New Rating Amendment Bill Before House

Taupo Times, Volume XII, Issue 52, 6 July 1965, Page 2

New Rating Amendment

Bill Before House

Taupo borough is unlikely to be affected by the changes proposed in the new Rating Amendment Bill just introduced in Parliament. But the Taupo County need to reconsider its attitude to a change in the present system.

The Government proposes , to make capital values a fac- j tor in reckoning unimproved .value for rating purposes. The bill provides that unimproved values shall be a minimum of 15 per cent. of capital values. Properties of high capital value, at present rated on an unimproved basis, may therefore pay more in rates in future. Where unimproved values computed on the present basis prove to be less than 15 per cent. of capital values, local bodies will be required to regard the latter as unimproved values. But where unimproved values are more than 15 per cent. of capital values, the lower, or presently computed unimproved values, will remain as the rateable values. The change implements a recommendation of the 1963 committee on local authority finance.

The bill also provides relief for residential ratepayers in commercial or industrial zoncs. On the application of oc- ! cupiers of such residential 1 property, local bodies may postpone an amount of rates representing the difference between assessment for residential purposes and the actual value of the land. The postponed portion of rates will become a liability against the eventual sale of the property or change of occupancy by the original applicant. Amounts postponed will be accumulated in progressive five-yearly periods and written off progressively one year at a time after five years. A sale or change in occupancy after four years will thus involve a liability for

the postponed amounts over ; four years. But, after seven years the amount payable will be only that postponed over the previous five years. Similar rating relief will be available under the legislation on farms in counties or road districts where the value of the land is increased becausc of its potential value for urban development. The existing Urban Farm Land Rating Act, 1932, does not apply in counties or in road districts. There is one difference in the provisions for farmland: successive occupiers will qualify for rate postponement provided the use of the land has not heen changed. A complementary anorm aly, where land used for industry or commerce is in a residential or rural zone, has not been overlooked. Local bodies are empowered to rate such land on its ex-isting-use value.

The bill also allows territorial local bodies to levy rates on property within their own boundaries which is vested in other local bodies. It revokes existing exemptions covering quarantine stations, pilot stations or signal stations, public plantations, borough council waterworks, harbour board wharves, river - protection works and harbour works, catchment board land, soil conservation lands, urban fir-e authority properties and property leased by harbour boards to the Waterfront Industry Commission. This section will take effect from April 1, 1966. The other new procedures for valuation and rate-postpone-ment will have effect from the rating year beginning then. VALUATION The Valuation Department will make the special valuations needed for the postponement of rates on qualf fying residential or farra land and for industrial oi commercial land in rural oi residential zones. A companion Valuation oi Land Amendment Bill, con ferring the necessary auth ority, was also introducec yesterday.

The Local Bills Committee is expected to take public submissions on both measures during the coming oneweek adjournment of the House of Representatives. Taupo Borough is rated on the unimproved system. The town clerk, Mr K. G. Winton, said today the aim of the suggested legislation was to make such properties as multi-storied buildings or high-density housing pay a more equitable contribution to rating than they do at present. "It is not clear yet whether the proposal will give local bodies a fourth system to choose from or whether it will be an alteration to one of the existing three systems — capital, unimproved and annual. "If the proposed system were adopted, it is probable that Taupo Borough

would not be greatiy affected. It would appear, however, that owners of residential properties in industrial areas could get some relief. The county clerk, Mr C. J. Coates, said the Taupo County Council, being aware of the desire of some groups of ratepayers for a change in the basis of rating, decided recently to circularise ratepayers inviting them to demand a poll to determine which system — capital or unimproved — was preferred. The county is at present rated on capital value. Mr Coates said that there were disadvantages and anomalies in both systems. It was his personal opinion, however, that rating on the "minimum unimproved value rating* system, as recommended by the Local Authorities Finance Committee in 1963 would be the fairest means of determining rates. With the possibility of legislation being adopted to include the minimum unimproved value rating, the council would no doubt wish to review the whole position.