Affordable Housing Bill

Explanatory Note

This bill aims to address the pressing issue of housing affordability in New Zealand through the implementation of a Land Value Tax (LVT) system and the provision of Universal Basic Income (UBI) payments. The primary objectives of this legislation are to stabilize housing prices, promote efficient land use, and provide financial relief to residents during periods of high housing costs.

Key features of the bill include:

Land Value Tax (LVT): A tax levied on the unimproved value of land, designed to discourage speculative land holding and encourage productive use of land. The LVT rate is adjusted based on the ratio of median house prices to median household incomes (median multiple).
Universal Basic Income (UBI): Payments distributed equally to all eligible registered voters, funded by revenue generated from the LVT. These payments aim to provide financial support during periods when housing is deemed unaffordable.
Median Multiple Mechanism: The bill establishes a system for regularly assessing the median multiple (ratio of median house price to median annual household income) to determine LVT rates and UBI payment activation.
Administration and Enforcement: The Inland Revenue Department (IRD) is designated as the primary authority responsible for administering and enforcing the LVT and UBI systems.
Revenue Allocation: The bill outlines how LVT revenue will be used, prioritizing UBI payments and allocating surplus to an Affordable Housing Fund for housing-related initiatives.
Review and Adjustment Mechanisms: Provisions for periodic review and adjustment of the LVT and UBI systems to ensure ongoing effectiveness.
Transitional Arrangements: The bill includes measures to phase in the LVT system and provide support during the transition period.

This legislation represents a significant shift in New Zealand’s approach to housing affordability and land use. It aims to create a more equitable system that benefits all residents while promoting sustainable urban development.

The bill draws on economic theories of land value taxation and universal basic income, adapting these concepts to address New Zealand’s specific housing challenges. It has been developed in consultation with economists, housing experts, local government representatives, and community stakeholders.

Affordable Housing Bill

The Parliament of New Zealand enacts as follows:

Section 1: Title and Purpose

Short Title
1. This Act may be cited as the “Affordable Housing Act 2024”
Purpose of the Act
1. The primary purpose of this Act is to enhance housing affordability and promote efficient land use in New Zealand through the implementation of a Land Value Tax (LVT) and the provision of Universal Basic Income (UBI) payments.
2. This Act aims to stabilize housing prices by discouraging speculative land holding and encouraging the productive use of land.
3. The Act seeks to provide financial relief to residents during periods of high housing costs by redistributing LVT revenue through UBI payments.
4. The Act intends to ensure that the benefits of economic growth and land value appreciation are shared equitably among all residents, thereby reducing income inequality and enhancing social welfare.
5. The Act establishes mechanisms for regular review and adjustment of the LVT rates and UBI payments to ensure they remain effective and responsive to changing market conditions.
6. The Act promotes transparency, accountability, and public engagement in the administration and enforcement of the LVT and UBI systems.

Section 2: Definitions

Key Terms
1. Land Value Tax (LVT): A tax levied on the value of land, excluding any buildings or improvements on the land, aimed at promoting efficient land use and stabilizing housing prices.
2. Universal Basic Income (UBI): Payments distributed equally to all eligible registered voters, funded by revenue generated from the LVT, to provide financial relief during periods of unaffordable housing.
3. Median Multiple: The ratio of the median house price to the median annual household income within a specified region, used as an indicator of housing affordability.
4. Median House Price: The middle value of all recorded house sale prices in a region over a defined period, such that half the sales are above this price and half are below.
5. Median Annual Household Income: The middle value of all recorded household incomes in a region over a defined period, such that half the incomes are above this value and half are below.
Interpretation
1. Assessed Land Value: The value of the land as determined by the relevant authorities for the purpose of calculating the LVT, excluding any buildings or improvements on the land.
2. Eligible Recipient: An individual who meets the criteria for receiving UBI payments as defined in Section 5.2 of this Act.
3. Registered Voter: An individual who is registered to vote in New Zealand and is eligible to participate in national and local elections.
4. Resident: An individual who has been living in New Zealand for a continuous period of at least 12 months prior to the date of any relevant assessment or payment.
5. Local Government Authorities: The administrative bodies responsible for local governance, including city, district, and regional councils, which assist in the implementation of the LVT.
6. Surplus Revenue: Any remaining LVT revenue after the distribution of UBI payments and covering administrative costs, allocated to the Affordable Housing Fund for housing-related initiatives.
7. Affordable Housing Fund: A designated fund established to support housing-related initiatives, including the development of affordable housing projects, grants, subsidies, and community development projects.
Additional Definitions
1. Appeal: A formal request by a landowner or recipient to review and reconsider an assessment or decision made under this Act.
2. Assessment Period: The defined period during which data is collected and analyzed to determine the median house price, median annual household income, and the median multiple.
3. Fiscal Year: The financial year for the government of New Zealand, beginning on 1 April and ending on 31 March of the following year.
4. Transitional Support Fund: A fund established to provide financial assistance to landowners facing hardship during the transition to the new LVT system.
5. Implementation Plan: A detailed plan developed by the IRD outlining the key milestones and timelines for the roll-out of the LVT and UBI systems.
6. Independent Review Board: A board established to handle appeals and disputes related to LVT assessments and UBI payment eligibility, ensuring fair and transparent resolution.

