Local Government New Zealand believes councils could end up seriously short of money if they continue relying on levying rates on housing to pay their costs.
Lawrence Yule. Photo: LGNZ
It says rates should be augmented by income such as a share of GST or royalties from mineral extraction, or imposing tolls on local roads.
Other methods could include local sales taxes, such as those in New York, or a poll tax imposed on each individual in a community.
That was tried in Britain but later abandoned when it proved unpopular.
LGNZ Lawrence Yule says he does not think anyone will be keen on a poll tax, even though it is a fair system.
A cross-sector working party will be formed for the LGNZ Local Government Funding Review during April 2014.
