Tax-deductibility sought for residential rates

Press, 22 April 1986, Page 6

Tax-deductibility sought for residential rates

PA Dunedin Residential local body rates should be fully tax deductible, the Municipal Association has decided. The present deductibility enjoyed by commercial property owners, if extended to residential properties, would provide ratepayers with an acceptable form of revenue sharing, said the Mayor of Wellington, Mr lan Lawrence. “If we were to get a fair and adequate assistance in revenue sharing, there might well be less justification in calling for tax-deductibility of rates,” said Mr Lawrence moving a remit. “But we should continue to push the case... so the ratepayers

will know that at least some of their money paid in rates will come off their tax bill.” The National Government introduced a $25 tax rebate for residential rates in 1978, but this was repealed by the Labour Government in 1985. Rate bills were hitting the elderly and people on low incomes especially hard, said the Mayor of Papakura, Mr G. W. Hawkins. The chairman of the Waimari District Council, Mrs Margaret Murray, said full tax-deductibility would serve as a fair form of revenue sharing. “The $25 was no more than a pittance and it needs updating,” she said. “By doing it this way, it keeps central government

out of local government.” She was supported by the Mayor of Wanganui, Mr D. G. Tumey, who said the Municipal Association “should go for it in a big way.” However, the Mayor of Matamata, Dr N. A. Algar, opposed it, saying residential rates were “part of the cost of living, part of the cost of owning a property.” According to the Mayor of Masterton, Mr J. F. Cody, full tax-deductibility on rates would be “regressive and selective.” “Nothing is in it for tenants, whose rent is applied in the first instance to the payment of rates.” The call for tax-deducti-bility was passed by the conference.