Criteria and conditions for remission of APTR
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:
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
no contractual or relational/negotiating means of managing the additional costs of the rate
no ability to exit, terminate or renegotiate the contract prior to the start of the rating year in which remission is applied for.
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 20018-2019, 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
You will need to meet the conditions and criteria.
This will include providing evidence of contractual commitments that meet the criteria set out.
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.