Wellington land rates review should focus on bringing rates down

Wellington land rates review should focus on bringing rates down

Responding to discussions in Wellington around the introduction of rates based on the underlying value of land rather than developments built on top, Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said:

“Rather than trying to chuck $32 million at its multinational owners of the Reading Cinema to get them to do something with a massive CBD plot, land value-based rates would encourage development. But Wellington’s rates problems run much deeper than that.

“Wellington’s main problem is that its rates are just too high. With the highest commercial rates in the country, businesses can’t afford to keep their doors open. One way or another, Wellington’s ending up with an empty CBD.

“Any rates review which considers land rates needs to finally scrap the 3.7x commercial rates differential and kill conversations about the vacant lot super-rate as well. Changing the tax is no use if the burden stays just as cripplingly high.”