Auckland Council sending out letters to Airbnb Property owners

[Helen427]

Those of you who have received letters putting you on notice and from what I understand are been asked to sign a "Statutory Declaration" must look at the legalities of this prior to signing anything as such a document may be used in Courts of Law.

There's an article about this on Stuff website earlier today - use keyword "Airbnb" & look under news..

Waitemata local board area address been targeted on the hitlist first it appears.

It's a matter of public interest & importance how much Mayor Phil Goffs Team of Merry men & woman are spending of our Rates to address a Tax / IRD matter that's outside of Council jurisdiction.

Renting out ones private Property is a Residential Tenancy Act matter, generally...

[Helen427]

About 1100 to pay Auckland Council's Airbnb rate after 26,000 letters sent out  NICK TRUEBRIDGE

Last updated 17:27, July 6 2018

Just over 1100 properties will start paying Auckland Council's new Airbnb rate after a letter-writing campaign targeting 26,000 property owners.

The council has a massive job on its hands to find and charge those subject to the new rules and this week it conceded staff could not find everyone who should be paying the increased levy. (edited as link is removed)

Business rates and the accommodation provider targeted rate (APTR) now extend to the online sector, meaning properties booked between 29 and 135 nights year will have to pay 75 per cent residential and 25 per cent business rates, plus 25 per cent of the APTR rate.

 Accommodation booked for more than 135 nights will be rated as a business and will pay the full APTR rate

It also sent 3040 letters to residential owners within hotels to figure out if their properties were rented out online, while another 625 letters were sent to body corporate managers relating to online accommodation in their buildings. 

An additional 58 hotel managers received letters asking how the properties they managed were used. Meanwhile, the council has already identified 1392 properties through online searches, although some may be within the 28 days threshold.

In total, 26,218 letters had been sent, but the hit rate has been low to date.

Auckland Mayor Phil Goff says he has agreement from Airbnb that a new tax for online accommodation providers is "the appropriate thing to do".

 

A council spokesman said 1172 properties would have their rates changed under the new policy. 

"However, as stated, this figure is subject to change," he said.

"As we are still processing and receiving correspondence and statutory declarations relating to the changes to the online accommodation provider targeted rate, it is too early to say how many properties this will affect at this stage."

On Monday, the council said an "unfortunate" shortcoming of the new rating policy was that it could not find everyone who should be paying it.

"Unfortunately, it is not possible to identify all online accommodation providers without the co-operation of the websites involved, as they are currently constrained by their terms of service and privacy settings," Auckland Council's financial policy manager Andrew Duncan said.

"The decision to extend business rates and the APTR to online accommodation sector from July 1 was to address this disparity and will reduce the amount paid by the traditional accommodation sector," Duncan added.

 - Stuff

[Helen427]

Once more Auckland Council is playing with fire and trying to impose extra taxes when we all already pay rates in some form or another as per provisions of Nationwide Government legislation that's signed off on behalf of our head of State as a member of the Commonwealth .

One must not overlook "noise complaints" happen from parties in private homes that are not airbnb provided accommodation but also "private homes" by those who own & live in them, as does noise from machinery etc on Sundays and Public Holidays.

It's overdue that the number of "noise complaints" in general terms is freely made available to the wider public with the exact number of which are from Airbnb homes & which ones are not!

Personally I doubt if Phil & Phil will be in charge of Auckland or that of Housing Minister.

Those impacted by these proposed changes may I reasonably suggest you make a point of attending Local Board Community & Residents Association meetings wherever you are based even if you are from outside of those areas to raise these issues & network together to resolve this.

Be mindful there's also proposed changes coming up with the Residential Tenancy Act & use of and payments to Property Managers as it currently stands.

Listing one's own home on Airbnb may well be done by those who have for whatever reason including the right to screen potential Guests directly rather than go through a Real Estate agent or because they may well have had a bad experience with usign RE agents/ Property Managers of which there are good and bad ones around.

