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Local income tax as an alternative to rates

Thu, 18 Nov 2004

Local income tax as an alternative to rates

18th November 2004

Auckland Regional Council Sends Rebellion Rate Proposals To Finance Committee.

Action Now To Find Alternative To Rates Within Three Years.

Local Income Tax Is An Option

At a full council meeting on Monday 15th November the ARC heard the proposals by Rates Rebellion for bringing the rates revolt to an orderly conclusion on a
satisfactory basis.

The six-point plan was referred to the council's Finance Committee for detailed consideration. [Full details were in our release of 15th November]

Include in the plan is a proposal that ARC should instigate a regionwide programme to work with other councils in finding alternative funding sources for local

council services.

Rebellion spokesman David Thornton said today, "Our proposal that the ARC should lead the way in moving away from rates as the basis of funding council

services comes at the same time as a Bill was being presented to the Scottish Parliament which seeks to replace Council Tax - the UK

equivalent of rates - with a local income tax...

"Local income tax must be an option for New Zealand as it would more clearly reflect an 'ability to pay' which is totally absent under the present rating system.

"Politicians and ratepayers have long called for change - its time for the talking to stop and action to begin.

"We have called on the ARC to lead the way by aiming to have a new funding system in place within this new 3-year term"

The Scottish proposed legislation includes a 'debt moratorium' - similar to our call for waiving outstanding penalties from last years rates.


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