TAUPO'S REVISED VALUATION

Taupo Times, Volume II, Issue 58, 25 February 1953, Page 4

TAUPO'S REVISED VALUATION

• Although the revised valuation roll reeently received from the Valuation Department by the Town Board is subject to such alterations as" may result from objeetions diily lodgecl up to February 16th., it is probab'y unlikely that the pereentages of increase in the capital and unimproved values wiil be greatly affected. The increase in capital values, was almost 212% and in unimproved values was a little over 164%. During recent years there have been a large number of sections created by subdivision of larger areas, and this marked movement has not only shown the increasing interest in and demand for sections in Taupo but has also of itself tended to increase the assessable unimproved values. And the buikkng that has followed subdivision has had its effect in increasing capital values. The steady increase in building in Taupo was first markedly apparent just prior to and in the early days of the Second World War. Retarded by that cataclysm, it has since continued in an even rnore striking manner. The prices brought by Taupo properties, both unimproved and improved, over the post- war period, have been rising more or less steadily. The increases in valuations are ' therefore not particuiarly surp rising, for from what can be gleaned as to prices over recent years it appears that, as is to be expected, the valuation assessments have followed the general upward trend of actual saies. It does not follow, of course, that all new valuations are satisfactory. To err is Iruman, and valuers are not exempt from the failings that beset us all. But by and large it is true to say that the percentage of increase is about what might have been expected from com sideration of property prices over the period since t|ie iast vatuation*

While in Taupo the increase, as.' aT ready sug;gested, has corae in great part from increased demand for the sections in the tawn, there is no doubt that the increase is to some extent a result of the rising prke splral that has marked the post- wai years. In sO far as the increase is due to the increased demand for Taupo property it is obviously -an iiidication of widespread interest in the town and a pointer to the likel ihood of continuing progress. A misconception with regard !to the effect of increased valuations- o n. rates appears to be fairly prevalent. nahjely the idea that the actual rates likely to be payable by a particulai ratepayer wili be increased by the same ' proportionate increase as his valuation may have shown. In other words, that if a valuation has beendoubled the ratepayer will pay twice the previous arnount of rates. This of course is not so. The amount of rate payable per pound of value is fixed annually by local bodies according to their financial rdquirements, and it obviously does not fol- . low that a local body .whose total vaB uation let us say, had doubled, would therefore decide to fix a rate that would bring in double its previous rate. It might find it necessary to increase the amount of rates to be levied, but it would calculate the increase not by the increase in valuations but by its estimates of the amount require.d to carry on its works and administration. • There is one important aspect of an increase in values such as the Taupo Town District has experienced, and that is that the security value the district can offer for ioans required for its development is greatly increased. That increase obviously tends to make it easier to secure for development Ioans when they are needed the approval of the Loano Board. To towns that are beginning to make marked progress that is an important point.