RATES ON VACANT HOUSE.

New Zealand Herald, Volume LXVII, Issue 20620, 19 July 1930, Page 14

RATES ON VACANT HOUSE.

CASL BEFORE FULL COURT. PROPERTY AT NORTHCOTE. [BY TELEOItAI'If.—ruESS ASSOCIATION. ] WELLINGTON, Friday. An interesting point of rating law came before the Pull Court yesterday nnd today upon an originating summons brought b> 'ho Mayor, councillors and burgesses of the borough of Nortlicote against Arthur George Buchanan, of Auckland, commission agent. Section 69 of the Rating Act, 1925, provides that where a dwelling house or other building remains vacant for a period of not less than six months, whether continuously or not, and the porson rated gives the local authority within 14 days after tho expiration of the said period a notice in writing of tho dates on which the house became vacant, such person shall be liable to pay only half the rates otherwise payable.

Iho question raised by tho summons concerns the effect of that section where the system of rating on the unimproved value is in force. Defendant is tho owner of property with a dwelling house erected thereon, in tjuoon Street, Nort hcoto, where rating on the unimproved value is in force

His property was vacant for six months during the rating year ended March, 1929, and, having given tho notice required by section 69, he applied for tho remission of half the rates levied. Tho question of his liability is being determined on this summons.

Mr. O'Sliea, for tho plaintiff corporation, said that if tho rating were on the capital or annual value defendant would bo untitled to receive a refund of half the rates levied. Such, however, was not tho case whero tho rating was on tho unimproved value. Section 69 did not apply whero boroughs bad adopted tho principle of rating on the unimproved value.

The rating on (ho annual or capital value was taxation in tho nature of income tax, while rnling on the unimproved value was rather in the nature of land (ax. Tho practice of corporations in New Zealand had been not to allow (lit! rebate when the rate was levied on the unimproved valuo Mr. Mahoney, for defendant, said rates were payable under (he. statute irrespective of tho system of computing (he ratable value. What was charged with the ralo was the ralalile properly, and what could be recovered was payable in respect of ratable property as defined by (he Rating Act, whether the rate was levied on the unimproved value or other wise. Keel inn 69 granted relief irrespective of the method adopted in levying the rate. Judgment was reserved.

AUCKLAND CITY MISSION. An address on "Phantoms of Yesterday" will be given by the Rev. Jasper (alder at (he Auckland City Mission's service in the Plaza Theatre to-morrow evening. Items will bo rendered hv tho City Mission Choir. Tho second portion