Please note that my airbnb is for a Private Room in a Residential home not in or on a Commercial property and even if it was part of a Body Corporate why the discriminatory practices?

Airbnb has a Message system that is also available to network with other Hosts ( & Guests who are also Hosts) who are in similair situations across Auckland and NZ so you may like to use that tool to your advantage.

All the Best

[Helen427]

A question that Auckland Council and others must be compelled to answer, Why assume Airbnb Hosts are making lots of money hosting Guests when the realty is it's highly unlikely any of the said properties owners/ hosts make remotely as much per hour as the who are forcing such conditions on those in Private Residential accommodation.

If they think that those who are offering a much needed service that is for the betterment of the economy then why are they themselves not offering to take serious pay cuts as they are getting paid considerably more per hour for doing what?

Naturally these comments & thoughts apply to many others worldwide.

We must not as a community lose sight of the fact that women apparently make up the largest percentage of Hosts so those trying to impose extra Taxes and rates might like to take a look at how they treat women in their own workplace where women are still paid considerably less than men in executive roles.

Leave us alone.

[Helen427]

Those of you who attended the meeting in Auckland last night remember to network on here and use PM systems.

Making people pay retrospectively such huge sums of monies as mentioned in the articles about it on G o o g l e when looking up under "Airbnb", News is quite unbelievable.

Personally it's abt as unfortunate as what leaseholders lease hikes have been that are also mentioned in the news here from time to time.

There's all manner of reasons why people chose to list there properties online and really it's just a different medium of advertising than newspapers were 150 yrs ago where people shared or rented there homes for varying lengths of time.

Those of you who are impacted by these issues may like to raise those things to.

Auckland Council are legally obliged to comply with the Laws of the land, and there's plenty of ByLaws they create that are very questionable and need to be held to account to for there failures to abide by the basic Laws.

[Helen427]

Incidentally, there's an oversupply of "Property Managers" in the Rental Sector in NZ and it's overdue they are subjected to greater scrutiny and some sent on there way.

It's also noted that the construction industry is taking a long overdue hit as some have been very greedy so the guts of the commercial accommodation sector is likely to be impacted on, including new / proposed hotels.

It would be interesting to establish if the Motel sector who are now leasing motel rooms as longer term Residential accommodation are doing so under Residential Tenancy Act, e.g Residential rates, or still at commercial rates...

[Helen427]

Couldn't agree more with these comments from the Chamber of Commerce

https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12101977

Go easy on AirBnB, chamber of commerce says

6 Aug, 2018 11:25am

New taxes on accommodation websites like AirBnB and Bookabach could affect tourists who cannot not afford to stay in hotels, Auckland Chamber of Commerce says.

Online accommodation providers in Auckland were charged a "bed tax" and business rates for the first time last week, which lifted some of their rates bills by more than 200 per cent.

Chamber of Commerce chief executive Michael Barnett criticised the charges today, saying that central government already claimed business tax from these small businesses.

Auckland Council was entitled, at most, to charge a business rate on the part of a private residence which was being used as a commercial operation, Barnett said.

"But this simply perpetuates the business differential the councils already impose on all businesses which has proven inequitable in the past."

The bed tax was initially only applied to hotels and motels, but was extended to online businesses after tourism and business groups complained of unfairness.

Barnett said AirBnB was a modern response to tourists who were looking for new places 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," he said.

Auckland Council said the revenue from the new charges will fund half of Auckland Tourism, Events and Economic Development's budget for putting on major events and attracting visitors to the city.

It said it was careful to make the rates as fair as possible and noted that two-thirds of submissions on the charges were supportive.

The council last week released figures showing some AirBnB owners could make up to $80,000 a year if they rented out their property on a full-time basis.

Some Herald readers who rented out their properties said that did not reflect the various costs of managing a property.

