THE Bay of Plenty Times AND THAMES VALLEY WARDEN.

Bay of Plenty Times, Volume XXI, Issue 3267, 20 May 1895, Page 2

THE Bay of Plenty Times AND THAMES VALLEY WARDEN.

7i)B Spirit nfihaTimds shall Leach me speed —King John, Aettr Monday, May 20, 1895. Both our local Councils have at length, awakened to the gravity of the loss that is sustained in cases where persons from whom rates are due omit to pay them before the 30th of June next following the date on which they first became due, whereby the subsidy from Government is lost, and the money which should have boen diverted into local channels, goes to swell the general exchequer of the Golony. For years past the loss thus annually sustained by both local Councils has been very considerable, and Borough ratepayers must not forget that the Council has determined this year to sue all who are in arrears sufficiently early to ensure the payment of the rates in time to secure the subsidy. Hitherto, however, remissness in payment of rates due has entailed loss only on the local body and the delinquent has gone scot free and been able to congratulate himself ou haviog had the use of his money for a twelvemonth, perhaps, longer than his more conscientious neighbour. This utterly unjust state of affairs is now, however, about to cease owing to the passing of the two Rating Acts, one each during the last two sessions. It is the Act of 1893 which most concerns us as yet, as that of 1894 will only affect rates due for the year 1895-6 in so far as recovery is concerned, and lucky it is for a good many in Tauranga that such is the case. The Act of 1893 states that where twelve months have passed since rates first became recoverable from any person, ten per cent shall be added to the amount thereof and both principal and interest shall be recoverable alike. Twelve months not having yet expired since the rate for the year ending March 31st, 1895, became due, the ten per cent interest has not yet accrued and if the Council's decision to sue after the 22nd of May be rigidly carried out there should be no opportunity for it to do so. The newer Act of 1894, however, has improved an its predecessor and has shortened the days of grace from twelve to six months, thus if the rate for the current year be struck, say on August Ist and the issuing of notices and the cus/ ternary fourteen days bring the date on which the rate first becomes recoverable by process of law, up jto August 31st then all rates not paid before February 29th, 1896, will/ have ten per cent added; thus the local bolly is enabled to recover the rates dite, with intereBt, and also to save the subsidy as well. We notice that tße question of the imposition of the te% per cent penalty has been discussed b/ the Thames Borough Council and it would appear that some hold the erroneous opinion that the enforcement of it is left to the Council's option. The Act, however, does not leave any loophole of this sort and the Thames Council has been advised to this effect by its solicitor. The provision is essentially a just one which should commend itself to all fair minded ratepayers, being based on sound business principles. As a general rule the penalty will not be recoverable till about ten months of the rating y«ar have expired and should no rates be paid until that time has elapsed the local body oan only carry on its work by means of overdraft ; looked at from this of view an additional ten per cent would be about sufficient to reimburse it, principle and interest^ and ropajyti or the extra trouble and inconvenience caused by the delay. ■•