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What is the Auckland Accommodation Provider Targeted Rate (APTR)?
The Auckland Accommodation Provider Targeted Rate (APTR) was a specific form of property tax implemented by the Auckland Council. It was applied to commercial and short-term accommodation providers, including hotels, motels, and qualifying vacation rentals.
The purpose was to have the accommodation sector, a direct beneficiary of tourism, contribute to funding activities managed by the city's economic and cultural agency, Tātaki Auckland Unlimited. The APTR was in effect from July 1, 2017, until it was suspended and later officially repealed in 2021.
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How it works
The APTR was calculated based on a property's capital value, its location, and a differential factor based on the extent of its commercial use. The Auckland Council identified properties used for short-term accommodation, including those listed on platforms like Airbnb and Vrbo, that met a certain threshold of availability.
This targeted rate was then added to the property owner's annual rates bill. Unlike a per-night occupancy tax, the APTR was a fixed annual charge levied on the property owner, regardless of actual occupancy levels.
Why it matters
For short-term rental hosts in Auckland, the APTR represented a significant additional operating cost that impacted profitability between 2017 and 2020. Owners had to account for this tax in their financial planning and pricing strategies.
Although no longer in effect, the APTR serves as an important case study for how municipalities can implement targeted levies on the accommodation sector to fund tourism-related initiatives. It underscores the necessity for property managers to stay vigilant about local tax laws and regulations which can directly affect their business viability.
Examples
- Between 2017 and 2020, a host with a dedicated short-term rental apartment in Auckland's CBD would have received an annual rates bill from the council that included a separate line item for the APTR, increasing their total property tax liability.
- A large hotel in the Viaduct Harbour was subject to a substantial APTR payment based on its high capital value, a cost that was likely factored into its overall room pricing structure during that period.
- A homeowner in a residential suburb who only rented out a spare room occasionally might have been exempt from the APTR if their property did not meet the council's criteria for a commercial-level accommodation provider.
- Upon receiving their rates notice, a serviced apartment operator would have seen the APTR charge and was required to pay it directly to the Auckland Council, as it was a property tax rather than a guest-paid tax.
Frequently asked questions
Is the Auckland Accommodation Provider Targeted Rate (APTR) still in effect?+
Who was required to pay the APTR?+
How was the APTR different from a bed tax or occupancy tax?+
Why was the APTR introduced?+
Related terms
Bed Tax
A bed tax is a levy imposed by local, state, or national governments on the rental of short-term accommodations, with the revenue often used to fund…
Occupancy Tax
Occupancy tax is a tax levied on the rental of short-term accommodations, which hosts are legally required to collect from guests and remit to local or state…
Council Tax (UK)
Council Tax is a local tax on domestic properties in Great Britain (England, Scotland, and Wales) used to fund local authority services, with specific rules…
Lodging Tax
A lodging tax is a tax levied by government authorities (such as city, county, or state) on the rental of short-term accommodations, including vacation…