What is the Transport System Plan Levy?
From 1 July 2024, a general ratepayer levy will be applied under the Infrastructure Funding and Financing (IFF) Act 2020, allowing Tauranga City Council to raise just over $175 million towards a portion of the construction costs of 13 transport projects across the region.
Financing has been confirmed through a competitive process to ensure that the best possible interest rates apply to the borrowing involved.
The IFF process saw the debt raised by Crown Infrastructure Partners. Repayments are funded by a levy on all eligible properties across the city for 30 years as all residents and businesses will benefit from the transport network improvements provided.
The levy is charged citywide on all eligible land under the IFF Act 2020. The IFF Act 2020 prohibits council from charging levies on some types of land, including land for parks, schools, churches and Protected Māori Land. You can find out more about whether your land is eligible for a remission by referring to Council’s IFF Levy Remission Policy. In some circumstances it may be possible to postpone levy payments for a period. Postponement is operated in line with Council’s IFF Levy Postponement Policy.
If you would like to confirm whether your land is eligible for a remission or apply for a levy postponement, please email info@tauranga.govt.nz
IFF Levy Remission Policy (425kb PDF) IFF Levy Postponement Policy (195kb PDF)
Find out more about the Transport System Plan levy
How much is the Transport System Plan Levy?
There are different levies for commercial and residential properties – reflecting the rating system used in Tauranga.
The annual levy for the 2024/2025 rating year is $72 for the median residential property and $607 for the median commercial/industrial property.
The levy replaces a targeted rate Tauranga City Council is charging to partially fund its transport projects.
How do I pay the levy?
The annual levy will appear as an additional line item on your rates bills and the funds collected will be transferred to TSP Finance, the vehicle for the IFF loan.
This is a levy under a different piece of legislation however ratepayers will receive notice of this in their rates bill and pay this in exactly the same way they choose to pay their rates.
There are lots of ways you can pay your rates. To save time and hassle, set yourself up online for direct debit. You can also pay your rates online via internet banking or credit card.
Find out more about rates and payment options
Further information
The Infrastructure Funding and Financing Act 2020 (the Act) provides a new way to fund and finance infrastructure projects that support housing and urban development. Te Tūāpapa Kura Kāinga – Ministry of Housing and Urban Development (HUD) is responsible for administering the Act and has the roles of recommender and monitor under the Act.
The Act introduced a new funding and financing model for the provision of new and upgraded infrastructure for housing and urban development. The Act enables infrastructure projects to be delivered free of local authorities’ financing constraints or from charging high upfront costs to developers.
Aotearoa New Zealand’s cities are growing quickly, with housing supply and associated infrastructure often not keeping up with demand. Councils are responsible for delivering infrastructure such as water and roading but have maximum levels of debt that they’re allowed to take on. These borrowing constraints can lead to postponements in investment in viable infrastructure projects.
Our region is changing. The western Bay of Plenty is one of the fastest growth areas in New Zealand. By 2050 it is projected to be home to 258,000 residents which could create one million movements per day on our transport network.
We’re acting now on a shared transport vision that protects our people and our environment, supports long-term growth and our economy. The Transport System Plan (TSP), is a partnership between central and local government, tāngata whenua and businesses, using facts and research to develop transport options for the future that will create better and safer connections for people and goods and protect our environment for future generations.
The TSP is a 30-year plan with more than 80 chosen projects that will make it easier and safer for people to get to schools, jobs, healthcare and shops by walking, cycling or public transport, to easily connect within their local communities and to wāhi tapu, for freight and inter-regional links to be reliable, roads to be resilient from the effects of natural hazards and for lower emissions to help our environment.