RATES in Redland City have been condemned as an "inequitable wealth tax" by the Redlands Rate Reform Group (RRRG), which is calling for an overhaul of the current 'band differential' system and a public information session on how a new system could work.

Group spokesman George Harris addressed the Redland City Council at the last general meeting, criticising the ranking of rates based on UCV - unimproved capital value.

"What we've seen over the past three years alone is a great discrepancy in the increase in rates to the top tier compared with the bottom tier; up to a $350 increase for the top bracket, and only about $100 for the bottom," Mr Harris said.

"Properties rated at under $200,000 for the UCV make up about 85 per cent of the city, but only contribute about 55 per cent of the city's revenue - we were promised that the differential system would narrow the gap between the residents paying the highest rates and those paying the lowest and it's clearly not happening."

Mr Harris is advocating a change from the current 'band differential' system to a 'step differential' system.

Residents are currently charged a certain amount in the dollar based on the 'band' their property value fits into, so that more expensive property owners pay more in the dollar.

Under a step differential system, residents would pay a 'first step' base rate for their property, then a decreasing amount for each subsequent 'step' up to the value of their property.

Cleveland resident Robert Jamieson also spoke, raising his concerns about canal levies in Raby Bay.

"Residents who live here are being rated out of the Redlands, it's turned into a wealth tax on those perceived to be able to afford it, based only on the value of their land, not their income," Mr Jamieson said.

"If every resident paid a flat $1000 we could meet the council's current revenue and everyone would pay equal rates for equal services."

Councillor Craig Ogilvie, whose division includes Raby Bay, was co-convenor of the RRRG with Mr Harris when the group succeeded in introducing the differential system into the council six years ago.