Airbnb targeted for rates

The Auckland Council wants property owners who rent their places out via online companies like Airbnb to pay higher rates.

The council says property owners who list on sites like Airbnb and Bookabach need to ‘‘pay their share’’ and some could be reclassified from residential to business rates like a motel operator. It sent letters out in May to a range of property owners it believes might use Airbnb or Bookabach.

Last year the council introduced the Accommodation Provider Targeted Rate (APTR) as a means to boost its rating income to fund Auckland tourism.

It was charged to hotels, motels and serviced apartments which were also made to pay higher, business rates on their properties.

However, owners who currently let their properties through online accommodation sites pay lower, residential rates and do not pay the APTR – but that could be about to change.

The council has proposed that if a property is booked between 29-135 nights a year, it will be rated as 75 per cent residential and 25 per cent business.

More than 135 nights a year, it will be rated as a business and as such be subject to higher rates.

Bookabach general manager Peter Miles said close to half of the homes listed on Bookabach were rented out for more than 29 days a year.

Bookabach was not in favour of the APTR and felt it unfairly targeted accommodation providers when tourism benefited many other businesses like restaurants, bars, transport and activity providers, he said.

‘‘We think a 180 night threshold, meaning guests occupy the property for more than half the year, is a better indicator of commercial intent as occupancy begins to resemble that of traditional accommodation providers,’’ Miles said.

An Auckland Council spokesman said public consultation on the rates change had now closed and councillors would make decisions on it at an upcoming committee meeting.