Manakau property tax doomed to fail – REINZ

The Real Estate Institute has slammed the proposed Real Estate Transfer Tax, with president Murray Cleland saying it goes much further than a capital gains tax, which taxes “only the difference between purchase price and sale price. This taxes the entire proceeds. As such it is an extension of current rating imposts, effectively a ‘double tax’ on householders for services provided”.

However MCC has downplayed the proposal, saying in a press release, "Recent media reports about a proposal for a Real Estate Transfer Tax in Manukau city have given the impression that the council is moving to put such a tax in place. This is incorrect".

Cleland says that Manakau would almost certainly find such a tax self-defeating.

“The net result will be that people who have a choice will buy houses outside of Manakau to avoid the tax, while those who have no choice but to live in Manakau will be penalised for their lack of mobility.”