Thousands of Auckland homeowners could be hit with big rates rises for renting out their properties on sites such as Airbnb and Bookabach.
Auckland Council says many short-term rental providers are operating as businesses, and ought to be paying commercial rates.
It's proposing to increase rates for online accommodation providers where the entire residence is let for more than 28 nights a year.
Under the proposal, the owner of the Kaipara View Ecolodge, Sharon Lowdon, would see her rates double.
"I just think it's a little bit unfair because accommodation providers like we are, we're not just like hotels. We provide a different service, people come for an experience to be with New Zealanders," Ms Lowdon said.
The new rates would vary depending on property zoning within the Auckland area.
According to Bookabach, the proposal would see rates rise by between 29 per cent and 69 per cent if a property is occupied for between 29 and 135 nights annually.
If it's occupied for more than 135 nights a year, the rates could rise by between 119 per cent and 277 per cent.
Ms Lowdon says if the plans are implemented she'll have to consider whether she can continue running her Kaipara lodge, and Bookabach says this perspective will be shared by other accommodation owners.
General manager Peter Miles said, "They'll look to either pass that cost on to the travellers or it becomes uneconomic they'll look to exit the market. So it could leave to less choice for travellers, and higher costs for travellers."
The company has made a submission to Auckland Council asking that it changes the suggested threshold, so that properties aren't fully rated as businesses unless they're rented out for at least 180 nights annually.
It says this would better identify commercial intent from short-term rental providers.
A similar ratings system is already in place in Queenstown, and other councils are looking to follow suit.
The body representing hotels is pleased, and looks forward to further progression.
"Consistency would be great," said Rachael Shadbolt of Hospitality NZ.
Auckland Council has received more than eight thousand submissions on its plans.
A spokesperson said "70 percent of those submissions support levying business rates on online accommodation providers".
Accommodation owners have until tomorrow night to provide their feedback.
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