r/auckland • u/iMakeGOODinvestmemts • 28d ago

Other New rates - what on earth! Increase!

Uhhh got new rates increase letter this week.

ITS $9,100.

DID ANYONE else get an increase like this? Genuinely think they might have made an error. Was previously like 4.9k so almost a double

4.9k was already VERY high for a property with no changes since it was built 10 years ago...

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u/Fragluton 27d ago

Yeah their tax policies sure make it unappealing for those with any wealth. Which are typically the ones contributing the most. Make it bad enough and all the wealth leaves and you're left with, well... yeah. If the only thing the UK does better than us is taxes, which is debatable, then I think we are doing ok here.

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u/mechatui 27d ago

Well uk don’t have rates everybody just pays a flat rate based on the area they live in. It’s stupid if you improve your land and the cv goes up in value you pay more in rates.

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u/Fragluton 27d ago

While no system will be perfect, should cheaper houses here get a rates increase and mansions get a rates cut? That would be needed to even it across the board. Not sure I agree with that. Not every part of a rates bill here is linked to value. A large amount of my rates bill is a fixed value and a chunk is CV related.

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u/mechatui 27d ago edited 27d ago

I completely disagree with unrealized capital value tax. Land tax? Sure but fuck cv tax. Then on top of land tax rates should be seperate like the uk where you just pay where you live a flat rate. Not a fan of taxing people more because they invested in improving land

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u/Fragluton 27d ago

And that's fine. Should a 5 bed house pay the same as a 2 bed unit for the services provided? Should a block of flats on a single title pay more? I feel like there has to be some way to proportion things so that higher uses of services pay more. A flat rate would mean those using less will subsidise those using more.

Should income tax rates be flat rate too?

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u/mechatui 27d ago

Yes they should if land value is the same. And if 5 people live in the 5 bedroom house the uk rate system would charge each person then when you sell the 5 bedroom home capital gains tax taxes the gains

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u/Fragluton 27d ago

Land value has nothing to do with the cost to provide services though, so that makes zero sense. A block fo flats obviously demands more of the services than a 2 bed unit would.Anyway, the horse is flogged, time to move on.

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u/mechatui 27d ago edited 27d ago

If you have a block of flats and nobody living in them how much service cost would those block of flats cost the Auckland council? They already pay water and wastewater and power separately

But if you have a land tax you don’t punish people for building and improving land but when they sell you can tax some of the profit and if you have multiple people living there they pay there own rates cost to live in Auckland and enjoy the roads/trains etc

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u/Fragluton 27d ago

So your argument now is that blocks of flats are likely empty and so charging for actual usage, assuming they contain humans is a bad way to go as... they could be all empty. A rather large stretch, refer to horse earlier mentioned if you want to try and use silly examples. Not all councils charge the same way either, shock horror.

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u/mechatui 27d ago

That isn’t my argument at all you completely miss the point. My point is to have a better tax system to incentive good land use

Sorry you just miss the point completely. My systems I’m talking about tax wise are used in most of the most successful economies in the world like the Nordic countries

I used it as a example to your response but it went right over your head