Section 3: Establishment of Land Value Tax (LVT)

Imposition of LVT
1. The Land Value Tax (LVT) shall be imposed on all land within New Zealand, excluding land explicitly exempted under this Act.
2. The LVT shall be calculated based on the assessed value of the land, excluding any improvements or structures on the land.
3. The primary purpose of the LVT is to encourage efficient land use and to stabilize housing prices by discouraging speculative land holding.
Calculation of LVT Rates
1. The base rate for the LVT shall be determined by the Inland Revenue Department (IRD) annually, based on the median house-price-to-income multiple (median multiple).
2. When the median multiple exceeds 3.0, the LVT rate shall be adjusted upwards according to a schedule set forth in Schedule 2 of this Act.
3. The LVT rate shall be set to 0% when the median multiple is at or below 3.0.
4. The IRD shall publish the LVT rate adjustments in the official Gazette and on the IRD website.
Adjustment of LVT Rates Based on Median Multiple
1. The median multiple is defined as the ratio of the median house price to the median annual household income within a specified region.
2. The IRD, in collaboration with the Ministry of Housing and Urban Development, shall collect and analyze data on median house prices and median household incomes to determine the median multiple.
3. The assessment of the median multiple shall be conducted semi-annually to ensure timely adjustments to the LVT rate.
4. The LVT rate shall be adjusted according to the following schedule:
5. Median multiple 3.0 or below: LVT rate = 0%
6. Median multiple 3.1 to 4.0 LVT rate = 1% of land value
7. Median multiple 4.1 to 5.0 LVT rate = 2% of land value
8. Median multiple 5.1 and above: LVT rate = 3% of land value

Section 4: Land Valuations for LVT Purposes

Establishment of Land Valuation Unit
1. A specialized Land Valuation Unit (LVU) shall be established within Quotable Value Limited or as an independent entity under the oversight of the Inland Revenue Department.
2. The LVU shall be responsible for conducting regular land valuations specifically for the purpose of Land Value Tax assessments.
Valuation Methodology and Frequency
1. The LVU shall develop and maintain standardized methodologies for assessing land value, excluding improvements.
2. Land valuations shall be conducted annually to ensure up-to-date and accurate assessments for LVT purposes.
3. The valuation methodology shall be transparent and publicly available, incorporating factors such as location, zoning, and local market conditions.
Funding of Valuations
1. The primary cost of land valuations shall be borne by the national government to ensure consistency and fairness across all regions.
2. A portion not exceeding 5% of the annual LVT revenue shall be allocated to offset the costs of the valuation system.
3. The exact percentage shall be determined annually by the Minister of Finance in consultation with the IRD and the LVU, based on the actual costs incurred and projected needs.
Appeals Process
1. Landowners may appeal their land valuation within 60 days of receiving their assessment notice.
2. A nominal fee, to be set by regulation and not exceeding 1% of the assessed land value or NZD 500 whichever is lower, shall be required to file an appeal.
3. The appeal fee shall be fully refunded if the appeal results in a reduction of the assessed land value.
Transparency and Reporting
1. The LVU shall publish an annual report detailing:
2. The total cost of conducting land valuations nationwide.
3. The number of valuations conducted.
4. A summary of valuation methodologies used.
5. The number and outcomes of appeals.
6. This report shall be made publicly available and submitted to Parliament.
Collaboration with Local Authorities
1. The LVU shall collaborate with local authorities to ensure that LVT valuations are coordinated with existing rating valuations to minimize duplication and inconsistencies.
2. Local authorities shall provide relevant data and assistance to the LVU as needed for accurate land valuations.
Review and Adjustment
1. The valuation system and its funding mechanism shall be reviewed every three years to ensure efficiency, fairness, and effectiveness.
2. Based on these reviews, the Minister of Finance may propose adjustments to the valuation process or funding mechanism, subject to parliamentary approval.

