New rates, taxes and levies proposed

By George DriverA fuel tax, a targeted rate for development land and a levy on accommodation providers are being floated as ideas to fund major infrastructure projects in Auckland, as Auckland Council looks to limit rate rises.

Mayor Phil Goff released his proposed annual budget this month, saying he is committed to keeping rate rises to 2.5 per cent and is exploring a raft of proposals to balance the books. The plan will go out for consultation early next year.

A fuel tax at 10 cents a litre has been mooted, but any tax would require Government approval.

The rural nature of Rodney and lack of public transport options means the region could by among the hardest hit by the policy.

Rodney Councillor Greg Sayers believes Rodney residents will support a user-pays approach, but details on how funds will be distributed will be crucial.

“We need to ensure Rodney residents see the benefits from any tax,” Cr Sayers says.

Landowners near Warkworth could be hit by a proposed targeted rate aimed at curbing land-banking and to fund infrastructure for housing.

The Unitary Plan has zoned 11,000ha of rural land for development that is expected to provide land for 110,000 houses – in Warkworth, 952ha of rural land has been zoned Future Urban.

Currently, a central tool for funding infrastructure for new subdivisions is development contributions, which average about $30,000 per dwelling. This is paid when a dwelling is consented or connected to the water and wastewater network, but Council says these charges often don’t cover costs.

The targeted rate would provide an ongoing fund which could be spent on infrastructure while also increasing land holding costs, discouraging land banking.

Details on where the rate would apply and how it would be struck haven’t been finalised.

The Mayor has also proposed an accommodation levy of about three to five per cent per room. It is anticipated the cost would be passed on to consumers. The levy is expected to raise $20-30 million.

Matakana Coast Tourism chair Warren Kitchin says accommodation providers in the area oppose the levy.

“It doesn’t appear to be a balanced argument when tourists have to pay GST anyway,” Mr Kitchin says.

But he says infrastructure upgrades are sorely needed.

“Hill Street needs an upgrade sooner rather than later.”

Changes to the rural rates differential have also been shelved – last year a proposal was put forward to reduce the rates farmers paid by about 20 per cent.

Cr Sayers says more emphasis needs to be put on finding savings within Council.

“I’m calling for a 10 per cent savings across Council,” Cr Sayers says.

The Rodney Local Board will provide feedback on the proposals at its business meeting this month. The Annual Budget will be adopted on June 19 next year.