The Thames-Coromandel District Council is proposing major changes to rates for bed and breakfasts and baches rented out for short-term accommodation on the Peninsula.

A new fixed annual charge of $200+GST for short-stay accommodation providers is being recommended by council in its 2015-2025 Long Term Plan which was released this week.

The Thames-Coromandel District Council is proposing changes that would affect short-stay rental accomodation owners on the Peninsula in its 2015-2025 Long Term Plan released this week. Photo: File

This fixed rate would affect about 1,400 properties on the Coromandel that are either small B&Bs or listed on websites such as Bookabach, Trademe or Bachcare.

Another proposed change is for large B&B operations (four or more bedrooms) to be reclassified as ‘Industrial and Commercial'.

This would mean B&B proprietors would pay commercial economic development rates and pan charges similar to those paid by moteliers.

Unrented baches would not have to pay this additional charge under the proposed changes.

Council says these changes are needed to help fund its large economic development programme, which pays for new walkways, cycleways, and events that attract visitors.

'All accommodation providers benefit from our investments,” says council, 'but a large part of the sector does not contribute toward this programme.”

'For example, the Whangamata Beach Hop is the biggest single event in New Zealand with around 120,000 people in Whangamata for Beach Hop week.”

Council says for years many proprietors have pointed out inequality over who pays commercial economic development rates and pan charges and who doesn't.

While motel owners are charged full commercial rates and must comply with fire and other regulations, a chunk of the sector which markets accommodation for profit is not paying these costs.

'It is hard to increase the quality of the Coromandel's accommodation sector when the pricing incentives to do this are all unfavourable due to unequal competition.”

But council adds: 'Please remember this is just a proposal. Your feedback will help our elected members to make a more informed decision when it comes to hearings and deliberations in May.”

THE PROPOSED CHANGES IN A NUTSHELL:

• B&Bs of 4 or more rented rooms move into the commercial category for rating
• Smaller B&Bs and advertised rented baches have a flat $200+GST charge
• Unrented baches would not have to pay this additional charge

To read the LTP Consultation Document and for more information visit: www.tcdc.govt.nz/ltp

Physical copies of the Consultation Document can also be viewed at any of the Thames-Coromandel District Council's area office and local libraries.

Submissions run from now until Thursday, April 9