Holiday rental platform Bookabach says Auckland Council's proposed changes to accommodation rates will hit family bach owners in the pocket.
The so-called 'bed tax' aims to lighten the load on ratepayers by raising enough money to cover half the expense of staging major events in the city.
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Blueprints to introduce the rates to short-term operators have been drawn up. But Bookabach general manager Peter Miles says they will have a major affect and he's begging the council to walk back its plans.
"This move to commercial rating and the accommodation provider targeted rate, bach owners will see their rates increase and that increase might be substantial if they rent extensively," he says.
Auckland Mayor Phil Goff says the rate increases will raise much-needed revenue and would spare ratepayers hefty increases.
"The problem is our city has a limited ability to borrow. We are at the limits of our debt to revenue ratio. Borrowing by itself cannot be the answer to our problems," Mr Goff says.
"We have to broaden out sources of revenue in order to fund huge infrastructure costs. Ratepayers cannot be called on to fund that alone."
Mr Miles says consultation has been inconsistent, and the rate is based on a flawed method that only captures part of the rental sector.
"What we'd like to see happen is we'd like to see the Council work with central government to come up with something that's going to work on a nation-wide basis," he says.
"Bookabach has kind-of come to a decision the best and fairest is a bed count."
However Mr Goff says if bach owners are operating as a business they should be treated as such.
"For say 29 to 135 days then they'd be paying say a quarter of the business rate and three-quarters of the residential rate - over 180 days a year it's obviously a business, and it would be treated like a business," he said.
Newshub.
