Len Brown Will Be Licking Lips Re Proposed Treasury Levy

A proposed Treasury levy requiring Auckland property investors to pay 1 per cent of the capital value of their rental properties to Auckland Council would have the effect of reducing the incentive for infill housing and would likely push up the cost of living for the poorest Aucklanders. Ratepayers’ Alliance spokesperson, Jo Holmes, says:

“Len Brown will be delighted to learn that Wellington bureaucrats are working on ways he can tax Aucklanders more. Meanwhile, our economic experts tell us that this proposed capital charge would likely discourage the very infill housing and development which Auckland Council is encouraging to solve the housing crisis."

“Any new taxes on landlords are likely to simply be passed onto tenants. If high taxes were the solution to Auckland’s housing problems, surely the Council’s 9.9 per cent whack would have solved it.”

“Generally when you tax something you get less of it. Wellington’s thinking that a new housing tax is going to result in more houses is bizarre."

“Among our members are tenants facing rent increases as landlords reluctantly adjust rent in order to pay an increased rates burden. The last thing Aucklanders need is for the cost of living to go up even more.”

ENDS

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