Section 4: Criteria for Median Multiple

Definition of Median Multiple
1. The median multiple is defined as the ratio of the median house price to the median annual household income within a specified region.
2. The median house price is the middle value of all recorded house sale prices in the region over a defined period, such that half the sales are above this price and half are below.
3. The median annual household income is the middle value of all recorded household incomes in the region over a defined period, such that half the incomes are above this value and half are below.
Data Collection and Reporting
1. The Inland Revenue Department (IRD) and the Ministry of Housing and Urban Development shall collaborate to collect data on house prices and household incomes.
2. Data on house prices shall be sourced from property transaction records, real estate sales data, and other relevant sources.
3. Data on household incomes shall be sourced from tax records, census data, and other relevant sources.
4. The IRD and the Ministry of Housing and Urban Development shall ensure that the data collection methods are consistent, reliable, and updated regularly to reflect current market conditions.
5. The collected data shall be analyzed and reported semi-annually to determine the median house price, median household income, and the resulting median multiple.
Frequency of Median Multiple Assessment
1. The assessment of the median multiple shall be conducted semi-annually, with the first assessment occurring in January and the second in July of each year.
2. The IRD and the Ministry of Housing and Urban Development shall publish the results of the median multiple assessment within 30 days of each assessment period.
3. The published report shall include detailed data on median house prices, median household incomes, and the calculated median multiple for each region.
4. The report shall be made available to the public through the official websites of the IRD and the Ministry of Housing and Urban Development, as well as through other appropriate channels.
Adjustment Procedures
1. Based on the semi-annual assessment, the IRD shall adjust the Land Value Tax (LVT) rate according to the schedule outlined in Section 3.3.4 of this Act.
2. The adjusted LVT rate shall take effect on the first day of the month following the publication of the median multiple assessment report.
3. The IRD shall notify all relevant stakeholders, including landowners and local government authorities, of any changes to the LVT rate promptly.
4. Any appeals or disputes regarding the median multiple calculation or the resulting LVT rate adjustment shall be handled through a formal process established by the IRD.

Section 5: Universal Basic Income (UBI) Payments

Establishment of UBI Linked to LVT
1. Universal Basic Income (UBI) payments shall be established and funded directly from the revenue generated by the Land Value Tax (LVT).
2. The purpose of the UBI payments is to provide financial relief to residents during periods when housing is unaffordable and the LVT is in effect.
3. UBI payments shall be distributed equally to all eligible registered voters within New Zealand.
Eligibility Criteria for UBI Payments
1. Eligibility for UBI payments is limited to individuals who are registered voters and tax residents of New Zealand.
2. To qualify for UBI payments, individuals must have been residents of New Zealand for at least 12 months prior to the date of the payment distribution.
3. The IRD shall maintain and update the list of eligible individuals based on voter registration and residency data.
Distribution Mechanism for UBI Payments
1. UBI payments shall be distributed semi-annually, in alignment with the LVT assessment periods.
2. The amount of the UBI payment shall be calculated based on the total LVT revenue collected and the number of eligible recipients.
3. UBI payments shall be made via direct deposit to the bank accounts of eligible individuals. In cases where direct deposit is not possible, alternative payment methods shall be provided.
4. The IRD shall ensure the secure and efficient distribution of UBI payments, with appropriate measures in place to prevent fraud and errors.
Notification and Appeals Process
1. The IRD shall notify eligible recipients of their UBI payment amounts and distribution dates at least 30 days in advance.
2. Any individual who believes they have been incorrectly excluded from the UBI payment list may submit an appeal to the IRD.
3. The IRD shall establish a formal appeals process to review and resolve disputes regarding UBI payment eligibility and distribution.
4. Appeals must be submitted within 60 days of the notification date, and the IRD shall provide a resolution within 30 days of receiving the appeal.
Funding and Budgeting
1. The revenue generated from the LVT shall be allocated first to fund UBI payments, with any surplus managed according to Section 7.3 of this Act.
2. The IRD shall prepare an annual budget report detailing the revenue collected from the LVT and the total amount distributed as UBI payments.
3. The budget report shall be made available to the public and submitted to the Parliament for review.
Termination and Reinstatement of UBI Payments
1. UBI payments shall be terminated when the median multiple returns to 3.0 or below and the LVT rate drops to 0%.
2. Should the median multiple exceed 3.0 in subsequent assessments, UBI payments shall be reinstated, following the procedures outlined in this section.
3. The IRD shall notify all relevant stakeholders of the termination or reinstatement of UBI payments promptly.

