LOCAL TAXATION

Evening Post, Volume CXVII, Issue 63, 15 March 1934, Page 12

LOCAL TAXATION

SUGGESTED CHANGES

REPORT TO CONFERENCE

HOSPITAL LEVIES

At the last Municipal Conference, following a discussion upon local bodytaxation, a sub-committee, consisting of the Mayors of Wellington, Masterton, and Feilding and the association's counsel, was set up to consider the points made by various affiliated bodies and to draw up a report to this year's conference. The report was presented today, but was not discussed, being referred on to local bodies for their comment and for future discussion. The findings of the sub-committee were as follows:— 1. Hospital and charitable aid charges should be transferred from the local authorities and made a chavgo on the general Government revenue. 2. The present rating system was discussed and it was decided:— (a) The system of rating on annual value is to be preferred, provided that it is accompanied by surtax on property not adequately used by the owner. (b) Where the rating is on unimproved value, the council shall nevertheless levy the; following rates on. the annual value:—Water •rate, drainage rate, hospital and charitable aid rate, if this liability is not taken over by the General Government, special rates on loans for water or drainage. 3. That adequate and efficient-provi-sion should be made for the application of the principle of betterment in respect of municipal public works. 4. The executive- has also asked the Government to make the question of rating an order of reference for the local body commission which it proposes to set up, with a view to evolving a system of rating equitable to all classes of ratepayers. DISAGREEMENT WITH COUNTIES. The report then discussed the proposals in some detail. The committee suggested that hospital and charitable aid charges should be transferred to the Government as an alternative to the direct recommendation of the Counties' Association that the levy should be charged on a proportion compounded of capital value and population, and was really a protest against that suggestion. The counties' proposal to . employ these joint factors was investigated by Mr. yon Keisenberg, of the Hospitals Department, the results of which clearly showed that in the particular district investigated the proposed alteration would be unfair and unequal as between the large counties and small counties, tho large boroughs and small boroughs, and boroughs and counties. EATING SYSTEMS. Tho majority of the replies received by tho sub-commitjec indicated that there is a greater appreciation of the benefits of annual value than might have been supposed. It was quite clear from the investigations made, by the sub-committee of the association set up to deal with the urban farm lands rating question that no difficulties in respect of rating on urban farm land existed where rating was on the annual value. The committee took this to indicate that rating on the annual value was fair and equitable throughout. It was rating on income and did not eat up capital. The same applied, though not to the same extent, to rating on tho capital value, as capital value was not as elastic as annual value and did not so readily respond to variations in financial conditions. BETTERMENT.1 The principle of betterment had been generally approved by local bodies, but the committee was of opinion that it was very difficult today to obtain or to prove betterment. It was always an elusive thing, and when the matter was the subject of Court proceedings it was still more elusive. The reference to the question of rating to tho local body commission was generally approved of by the local bodies .who had addressed themselves to the question.