Wellington City Council is proposing a 5.3% rates rise for commercial property owners - a substantial leap from the 1.1% rise imposed last year.
At the same time, the residents are facing a rise of 3.7% - down slightly on last year's rise of 4.3%.
Property developer Ian Cassels, whose company owns about a dozen commercial buildings in Wellington, says some business ratepayers won't be able to afford the rates rise on top of skyrocketing insurance premiums.
However, Mayor Celia Wade-Brown says commercial ratepayers have to pay more because they will benefit most from increased investment in the city by the council.
Submissions on the rates and proposed cost cutting measures open on Monday.