Developers taking advantage of a rates postponement scheme aimed at protecting Far North coastal farms are costing the council and ratepayers almost $1 million a year in lost revenue.
The Far North District Council, which plans to scrap the policy, estimates it has lost $3.5 million in postponed rates in
the last five years as developers snap up coastal farms and turn them into lifestyle blocks and residential "farm park" developments.
The developers then claim relief under a policy that allows some rates to be postponed for five years before they are written off.
The scheme was meant to protect coastal farms at financial risk because steadily increasing land valuations were pushing up their rates.
But many of the 64 "farm" properties now benefiting from the policy no longer qualify for rate relief because they have been bought by developers, subdivided and on-sold as "farm parks" or coastal lifestyle retreats with million-dollar residences.
The owners claim their properties are still being run as farms.
