"It would reduce the community service because we work to a very tight budget," Mr Rolton said.
"We do 560 lunches a day. Last year we did 16,000 school lunches and fed 16,500 people meals from a van."
Two second-hand shops in Frankton earn the society just under $300,000 each year which is spent on the community services.
Mr Rolton said he would make a submission against the proposed change, which ends rate remission for property used for retail purposes.
Hospice Waikato CEO Elizabeth Bang said she was worried. She said the group, which provides care for the dying, rented buildings where it had retail outlets and applied each year for rates relief.
An end to that could mean the closure of its depot.
"It will affect us significantly," Ms Bang said. "Money is tight at the moment and it's really hard to get grants. We would have to reconsider the space that we've got and look at a cheaper option slightly out of town."
The shops provided Hospice Waikato with 20 per cent of its annual $1.9 million budget.
The deadline for submissions is April 19.