Council seeks elusive Airbnb hosts

Auckland Council is scouring the internet to try to track down 2500 Airbnb hosts believed to be dodging a new bed tax.

In 2017 Auckland Council introduced an accommodation provider targeted rates (APTR) system, commonly referred to as a bed tax, paid by hotels, motels and serviced apartment owners in order to fund tourism marketing and events organised by its economic development agency Auckland Tourism, Events and Economic Development.

In 2018 the rate was expanded to include online accommodation providers such as Airbnb and Bookabach hosts.

The changes meant that if hosts rent out their property online for more than 28 days each year, they are liable to pay the APTR rate, and business rates.

The amount of rates paid depends on the number of nights a property is booked, the zone a property is in (zone A, B or C) and the property value.

Auckland Council initially estimated 3800 Airbnb properties would be required to pay the bed tax.

But as of December only 1278, or about a third, had been discovered.

Auckland Council principal adviser financial policy Aaron Matich said the 2500-odd remaining had yet to be discovered.

‘‘The council is still looking for online accommodation providers and when found they will be charged according to the policy,’’ Matich said.

The council had encountered some difficulties implementing the policy and would look to review its implementation, he said.

At this stage, its primary way of identifying online accommodation providers was through online listings, he said.

‘‘Once identified, our default position is to charge full business rates to online accommodation providers, until the ratepayer provides the information we have requested which clarifies the number of nights the property is being let for,’’ Matich said.

Auckland Council estimated Airbnb listings made up about 10 per cent of Auckland’s accommodation market.

The policy change did not generate any additional revenue, rather it had the impact of reducing rates charged to traditional providers.

Online accommodation providers were estimated to only provide about $870,000 or 6 per cent of the $13.7 million expected to be generated from the APTR every year.

Council was forecasting its APTR revenue to be on budget for the 2019 financial year.

Accommodation providers are charged depending on the number of nights booked per year.

At the lower end a provider who had 29 to 135 booked nights a year paid general rates as 75 per cent residential and 25 per cent business as well as 25 per cent of APTR (if in zone A or B).

At the other end a provider who had more than 180 nights booked was rated 100 per cent as a business and paid the full APTR (if in zone A or B).