Tertiary education institutions (TEIs) have long been exempt from paying full rates in their local communities. However, a proposal put forward by the Productivity Commission in 2017 sparked a discussion about the fairness of this exemption.
The commission’s report argued that TEIs should contribute directly to their local communities by paying their fair share of rates. According to the report, exempting TEIs from paying rates has no principled justification. This means that the burden of rates falls on other residents and businesses in the community.
In Dunedin, this issue has come to light with a proposed large increase in rates for residents. The city’s mayor at the time, Dave Cull, voiced his support for TEIs paying full rates, stating that they benefit from the services provided by the council and should contribute accordingly.
While the debate continues, it is important to consider the impact of TEIs not paying their fair share. Low-income families, already struggling to afford their rates bills, bear the brunt of this exemption. This raises questions about social responsibility and the role of TEIs in supporting their local communities.
Frequently Asked Questions
What are rates?
Rates are a form of local government tax imposed on property owners to fund services and infrastructure in the community. These funds are essential for the maintenance and development of public amenities, such as roads, parks, and libraries.
Why are TEIs exempt from paying rates?
Currently, TEIs in many places are considered “non-rateable,” meaning they do not pay general rates for the land they own or use for educational purposes. However, they may still pay specific targeted rates for services like fire protection and sewage.
What is the argument for TEIs paying full rates?
The argument for TEIs paying full rates is based on the idea of fairness and community contribution. Supporters argue that TEIs benefit from the services and infrastructure provided by local governments, just like any other resident or business. Therefore, they should bear their fair share of the financial responsibility.
What are the potential consequences of TEIs not paying their fair share?
The consequences of TEIs not paying their fair share of rates can include an increased financial burden on other residents and businesses. This can lead to disparities in the community and hinder efforts to provide essential services and infrastructure. Additionally, it may perpetuate inequality by placing a greater burden on low-income families who are already struggling financially.
Sources:
FAQ
What are rates?
Rates are a form of local government tax imposed on property owners to fund services and infrastructure in the community. These funds are essential for the maintenance and development of public amenities, such as roads, parks, and libraries.
Why are TEIs exempt from paying rates?
Currently, TEIs in many places are considered “non-rateable,” meaning they do not pay general rates for the land they own or use for educational purposes. However, they may still pay specific targeted rates for services like fire protection and sewage.
What is the argument for TEIs paying full rates?
The argument for TEIs paying full rates is based on the idea of fairness and community contribution. Supporters argue that TEIs benefit from the services and infrastructure provided by local governments, just like any other resident or business. Therefore, they should bear their fair share of the financial responsibility.
What are the potential consequences of TEIs not paying their fair share?
The consequences of TEIs not paying their fair share of rates can include an increased financial burden on other residents and businesses. This can lead to disparities in the community and hinder efforts to provide essential services and infrastructure. Additionally, it may perpetuate inequality by placing a greater burden on low-income families who are already struggling financially.
Definitions:
– Tertiary education institutions (TEIs): Refers to higher education institutions such as universities and colleges.
– Rates: A form of local government tax imposed on property owners.
– Principled justification: Showing a reason or justification based on principles or ethics.
– Infrastructure: Basic physical and organizational structures and facilities needed for the operation of a society.
– Disparities: Differences or inequalities.
Related links:
– example.com (Source of the article)
The source of the article is from the blog macholevante.com