They said that on top of mortgage costs and rates, they had to pay tax on any income and service fees to AirBnB. There were also costs for cleaning, upkeep of the property and gardens, on-call support, maintenance and repairs, water, power, and wifi.

[Helen427]

This may be of interest to those not only in Auckland but around the world ..a Technical Paper - read Research Paper ( Council Staff and other researchers are known to have innovative titles for reports) by Penelope Tuatagaloa and Brian Osborne. You may like to look up there background histories and delve further into methodologies used to verify the accuracy and statisical numbers etc used.

http://www.knowledgeauckland.org.nz/assets/publications/TR2018-001-Airbnb-and-housing-in-Auckland-2....

[Helen427]

https://www.newshub.co.nz/home/travel/2018/09/auckland-mayor-phil-goff-clarifies-airbnb-tax.html

 Auckland Mayor Phil Goff clarifies Airbnb tax

• 5 hours ago
• Newshub staff
•  

  Auckland mayor Phil Goff has clarified Auckland Council's bed tax after some Airbnb hosts called the policy a "cruel punishment". Credits: The AM Show

  Auckland mayor Phil Goff has clarified Auckland Council's bed tax after some Airbnb hosts called the policy a "cruel punishment".

  • Airbnb tax 'cruel', homeowners 'struggling to make ends meet' - Taxpayers' Union
  • Auckland Mayor Phil Goff to introduce Airbnb bed tax

    The tax - a targeted rate on accommodation providers - was voted in 11-8 by the council last year, with the funds raised going to council-controlled organisation Auckland Tourism, Events and Economic Development, for tourism promotion and events sponsorship.

    But around 1100 Auckland homeowners who rent out properties on sites like Airbnb have been stung too. NZME reports one Waiheke Island homeowner's rates have gone from $4191 a year to $13,628.

    Mr Goff told The AM Show those renting out a single room, or those renting a house out for less than a 29-day period aren't liable to pay any extra.

    He clarified the reason for the rates increase, saying those who never replied to Auckland Council letters were automatically allocated the highest tax rate.

    "The council rating department sent out two letters asking people to clarify how long they'd be renting out their rooms or house, to determine the cost of the rates," Goff said.

    "If the people haven't provided the information to get the big discounts that are available, then they'll be charged at the highest rate."

    He says whichever rates the council has got wrong, they will "absolutely" reverse.

    "Almost every query has had the rates go down, and often quite dramatically."

    Goff said the bed tax was introduced after representatives from the hotel and motel industry approached him about Airbnb's advantage.

    "They're in the same game, they let out short term accommodation to visitors to the city. They pay a business tax, always have done. These people [Airbnb hosts] are doing exactly the same thing but through a different mechanism don't pay anything at all, that's grossly unfair. You've got to have a level playing field."

    The number of people renting out rooms or properties on Airbnb is estimated to be between 8000 and 12,000 - yet the number of properties hit with the targeted rate so far is about 1100.

    A Deloitte report into Airbnb in New Zealand found that in 2017, 578,000 stays were booked with Airbnb - that's 1.4 million guests staying in 225 locations around the country.

    Newshub. 

[Helen427]

Incidently, where does this "tax" fit in in comparison with people who operate "businesses" from their own homes?

This "tax" appears to be out of line with common business practices and is infringing on the legal rights of common laws enshrined on the subjects of Her Majesty the Queen who Mr Goff and others is our current Head of State.

In relation to Motel operators in NZ, that industry needs a clean out of unqualified to NZ and international standards operators who do not have the people of NZ's best interests.

Some of whom are shady characters in themselves.

Are those who operate them Police vetted?

Many Motels/ Hotels are operated by people who don't make any effort to speak in English, they don't even know the local areas they operate in and nor have they completed Host accredited basics whereas the average person who lists on Airbnb is based on the balance of probabilities at least knowledgable of there location.

Auckland Council need to stop interferring and getting involved in matters relating to IRD and others.

