Nelsin Evening Mail. THURSDAY, APRIL 18, 1907. RATING ON UNIMPROVED VALUES.

Nelson Evening Mail, Volume XLII, Issue XLII, 18 April 1907, Page 2

Nelsin Evening Mail. THURSDAY, APRIL 18, 1907. RATING ON UNIMPROVED VALUES.

DIFFICULTIES IN NELSON. IT is a matter for congratulation th. among the many obscuring issues th are confusing the minds of the rat payers in the current municipal ele tions in Nelson the question of ratu on unimproved values has not arise In view of the anomalies in rating i often confronting the observer wl suggests reformed systems one is ofte tempted to seek relief in the method < assessment afforded by tho uniniprove value. But a glance at local conditio! will show that, however excellent tl system may be in compact and crowde towns, it would merely inflict injustii and hardship in such places as Nelsor • • » • » • If the city were bounded by its bus ness streets, or say even by the bourn aries iepresented by the Maitai, Ti Toi and Washington Valleys, sou street south of Trafalgar-street, roun to the Maitai again by the nearei streets leading towards the Brook Va ley, rating on the unimproved vain might be not only feasible but bem ficial and logical. But Nelson has il "regions beyond," and even by dissc dating city from outskirts by means c rating zones it would be impossible t avoid inflicting injustice and loss. Fc instance, taking the business area an a portion of the residential area neares the business streets as a zone, the mc ment the rating by unimproved valu became the basis the amount of rate from the area indicated would be re duced to something below the sum noi yielded by rating on rental and capita values. Obviously, if the city re quired just as much revenue as now — a a matter of fact it requires more tha it can raise without increasing the rates the reduction in the city zone due t rating on the unimproved value woul have to bo made good by thc suburba zone. Apart from the hardship, even losr this would inflict, and to say nothin of its injustice, in rating the suburb on the unimproved value it would hav to be assumed that the frontages wer lying idle, awaiting the unearned ir crement. But as a matter of fact ther is less land in the suburbs awaiting th unearned increment than in and aroun the heart of the city. Nearly every pie of land not built upon is used for gai dening or for the beautification of th homes in the midst of it. The cit boundary extends on three sides till i actually includes country land, an thero are scores of acres on the oui skirts of the city that would not b built over even were the population c Nelson to double itself within the nes year. Thus, under any rating on ui improved value system, it would bo ni cessary to have at least three zones an each would inflict hardship and injus tice on the other. At tho same time, one cannot ignor the anomalies- of the system of ratin on rental values. It is a direct hind ranee to improvement, and it offers premium to those who prefer to gai: the unearned increment through the en terprise of a neighbour. The momen the owner or occupier of a house o office puts on an additional room, he i rated for it, but he may go for year on an old and quite inadequate assess ment so long as he chooses to leave i building unimproved. If the owner o: a frontage pull down an old building and put up a new one he adds to th( appearance of a town and to the value of the frontages surrounding his own But his only reward is that he is immediately called upon to pay a highei rate. His neighbour may have a tumble-down place, or a lot of unimproved land, or an unsightly shed on it. The enterprise of the man who has built the new structure probably has increased the frontage value in the vicinity by a couple of pounds a foot; but the municipality is little the gainer. While the old shed or tumble-down place remains if, and not the frontage, can be assessed for rates. Meantime, the enterprise of the man who has improved his frontage by means of a new building, and thereby also added value to the municipality all round, is alone taxed, for his assessment Is raised immediately. • • • • » • Of course it is to be assumed that when a man builds he does so with the object of increasing his own income from the land rather than with the intention of adding beauty and value to his municipality. His neighbour may be either too poor to utilise a holding adjacent to its full extent, or he may lack enterprise, or he may deliberately await and enjoy tho unearned " increment. But the valuer cannot touch

him. The rental value of his place may be put up a little. But as a rule in appeal against assessment based on he plea that- nothing has been done to ncreaso the earning power of a builumg lo matter how much the value of .the md on which it stands may have in-rea-.ed is almost invariably upheld, lating on the unimproved value renoves this anomaly. It enables an iwner of land to build and improve as he likes and to anv extent without adlitional taxation, while the increased value his enterprise gives to adjacent 'and is taken advantage of by the municipality. But the benefit of the system •annot be euioyed except in closely built upon and compact towns, or by means of zones in towns whiph have scattered outskirts as in Nelson. As already oointed- out, however, if the city area were rated on tho basis of unimproved value it is probable that thc amount of rates so derived would be less than that •iow obtained from the same area, and 'he deficit would have to be made good by the outskirts area— a manifest injustice Then finally, outskirts land by no means held for the unearned increment, and in full use for orchard and general .gardening purposes, would have, to be rated on the assumption that it should be built upon in order to earn rates- and that would simply kill the market garden industry and destroy the beautv of .suburban holdings. Fortunately, the issue is not a living one so far as municipal politics aflecting the present efection in Nelson is concerned But sooner or later it is sure to be raised, and when that time comes the ratepayers will have to be prepared for it Nelson is not ready for rating on unimproved values even on an equitable basis of zones For ■ many years to come, till the Corporation finances can stand rate reduction within the closely built upon city area without equalising such reduction by increasing suburban rates, the system of rating on the unimproved value must remain outride the region of praclicd politics and possess interest only from 1 an academic standpoint. It is a pity, '-. for the plan has much to recommend it. But rental value assessment, with all its . anomalies and evils, suits Nelson for the present, and will continue to do so foi a generation to come.