Exemptions have already stripped more than a million dollars off expected earnings from Auckland Council's rate on tourist accommodation.
The controversial rate was anticipated to bring in an extra $13 million in revenue but $1.2 million has already been shaved off.
The council said of the 2999 affected properties, 1291 owners had so far sought exemptions or reductions in the rate.
The extra rate was devised by mayor Phil Goff as a way to fund half of the city's tourism promotion costs.
The council said 552 exemptions totalling $1.05 million had been approved for owners that have fixed price contracts with the operator running their property.
Sixty one objections to the accuracy of property information have led to a further $144,452 in reductions of the amount charged.
A further 739 are in the pipeline and rising.
A group of accommodation owners is still considering whether to challenge the legality of the targeted rate.