Land Value Tax 'Could Collapse Property Prices' Warns NZ Expert
Tax expert Troy Bowker has warned that the Opportunity Party's proposed land value tax could impose substantial annual costs on homeowners and farmers, regardless of their income or ability to pay.
The tax, which would be an annual levy of 1.75% on urban land and 0.5% on rural land, would need to be paid every year, even if the property's value decreases.
Bowker, executive chairman of Caniwi Capital Partners, described the party's wider tax and welfare package as a 'significant and high-risk policy experiment' that could cause serious damage to New Zealand's productive economy.
A dairy farm with a land value between $5.5 million and $6 million would face an annual tax bill of between $27,500 and $30,000, while larger farming operations could face bills of $50,000 or more.