Capital Gains Tax upon the sale of land.

Posted by 202tp on November 28, 2016

We need one. Not to raise revenue but to provide a disincentive against speculative purchasing and land banking. Both FBT and Entertainment Tax raise little money, but they provide a major disincentive to employers providing untaxed benefits to their employees. The forms alone are ridiculously complicated to fill out and the exemptions are similarly convoluted. The result is many employers change their behaviour which is what is need to combat speculative land purchases.

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Chelsea Finnie tagged this with essential 2016-12-03 22:47:34 +1300
Dennis Ingram commented 2016-12-03 17:34:15 +1300

I had investment property in Australia some years ago, which was subject to stamp duty and capital gains tax. These are nothing to be afraid of, simply factors to incorporate into one’s ROI calculations. I would have no problem with similar taxes here.
Dennis Ingram tagged this with interesting 2016-12-03 17:34:15 +1300
Bruce Thomas commented 2016-12-02 08:11:08 +1300

Yes, you are correct. The last incarnation of land tax in NZ exempted residential property, which is only fair. Stamp Duty payable by the seller is preferable.
Robert Murray commented 2016-11-30 22:29:27 +1300

People will speculate in anything (frozen orange juice futures) so the idea of preventing speculation is futile: limiting its extent through taxation may work. But a land tax will apply to all land and will tax those very people who regard their land as a home rather than an asset and aren’t speculating.
Bruce Thomas commented 2016-11-30 20:08:01 +1300

Graeme- The objective would be to reduce speculation, not to raise tax dollars. That would be a bonus. Hadley and Matthew, the issue with a Land tax is that it would increase rents for already stretched tenants. I would support a Stamp Duty as well, payable by the seller.Duncan – I agree. There needs to be an overall approach that targets supply as well as demand.
Gene Dalefield commented 2016-11-30 15:32:50 +1300

Tax all capital, not just the gains on capital.
Tam Eaton tagged this with important 2016-11-30 07:45:48 +1300
Sue Rine tagged this with interesting 2016-11-29 18:49:42 +1300
Graeme Kiyoto-Ward commented 2016-11-29 13:15:29 +1300

That’s damn near a perfect policy statement. e.g. “TOP support a suite of measures to ensure that housing exists to house people instead of being a commodity for speculation.”
Graeme Kiyoto-Ward tagged this with essential 2016-11-29 13:15:28 +1300
Duncan Stuart commented 2016-11-29 13:10:37 +1300

I support a suite of measures to ensure that housing exists to house people instead of being a commodity for speculation
Duncan Stuart tagged this with essential 2016-11-29 13:10:37 +1300
Nathan Rattray tagged this with important 2016-11-29 11:43:36 +1300
Nathan Rattray tagged this with essential 2016-11-29 11:43:36 +1300
Matthew Blair commented 2016-11-29 10:51:03 +1300

Capital or Land Tax is better than Capital Gains Tax
Hadley Pettigrew commented 2016-11-29 10:40:52 +1300

Capital gains tax is the wrong sort of tax, I think a land tax would be more applicable, most investors I know don’t sell their property they merely leverage off the asset as it gains value to buy more property entirely circumventing the capital gains tax.
Hadley Pettigrew tagged this with dislike 2016-11-29 10:40:51 +1300
Graeme Kiyoto-Ward commented 2016-11-28 23:05:24 +1300

For investment properties only or for all sales. Keep in mind a principle to work to so that there’s an outcome and something to communicate. Is the principle more revenue or reducing the housing demand?
duncan cairncross tagged this with important 2016-11-28 21:30:10 +1300
Jerry Cerveny commented 2016-11-28 19:21:14 +1300

!00%
Jerry Cerveny tagged this with essential 2016-11-28 19:21:14 +1300
Paul Eaton tagged this with important 2016-11-28 18:54:35 +1300
Paul Eaton tagged this with essential 2016-11-28 18:54:35 +1300
Bruce Thomas published this page in Suggestions 2016-11-28 17:50:05 +1300

Capital Gains Tax upon the sale of land.