SYSTEM OF RATING

Dominion, Volume 37, Issue 193, 13 May 1944, Page 8

SYSTEM OF RATING

Makara County Ratepayers Seek Change COUNCIL’S DIVIDED OPINION

' The Makara County Council, at its monthly meeting yesterday, received a petition from 332 ratepayers asking that a poll be taken on a proposal to change the basis of rating in the county from capital value to unimproved value. In accordance with notice, Cr. r,. Windley moved: i’That in the opinion of this council the unimproved basis ot rating in the Makara County would not be as satisfactory as rating on the capital value, and that councillors address meetings of ratepayers on the proposal to rate on the basis of the unimproved value. Cr. Windley said there was a certain amount of dissatisfaction yjiiong ratepayers, who were not satisfied that they were getting a sufficient return for the rates they were paying under the present system. He felt that those who had signed the petition did not understand what they were asking for. Many believed that they would be rated on the present unimproved value, which was incorrect, as if the poll were carried .there would be a new valuation. All local bodies required a certain amount of revenue, anil the ratepayers bad to find this. All over the Dominion the rating basis had been changed from time to time, but the ratepayers still had to find the money. He suggested that councillors at election time should meet ratepayers, and give an account of their stewardship. What the ratepayers should have signed was a petition praying for relief from hospital taxation, as the hospital levy was fast approaching- the position when it would be on a level with the county general rate. Counties could not go on carrying this burden. The Minister of Social Security had given a half promise that hospital finance would be considered by the special committee of the House. Such a question should not be handled by a committee of members of Parliament, as the Government would have a majority on that committee. He, however, was not expecting much from the recommendations that that committee would’ bring down. Or. R. G. Mexted. in seconding the motion, said that rating on the unimproved value had been carried in Wellington, sponsored by the Labour Party, but the result must have been the opposite to what had been anticipated. Support for rating on the unimproved value had come largely from people who were living in old houses on valuable land. If rating on unimproved value were carried in Makara County the ratepayers would find themselves much worse off. Cr. C. H. Phillips said that under rating on capital value there was no equality, as the more a ratepayer improved his property the higher he was taxed. None of the counties which had adopted rating on unimproved value had ever reverted from it. A revaluation would not affect the rating. The people who had signed the petition knew that they would be better off under rating on the unimproved value.

Question for Ratepayers. ,

Cr. A. D. Park said he had an open mind on the question, and was more concerned with how the system, of rating affected the Dominion as a whole. He •found from the Year Books that for the year 1940-41, 221 local bodies rated. on the unimproved value, 189 on.capital value, and 108 on other systems. Fortytwo per cent, of the local bodies, comprising 58 per cent, of the population, rated on the unimproved value.. Rating on unimproved value was entirely at the option of the ratepayers, and. a reversion to the old system was provided for after three years’ experience. He felt that, m view of the different sectional interests involved, and the limited time available to make a comprehensive research into the complete effects of a change, and in view of the statutory right of ratepayers to determine for themselves what system should 'be adopted, the question involved in the motion should be deferred. On the motion being put to the vote, four voted for it and four against, and the chairman, Mr. R. W. Bottomley, said he would leave it at that.