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 minimise 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.
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QLDCs proposal to hold a bed tax referendum is a farce. Most ratepayers will think they are not impacted. Deliberately excluding bars, restaurants and activities operators from fairly contributing to infrastructure is appalling. The accommodation sector currently has a 3-5 times differential on certain rates than other commercial businesses. This is already a ‘bed tax’. Adding another tax to the same sector is unfair, inequitable and double taxation. There are currently 69 accommodation businesses that formally oppose a bed tax. This includes large hotels, motels, serviced apartments and backpacker accommodation in the Queenstown Lakes District. The impact on Queenstown, ‘the adventure capital of the world’ is huge. If 5-10% of earnings is levied on the accommodation sector, many accommodation businesses will become unviable. If tourists are discouraged from coming to Queenstown, or spend their disposable income on higher accommodation costs, this will have a direct impact on restaurants, bars and the ‘adventure’ activities that are geared towards this market. Adding another 10% will put accommodation sector will put taxes and charges for every booking up to 68%.