How much land tax will you pay?
TOP has proposed a 1.75% tax on the value of urban land (except Maori communal land) and 0.5% on rural land. It is worth noting that land values have been declining for the last five years, so TOP’s policy is to tax you on an asset that is declining in value!
| Urban | Av land value | Land tax |
| Queenstown | $ 1,076,925 | $ 18,846 |
| Auckland | $ 830,000 | $ 14,525 |
| Wellington | $ 621,000 | $ 10,868 |
| Tauranga | $ 600,000 | $ 10,500 |
| Christchurch | $ 475,384 | $ 8,319 |
The average household in Auckland would pay almost $15,000 a year in TOP’s land tax – so an extra $280 a week. In Queenstown it would be $360 a week more tax.
| Rural | Av land value | Land tax |
| Dairy | $ 5,590,000 | $ 27,950 |
| Beef/Sheep | $ 8,680,000 | $ 43,400 |
| Arable | $ 9,787,500 | $ 48,938 |
| Vineyard | $ 4,400,000 | $ 22,000 |
| Kiwifruit Gold | $ 6,600,000 | $ 33,000 |
Our primary sector would be whacked. The median arable cropper would be paying almost $1,000 a week in land tax. Vineyards $420 a week and beef and sheep farmers $830 a week more.
I’m sure this will of course lead to cheaper food prices!