RATING ON UNIMPROVED VALUE.

King Country Chronicle, Volume III, Issue 127, 1 February 1909, Page 2

RATING ON UNIMPROVED VALUE.

The question of rating on improved or unimproved valu£s v >isSa matter which is being discussed throughout the Waitomo County at present, and \<: steps are being taken by the local branch of the Farmers' Union to obtain a conference of the various representative associations in "the district to confer, with a view to having a poll taken on the subject. At present about twenty counties on the Dominion ,have adopted the unimproved value rating system, including Kawhia and Raglan Counties, where the conditions are very similar to those which obtain in the Waitomo County. The following information, taken from the New Zealand Official Year Book will be of general interest in connection with the proposal:— \ - » J^Bt

" 'The Rating on Unimproved Value" Act, 1896,' was passed by the General Assembly to afford local bodies the opportunity of adopting the principle of rating which is expressed in the title of the measure. It is entirely at_ the' option of the bodies to adopt the system, arid provision is made for a return to the old system of rating, if desired, after three years' experience of the new one. The Act provides that a proportion of the ratepayers on the. roll, varying from 25 per cent, where the total number does not exceed lot), to 15 per cent, where the number exceeds 300, may by demand in writing, delivered to the chairman of the district, require that a proposal to rate property on the basis of the unimproved value—may be submitted to the ratepayers, whose votes shall be taken between tweny-one and twenty-eight days after delivery of the demand. The poll is to be taken in the same manner as in. the case of a proposal to raise a loan in the district under 'The Local Bodies' Loans Act, 1901.' Under the original Act it was necessary for a minimum - number of one-third of the ratepayers to vote, and a majority of their votes carried the proposal. Now, under 'The " Local Government Voting Reform Act, .1899,' the question of adoption or otherwise is decided by al)are majority of the valid votes recorded, irrespective ' of the number of ratepayers who have voted. A rescinding proposal can be carried at a poll by the same means as ' one for adoption, but not until after three years have elapsed; and, vice versa, rejection of a proposal bars its being again brought forward for a similar period. The valuation-roll is » supplied to the local authority by the Valuer-General under the of 'The Government Valuation of Land Act, 1896,-' and its amendments of 1900 and 1903, aud-the definitions of 'capital value,' 'improvements.' 'unimproved' value,' and 'value of improvements' '-- found in these Acts apply also to the Rating on Unimproved Value : Act. Provision is made for adjustment of rating-powers given under previous Acts to the % Act of 1896 by fixing equivalents. % Thus a rate of Is in the pound on the annual value under former Acts is to be considered equal to £d in the pound'on the capital value under the Act of 1896. The, adjustments are . to be made so that the rates on the unimproved value shall be such as to produce as much as. but not more than, the rates under 'The Rating Act, 1892.' For instance, supposing a local authority has a rating-power up to fd in the pound on the capital value, then it can levy any rate in the pound on the unimproved value of land in its district so long as the producing capacity of such rate is not greater than would bev ; the producing capacity of a v fd. rate oir the capital value of the district. When a fixed rate, under the older system of rating, is security for a. loan, the Controller and - Auditor-General is given power to interfere and fix a new rate himself if of opinion that the hew rate on the unimproved value does not afford equally good security to the one to be given up. The operation of the Act does not apply to water ,gas, electric light, sewage, nor hospital and charitable aid rates."