RATING SYSTEMS

Dominion, Volume 8, Issue 2393, 24 February 1915, Page 9

RATING SYSTEMS

BISCUSSED BY THE COUNCIL UNIMPROVED OR ANNUAL Y ALUIS

Extraordinary as were some of, the readjustments of values in Wellington mads by Government officials at the last re-valuation of city properties, it .is not surprising to find someone moving in the matter of a reversion to the old s.ystom of rating on the annual value. The agitation for a is not confined to Wellington. A petition has already been framed in G'bristchurch wlich will pray that the Mayor of that city take a poll on the' question of reverting to the old, and, what some people consider, the more equitable system of rating. The matter was brought up at a special "meeting of the City Council held yesterday afternoon when Councillor M. P. Luekie moved:—

' "That, this council is of opinion "that a poll of the ratepayers should be taken at the earliest' possible date to decide whether or not the council shall revert to the principle of rating on annual values in lieu of the present system of rating on unimproved values."' Councillor Liickie. in speaking to the motion, said that the passing of his motion did not pledge the council to an expression of opinion, but it gave tho_ public an opportunity of expressing their views on this important subject. The method of rating oh the unimproved value created utterly fictitious values, and did_ not convey to the public the proper ideas of property values in Wellington. He argued that the reversion to the old system of rating on the annual values did not necessarmean that . the owners of large buildings _in the city would have to pay less ill rates and quoted'instances of individual properties which, if rated, would have to pay more. Messrs. Nathan and Co., whose building was valued 'at £50,000 paid £408 in rates at present, but under the old system, would pay -£491 per annum; . The Bank of Now Zealand, valued at £67,000, would pay £545 instead of £465; the Grand Hotel would pay £493 instead of £376: the Royal. Oak Hotel, £471 instead of £451; and Kirkcaldie and Stains, £266 a year more than tliey were paying now. On a list of some of the- principal buildings whicli he had, the increase in the amount ,of rates would be from' £3302 to £3839, and the difference thus made would coriseoiiently 'help to lighten the burden of those who were paying far too much in rates. Eating on the unimproved value had had a very serious effect on Wellington, in preventing people keeping gardens and open spaces, and for that reason Wellington was not nearly so attractive as other centres. He wished to impress on councillors that the ratepayers should be given this opportunity to express an opinion as to -whether the present ■practice'should continue or whether the city should Tevcrt to the old one, and emphasised his opinion that the earning power of a building was its true value, and. was' the one on which it should be taxed. Thoro was no debate on the motion, which was lost by eight votes to two.