Māori freehold land are separately inhabited parts.
• Each block of land for which a separate title has been issued is liable to pay the uniform charges as they are separate rating units.
The following Notes are not guidelines, but are intended to aid Officers in the interpretation of the Guidelines.
1) Commercial Properties
• A single building on one title with 5 separate shops would pay 5 sets of uniform charges.
• A motel with an attached dwelling would pay only one UAGC, because the attached dwelling is essential to the running of the motel. Where the motel was leased out separately and run by someone other than the owner it would treated as two SUIPS.
• A business which makes part of its income through the leasing of part of its space to semi-passive uses such as billboards, or money machines, is not regarded as having a separately used or inhabited part, and would not be charged a separate UAGC.
• For the avoidance of doubt, an apartment block in which each apartment is on a separately owned title, is merely a series of co-sited Rating Units, and each will pay uniform charges.
• An apartment block with separate laundry, or restaurant, which are available to the general population as a separate business enterprise, would pay an additional UAGC for each of these functions as separately used parts.
2) Residential Properties
• A substantial part of the year is considered to be three months or more (this total period may be fragmented, and may occur at any part of the rating year).
• The rule will apply to properties identified as “flats” on the valuation record, administered by Council’s Valuer. Sleep-outs and granny flats will generally be identified as “sleep-out” on the valuation record and will not normally qualify as additional SUIPs.
• If a property is identified on the valuation record as having flats, but these in fact are used only for family members, or for others for very short periods, then the additional UAGCs may be remitted on Council receiving proof of their use, including a signed declaration from the property owner. A property owner who actively advertises the flats for accommodation will not qualify for the remission.
• A property such as a large house which is identified as being split into, say, three internal flats at the time the valuation records were established, but which is not actually used as such, will need to apply for remission under Council’s remission policy. (Note: This property should be referred to Council’s Valuer for correction on the next valuation cycle.)
3) Residential with Non-Residential Part
• A residence with a separately accessible “office” such as may be used for surveyor, architect, or medical services, will, where it is used by someone other than the owner of the property, pay an additional UAGC for the office, because it is a separately used part.
• A residence with a “Home Occupation” (commonly called a “hobby business”) will not generally be treated as a separate used or inhabited part. For example, a resident who occasionally manufactures boat trailers in his garage on the weekends would not incur an additional UAGC.
4) Non-Residential Activity With Co-sited Dwelling
• A fish and chip shop, with a flat above which can be accessed without passing through the shop, does have a separately used part, and would normally incur an additional UAGC charge where it was used by someone other than the owner or the shop.
• A dairy which has an integral dwelling attached, would not incur an additional UAGC, because the home is an integral part of the operation of the dairy.
• A boarding house containing a caretaker’s apartment and several separately let rooms (with or without facilities) all within the structure of the one building, is a single (commercial) use and would not incur an additional UAGC. (The same applies to home-stays, and bed and breakfast homes).
5) Individually Tenanted Flats
• Each flat, apartment, or retirement or disability home, and each property under a “licence to occupy”, is a separately used or inhabited part of a rating unit, no matter what number of people may be living in the unit, and each does pay additional uniform charges.