LAND VALUATIONS

Dominion, Volume 8, Issue 2270, 2 October 1914, Page 6

LAND VALUATIONS

SOUNDEST BASIS

STATEMENT BY THE PRIME MINISTER

An interesting statement on tho valuation of laud was supplied by the Prime Minister in the llouse of Representatives yesterday, in reply to a question by Dr: Newman, member for Wellington East, who asked', whether the Government was aware that in spite of the fact that rents in many parts of the city of Wellington had declined, the valuers for tho valuation Department were attempting to increase the unimproved value of the land and, if so, would they introduce legislation—(l) To provide that the valuations of the unimproved values of borough and suburban property shall be fair values, and that tho valuers shall be directed to take into consideration the letting Value of borough jind suburban lands where those lands contain buildings suitable to the sites ;(2) providing' that the value .for taxing purposes should bo assessed at a less sum than the actual marketable value and (3) to provide that one of the members of the Assessment Court shall be appointed by the owners of lauds in the district whose roll is being revised?

3lr. Massey (Prime Minister) replied: "Under the New Zealand law all land, if . not subject to any statutory restriction as to the use to which it can be put, must be valued on the basis of an unencumbered estate in fee-simple, and the value'of a parcel of land is determined by what that land is estimated to be worth for. the best use to which it

is adapted—not wliat it is estimated to • be worth for the use to which it is applied. Valuers are specifically instructed not to ..accept temporary speculative values, nor isolated 'Doom prices, nor values involved in exchanges ,of laud, as standards of land value, but to assign fair, relatively uniform unimproved values in view of the many purposes for which values are used. As land'tax is levied on the unimproved value, and also local rates in districts' where the unimproved value System of rating is : in forcc, it "is essential that unimproved values be fair and uniform, otherwise 0110 owner would bo taxed and rated unfairly in comparison with his neighbours, There is only one value for land for all purposes. . The contention that there should be a Ipw value for taxation and rating"purposes and a-high value for loan purposes is unsound. If such a syst.em were in force it would bo found that- a low value would no more insure a low rate being struck than a high value would insure a high loan being granted by the State Advances Department or other lending Departments of vhe State. The valuers employed in. the revaluation of . the city of Wellington are carrying out .then duties on the lines indicated signing fair selling values and adjusting their valuations to localities that have, declined or increased in value as the case may be, so ihat \inimproved values shall be relatively uniform throughout; Objectors have been interviewmg the valuers during the last three weeks—a course that lias led .to the settlement of several cases. It is careful adnunistration rather than legislation that is required to meet the proposals suggested iu l tho' honourable . member's questions." ' . 1 •