BUILDINGS INCREASE

Sun (Auckland), Volume IV, Issue 1056, 21 August 1930, Page 13

BUILDINGS INCREASE

RESULT OF UNIMPROVED RATING SYSTEM REPORT FROM PAPATOETOE After three years of rating on the unimproved value system the Papatoetoo Town Board, in its annual report, to be presented on Tuesday, September 16, has made a comparison with estimated revenue under the capital value system, which shows owners of new buildings have gained at the expense of the long-established homes. More building has resulted. The report states that, had the system of rating on the capital value remained in force, the board would have received an additional £340 in rates at the end of the first year, on the basis of an annual accretion to capital value of £30,000 for new buildings. In three years this annual average accretion would have amounted to more than £2,000. In five years the loss in revenue would run into more than £5,000. It will thus be seen that, by the non-taxation of new buildings the sum of about £2,000 has already been lost. Since jtlie advent of rating on unimproved value there has been added to the expenditure interest and sinking fund on the concrete road loan of £6,000; recreation reserve and park loan, £4,500; water supply loan of £26,000; and loan for meters and further reticulation of £4,000. The interest and sinking funds on these.loans amount annually to £2,664, with the hospital rate continually increasing. As these increases can be passed on to the unimproved values only, it will be readily seen that those who build while unimproved value rating remains in force are distinct gainers, to the disadvantage of those who have paid rates in bygone years on their improvements. During the past two years 7S houses valued at £57.177 and three shops valued at £3,667 have been erected, and other buildings and additions and alterations to buildings valued at £4,187 erected and made, while 27 subdivisional schemes have been dealt with. Engineering conditions in connection with the subdivision of estates have been hardened in keeping with the growth of the district. The water scheme is now in full operation, the supply having proved satisfactory. In connection with the financial side of the water loan, it may be pointed out that by adopting a careful policy the board raised the whole of the £26,000 at 5J per cent., whereas other local bodies were paying per cent-