Airbnb rates in Tauranga investigated

File photo.

More than 1000 businesses renting out Tauranga rooms on Airbnb may be paying commercial rates in future.

Tauranga City councillors are copying Auckland and are looking at rating properties, which rent out rooms over online platforms like Airbnb.

Auckland's councillors decided last week that its ‘bed tax', the Accommodation Provider Targeted Rate, should also apply to homes rented out for more than 180 nights a year on websites like AirBnB and Bookabach.

Airbnb's website states there are more than 300 Tauranga homes registered on Airbnb. Hospitality NZ bay of Plenty and Waikato regional manager Alan Sciascia says the number is closer to 1000.

'It is a considerable concern that such a number of properties are operating as businesses, but they are not being treated as businesses. We are fully in support of everybody being treated the same,” says Alan.

Tauranga commercial businesses are currently levied a fee to reimburse the city council for the cost of promoting the region. It is an overhead not currently incurred by Tauranga Airbnb properties.

'Unless a business is being treated as a business, they are not incurring a fee so these private residences are not incurring the same level of costs as are traditional business like hotels and motels etetcera,” says Alan.

He says there is a place in the market for the likes of Airbnb, particularly over the peak summer season of December, January and February, when the demand for beds in Tauranga is such that there would not be enough available accommodation if Airbnb wasn't able to operate.

'But that aside we are quite happy for those businesses to operate, so long as they are being treated as businesses.”

Councillors have directed staff to investigate how Airbnb businesses can be rated, to report back to council as part of the next Annul Plan Process.

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5 comments

Airbnb rates

Posted on 07-06-2018 14:37 | By maunganui

One rule for all home based business,is the council going to apply the same scenario home based hair dressers,prostitution,lawnmower contractors,accountants to name a few. Don't just pick on one, it has to be a level playing field.


more taxes

Posted on 07-06-2018 15:13 | By Captain Sensible

More taxes from the lovers of taxes. Pity they can't put all that enthusiasm for taxes into something more useful.


Protectionism and a TCC tax grab

Posted on 07-06-2018 18:17 | By Bay Citizen

This is just straight out protectionism from the bigger accommodation providers in league with TCC who are keen to increase their tax take. Hospitality NZ talks about a "level playing field", but their proposal would lead to anything but. A one bedroom rental being rated the same as a 40 unit motel is not at all fair since the latter has a huge advantage in economies of scale.


So cool..

Posted on 07-06-2018 19:01 | By Marshal

The more incompetent you are, the more money needed to fund your excesses...LOL Watching the Tauranga council go about its "Um" Mmmm not sure what. Is so much funnnn...lol


Maunganui

Posted on 10-06-2018 08:26 | By maildrop

Lawnmower contractors?! What, do people take their lawns to them, to be cut?


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