RATES ON CROWN PROPERTY

Dominion, Volume 30, Issue 300, 15 September 1937, Page 13

RATES ON CROWN PROPERTY

Hastings Town Clerk States

Position

CONSIDERABLE LOSS PROBABLE Dominion Special Service. Hastings, September 14. That the Hastings Borough Council is going to lose a considerable sum in rates this year on account of the Government Housing Department operations is the opinion of the town clerk, Mr. N. C. Harding, who, in a special report to the council, reviews the whole position of Crown liability for rates, and in particular the rating position for houses shortly to be built by the Housing Department. It is practically certain, says Mr. Harding, that the Crown will pay rates provided only that money by way of rentals is paid in full by the occupiers. In the event of any occupier being in arrears then it is likely that the Crown will pay only a percentage of the rates in proportion to the revenue received on the property. Mr. Harding pointed out that Crown buildings occupied by various departments were totally exempt from rates and Crown premises occupied by Government employees who were required to occupy them were also exempt from rates, though the Crown paid for certain types of borough services. Crown liability on properties which were mortgaged occurred only in the event of the mortgagor not paying rates. The Crown, in the event of the local authority claiming from it, was liable only for special rates on a loan which was raised prior to the Crown registering its mortgage. “Unfair to Local Authority.” “This position is unfair to the local authority,” said Mr. Harding, “because in many cases the mortgagors have paid rates for a number of years quite regularly, and then, through loss of work or depressed economic conditions, may find themselves unable to meet this payment. The Crown then will pay only special rates on loans raised prior to its mortgage, even though there may be a long period between the date of the registration of the Crown mortgage and the date of the failure of the mortgagor to pay. During that period, of course, a number of loans might have been raised, but the Crown would pay no special rates for those loans.” Mr. Harding pointed out that in cases where the Crown entered into possession of any property there had been a compromise effected with regard to its liabilities, similar to that which applied to the old Post Office buildings at Hasting’s. Under that arrangement the Crown for the present accepted the position that the tenants were occupiers for the purpose of the Rating Act and would pay rates in proportion to the revenue received for the whole rating year. That arrangement was simply a compromise and could be cancelled at any time. While the arrangement applied satisfactorily where full rents were always paid, where the Crown had resumed possession of the properties under its mortgage and rents had not been paid in full, the council had received a sum considerably less than bhe full year’s rates. “Considerable Hardship.” “There is no doubt that the council is suffering considerable hardship,” said Mr. Harding. “More and more properties are being taken over by the Crown and in very few cases is the rent paid in full. It is, of course, obvious that this would be the case, as If the occupier were in a good financial position there would be no need for the Crown to take possession. These houses are receiving the full service that the borough gives to all its citizens, all amenities provided are received by the occupier’s properties and yet in most cases a portion only of the rates are paid.” Referring to the houses soon to be built by the Housing Department, Mr. Harding said that the Government had advised that it would pay rates on all properties “when and while” occupied. There will be no rate paid on properties recently purchased from the time they are taken over by the Crown until the houses are occupied.

“As the words used are ‘when and while’ it is logical to assume that in the event of the house being occupied for six months’ and the tenant leaving at> the end of that period, unless a fresh tenant were immediately found the council would receive rates only in proportion to the time during which the house was occupied,” said Mr. Harding. “Further, though it is not actually stated, there is fairly clear inference that the same conditions regarding rents will be applied to these houses as is set out in the first part of this statement, and in the event of the tenants not paying the full rent, the council might find Itself receiving a proportionate amount of the rates only. , . “In any case it is quite clear that the council is going to lose a considerable sum of rates this year on account of the Housing Department’s operations.” ~