BOROUGH VALUATIONS.

Auckland Star, Volume LXV, Issue 56, 7 March 1934, Page 6

BOROUGH VALUATIONS.

The remarks of Mr. W. R. McKean, as president of the Newmarket Assessment Court, has caused considerable concern among lawyers and ratepayers in general. Newmarket derives its rates from the annual rental value, and the magistrate stated that the fact that properties were let at depression rates was not of itself a reason for a reduction in valuation. Though rentals at present might merit reductions, that was not the principle on which he worked. If we act on this principle it is quite competent for the Commissioner of Taxes to say, "Your income in 192S was £000; to-day it is £200. Your income to-day is the result of the depression, and I think a fair assessment should be £400." This would bring a howl of protest from tha whole of the Dominion, but it is exactly the same idea on which the magistrate is assessing the valuations. The Government has its remedy by increasing taxation, and the local authority also has its remedy by increasing the rate'in the £. Mr. McKean has not stated the principle on which he works, and as he is president of the Mount Eden Assessment Court it is only right that he should make a statement in the Press stating exactly the i nature of the evidence he requires. The depres!si on rentals at present existing are the true | rentals which are likely to be in operation for many years to come. Rents have been compulsorily reduced by 20 per cent, and when a local authority rates on the rental value, surely it is only British justice that tha magistrate must take note of the existing rentals. If Mr. McKean owned a property in the Mount Eden district he would find that the present rates are absorbing 20 per cent of the rental income and are causing ruin to thousands. Ratepayers are prepared to pay an increase' in rates in the £ if necessary, and at the same time they are entitled to a fair and equitable valuation in accordance with the existing circumstances. RATEPAYER,