Phil Goff wants another tax: bed tax

Poor Phil.  He so wanted the job.  But he didn’t realise that pants-down Brown had left the bank account dangerously low.  So Phil can’t do anything but watch the council spend and spend and spend even more on the day to day machinations of running a city.  But there is no money for him to place his stamp on his stint as mayor.  Poor Phil.

Auckland is a vibrant city that offers its people great learning and working opportunities as well as a fantastic lifestyle.

However, we’re growing at such a rapid rate that traffic congestion is on the verge of gridlock and the Kiwi dream of home ownership is slipping out of reach for many Aucklanders.

To tackle these huge challenges, we need to make major investments in infrastructure including new and upgraded roads, public transport options, waste and stormwater systems.

The problem is that a joint Auckland Council-Government report has identified a $4 billion gap in infrastructure funding over the next decade.

The council has to come up with its share of that deficit. If we lump all of the cost on ratepayers, that will push rates up by 16 per cent a year.

That is not right or fair. Ratepayers have shouldered the burden of growth for too long. It is time to look for new solutions where those who benefit most pay their fair share.

That’s why I’m promoting the idea of a targeted rate on accommodation providers.

The rate payers are going to run Phil out of town after just one term.  So where else to get some money… oh, tourists!  

It will require hotels and other providers to pay an increased rate potentially based on the capital value of their property. The increased revenue will go towards the cost of promoting major sporting and other events.

Ratepayers currently foot the bill for those even though it is accommodation providers that profit from the increase in visitors.

Hotels such as the Pullman face a rates hike under plans by Auckland City to raise funds for tourism promotion.

Hotels go into battle with Auckland’s mayor Phil Goff over new rate to pay for promoting the city

The extra revenue will also enable the council to borrow to fund further investment in infrastructure without risking breaching its debt ceiling which could result in a credit downgrade and increased interest charges.

This investment could include a mass transit link between the CBD and Auckland airport which will be welcomed by locals and visitors alike.

A tax on accommodation providers based on the capital value of their establishment isn’t a bed tax.  It’s another council rate by another name.

The idea is that we don’t care that the motel down the road is going to get its net profits raided just so Phil can create his vanity projects.

And in return, you will get another train running between the airport and the CBD.  Which will be welcomed by locals.  Apparently.

But Phill isn’t done.  In case you feel sympathy for a specific business getting taxed while everyone else isn’t, Phil wants to demonise the accommodation industry.

If a hotel chooses to pass it through, our calculations suggest guests might pay an extra $5 or $10 a night for their room (that is up to each hotel to decide).

An increase of this amount can be compared with how many accommodation providers already ramp up their room rates when there are big events in town.

One inner city hotel increased its room rate from $241 the weekend before the upcoming Adele concert to $669 on the night.

In short, the Rich Prick motels and hotels can afford $10 per guest per night in taxes.

Bet you never get to the point where you thought Len Brown could plough any council employee he wanted as long as he kept things to just his little train set, did you?

 


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