Alderman Hugh McKenzie will move a motion to request a report into the proposal during Monday’s City of Launceston council meeting. 

The report would consider the application of general rates to residential properties owned by charitable organisations – such as retirement villages – for the year ending June 30 2017. 

Council corporate services director Michael Tidey commented that there was a “significant inequity and inconsistency” with the current position of providing a rate remission to retirement homes owned by charitable organisations. 

Retirement homes owned by commercial organisations are required to pay rates. 

According to Monday’s council agenda the total value of rate remissions for the category is about $600,000. 

Mr Tidey said that when the issue had previously been considered by council some residents had voiced confusion, believing they were already paying rates to their providers. 

He said they were likely making payments to cover water and sewerage, but not general rates. 

Mr Tidey reported there were about 6000 pensioner properties paying rates and receiving pensioner concessions, and said it was important to treat all Launceston residents equitably. 

The motion follows a decision taken at a Local Government Association of Tasmania meeting earlier this year which asked members to note recent case law which suggested the use of properties owned by charitable institutions as private residences was not a “charitable purpose.”

The LGAT motion asked members to agree to “take a common and equitable approach to the rating of independent living units which takes as a core assumption that private residential occupancy is not a charitable purpose and is not exempt from general rates.”