Accommodation Provider Target Rate (APTR) in Auckland

[David-Jack0]

Hello

I am running my 2 airbnb properties as a business.

I understand we are now subject to a new Auclkland tax rates, with an increase of 277%.

The problem is we are now due to collect this amount in our price, and then pay it to the Auckland city council.

This also does not help if we want to avoid paying GST when reselling a property (if you are going over , was it 40K?, income a year) 

I am considering having long term tenants instead.

any thoughts?

[Richard836]

WARNING - after going round and round in circles emailing the Auck City Council, I finally received a plain english answer today. The ACC last month voted to introduce these APTR charges, and they will be  charged retrospectively back to 1 July 2017! 

Our current rates are $4751, and now here is the killer, if we are booked 25% of the time, the rates go up to $8264, up to 180 nights a year, we get charged 50 % of the business fee and incur rates of $11778, and if booked for over 180 days, our ACC rates will total a massive $17,460!!!! 

And in order to verify the days we are booked, we have to sign a legal document, at our cost, declaring what our occupancy is.

NOTE, if you do not supply this declaration, you will be charged the FULL business rate, that is, three times your normal rates. 

Now it is time for you to do the maths, is it worth it? In any way you do the sums, the ACC take the cream off your income, leaving you with a pittance for your investment, time, and hard work.

[Terri38]

According to an article on Stuff a few days ago, the council is only charging this for entire properties.  Renting single rooms should be exempt.  Consider listing each of your rooms separately?  More work for you perhaps, but definitely less tax!

https://www.stuff.co.nz/business/102715930/auckland-city-plans-to-exempt-room-only-airbnb-from-targe...

[Brian345]

The Auckland Council (and other councils doing similar) are ripping us off. When you apply rates calculations designed for hotels & motels which are multiunit and sometimes multilevel properties to single dwelling properties you end up with ludicrous results. The council is only looking at nights occupied but the deliberately(?) ignored dimension is number of units/dwellings involved.

Papakura Motor Lodge 407 Great South Rd according to Council website has to pay rates of $9350 per year. This is for an 11 unit motel plus if it is like most motels there is probably also manager/owner accommodation. They will also be claiming back GST further reducing the rates cost. 

So much for claims of fairness or level playing field!!

[Alan409]

Hi Terri,
Please sign the petition and share:
https://www.change.org/p/say-no-to-auckland-council-bed-tax

Thanks,

Alan

[Alan409]

Hi Richard,
Please sign the petition and share:
https://www.change.org/p/say-no-to-auckland-council-bed-tax

Thanks,

Alan

[Elizabeth282]

The GST threshold in NZ is $60,000.  

The easy way to verify your days booked and paid is to print out your Airbnb  excel spreadsheet if you only list with them.

I am a Home Host and in Queenstown we still pay our Council but in Auckland home hosting rooms or part of a house is exempt. Read NZer's Mary Christnesens book "Turn your spare space into serious cash". 

[Susi27]

I just got hit with a 21K rates bill (up from 5K) that is retrospective, and it seems so wrong! I can't go back and "load" the rates I charged to cover its, and the thing that threw it over the line to the highest tier was a 6 mth booking that was charged at less than the per week rental would be if I had just rented it out as a 6 month fixed term. I'll barely do 60-70 nights this year, and those bookings are for rates set months ago, so I can't increase the price. How the hell am I supposed to pay for this?

[Brian345]

Assuming you did not rent to a tourist then argue that it was not visitor accommodation. If Council does not accept that then take the matter to the Office of the Ombudsmen.

[Alan409]

Hi Brian,
Please sign the petition and share:
https://www.change.org/p/say-no-to-auckland-council-bed-tax

Thanks,

Alan

[Alan409]

Hi Susi,
Please sign the petition and share:
https://www.change.org/p/say-no-to-auckland-council-bed-tax

Thanks,

Alan

[Alan409]

Hi Elizabeth,
Please sign the petition and share:
https://www.change.org/p/say-no-to-auckland-council-bed-tax

Thanks,

Alan

[Rosanna20]

It occeured to me that in order to be charged commercial rates you must have to be zoned for commercial activity.How the heck can ACC  just move the goal posts on us.This is gross abuse of the rate aying  citizens of  our cities that are trying to get anther slice of our hard earned  dollars.

[Alan409]

Hi Rosana,
Please sign the petition and share:
https://www.change.org/p/say-no-to-auckland-council-bed-tax

Thanks,

Alan

[Rosanna20]

I think it is time we got together to challenge the ACC through te ombudsman. Surely its iillegal to charge commercial rates without having commercial zoning,Boggles my mind .