The infringement of "housing developments" onto previous green belts that the original farming community of Auckland, and it is to be remembered Auckland was Rural before greedy developlers wrecked it after the 1980's Borough Council amalgations, is disgraceful and unacceptable to.

Auckland, New Zealand doesn't need more houses, or people, it needs Developers and others, including Council funded Consultants to be held to account for signing off developments that are not even up to NZ standards which is exactly where ongoing issue of "housing shortages" are arising.

How much of Auckland's ongoing housing issues are related to poor quality Building, including not up to NZ standards materials?

We full well recall Auckland was not going to increase rates etc in the 1980's prior to Borough Council amalgamations.

It's long overdue that Auckland Council stopped spending our rates on Reports to sell off our  Family Silver e.g Golf Courses, Parks and Reserves, wiping out our Colonial Heritage ( which is protected under the Heritage NZ Act ) from our Mountain Domains that were once beautifully maintained  places of welcome to all people of all walks of life and were held to account for there own lack of fiscal accountability.

ATEED are also known to be grossly incompetent with the excessive spending of our monies.

Oh now how much has that UNESCO World Heritage application to get Auckland's Volcanic Cones recognized as Maori occupation prior to Europeans cost so far? Pfffft

How much of this "tax" is going straight into the coffers of those who have there snouts in the trough?

[Helen427]

Those of you who have lived in Auckland prior to 1990 will recall we had quarter acre sections, houses along most of Khyber Pass Road, Remuera Rd amongst other locations that have all been taken over by Commercial businesses which have infiltrated our suburbs.

 This is part of the reason we no longer have the houses available that we used to, other houses have become "commercial" businesses including brothels but do the Council stop to address those wider issues?

Homes also previously used to be made of quality NZ grown timber, had wallpaper for insulation, fires that were able to be used to keep warm in winter ( councils imposed Fire regulations effectively banning the use of fireplaces) and pure Wool NZ made carpet that today's day and age homes no longer have to keep warm in winter as they have been ripped out and synthetics are used instead which is not environmentally friendly or in line with clean Green NZ best practices, is it Mr Goff?

Complaints about cold, damp mouldy old houses are nonsense.

[Helen427]

There's some very informative and excellent Readers comments across the board at the end of Todd Nial's Opinion Piece  that and it's users may find of interest.

https://www.stuff.co.nz/auckland/106081357/Aucklands-Airbnb-rate-pot-of-gold-or-problem

Auckland's Airbnb rate, pot of gold or problem?

Todd Niall07:59, Aug 08 2018

Thousands of Auckland dwellings rented out on Airbnb and similar websites must pay higher rates

OPINION: Is Auckland Council's new "Airbnb" rate a pot of gold, or a crock of you-know-what?

The move to charge higher rates on dwellings offered to visitors via booking websites seemed like a good idea at the time - to the mayor at least.

Now,  six weeks old, it doesn't seem to be going so well.

Conservatively the council believes there are thousands of liable properties it hasn't found.

READ MORE:
* About 1100 to pay Auckland Council's Airbnb rate after 26,000 letters sent out
* Auckland Council cannot find all online accommodation providers subject to new rates
* Auckland council targets Airbnb and Bookabach properties for higher rates

Most of those it did find haven't replied to an initial mailout and have been slugged with thousands of dollars in extra rates because they've yet to prove they are not liable.

Mayor Phil Goff wanted new sources of revenue, and pushed for a new rate for traditional tourist accommodation providers such as hotels and motels.

The original intention of raising $28 million to fund the city's tourism promotion was halved, following an outcry from the accommodation sector.

The sector argued that it got only a small share of the benefits of tourism, and even with the impost halved, is seeking a judicial review, due to be heard in May next year.

 

More from
Todd Niall • Senior Auckland affairs journalist
todd.niall@stuff.co.nz

One of the sectors' criticism was that it was unfair for them to pay more, while individuals effectively running small businesses renting out flats and dwellings to tourists, didn't.

