Blue Mountains businesses will subsidise a rates reduction for home owners over the next three years, with a new rating structure due to start across the Mountains on July 1.
Two options were put to the June 26 Blue Mountains City Council (BMCC) to bring the council's system in line with state legislation.
A majority of councillors supported the first option, which proposed keeping the same rate calculation and minimum rate amounts for the majority of the city, but increasing business rates in order to decrease residential rates.
The increases will take place over three years, with small increases to business rates in 2012/13 and "larger but equal" changes in the second and third years.
In the first year, business rates revenue will be increased <\m> and residential revenue decreased <\m> by $83,000, while years two and three it will be further increased by $166,000 per year, with residential again decreasing by the same amount.
Blue Mountains Mayor Daniel Myles welcomed the adoption of the reforms, saying it was long overdue.
"The council is not making any extra money out of this but simply providing a level playing field," he said after the meeting.
For the full story on rates, see the July 4 edition of the Blue Mountains Gazette.