Re the Court of Appeal siding with Gisborne District Council over inclusion of kiwi gold licence fees as capital value of land for rating purposes.
Since Labour took the reins six years ago, costs to bodies like councils have increased hugely. Councils feel successful rural businesses “could” be milked for more revenue.
I advise councils to take care as back in the “mother country”, rural productive land is exempt from rates. Councils in the UK are funded by a share of income tax and VAT, and a housing tax. So their rating system is based on people using services, and therefore people should and do pay for those services.
Every time a New Zealand council tries to lever more revenue from the rural sector it brings NZ closer to a strong demand to implement the UK system.
Rob Chrystall, Foxton
