BASIS OF TAXATIONS.

New Zealand Herald, Volume LVII, Issue 17429, 26 March 1920, Page 6

BASIS OF TAXATIONS.

ASSESSING RENTAL VALUES.

. OFFICES "CASUALLY LET.

ARGUMENT BEFORE COURT.

The basis of the rental value of offices oasually 4et formed the subject of legal argument before the Assessment Court for i Auckland yesterday, when the assessments of the city valuer for" the City Chambers and His Majesty's Arcade were under consideration.

Mr. Towle, for the objectors,, contended that there was a distinct difference between buildings in which offices were let to casual tenants, and buildings permanently occupied. In the former case, the buildings were frequently, unoccupied, and higher rents had to be obtained from casual occupiers than from permanent tenants to provide against the periods' during which the rooms were not tenanted. He contended that the rentals obtained should not be Jaken as the basis of valuation, but that a considerably greater margin than the 20 per cent, provided for in the Rating Act should be allowed in reduction. The matter 'rested largely upon the interpretation of the Act which .- provided for the valuation on the basis of what rental the property would let at from year to year. He suggested that the chairman, Mr. J.- W. Poynton, S.M., give a ruling on the point. Mr. Johnstone, for trie .City Council, ! stated that it was not the practice to j closely adhere to the annual xental value I in framing the valuations. If the vainer considered the actual rent of a place too high he did not take it as his basis, but made his own appraisement. In- every i case, moreover, he allowed more than the 20 per cent, reduction on the actual rental value to provide for repairs and other charges. Each valuation was arrived at on the rental value of each separate year. The chairman said there could be no exact mathematical rule of computing the rental _ valuation, as conditions in certain localities were liable to differ so widely. The valuer had to compound two considerations— rental the property actually brought, and the rental it should bring. In such cases the valuer could only assess on the average rental for the year. This was the system that had "been followed, and the small'' number of objections that had been -lodged showed that .the system worked well. In his experience all the objections had been met in a good spirit, and reasonable adjustments had been made.

Counsel explained that an adjustment had been made in respect to the valuations in question. .