Goff heard the message, and led the widening of the contentious targeted rate to the "online" sector, from July 1.

That's when it really got tricky.

The council had no idea how many rateable 'Airbnb properties' there were, or where they were.

For the first time in its eight-year history it was introducing a rate on properties unknown to it.

Prior to the rate's introduction, council staff scoured websites and came up with 1400 properties it thought were liable.

It wrote them a letter seeking a statutory declaration on whether they were in fact renting entire dwellings, to tourists, and for how many nights in the past year.

Airbnb also wrote to its hosts, but only those who in signing up to its website, had ticked that they wanted to receive "marketing material". The council doesn't know how many that is.

The new rates are complicated. If an entire dwelling deemed to be "self-contained " is rented for more than 180 days a year, it gets charged Business rates, not Residential.

Then the new targeted rate for the accommodation activity is layered on top.

For a $1.5m dwelling, that's $2338 extra for the Business rate, and another $5200 for the targeted rate.

A sliding scale of rating levels kicks in from 28 rented days onwards

In the latest count, 241 properties have been checked and rated correctly below the 180-day threshhold.

A total of 781 are still in the 180-plus category, but include an unknown number which are there because they haven't yet replied to a council letter. 

Based on Airbnb data, the council believes there's another 2600 liable properties that it hasn't managed to find. Not found, means not paying.

It also doesn't know whether there are properties listed only on websites other than Airbnb.

This complicated new revenue gathering exercise is being managed by one full-time council staff member, and two "temps" who also do other work, and only for the next two months.

"It's hard," said acting chief financial officer Matthew Walker, when I asked him how it was going.

It seems to be hard too for some of those property owners caught in the net early.

Ray Pitch, who's challenging being rated as a business and paying full whack for renting out rooms in his Pakuranga basement is so cheesed off he's complained to the Ombudsman.

For one, he doesn't think his set-up counts as a "self-contained" unit. He's awaiting the outcome of a recent visit by a council assessor.

What is a self-contained unit? I asked the council 

While there are some guidelines, "case-by-case basis" was the most-used phrase in the explanation.

The council is urging people who think they are being wrongly rated, to get in touch.

It doesn't yet have data on the outcome of appeals to the levels of ratings already imposed.

For those who decide the new costs are too high and unlist their properties, the heftier rates burden will continue all year. No way out until next year.

Should Phil Goff decide to run for mayor again next year, the judicial review of the hotel sector's targeted rate will play out as his mayoral election campaign ramps up.

Goff will be hoping the court finds in the council's favour.

Stuff

[Syl11]

@Helen427  As you mentioned previously in a post your background is in Tourism, Helen good that you get it. Unfortunately Politicians enjoy the billions at their disposal how they allocate it and tourism isn't on their wish list even if tourism support so many local businesses. I actually think its a kick in the bucket, they don't plan well, if they plan, they usually get thrown out of governance before they see the next set of rules/policies.

I hope politicians out there are well aware voters simply CAN'T TRUST THEM. In NSW there is a massive oversupply of housing, even property developers recently said they stop buying land to develop due to a subdue market and oversupply. So is there a housing crisis?

[Helen427]

So is there a housing crisis?

Yes Syl there is, it's called an over supply of crap quality housing  that as a family member who was working in the construction industry around 25 years ago said that there will be massive problems as a result of it and that's exactly what's happened in NZ, Canada, Australia and other places.

At least the Australians stopped the rot of poor quality wiring when they did, it's only recently been addressed in NZ.

Add to the mix they have been pushing for "insulation of homes" with "synthetics" without addressing wiring issues amnd replacement of wiring first prior to any form of insulation..It's only a matter of time before the will come out of the woodwork, so to speak.

Most unfortunately we have lost our excellent quality housing and heritage in NZ thriugh lack of proper cross referencing of Laws in place.

The lastest fiasco is to do with the angle and height levels permitted on heritage houses..