Bed tax preferred levy option

SHARE

A BED tax of 5%-10% targeting all short-term accommodation including Airbnb is the preferred option for Queenstown’s visitor levy.

Queenstown Lakes District mayor Jim Boult today revealed more details about plans for a localised visitor levy – which is the subject of a non-binding public referendum in June.

The aim is for it to primarily apply to visitors. It would be collected by Central Government, from 2021 at the earliest.

”The preferred option at this stage is a targeted levy which includes all expenditure on short-term accommodation in the district,” Mr Boult said in a council press release.

”This will include providers using platforms such as Airbnb which is already happening in other places around the world.”

This will minimising any effect on locals who are already funding infrastructure and services through rates and user charges, he said.

Although yet to be confirmed, it is anticipated that the levy would be collected through a partnership between Central Government and QLDC, with Central Government acting as the collection agency.

”We want the final model to be as fair as possible on end-users and have minimum effect on accommodation providers with regards to administering the levy.

”So we are proposing a percentage-based levy rather than a fixed fee. At this stage we anticipate a potential levy in the region of 5-10%.”

The models investigated include international examples of similar levies and alternative cost-recovery mechanisms.

The proposed model would complement, but not replace, existing cost-recovery methods such as user charges and targeted rates where these are more efficient devices.

”The QLDC team has been exploring a range of options that includes both short-term accommodation and tourism activities, as well as reviewing the capital works and operational costs to develop a clear picture of what financial demand is created by visitor activities and movements in the district.”

Details regarding the exact percentage and collection method will be outlined in materials that will accompany the voting papers.

Mr Boult encouraged people to participate in the vote on June 5.

”Our district desperately needs access to additional funding for visitor-related infrastructure and services. In order for us to implement the proposed levy Central Government will need to make a legislative change. I urge each and every one of you to get involved. As a district we have a chance to be heard and send Government a clear and compelling message.”

In order to participate in the referendum, people need to ensure that they are registered on the residential electoral roll or as a non-resident ratepayer elector by 5pm Tuesday, April 9.

Details of how to do this can be found at www.qldc.govt.nz.