Sunday, July 28, 2013

Local government taxing the bejesus out of us

Here's a number that doesn't get publicised often.

In the financial year ending June 2012 the total local government took in taxes was,

$4.653 billion

With a population of 4.471 that's  $1,041 per man, woman and child.

The bulk of the taxation is recurrent taxes on immovable property - rates.

A direct comparison is impossible due to record keeping differences and fifty years ago local government got a lot more revenue from rents on buildings, licences and public utilities but in rates alone, in 1952 it collected 14.5 million pounds on a population over just over 2 million. A ratio of around 7:1  compared to today's 1,000:1

Wow. WOW.


Anonymous said...

Hmmm. One pound became $2 with decimal currency so the initial figure is more like 1:15. According to the Reserve Bank inflation calculator, one pound in the second quarter of 1952 is equivalent to $55 in Q2 of 2013, so that 1:7 figure should really be 1:385, on top of which should be added the rentals to which you refer.

Having recently had dealings with a council concerning resource and building consents, I'm not terribly sympathetic to some of their pointless cost-adding rules and regulations, but it's quite possible that some increases in the last 60 years are the response to legitimate environmental costs which were once ignored, or a response to potential legal liabilities.
Kiwi Dave

Anonymous said...

well, maybe wealth creation on property bites back. Not all rose-tinted, I guess.