Section 6: Administration and Enforcement

Responsible Authorities
1. The Inland Revenue Department (IRD) shall be the primary authority responsible for the administration and enforcement of the Land Value Tax (LVT) and the Universal Basic Income (UBI) payments.
2. The Ministry of Housing and Urban Development shall collaborate with the IRD in the collection and analysis of data necessary for determining the median multiple and other relevant metrics.
3. Local government authorities shall assist the IRD in the identification and valuation of land within their jurisdictions, providing necessary data and support.
Mandate for Inland Revenue Department (IRD)
1. The IRD shall be mandated to assess, collect, and administer the LVT in accordance with this Act.
2. The IRD shall establish a dedicated unit for the administration of the LVT and UBI payments, ensuring adequate resources and staffing.
3. The IRD shall develop and maintain an online portal for the submission of LVT payments, access to assessment information, and appeals processes.
4. The IRD shall ensure transparency and accountability in the administration of the LVT and UBI payments, regularly publishing reports and updates.
Collection and Administration of LVT
1. The IRD shall issue annual LVT assessments to all landowners subject to the tax, detailing the assessed land value, applicable LVT rate, and total amount due.
2. Landowners shall be required to pay the LVT within 60 days of receiving the assessment notice. Late payments shall be subject to penalties as outlined in Schedule 3 of this Act.
3. The IRD shall provide mechanisms for landowners to appeal their LVT assessments, ensuring a fair and transparent process.
4. The IRD shall ensure that all collected LVT revenues are allocated for UBI payments and other designated uses as stipulated in this Act.
Monitoring and Enforcement Mechanisms
1. The IRD shall establish a system for monitoring compliance with the LVT, including regular audits and inspections.
2. Penalties for non-compliance, including fines and legal action, shall be enforced to ensure adherence to the LVT requirements.
3. The IRD shall collaborate with local government authorities and other relevant agencies to ensure accurate land valuations and assessments.
4. The IRD shall maintain a database of all land subject to the LVT, including ownership details, assessed values, and payment status.
Appeals Process
1. Landowners who wish to appeal their LVT assessments must submit a formal appeal to the IRD within 30 days of receiving their assessment notice.
2. The IRD shall review and resolve all appeals within 60 days of submission, providing a detailed explanation of the decision.
3. Appeals may be based on disputes regarding land valuation, LVT rate application, or eligibility for exemptions.
4. A further appeal can be made to an independent review board if the landowner is not satisfied with the IRD’s decision.
Public Awareness and Education
1. The IRD shall conduct public awareness campaigns to educate landowners and the general public about the LVT and UBI systems.
2. Educational materials and resources shall be made available online and through other appropriate channels to ensure widespread understanding and compliance.
3. The IRD shall provide training and support to local government authorities and other stakeholders involved in the administration of the LVT.
Reporting and Accountability
1. The IRD shall prepare and publish an annual report detailing the administration of the LVT and UBI payments, including revenue collected, payments distributed, and compliance rates.
2. The annual report shall be submitted to Parliament and made available to the public through the IRD’s website.
3. The IRD shall be subject to regular audits by an independent body to ensure transparency, accountability, and effective use of funds.

