Development contributions (DCs) may be required for both residential and non-residential development, if the development creates a demand for council-provided infrastructure.
If you want to know if you may need to pay a development contribution on your project, and get an estimate for the amount, contact us on email@example.com.
The most common types of development which trigger payment of a DC are:
- subdividing a property
- building a new residential building
- building a new non-residential building.
But there are many other developments that will trigger payment of a DC. Here are some examples of less obvious development types that would fall in that category (this is a non-exhaustive list).
More than one house on an allotment
If you build more than one house on an allotment, you will pay citywide development contributions for each dwelling, and a local development contribution. Both fees will be charged on your building consent if it has not already been paid prior.
The same principle applies if you build a second house on an allotment that already contains one dwelling. You will need to pay both a citywide and a local development contribution for the new household, if no subdivision has occurred.
Houses with two living areas, additional offices or granny flats
If a dwelling is built or altered to create more than one living area, additional fees may apply. Some examples include:
- adding a new kitchen or bathroom facilities so that the house can now be used as two households
- installing fire rating in an existing house so that it can be safely used as two independent homes
- building a granny flat or sleep-out or other additional spaces. Especially if these spaces have separate bathroom and/or kitchen facilities
- adding more bedrooms to dwellings
- changing the primary use of a building (e.g. residential to commercial or vice versa).
Connecting a new or existing building to council’s water/wastewater network
If you have an existing property that was not connected to council’s reticulated networks, you can ask council for permission to connect (provided the services are available). If the application is approved, it may trigger the requirement to pay development contributions.
If you move an existing building to a new site in Tauranga, this may trigger the requirement to pay development contributions. For example, if the house was pre-built off-site, DCs would not have been paid prior, and may need to be paid when you relocate it.
Certificate of acceptance
If you complete development work without the correct consent and later apply for a certificate of acceptance, this may trigger the requirement to pay development contributions.
Apartment buildings are assessed as a residential activity. Each apartment will be charged a citywide fee and a local fee. Although apartments may be in one and the same building, the demand their occupants place on council infrastructure (e.g. pipes, roads, playgrounds) amounts to the same as if they were living in multiple houses/buildings instead.
Caravans and tiny homes
If a caravan or tiny home is being used for residential purposes and is not considered a temporary structure or is connecting to council services, it may trigger the requirement to pay development contributions.
Change of primary use of building
If you change the use of a building i.e. from residential to commercial or vice versa, this may trigger the requirement to pay development contributions. DCs are calculated differently for commercial buildings compared to residential. A credit for the previous activity will be applied to the site and offset against the fees for the new activity.
Note: credits for buildings removed
When a building has been removed or demolished, a credit will apply to the site and the amount will be offset against any future development of the site.