RATING.

Press, Volume LX, Issue 18185, 23 September 1924, Page 8

RATING.

UNIMPROVED OR CAPITAL* The Mayor (Mr J. A. Flesher) at**, cd at the meeting of the City cil last night that for the drainage oj tension loan of £700,000 a rate of M in tho £ on the capital valuo w* 9 i m . posed hi tho city area affected by th« loan. Tho capital valuo of tho* are* was five millions sterling, and th „ improved value £1,600,000, yet by the system of levying tho rato on the unimproved values, which the Council was bound to follow, it mean t that property valued at £1,600,000 had to beat tho wholo burden in respect of proporty valued at five millions. jfc had collected thirteen cases. I n «£! the amount of rate levied on the onimprovod values ws s greater than if levied on capital, and in four oases too amount was less. That difference would happen wherever the unimproved value was not equal to 50 per cent, of the capital value. Soma of the cases ho had collected were;— UnimCapital. Rate, proved. Bate, £ £ 1. 1950 £2 915 £B/4/8 2. 1200 25s 1200 £3/17/? 8. 1050 £l/19/11 1650 £S%% 4. 6370 £6/12/0 3400 f.\m%

The Mayor added that the M'wers** rato was for the benefit of tie bolM. ings, not tho empty land.

Cr. O. Anderson: It increases the valuo of sections.

Or. J. K, Archer: What are the areas of those high-valued properties! The Mayor: I haven't the areas; but they are city properties with large buildings and improvement*, Cr. J. K. Archer (to the Mayor)* You don't wean to suggest that we should, on the spur of the moment, alter pur system of rating? If a councillor had. made that suggestion you would insist that notice of motion should bo given. Cr. Archer said that one of the main objects of the ratlng-on unimproved _ valuea was to induce owners to hold their properties for use, and not for the increasod increment, The sower. .. ago scheme created a large additional value to unimproved properties, and it was not correct to say that tho - ago system added to tho value of proved prdporty only. If there ww- *• any inequities eueh were due to tho > actual valuations of unimproved pw« perty boing made too low. The uain>. p_roved system was scientifically sound and perfectly equitable. Cr. A. W, Beaven said he beliewl in rating on unimproved values, but would pot ride that idea.to death. A single-tax system for the: solving of alt oconomic problems was quite, wrong, Gr, W, H. Wineor said the Mayo* had' not given an example of a pr.u* - perty worth, say, *1.50.Q capital and£3oo unimproved, The Mayor: There would be a to<*uc« , tion there by levying on the unimproved value. Or, Winsor: That is the case that af« foots most ratepayers. * . • Cr. C. P. Agar moved that tho n»at\ ter bo referred to the Pinaneo COW mittee for consideration and report, Cr. Archer: What matter! Cr. Agar: Tho matter of the wal\ mafeariri Trust rate levy, ■ Cr. A. McKellar said that J«J« levied for the benefit of W"4Wp should be levied on a different syce}* to that followed' whew tho rating wa» for the benefit of the land. w «»£.; ed that the suggestion be put forfatt; as a remit to the Munieipal *•»«*! l °Cr. Areher; What is the roige^j; The Mayor: That ?o,tee levies «•« capital value should be ?°W«etoa .«s|? capital value, and not on the approved value. JJL - Cr W. B, Winsor said tho !Sg-f quoted by the Mayor would be b*Uj£ od by other canes, which showed \ff ference the other way, «„J&3 ' The Council decided to send *«!«£ a remit, the terms to be settjed by $W Finance Committee. V

Tho Mayor: At the sane' time, it works inequitably. There is also the Waimakariri River Trust rata of 1^ on tho capital value, and if ever there' was «i rato which should bo assessed on the capital value that waa *uch a rate. Of 23 easea he had collected, 11 showed a decrease and 12 on iu. crease. Examples were:— Bate. & £ e. d. 1. Capital .. 4,155 2 17 4 Unimproved «. 3,920 6 111 2. Capital 50,765 35 1 0 * Unimproved ., 7,855 12 4 4 3. Capital 25,430 17 11 a Unimproved .. 2,880 4 9 7 4. Capital ,. 18,338 12 13 2 Unimproved .. 5,043 7 16 9 5, Capital 32,420 22 4 S Unimproved .. 91,450 33 6 11 6. Capital . % 26,730 18 9 5 Unimproved .. 19,250 29 IS 5