Greens propose giving councils power to implement bed levies

The Green Party has promised to empower local communities to introduce a bed tax if they choose. This policy aims to provide councils with the tools to fund infrastructure required by tourism. The party would also allow councils to charge higher levy rates on Airbnbs and other short-term accommodation.

To assist with this, the Greens propose a national register for short-term rentals so councils can identify where to apply the levy. Chlöe Swarbrick stated, “No council should have to build a local register and run its own system when it’s central Government who still disproportionately benefits from tourist spending”.

National has ruled out the bed levy to maintain its campaign slogan of no new taxes. Instead, the National Government has pledged to distribute $400 million in revenue from the International Visitor Levy to councils over four years.

Several local authorities, including Queenstown-Lakes, Mackenzie, Rotorua Lakes, Central Otago, and the West Coast, have expressed support for a bed tax. A 2019 non-binding referendum in Queenstown showed 81% support for the measure.

How it developed

• Wed 14 Oct, 9:10pmDuring a finance debate in Queenstown, Labour, the Greens, and Opportunity expressed support for a bed tax, while New Zealand First's Shane Jones also indicated support.

Where reports differ

• National's approach involves distributing International Visitor Levy revenue based on guest nights, whereas the Greens propose local control over a new levy

Compiled from reports by NZ Herald, The Press and Otago Daily Times.