"It also incentivises less care of council property by handing them out freely, and reduced the effectiveness of waste minimisation if we are handing out additional plastic crates."
Council said replacing on average, 20 crates per week, would cost $10,000-$15,000 per year.
Burton has found the bins as far away as Haumoana, and had heard of people using the bins as a receptacle when moving house, and not returning them to the original property (crates are given to a property, not a person).
"Some have been reversed over by occupants of properties, so there are multiple reasons why they disappear."
If the recycling company breaks the crates, they will be replaced free of charge.
Other municipalities also charge for replacement crates, for example Tasman, which charges $21.90 for the crate and $27.70 to have it delivered.
The contractors will only pick up three crates from a property, so people cannot use the service to gain extra crates.
Councillors unanimously voted in favour of the motion.