THE RATING QUESTION

Evening Post, Volume CXVII, Issue 76, 31 March 1934, Page 10

THE RATING QUESTION

(To the Editor.) Sir,—l think it a pity that your correspondent, "Ratepayer," whose letter on the ratirfg question appeared in your issue of March 28, should not have taken the trouble to verify his facts before rushing into print and making assertions that will not bear analysis. His statement to the effect that the system o£ rating on the unimproved value is a tax on gardens is contrary to fact, because a garden is an improvement, and i£ "Ratepayer" -n-ill inquire from any competent authority he will find out that improvements are not ratable under the system he sets himself out to condemn. Prior to the decision of the Wellington ratepayers in 1027 that the .whole of the rates should be levied on the unimproved value, it was the invariable experience of suburban residents^

after having laboured, early and late, excavating hillsides, tilling.in gullies, building retaining walls, constructing breakwiuds ..etc., in order that they could have a garden, to be honoured by a visit from an officer of the City Council's Valuation Department, who duly assessed the value of such improvements with the result 'that when the nest rate -notice was received, the resident became aware that lie had been penalised for his industry by having his rates increased. Thanks, however, to the good work o£ Mr. P. J. O'Eegan, combined with the common sense of^the ratepayers themselves, the position was altered and garden lovers can now pursue their hobby to their heart's content, ■secure in the kno^yledge that, they run no risk of having, their rates increased' for so doing. . Eating on the unimproved value of land is the fairest system of taxation yet devised, for the reason that it takes for community purposes values that are created by the community, and leaves the individual in. undisturbed possession of values that lie has created by his ''own industry and enterprise. It encourages improvements and tends to keep building activities abreast of requirements," anil thereby chas a steadying effect on rents'. It assists trade and industry by.relieving warehouses, factories^, etc., of local taxation. Rating on the annual value, on the other hand, is most unjust iii its incidence in that it taxes assets to the full without making any allowance for/ liabilities. It retards trade and discourages industry. The onty thing itP'does encourage is land speculation, and that is the real underlying cause of the. agitation in its favour. At present the Government is subsidising building activities for the purpose of reducing . unemployment. . 'TJafepayer" and his friends would tax buildings, and this would increase unemployment.—l am, etc., A. PABLANE.