Section 7: Use of LVT Revenue

Allocation of LVT Revenue
1. Revenue generated from the Land Value Tax (LVT) shall be allocated primarily to fund Universal Basic Income (UBI) payments for eligible residents.
2. A portion of the LVT revenue may be allocated for administrative costs associated with the implementation and enforcement of this Act, ensuring efficient operation.
3. Any remaining LVT revenue after the distribution of UBI payments and covering administrative costs shall be managed as surplus revenue, with specific guidelines for its use outlined in this section.
Funding of UBI Payments
1. The primary use of LVT revenue shall be to fund UBI payments, distributed equally among all eligible registered voters.
2. The IRD shall calculate the total amount of UBI payments based on the revenue collected and the number of eligible recipients.
3. UBI payments shall be prioritized in the allocation of LVT revenue to ensure that all eligible individuals receive their payments in a timely manner.
Surplus Revenue Management
1. Surplus LVT revenue, defined as any remaining funds after UBI payments and administrative costs, shall be deposited into a designated Affordable Housing Fund.
2. The Affordable Housing Fund shall be used to support housing-related initiatives, including but not limited to:
3. Development of affordable housing projects.
4. Grants and subsidies for first-time homebuyers.
5. Renovation and maintenance of existing affordable housing units.
6. Community development projects aimed at improving housing conditions.
7. The allocation of surplus revenue from the Affordable Housing Fund shall be overseen by a committee composed of representatives from the IRD, the Ministry of Housing and Urban Development, and other relevant stakeholders.
8. The committee shall establish criteria and guidelines for the distribution of funds, ensuring transparency and accountability in the use of surplus revenue.
Reporting and Accountability
1. The IRD shall prepare an annual report detailing the allocation and use of LVT revenue, including:
2. Total LVT revenue collected.
3. Total amount distributed as UBI payments.
4. Administrative costs incurred.
5. Surplus revenue and its allocation.
6. The annual report shall be submitted to Parliament and made available to the public through the IRD’s website.
7. The Affordable Housing Fund committee shall also prepare an annual report on the use of surplus revenue, including detailed information on funded projects and initiatives.
Transparency and Public Engagement
1. The IRD and the Affordable Housing Fund committee shall ensure transparency in the allocation and use of LVT revenue through regular public updates and disclosures.
2. Public engagement processes shall be established to gather input and feedback on the use of surplus revenue, ensuring that community needs and priorities are considered.
3. Stakeholders, including local government authorities, non-profit organizations, and community groups, shall be involved in the planning and implementation of housing-related initiatives funded by surplus LVT revenue.

Section 8: Review and Adjustment Mechanisms

Periodic Review of LVT and UBI System
1. The Inland Revenue Department (IRD), in collaboration with the Ministry of Housing and Urban Development, shall conduct a comprehensive review of the Land Value Tax (LVT) and Universal Basic Income (UBI) system every three years.
2. The review shall assess the effectiveness of the LVT in stabilizing housing prices and promoting efficient land use, as well as the impact of UBI payments on financial relief for residents.
3. The review process shall include an evaluation of data collection methods, assessment accuracy, administrative efficiency, and compliance rates.
4. Findings from the review shall be documented in a report, including recommendations for adjustments or improvements to the LVT and UBI system.
Adjustment of Rates and Thresholds
1. Based on the findings of the periodic review, the IRD shall have the authority to propose adjustments to the LVT rates and the median multiple thresholds to ensure the system remains effective and fair.
2. Proposed adjustments shall be subject to public consultation and feedback before implementation.
3. Adjustments to LVT rates and thresholds shall be implemented through regulations issued by the IRD, with the approval of the Parliament if necessary.
Consultation and Public Input
1. The IRD and the Ministry of Housing and Urban Development shall establish a formal consultation process to gather input from stakeholders, including landowners, local government authorities, housing experts, and the general public.
2. Public consultations shall be conducted prior to any major adjustments to the LVT rates, median multiple thresholds, or UBI payment structures.
3. The IRD shall provide opportunities for stakeholders to submit written feedback, participate in public hearings, and engage in dialogue through online platforms.
4. Summaries of public input and the IRD’s responses shall be published to ensure transparency and accountability in the decision-making process.
Implementation of Adjustments
1. Adjustments to the LVT rates and thresholds shall take effect at the beginning of the next fiscal year following the completion of the review and consultation process.
2. The IRD shall notify all relevant stakeholders, including landowners and local government authorities, of any adjustments to the LVT rates and thresholds at least 60 days prior to implementation.
3. The IRD shall update its online portal and other informational materials to reflect the adjusted rates and thresholds, ensuring that all affected parties are informed.
Monitoring and Continuous Improvement
1. The IRD shall establish a continuous monitoring system to track the performance and impact of the LVT and UBI system in real-time.
2. Key performance indicators (KPIs) shall be defined and regularly reviewed to measure the effectiveness of the LVT in achieving its intended goals.
3. The IRD shall implement a feedback loop, incorporating lessons learned and stakeholder feedback into ongoing improvements to the LVT and UBI system.
4. An annual summary of monitoring activities and continuous improvement initiatives shall be included in the IRD’s annual report.
Independent Oversight
1. An independent oversight committee shall be established to oversee the periodic reviews and adjustment processes, ensuring objectivity and impartiality.
2. The oversight committee shall be composed of representatives from academia, housing advocacy groups, economic experts, and other relevant stakeholders.
3. The oversight committee shall review the findings of the periodic reviews, monitor the implementation of adjustments, and provide recommendations for further improvements.
4. Reports and recommendations from the oversight committee shall be made publicly available to enhance transparency and public trust.

