‘Another Tax Grab’ – Wellington's Airbnb Rates Bump
As part of its Long-term Plan, Wellington City Council wants to apply commercial rates to short-term accommodation providers like Airbnbs. This would see an increase of 3.7 times more than the current rates applied to these properties.
“It’s an excuse to get more out of ratepayers” said Sam Warren, the Local Government Manager for the Taxpayers’ Union.
“They've got this backwards. Instead of working to lower rates, council's M.O. seems to be finding new ways to increase them.”
“Key to this discussion is that short-term accommodation providers are not the same as hotels. Their scale incurs no significant toll on local infrastructure that could justify applying commercial rates, nor are they constantly occupied.”
“Most Airbnbs use only a small portion of their property for guests, and are often sporadic in tenancy. Despite this fact, council really wants to apply commercial rates to the entire property? Get real.”
“The only thing they will achieve is the disappearance of short-term providers like Airbnb, as if it wasn’t hard enough finding affordable accommodation in Wellington.”
“Putting this into context—rates in Wellington over the next 10 years are expected to increase by 175 percent. More rates aren't the solution locals are crying out for."
"Instead the council needs to show that it can cut the waste, stick to the basics, and find ways to reduce the cost of living in the capital.”