Small retailers stand to benefit

Press, 28 July 1989, Page 5

Small retailers stand to benefit

By

NEIL CLARKSON

Land tax reforms announced in the Budget will make many more small businesses eligible to pay, but some small retailers stand to benefit. The Government announced that the existing 2 per cent rate would halve by March, 1990, but the present $175,000 exemption level would be axed. The president of the Canterbury and Westland Retailers’ Association, Mr Peter Baddeley, said the change would benefit owners of high-value inner-city land who got little relief from the $175,000 exemption. "The exemption doesn’t really help them at this stage because they are so much above it. They would be fairly pleased about it.”

Owners of bigger department stores and mall complexes stood to benefit, he said. Mr Baddeley said many businesses who leased premises had the payment of land tax built into their lease agreement. Such retailers could expect landlords to pass on eventual savings. “If they are going to pay less land tax, they should pass that on to the tenants. Some smaller businesses in malls, should find a decrease.” Mr Baddeley said other smaller businesses would have to pay land tax for the first time. Mr Baddeley said it was a shame that businesses in smaller towns now faced the tax, but in many cases their land values might not be particularly high.