RATING ON UNIMPROVED VALUE.

Evening Star, Issue 15342, 17 November 1913, Page 8

RATING ON UNIMPROVED VALUE.

TO THE EDITOR. Sir, —your readers may be interested in the following letter from the Town Clerk of St. Kilda, in reply to an inquiry by Mr E. G Bell, secretary of the Otago Land Values League:—"l beg to enclose. 14 cases showing the rates under tho annual value and the unimproved value, taken from various parts of the borough. A large number of the ratepayers with houses on their sections benefit by the unimproved value The rating comes fairly heavy on empty sections, the average being £1 10s to £2 10s per section. A number of ratepayers on the Queen's Drive and its vicinity pay higher rates, but this is owing to the sections being highly valued in this locality." I give the cases below ; but, as the rate revenue of St. Kilda this year is over £I,OOO more than last year, I have added, for the purpose of comparison, a third column showing approximately what the rates would be in each case if this year's bigger revenue were raised from the annual value. It will be noted that the comparison is very strongly in favor of rating on the unimproved value. The cases marked with an asterisk are workers' homes. The first six cases are from Park Ward, and the others from Musselburgh Ward, the last being in the Queen's Drive:— —Rates.— 1912-13. 1913-1-1. 1913-14. Annual Unimproved If on annual value. value. value. £ s. d. £ s. d. £ s. d. 6 7 7 6 f> 3 7 13 1 *4 16 10 4 r> 8 o 16 2 *;> 3 9 3 19 8 6 4 6 *o 3 9 3 19 4 (5 4 6 6 17 1 5 13 1 S 4 6 *4 16 10 311 11 5 16 2 6 7 6 5 IS 4 7 13 0 6 10 4 18 10 7 5 2 6 7 6 5 12 6 7 13 0 77064 9 8 16 5 6 19 7 5 0 1 8 7 7 5 IS 10 5 10 1 7 2 7 r 13 7 5 8 4 6 16 3 797 895 8 19 6 It will be seen that even the Queen's Drive case shows a reduction under rating on unimproved values as compared with what the rate would be if this year's rate revenue were raised from the annual value. That, as the Town Clerk states, "the rating comes fairly heavy on empty sections," no doubt has a good deal to do with the fact that in the last seven months 68 houses, of a total value of £31,636, have been built, as against 68, of a total value of £31.275, in the previous 12 months. i The following Duneclin cases may also bo of interest:—

(1) A property in Stuart street, assessed at £9O in 1910, but since greatly improved, and now assessed at £624°; unimproved value, £7,000. Rates (general and special) in 1910, £7 17s 6cl; now (much of building unlet) £54 12s; under rating on unimproved values would be £93 15s.

(2) A recently improved property in the Octagon, assessed at £IOO in 1911, now assessed at £800; unimproved value, £3,000. Rates in 1911, £3 15s ; now, £7O; under rating on unimproved values, £4O. (3) A recently improved property in Princes street, assessed at £B4O in 1911, now assessed 'at £1,480: unimproved value, £8.500. Rates in 1911, £73 10s; now, £129 10s; under rating on unimproved values would be £ll3 6s Bd. (4) A worker's section valued at £75, with a house valued at £225, now pays in rates about 24s a year. If held idlo by a speculator, the same section would pay only 6s a year. Under rating on unimproved values the rates would bo 20s a year, whether the section had a worker's house on it or was held idle by a speculator. Thus the worker now pays 4s more in rates than ho ought, to pay so that the speculator may pay 14s less than lie ought to pay. If the water rates were also taken into account, the burden on the worker in this and the following cases would be scon to be considerablyheavier—about 40 to 50 per cent. more. (5) Worker's section £75, house £3OO. Annual value rate on house, 30s ; annual value rate on section, if held idle by speculator, 6s. Unimproved value rate, whether a worker or speculator, 20s. Worker now overtaxed to the tune of 10s to save speculator 14s. (6) Worker's section, £l5O, house £450. Annual value rate on house, £2 8s; annual value rate on section, if held idle by speculator, 12s. Unimproved value rate, whether a worker or speculator, £2. Worker now overtaxed 8s to save speculator 28s. The following are quoted from your leading article of July 1, 1912: Leading hotel—Annual value rate. £lO5 ; unimproved value rate, £365. Prominent drapery establishment, Princes street—Annual, £100; unimproved, £lB4. Largest City residence—Annual, £43 15s; unimproved £44. Shop, South Dunoclin—Annual, £l2 os; unimproved, £3. Cottage in Caversham—Annual, £4 9s; unimproved, 10s. Another ditto—Annual, £1 Ss; unimproved, 10s. If your readers will impartially study this question, they cannot but see that rating on unimproved values is in the best interests of Dunedin City; that it will reduce the rates of the great bulk of the citizens, and immensely stimulate trade and industry.—l am, etc., November 14. Arthur Withy.