LIABILITIES OF BURGESSES.

Lake Wakatip Mail, Issue 1069, 23 May 1878, Page 3

LIABILITIES OF BURGESSES.

Certain difficulties having arisen at the annual meeting of the Municipal Council for settling the Burgess Roll in consequence of questions raised by some ratepayers as to their n.ioiiity for oack rates left unpaid by their late tenants, etc., it was decided by the Council to submit this and other questions which cropped up for the opinion of Mr Finn, the Corporation solicitor. The opinions have been brought up, and as the Council have decided to Act upon them, they are published below for the benefit of those whom the subject may concern : Queftion— Are owners liable for rates or arrears of rates due by their defaulting tenants? Rrply—l am of opinion owners of properties within the Borough, are liable for all arrears of rates falling due since the year 1873. Section 88 of " The Otago Municipal Corporations Ordinance 1865," under which thiS BorouSh was constituted—makes a tenant in possession primarily liable for the due payment of rates made under that Ordinance, but default in payment by him does not in any way relieve the owner as it is the property not the tenant which is rated. The rate still remains a debt due on the property. I have no doubt that the object of the Legisture in making the tenant primarily liable, was to save Corporations trouble and expense in collecting rates for by section 102 the person primarily liable—that is the tenant, may set off the amount of rates paid by him ag inst any rates due from him to the owner, or if the rates exceed the rent, the tenant can sue the owuer for balance and recover with full costs as between solicitor and client. Rates due under the Ordinance (now repeated) should be sued for separately from rates due under the present Act. Question —Are purchasers liable for rates due on property at the time of purchase? Reply —l am of opinion that purchasers of property within the Borough are liable for rates due thereon at the time of purchase. The wellknown maxim " Caveat Emptor"—let the purchaser beware—applies, for it is his duty to see that rates are paid as well as all encumbrances (if any) ore all released before he pays his purchase money. This opinion refers to rates made under " The Otago Municipal Corporations Ordinance 1865." Question— ls a landlord responsible for rates not collected from his tenant within a reasonable time ? If so, please state what you consider " reasonable time." Rejriy —The tenant is primarily liable for all rates due, and if no sufficient distress be found on the premises, then the owner in succession is liable for the whole amount. The recovery of all rates made under the "Otago Municipal Corporations Ordinance 1865" can be barred by the statute of limitations only as regards time. In respect of all rates made after the coming into operation of the "Rating Act 1876," proceedings for the recovery of same must bi commenced within two years from the time when such rates first became due. Question —Can a person who has made default in payment of a portion only of Borough rates which he was liable for on the 31st December last be placed on this year's Burgess Roll. In other words, must a person pay all rates due on his several properties in the Borough before his name can be placed on the Roll ? Reply —By section 40 of the " Municipal Corporations Act 1876," the Town Clerk shall on or before the 31st day of March, in each year, make out from the rate book a list, to be called the " Defaulters List" of the names of all persons, &c, who have not then paid all the rates, which, on or before the 31st day of December previous they were then liable to pay. He is also directed by section 41 to make out in the form of the sth Schedule to the Act the " Burgess List" containing the names of all persons, ike, whose names appear on the valuation roll, ommitting therefrom the name of every person whose name is on the " Defaulters List." In other words he has to make out two lists from the Valuation Roll, one list containing the names of those who poid their rates due on the 31st of lecember previ. us, ai.d hj: other thoi-e who have not done so. By section 47 those whose names are on the Defaulters List may pay such rates at any time before the roll is certified, and signed, and their names shall be placed on the Burgess Roll. Reading these three sections of the Act together with sub-section 5 of snetion 43 in which the words " all the rates" are mentioned ; it is clear that a person must pay all rates which he was liable to pay on the 31st of December previous before his name can be placed on the Burgess Roll of a Borough. The Act, however, defines two kinds of Borough's—" a divided Borough" and " an undivided Borougc." The former means a Borough divided into wards (section 4) such as tho Borough of Queenstown with which I have to deal. Sectiou 49 provides that where a Borough is divided into wards, there shall be a separate Burgess Roll for each ward instead of one for the whole Borough, and all the provisions contained in the Act for making the Burgess roll of such a Borough shall apply mutatis mutandis to making the Burgess Roll for each ward in a Borough. It is therefore clear that a Burgess Roll must be made for each ward in a Borough. I am therefore of opinion that any person whose name is on the Valuation Roll for any of such wards and who has paid all his rates due in such ward according to the Act, is entitled to have his name placed on the Burgess Roll for such ward notwithstonding he may have made default in payment of rates due in another ward. If Queenstown was an undivided Borough—which it is not —then all rates should be paid by the persons making default before their names cobld be placed on the Roll.