Toilet tax shortfall

Press, 22 November 1980, Page 6

Toilet tax shortfall

NZPA Rotorua Rotorua’s toilet pan tax has proved to be a disastrous innovation in local-body financing. A computing error has caused a shortfall of $327,000 in the budgeted revenue.from the pan levy — about 5 per cent of rate revenue. The deficit arose, the district treasurer, Mr M. J. McGill, explained primly, from “an internal breakdown in communication.” The mistake means that the district will get only

$441,000 from what its authors call the “annual universal sanitation levy.” The estimated revenue was $768,000. If the levy was cor< rectly assessed, ratepayers would pay $4O a year for each of the '6,073 toilet pans and urinals. The error arose from confusion between the terms “sanitation unit” and 4426 computer units representing unconnected pans where sewerage is available. “The mistake was discovered when the discount

period for rates ended. It was reported to the council at the first opportunity,” said Mr McGill. In an , explanation to the council’s finance committce, he accepted full re‘.spohsibjlity for the error. ■; Ratepayers’ relief at being under-charged may be short-lived, for the shortfall may have to be made up from j higher rates. The Ombudsman is already looking into the toilet pan tax, which a Rotorua motelier says is illegal and discriminatory’.