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Hokitika Guardian, 20 August 1930, Page 4

Locai. bodies, and municialities in particular, are greatly perturbed by the lute Full Court, decision in a Northcote Borough case, that a remission of oO per cent of rates upon a. 'property riuiy be successfully claimed if a building on the land has been vacant for six months, even though the property is rated on the unimproved value. The local bodies of the Auckland suburban area rating on the unimproved value system are up in arms against the decision, which it is considered vitally affects t’heir income. A 1 meeting of representatives was held and as a result the first stop has been taken towards obtaining amending legislation, and Parliament is being asked to do something during the present session. All local bodies rating on the unimproved value are affected by the decision, including the Hokitika Borough Council. It is considered that the legal decisions can also affect past payments, and in that case refunds may V asked for, and under the decision, recovered. If this be the correct interpretation of (the judgment, any amending legislation passed should be retrospective in its application There are some seven tyrsevep munieinnl Councils rating under the unimproved system, but County and other boards adjacent to centres, which also rate under the same system, would 1>» amenable to the interpretation now put on the special clause in the Rating Act. The law appears to lie governed by Sections 64 and 09 of tie Act, and hitherto it has been ruled that in relation to unimproved values which of course deal only with the land values,, that the rating of five buildings (which are the improvements—and not rated) do not come into the ruling category, and therefore there are nob any rates to remit in the case of buildings unoccupied, under the statutory provision. This has'been the general contention, and the basis of action by. the local bodies. There lias, nevertheless, been the opinion in certain quarters that the law was so framed and the sections so phrased, as to bring unimproved values within the scope of the remission. It is a fadt Jtliait (in, rating Under capital value, the unimproved value is included in the capital sum, and as such is recognised as a subject for remission of rates in the circiimtances provided for in Section 64. A portion of the value of any buildings is the land on which it stands, necessarily, and this supplies the reason why unimproved value becomes linked up. As . has been said where, unimproved value solely is affected,! buildings do not come in, but the highestlegal authority rules otherwise based on the interpretation of the law as It stands. For that reason to meet the situation of many local bodies, a remedy is required, hence, the appeal to Parliament to secure the: financial position of many local bodies likely to be affected seriously, if the law is to stand, and the authentic interpretation enforced on . the existing statute.