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Remission of the accommodation provider targeted property rates

The accommodation provider targeted rate (APTR) can be remitted if the applicant meets one of the set criteria.

You should know

The impact of COVID-19 has meant that the APTR has been suspended until the 30 June 2022.
 
We will not be processing any remission requests for the accommodation provider targeted rate.
 
Remissions only apply to the rating year they are applied for. You need to apply each rating year (1 July-30 June) to be granted a remission for that year.

​Criteria and conditions for remission of APTR

  1. The ratepayer owns no more than two rating units that attract the APTR, and which are under contract to be used as serviced apartments, and where the applicant can demonstrate that they have:         

    1. entered into a contractual arrangement regarding the use of the rating unit as commercial accommodation prior to 1 June 2017, or subsequently purchased a rating unit subject to such an arrangement that was unable to be renegotiated at time of purchase

    2. no contractual or relational/negotiating means of managing the additional costs of the rate

    3. no ability to exit, terminate or renegotiate the contract prior to the start of the rating year in which remission is applied for.

  2. Where the applicant has contracted some or all of their commercial accommodation capacity to Work and Income New Zealand or other central government agency for the purpose of emergency housing.

Amount of APTR remission

For remissions granted under criterion 1 of this scheme:

  • 100 per cent of the APTR for the qualifying rating units in 2018-2019, with the proportion of rates remitted declining each year in equal steps until 2027-2028, when 10 per cent of the APTR will be remitted. This remission scheme will expire on 30 June 2028.

  • The amount of remission will be reduced on a proportional basis where the applicant is able to exit, terminate or renegotiate the contract during the rating year.

For remissions granted under criterion 2 of this scheme a proportion of the APTR is calculated as follows:

Number of rooms or units under contract (n) times number days under contract (d)

n x d =

For example, 5 x 100 = 500.

Total number of rooms or units in motel or hotel (r) times 365

r x 365 =

for example, 10 x 365 = 3650.

How to apply for an APTR remission

Please note: no applications will be accepted nor processed during the 2021/2022 rating year as the accommodation provider targeted rate has been suspended until 30 June 2022.

You will need to meet the conditions and criteria.

This will include providing evidence of contractual commitments that meet the criteria set out.

For example:

  • Where you have a contract agreed before 1 June 2017 to use the rating unit as commercial accommodation, and you have no means of managing the cost of the rate. Some serviced apartment rating units may fall into this category.

  • Where you have contracted some or all of your commercial accommodation capacity to Work and Income New Zealand (WINZ) to use as emergency housing.