Section 9: Transitional Provisions

Implementation Timeline
1. The provisions of this Act shall come into force on the first day of the fiscal year following its enactment by Parliament.
2. The Inland Revenue Department (IRD) shall develop an implementation plan outlining the key milestones and timelines for the roll-out of the Land Value Tax (LVT) and Universal Basic Income (UBI) systems.
3. The implementation plan shall include detailed timelines for public communication, system development, data collection, initial assessments, and the commencement of LVT and UBI payments.
Transitional Arrangements for Existing Properties
1. Landowners shall receive notice of the upcoming LVT at least six months prior to its implementation.
2. For the first year of implementation, LVT assessments shall be based on existing property valuations, with adjustments made as necessary in subsequent assessments.
3. Landowners may appeal their initial LVT assessments during a special transition period of 90 days from the date of receiving their assessment notice.
Phasing in of LVT and UBI System
1. The LVT rate shall be phased in over a period of three years to allow landowners and the market to adjust gradually.
2. Year 1: 50% of the calculated LVT rate.
3. Year 2: 75% of the calculated LVT rate.
4. Year 3: 1. of the calculated LVT rate.
5. UBI payments shall commence six months after the first LVT assessments are issued, ensuring that sufficient revenue has been collected.
6. During the transition period, the IRD shall provide support and resources to assist landowners in understanding and complying with the new LVT requirements.
Transitional Support Measures
1. The IRD shall establish a transitional support fund to assist landowners facing financial hardship as a result of the new LVT.
2. Eligibility criteria for transitional support shall be defined, prioritizing low-income landowners and those with significant changes in their tax obligations.
3. Transitional support measures may include temporary tax deferrals, payment plans, and financial counseling services.
Communication and Public Awareness
1. The IRD, in collaboration with the Ministry of Housing and Urban Development, shall conduct a comprehensive public awareness campaign to educate landowners and the general public about the new LVT and UBI systems.
2. Information sessions, workshops, and online resources shall be provided to ensure widespread understanding of the new systems and their implications.
3. The IRD shall establish a dedicated helpline and online support portal to address questions and concerns during the transition period.
Monitoring and Evaluation
1. The IRD shall closely monitor the implementation of the LVT and UBI systems during the transition period, identifying and addressing any issues promptly.
2. An interim evaluation report shall be prepared at the end of the first year of implementation, providing insights into the effectiveness of the transition process and recommending any necessary adjustments.
3. Stakeholder feedback shall be actively sought and incorporated into ongoing improvements to the LVT and UBI systems.
Legal Provisions
1. Any existing laws or regulations that conflict with the provisions of this Act shall be amended or repealed to ensure consistency.
2. The IRD shall issue regulations and guidelines necessary to facilitate the transition to the new LVT and UBI systems.

