Monday, 6th August, 2018
The Councils Bed Tax attack on Airbnb operators is nothing more than a wealth tax grab on small business.
At worst the Council is due a Business rate on the part of a private residence that is being used for the accommodation business they operate – but this simply perpetuates the business differential the Councils already impose on all business which has been proven inequitable in the past.
Airbnb is a modern day response to today’s travellers looking for a new way to travel, stay and meet local people. Its pricing model allows new groups to travel and enjoy new locations that they may have been locked out of by the traditional accommodation providers.
Central Government already benefit by way of the business tax these accommodation providers pay.
Council claims they may not have the model right – well if they haven’t they have a lot more resource than a small business has to stop doing business and fight this stupidity.
The examples the Council uses ($213 average per night ) to justify the rate increase is far from reality and chosen to justify their outlandish rate increases.
These small businesses should email me (firstname.lastname@example.org) to provide them a collective voice instead of trying to fight the position taken by Council.
nz herald article
- An example where renting out a “Bach “meant that rates went from $3,000 to $10,000 – totally taking all income from the activity.
- The recent rate rises for the online accommodation is a debacle! Auckland Council… have been running like a mafia organisation.
- A Ponsonby couple who have owned their own home for over 50 years and now can’t afford to stay there. They chose to rent out a room. Do they want other people in their home – no, do they want to stay in their home – yes, but Council’s latest tax grab means they won’t be able to afford to.
- A grandmother in Remuera who has owned her home for 40 years and chose to help herself to remain there by letting out the ‘granny flat’. When her tenant left she advertised it on Holiday homes. Council sent her a letter and she duly completed it, noting that she had 200 nights. Her rates bill now exceeds $25,000.
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