Land tax - what it could mean for you
By Anne Gibson
4:00 AM Saturday Jan 30, 2010

Aucklanders would be hammered by a proposed land tax, with households facing an annual bill running into thousands of dollars.

According to conservative estimates, owners of the region's 443,200 homes alone would have to give the Treasury an extra $443 million if they were subject to a 0.5 per cent levy.

A land tax was one of several in the tax working group's recommendations to the Government this month.

An economist has also given warning that such a move would lead to falls in property values and an increase in rents.

If the value of land was taxed, the rich would pay more, but people on low incomes who have property would be the hardest hit.

Superannuitants living in the wealthiest eastern and northern suburbs of Auckland and others on low incomes would be particularly affected as they would not necessarily benefit from the proposed tradeoff of lower income tax.

Remuera households could be paying $6500 each and those on the North Shore $1300-$4000 a year. Financier Mark Hotchin of Hanover could be paying almost $100,000 a year for his three-section block in Paritai Drive, Orakei, and Prime Minister John Key would be up for much the same on his slice of St Stephens Ave in Parnell.

More here.