VALUATION.

Dominion, Volume 3, Issue 686, 10 December 1909, Page 8

VALUATION.

. subject I desire to bo' known is treaty by .mo free from a "spirit of mere fault-, finding. \ My object is 'solely to- endeavour to' throw light upon the '"working- of. the Valuation department. from .my > own, personal, experience; ■ ti-■ p remove misconceptioncreatc -a public sympathy towards it;, and earnestly- help the' Government to- its betterment.; InM,my former letter I dwelt upon its great 'importance and -the necessity for an able -valuer-general. • discussing the work and qualification °f is one. officer'outside''of the clerical stain .with- whom; .in, outside work he comes into contact—the inspktor,"ilr. Dugdale • a;good- man.• v-Althoughhis'-'appointment is comparatively-; a recent ono, it;;, was. ;• wisely" made, for 'as the valuer's •' chief -. care is 'to sqcMe uniformijy '"of taxations in'' his individual district,; natural 'features considered, •as the superintendent has to see; uniformity fn • the different districts -of the - Dominion one ; with another. Besides, ho is • able. to' report' on' the conduct and work 'of the different valuers, wlio might never." be brought' into touch' Vith the • head of' the' Department = except through him. ; / j j-: ■ I have- placed the character and judgment of a valuer as the first' essential;' His work is varied. In estim&tiiig. the,'value of a property, he considers climate, aspect, surface, features, accessibility, quality of soil,,what.more 'adapted tor, what improvement in buildings, clearing, fencing, -grassing, etc. " On -any of these subjects ;an interesting could 'be delivered.; It " is. difficult with the time generally at the disposal 'bf' , the ,, .valueri .however good he may be, to be perfectly "accurate, and especially improvements.' -It'is' not to be wondered .at; that there-is often /complaint; for itwo reasons—the owner- ,by' r not 'drawing greater- attention to- what-"they arej. anil again because 'the owner's "estimate, and'the'valuerV generally-differ'considerably; A-co'at if wotri tor-five years,..while good ; enough' as a covering, would "not bring-if otfered for.: sale; the: that \t ; onginally cost. •So it*is with improvements. Aj.house .may jhaye- cost 2500f;when\'new,' but. omy-worth -when : old ?at the-time 'of-inspection .A.,fence < that ; cost . 20s. ' a'fehain when newimay not'be worth ss*., and so on. Improvemcnts almost 'invariably, cause friction,'/but intelligent; explanation and 'tact on'the part of 'the.Valuer: generally remove: it.. 'It should be •borne lir mind valuer has/only, .to'do. his duty, with no porsonal gain to himself in either increasing; or decreasing' values, and .certainly with no other direction than, the Act' placed .into.his hands*is'he s#t forth. A . The value of a.property is, not. always what it has been , sold for: A speculator, " taking advantage •of a . boom: time, .'buys to sell again; irrespective of gamble,. j One ' nian bv exchange tbinksothafclthe.'O'theKTvill-put an eA cessive price on-his land,' so' he does/ and>tbustney both do it. One. manVwithoutfconsiderifag, or. perhaps unable, to ' Calculate' commercial value, seeing only. figures'; ttat .'a cow :yields- so much and with his family he 'can milk so many, ignores, the value ol their' labour and , nis own, and the interest, on his capital, the "wear and tear of. upkeep, the .loss through disease Md age of stock,: buys and finds him- . if family drudges, making'': ho headway. Another man with means buys with the knowledge; heaves an excessive price,'prepared to ;P a A • , f 9 r . '!| s luxury as he: would for a gold watchi. instead .of .trusting to tho town clock. Ibese .and many other'of a siniilar''cb'aracter appear, in the .list of ■ sales ! sent .to 'the valuer periodically from the Land Transfer Depart-, nwnt, -to'guide him in arriving at values. It ''I n rn? valu °r-J» : sift-the wheat from the ? iTi T capital : value ■. is' of- course.' given, ; but he, has to- arrive •'at- thevalue minus the improvements,' or'the unimproved value,' and'.in :a closely-settled 'district where' £here' are'tnanv sales it is not so difficult: : Frorrrthe price-paid >j"0 present - value 'of' the .improvements'"is" de-ducted,-the balance is.'.wfiat may: be .'tailed, the unimproved value.'; And if, from .Vail.! the-sale prices,' when' the improvements are -deducted' the .balance is, the same,.-' the''tstandard'-- is secured- for the whole district.v If it varies, an average, is taken. Fori instance; twenty'sale's have'.taken- place in a district .where' all :the natural-features !of the land are identical, and the - improvements Then deducted' produce-Jm an..acre.' lhat. forms the. standard, >to be : departed from by changes of locality,'soils, etc. buch is the. pnnciple in arriving at unimproved value to secure, equality of taxation. . Once the stanOard js- 6ecurad, on the price placed upon the land, whatever - they are ■are added;; When added, the vainer:asks him. self the question: _ Would I; be ; sale to • recommend, a that .'price? 'Should' the- pro. perty in its thtin rendition sell for it?' Would it; pay interest-after.payment .for labour and other charges. If/not,-then : the improvements are too highly valued, or the .standard for the unimproved value for the wholo district is too high, or some of the natural features of that section depart more' than noticeably from \the standard, formed, :and the;.unimproved: value should bo reduced.: Where there .are few sales, the . valuer has to fall fyck upon the producing' value alone;. He looks over the cofintrv carefully,^and says: That land.will carry one two, or; three;: sheep per acre, and therefore worth proportionate price, that the grazing of one, two, or .three, sheep: will. : yield in profit. After- all, it is the : profit-earning< power" of any place that-makes the.-value; not'whatit.was.sold for,' but what it- .should sell ■' for V Laad tax is not an : income tax. ; Land has a value, , and .yet may be producing neither "income nor profit. It is only when used bv labour and capital that'it produces. -And the °TOer to make' something out ?[ s^ afc he hoUs J if' he'does^'not then he has to give place to one who will : Already I have made my letter too long,'and yet feel the subject is not half thrashed out' But suggestions on the working of the- Department : must still • be. left for s another,'letter — I am, etc.,. , North. E0BT ; GABDNEH.'