There's outrage among taxpayers over the projected cost of downtown Auckland's Christmas tree.

The Auckland Ratepayers' Alliance has raised concern about the 18 metre Komititanga Square tree, which reportedly costs $1.3 million.

The council is stumping up $800,000 for it, with Heart of the City and Precinct Properties covering the rest.

Heart of the City chief executive Viv Beck says it's not being paid for out of general rates.

"The council is putting in a contribution of the city centre-targeted rate, which is paid for by city centre property owners, businesses and residents."

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