Claim rentals wrongly rated

The owners of more than 200 short-term accommodation rental properties in the Mackenzie district say they were rated incorrectly this winter.

The Mackenzie District Council sent out 1600 letters on May 16 to owners of properties with more than one dwelling, non-residential ratepayers and those advertising short-term accommodation as the council tried to ensure Airbnb operators and the like were paying their fair share.

Mackenzie Mayor Graham Smith said some ratepayers were upset the letter presumed they were guilty, and ratepayers were required to prove they were not providing short-term accommodation.

``But in general, a lot of people paid up and said `Hey, we didn't realise' - it's been quite successful,'' he said.

``It's about fairness and some people were up front and paid their tourist levy, which goes into economic development and various other things.

``And others weren't - and we thought this is unfair.''

In June, Mr Smith said the council was not trying to increase the overall rates take for the district but was following the lead of the Queenstown Lakes District Council, which sent letters to nearly 800 unregistered properties it had identified as being used for short-term or holiday rentals earlier in the year.

In the Mackenzie district, the rates increase was only about $50 for every $100,000 of capital value, Mr Smith said.

``If you've got two or three people staying for one night, you've already paid your tourist levy.''

Council revenue officer Pauline Jackson said there was an 87% response rate to the letters, 15% of respondents declaring their properties as short-term accommodation.

hamish.maclean@odt.co.nz


 

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