Thursday, 6th September, 2018

The bed tax or Accommodation Provided Targeted Rate (APTR) is a clear example of a reactive and poorly thought through council funding initiative.

Ratepayers acknowledge the need for taxes that are equitable, justified and the result of a robust submission and feedback process. The APTR is not any of these. It is a disproportionate wealth tax grab unfairly targeting a specific group.

Auckland Council is entitled, at most, to charge a business rate on the part of a private residence used as a commercial operation. Instead some AirBnB operators are being taxed at eight times the level of 5-Star hotels with others  receiving a 225% increase in their rates.

There are good reasons for some of the increases in local government spending and rates over the years, including the need for councils to renew or upgrade existing infrastructure and/or put in place new infrastructure to cater for growing populations. However, there are also some bad reasons. The APTR is an example of that. 

 

For more information contact Michael Barnett 027 563 1150