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Hokitika Guardian, 22 January 1923, Page 2

[t is expected that at the first eon-i-enient opportunity rating on unimproved values will crop up in the County area. The matter is one for rhe ratepayers to deteimine themselves by a poll, but it is as well to refer to the matter at this juncture because there are various aspects to be considered. Probably most folk will be disposed to approach the subject from n matter of personal liability. The county resident will be asking how will the change affect him personally Well, it will bo a rating adjustment. The 'ocal body will require to collect in the aggregate us much in rates under old system ns another, whether it be pApitnl value, its at present, or on -

improved value. die unimproved value is tlie land value without improvements. and it is a stock argument always that rile enterprising improver of his land should not he taxed for his improvements while his less enterprising neighbor fails to add to the value of his holding by additions of fencing, clearing or buildings. Assuming that the local body derives £4.000 a year in rates from capital values, it will he entitled to derive that amount from the unimproved values, also. So that when the change takes pin e the enterprising settler would he freed from the proportion of rates charged on' his improvements, and the difference would he divided up among those who have more land value and less improved value. While this sounds equitable. it is in the working out of the principle that the test of the situation arises A valuable busiue-s on an area of land adds to the capital value, and under the improved value a trader carrying on it lucrative business would find his rates drop considerably, but t 1,.. nature of his trade or the value of his income perhaps places him b- ltev ~.1,1,1 t,, pay rates than his next door neighbor, who with a less improved pine", and it more confined bust., •*, has reduced facilities to pay the increased burden of rates which would 1 :■! 1 on liiin. To lake a concrete example locally it ' is a fact that when the Borough of Hokitika adopted rating on unimproved value, the hanking institution- ami other kindred affluent businesses, obtained a benefit in deeron-od rates which had to lie made up by ethers certainly less able to pa*. In towns and cities particularly there is the tendenrt to shift the burden ol taxation from the large enterprises cartying considerable improvements to the smaller section of the ratepayers. In country districts those holding the more extensive areas would experience an increase in their rate- on ih-- unimproved system, hut in a district such as this the increase would mu in- aim .mini, nor of a nature to force the hind very readily on to the market. Here values do not range high, though imm now on land values are likely m have a rising tendency. In a count i.v area an tqiiitahle application of the principle of rating on unimproved values, calls in the first instance for a uniform valuation system. We do not know v.lict her that exists as yet, hut until it does the introduction of the scheme should be delayed. It was mentioned at last County meeting for instance that a considerable area of the district had not. been revalued. If that be so. then tlie re is not a uniform system to begin with. Another difficulty in a County area is in relation to the value for township areas. In the case of capital valuation they cariv improvements which are rated and form an appreciable portion of the rates. But on unimproved values, the -mail sections in townships would carr\ onl\ a nominal value, and a minimum rate. The difference in those cases would lie transferred to the settlers. The net result, it would appear. would not give that degree or relief which the principle baldly stated suggests in the first instance. The change over only a recasting of the rates and while many would lie penalised not a few of those well able to contribute liberally to the rates of the district would escape a fair share of the Icx-al taxation. I I i I I j I I i i