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Nov 21, 2023Liked by Common Ground Aotearoa

Economics of the change is sound, but the politics is challenging - it is not just that it is hard to explain complicated things to the public. There will be winners and losers from this change, which should be managed.

To that end, I think the politics of implementing a land value rating system would work better if there was a transition period where no residential property paid more rates.

So, for the small minority of residential properties who would pay more under a LV only valuation scenario could be given a guarantee that their rates would not be higher than the previous land + capital valuation system - this guarantee would only be for the current owners - once the property is sold or ownership is transferred then it comes under the land value only valuation system.

Thus, it would take a generation or so to fully transition to LV rates.

I think the average residential household would still get a rate reduction, because underutilised land not in residential use would be rated at a higher level - hopefully this effect on the average rates bill could be calculated.

This guarantee would make the change to land value rates more palatable. No one would be forced out of their homes by an unexpected increase in their rates bill.

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What about the farmers who make 100x less per sqm of land than a an income producing property?

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I really like podcasts .The information is so much easier to access . Thanks

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