PHOTO: Auckland is struggling to cope with growth.
City-dwellers are invited to have a say on whether they could stomach “value capture” taxes to help pay for infrastructure.
Value capture taxes, which are used in some cities overseas, are paid by property owners on increases in the value of their properties as a result of a local council building infrastructure like a train link, or a new road, or rezoning the property.
It’s one of a number of possible new ways to tax households and businesses to pay for maintaining and upgrading infrastructure in towns and cities, outlined by the Productivity Commission in an issues paper.
Others include local GST-like expenditure taxes, and switching from using capital values to land value to calculate property rates.
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