7 Mar 2024

How to make sense of a 500 percent rates hike

From Nights, 10:18 pm on 7 March 2024

A Stewart Island landowner has been trying to fight a 500 percent rates hike - from $348.68 to $1743.95 in a single year.

On the other end of the country, Auckland councillors agreed to send an invoice to the Government for a GST refund on council rates and new-build houses.

Local Government New Zealand says Councils' share of overall tax revenue has remained at two percent of GDP for the last fifty years, despite ever-increasing responsibilities.

So what are the alternatives? More of the GST take? Land value-based rather than capital? Or a completely new system altogether?

Chief Economist at The New Zealand Initiative and regular Nights contributor Eric Crampton joins Emile Donovan.

A street view of the empty section taken in 2015. In an email sent to the council, the land owner said the section had not been altered: "no buildings, no caravan, nothing"

A street view of the empty section taken in 2015. In an email sent to the council, the land owner said the section had not been altered: "no buildings, no caravan, nothing" Photo: Google Maps