Bed tax not a 'windfall' for council

By Sue Fea
Copyright 2001 The Southland Times Company Limited
Article date: September 15, 2001
 

QUEENSTOWN -- Proposed legislation freeing up local authorities to collect a bed tax would not provide the Queenstown Lakes District Council with "a sudden windfall," councillors heard yesterday.

"If anyone has the perception this is going to mean a sudden windfall for the council, they're wrong," council chief executive Duncan Field said. Proposed changes to the Local Government and Rating Powers Act would make it easier for local authorities to rate accommodation properties based on the number of beds they had.

Council finance manager Stewart Burns said visitor nights had been suggested as a means of calculating a rate in the proposed changes, which would make it easier for councils to target specific items and charge for them.

Cr Kathy Neal said there was strong opposition from the accommodation sector when a bed tax proposal was last discussed by the council.

However, Mr Field said the council was effectively already gathering a bed tax in the form of its rating differentials.

Mr Burns said the same money was already extracted from ratepayers.
 

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