RATING DECLARED INVALID

Sun (Auckland), Volume III, Issue 839, 6 December 1929, Page 1

RATING DECLARED INVALID

Old Valuation Roll Used

MT. ALBERT’S QUANDARY

Supreme Court Grants Injunction

BECAUSE an old valuation roll, in use before rating on unimproved values was adopted in 1927, was taken by the Mount Albert Borough Council as the basis of assessing rates on the new system, instead of on a new roll prepared as required by the 1925 Rating Act, Mr. Justice Blair, in the Supreme Court today, issued an injunction prohibiting the council from levying or collecting this year's rates.

This is the far-reaching effect of an important reserved judgment by his Honour, which will affect not only Mount Albert Borough, but every other local body in New Zealand in a similar position that has adopted unimproved values rating and is unable to obtain new valuation rolls from the Valuer-General.

The Judge holds that until the new roll required by section 47 of the Rating Act is prepared and supplied, the Mount Albert Borough Council cannot validly make a rate, otherwise ratepayers are deprived of the right of objection to the valuations conferred by sub-section 2 of the same section. The decision represents a successful challenge by Sophia Louisa Taylor, a ratepayer, to the Mount Albert Council’s action. A valuation of her property in 192 S fixed the value at £21,640, of which £20,195 was the unimproved value, and as no objection was made to the assessment court, the council compiled its ratebook accordingly. Unimproved values rating was adopted at a poll on April 27, 1927, and became operative from March 31, 1928. The valuation roll based on the 1926 valuations, which has been used for rating purposes by the council since unimproved values rating came into force, was the same as used before the rating system was altered.

The question at issue depended on the construction of sub-section 1 of section 47 of the Rating Act 1925, which his Honour held to mean that a new roll was required for rating on unimproved values.

“Without such new roll how cart a rating authority levy rates?” asked the Judge. “The roll is the very foundation of rating.” It so happened, said his Honour. that the roll in use contained details of unimproved values, but nevertheless it was not the roll required by section 47. After reviewing rating legislation from 1896 until its consolidation in the 1925 Rating Act. his Honour said that the history of the enactments showed it was clearly intended to give the ratepayers a new roll, and the right of objection, when a new rating system was adopted. The only consequential alteration during that time was that the Valuer-General was constituted the authority to prepare the valuation rolls, previously drafted by the local bodies. The ratepayers certainly had the right of objection prior to the introduction of valuations by Government department. The council’s argument, that the provision in the Valuation of Land Act, 1925, which did not impose a time limit upon the Valuer-General to supply the roll if he did not see fit. was referred to by the judge, who said that this was a matter between the Valuer-General and local authority. An injunction was issued restraining the council from suing or collecting rates from the plaintiff until a new roll required by the Act was prepared and supplied. Costs were allowed to plaintiff as on an action for £SOO. Mr. Stanton and Mr. Duthie appeared for plaintiff, and Mr. Rogerson for the defendant council.