RATING VALUATIONS

Bay of Plenty Beacon, Volume 2, Issue 123, 14 February 1940, Page 5

RATING VALUATIONS

CAPITAL SYSTEM FAVOURED

COUNCIL'S DECISION

On Monday night the Borough Council discussed a remit which will be tabled at the forthcoming Municipal Conference at Wellington, and which was to the effect that legislation be enacted requiring a rating only on the basis of the capital value. His Worship the Mayor pointed out that the system at present operating in Whakatane, rating on unimproved valuation, had been in force for some and some difficulty might be experienced in chang ing it. Under the present conditions, said the Mayor, the Borough Avas progressing rapidly but the Council's revenue was remaining almost stationary. With more progress the Council Avas faced Avith more costs and the unimproved valuation system did not allow a proportionate increase in income. Capital A*aluation Avould. rectify the position. The Mayor asked the Council to support the remit. Cr Sullivan said that efforts \vere made some years ago to have the rating on unimproved A r alue and those efforts had been successful. The expenditure increases as the tOAvn develops but the revenue does not. Most of the people in Whakatane were liA'ing on land which Avas at present of a low rateable A r alue. On the outer areas were houses built on sections A r alued at £60. That meant that, at Is 6d in the £, those people Avere enjoying the amenities of the Borough for £4 10s per annum. Cr Sullivan said further that under capital valuation, revenue will increase with the expenditure, and the Council should certainly support the remit because it was fair and equitable, everyone paying their fair share. The present system was unfair to the business area, with its fixed high A r aluation. !

Cr Canning was of the opinion that without legislation the Council would never be able to get its rating system reversed. At present it was difficult for the Borough Council to make ends meet and the remit should have support. Similar sentiments were voiced by Cr Shapley, who added that it was only fair that those receiving She benefit of the services of the Borough should pay. The only way was to suppoi-t the remit. Some statistics from the 1939 Year Book were read by Cr Sullivan. These figures showed that 59 counties had unimproved rating while 66 were on the capital system. For Boroughs the figures were respectively, 80 to 18 and there were 26 having an annual valuation. , The Mayor said that there were many Boroughs in the same position as Whakatane; would, like to change but could not.