RATING EXEMPTION.

New Zealand Herald, Volume LXVII, Issue 20641, 13 August 1930, Page 15

RATING EXEMPTION.

unimproved value system.

■' PROTEST BY LOCAL BODIES. life ?' 'AMENDING LEGISLATION URGED. A move to obtain amending legislation j n v i e w of tho recent decision of the Full Court in a! Northcote caso that a remission of bj per cent, of rates upon a property may bo successfully claimed if a building on tho land has been vacant for six month's, even though the property is lated on the unimproved I :/value was made yesterday at a conference of Auckland suburban local bodies rating on tho unimproved system. Tho conference was held in tho Chamber of Commerce Hall, and tho Mayor of Takapuna, Mr. J. Williamson, who convened the gathering, presided. Delegates wero present from tho four North Bhoro boroughs,- tho boroughs of Mount Albert, Onehunga and New Lynn, and the Henderson and Glen Eden Town Boards. ' " This is a vital question to boroughs rating on the unimproved value," said ' Mr. Williamson. " All tho boroughs could quote instances where refunds could be asked. It is essential for us to approach the executive of tho Municipal Association immedately to obtain an alteration in the legislation. It might I bo advisable to get in touch with various members of parliament, who could help us. I know, that Takapuna, Birkenhead and Mount Albert all have largo areas of undeveloped land and their finances may bo seriously prejudiced by tho recent decision." Immediate Action Desired. Mr. Williamson then moved that the executive of / the Municipal Association should be asked to approach the Minister of Internal Affairs for immediate remedial legislation so that the provisions of section 69 of the Rating Act should not be applicable where unimproved rating was in force, and that members of Parliament should be asked to further any such' legislation.

Mr. L. E. Rhodes, Mayor of Mount Albert, who seconded the motion, said i,t was clearly/ not the intention of the Act to include lands which were rated on the /'unimproved value, since half the rates would bo exempted if tho improvements only lay idle. Stating that his borough was little affected, Mr. E. 'Morton, Mayor of Onehunga, said he was in accord with the motion. The town /clerk at Northcote, Mr. H. W. Wilson, whose council had brought the case in which the judgment of the Full Court Was given, outlined the circumstances of tho case and stated that tho Mayor of Northcote desired to soa any amending legislation mado retrospective. Since rating was on the land only under improved rating he considered that the fact that a dwelling was unoccupied should make no difference in the liability to pay rates. The position was a ■erious one.

77 Borough Councils Aflected. Mr. B. Hart, of the Henderson Town Board, said a man might build a cottage and allow it deliberately to remain empty /to avoid paying half his rates. "If a man is paying full rates on a section he owns, I cannot see why in reason and justice he should bo exempt for half rates because lie has put up a house and allows it to remain empty half tho time," ihe declared. Mr. 'George Larsen, of the New Lynn Town Board, and the Mayor of Birkenhead, Mr. J. P. McPhail, also expressed agreement with the motion. The chairman of the meeting mentioned that 77 Borough CqUncils in the Dominion were affected by the Court's decision. The motion was carried unanimously, and it was also -decided to ask the Municipal Association to urge local bodies to approach their local members of Parliament to give effect to any legislation brought forward to deal with tho matter.

EESOLTTTION AT MOUNT ALBERT. STATEMENT BY THE MAYOR. A motion to urge on the Government 1 the necessity of amending clause 69 of the Rating Act, 1925, as applied to districts where rating was on the unimproved value system was passed at the meeting of the Mount Albert Borough Council last evening. / " The absurdity of the present position wa3 made clear last week by the test case taken by the Northcote Borough Council before the Court of Appeal," said the Mayor. Mr. L. E. Rhodes. "Clause 69 of the Act states that where a dwelling house or 1 other building remains vacant for over six months, the owner may be liable to pay only half the rates on the property. The result is this, that a man can evade paying half his rates on a large section, merely by erecting a ehack of some kind on it." Mr. Rhodes moved that the executive of'the Municipal Association be requested to ask the Minister of Internal Affairs for immediate remedial legislation so that the clause referred to should not be applicable in a district where tho system of rating on the unimproved value existed. . "If you do that, you will put a grave hardship on those with unrented bouses," said Mr. A.. A. Buckley. "There are not many people who would erect a shack just to evade their rates, and, on the other hand, there are many who absolutely cannot pay rates on an unrented house, as well as keep it in repair. Tho council should go carefully into the affair Jjeforo deciding on anything drastic. Tho motion was earned.