Section 10: Miscellaneous Provisions

Regulations and Orders
1. The Inland Revenue Department (IRD) shall have the authority to issue regulations and orders necessary for the implementation and enforcement of this Act.
2. All regulations and orders issued under this Act shall be consistent with its objectives and provisions.
3. Regulations and orders shall be published in the official Gazette and on the IRD’s website, ensuring transparency and public access.
Repeals and Amendments
1. Any existing laws or regulations that are inconsistent with the provisions of this Act are hereby repealed or amended to the extent of the inconsistency.
2. The IRD shall identify and recommend any necessary legislative amendments to ensure the effective implementation of this Act.
3. The Parliament shall review and enact necessary amendments promptly to support the objectives of this Act.
Savings and Transitional Provisions
1. All actions and decisions taken under previous laws related to land valuation and taxation shall remain valid and enforceable to the extent that they are not inconsistent with the provisions of this Act.
2. Transitional arrangements specified in ection 9 of this Act shall apply to ensure a smooth transition to the new Land Value Tax (LVT) and Universal Basic Income (UBI) systems.
3. Any rights, liabilities, obligations, or proceedings existing or pending under previous laws shall not be affected by the enactment of this Act, except as provided in this Act.
Interpretation and Dispute Resolution
1. In the event of any ambiguity or uncertainty in the interpretation of this Act, the provisions shall be interpreted in a manner that best achieves the objectives of the Act.
2. The IRD shall establish a dispute resolution mechanism to address any conflicts arising under this Act, including disputes related to LVT assessments, eligibility for UBI payments, and other administrative matters.
3. Disputes shall be resolved through a fair and transparent process, with the option for further appeal to an independent review board if necessary.
Reporting and Accountability
1. The IRD shall prepare and submit an annual report to Parliament detailing the implementation and impact of the LVT and UBI systems, including:
2. Revenue collected from the LVT.
3. Distribution of UBI payments.
4. Administrative costs and efficiency.
5. Impact on housing affordability and land use.
6. The annual report shall be made publicly available to ensure transparency and accountability.
7. The IRD shall be subject to regular audits by an independent body to ensure compliance with the provisions of this Act and the effective use of public funds.
Confidentiality and Data Protection
1. The IRD shall ensure the confidentiality of all personal and financial information collected under this Act, in accordance with relevant data protection laws and regulations.
2. Data collected for the purposes of administering the LVT and UBI systems shall be used solely for those purposes and shall not be disclosed to unauthorized parties.
3. The IRD shall implement robust data protection measures to safeguard against unauthorized access, use, or disclosure of personal and financial information.
Review and Sunset Clause
1. This Act shall be subject to a comprehensive review by Parliament every ten years to assess its effectiveness and continued relevance.
2. Based on the findings of the review, Parliament may amend, extend, or repeal this Act as necessary to achieve its objectives.
3. If no legislative action is taken to extend or amend this Act following the ten-year review, the provisions of this Act shall continue to remain in force.

Section 11: Land Valuations for LVT Purposes

Establishment of Land Valuation Unit
1. A specialized Land Valuation Unit (LVU) shall be established within Quotable Value Limited or as an independent entity under the oversight of the Inland Revenue Department.
2. The LVU shall be responsible for conducting regular land valuations specifically for the purpose of Land Value Tax assessments.
Valuation Methodology and Frequency
1. The LVU shall develop and maintain standardized methodologies for assessing land value, excluding improvements.
2. Land valuations shall be conducted annually to ensure up-to-date and accurate assessments for LVT purposes.
3. The valuation methodology shall be transparent and publicly available, incorporating factors such as location, zoning, and local market conditions.
Funding of Valuations
1. The primary cost of land valuations shall be borne by the national government to ensure consistency and fairness across all regions.
2. A portion not exceeding 5% of the annual LVT revenue shall be allocated to offset the costs of the valuation system.
3. The exact percentage shall be determined annually by the Minister of Finance in consultation with the IRD and the LVU, based on the actual costs incurred and projected needs.
Appeals Process
1. Landowners may appeal their land valuation within 60 days of receiving their assessment notice.
2. A nominal fee, to be set by regulation and not exceeding 1% of the assessed land value or NZD 500 whichever is lower, shall be required to file an appeal.
3. The appeal fee shall be fully refunded if the appeal results in a reduction of the assessed land value.
Transparency and Reporting
1. The LVU shall publish an annual report detailing:
2. The total cost of conducting land valuations nationwide.
3. The number of valuations conducted.
4. A summary of valuation methodologies used.
5. The number and outcomes of appeals.
6. This report shall be made publicly available and submitted to Parliament.
Collaboration with Local Authorities
1. The LVU shall collaborate with local authorities to ensure that LVT valuations are coordinated with existing rating valuations to minimize duplication and inconsistencies.
2. Local authorities shall provide relevant data and assistance to the LVU as needed for accurate land valuations.
Review and Adjustment
1. The valuation system and its funding mechanism shall be reviewed every three years to ensure efficiency, fairness, and effectiveness.
2. Based on these reviews, the Minister of Finance may propose adjustments to the valuation process or funding mechanism, subject to parliamentary approval.