RATING EXEMPTION.

New Zealand Herald, Volume LXVII, Issue 20642, 14 August 1930, Page 14

RATING EXEMPTION.

Sir, —The recent decision of His Honor the ' Chief Justice regarding rebate of rates for unoccupied houses appears to have caused consternation among the rating-on-uniinprove<i ■ boroughs. Why should it ? The principle applies under the system of rating on capital values. Why differentiate ? It seems to ine that this proviso 111 the Eating Act is, nowadays, a much-needed safeguard against the reckless expenditure which is indulged in by every municipality. If houses are unlet for six months, and the ratepayer is thereby short of half a year's rent, why should he be called on to provido funds for. say, the useless expenditure on costly and unnecessary parks, or other luxuries which so many boroughs seem determined to have at whatever cost. Tf the owner who pays lhe rates and finds the cash is short of funds, surely a eouncil should consider this, as servants of the ratepayers, :rad "take a pull." Again, the main contention of the advocates of rating on unimproved values is that it will break up big estates, cause them to be divided into sections, and, therefore, that houses will bo erected on the sections. If, therefore, through the operation of this system, a house is erected on hitherto vac.ui* land, why should the progressive individual who builds it and invests his savings in it be compelled to find the same annual amount in rates, although his return is half, or generally less than half, tho amount he would receive if the property wore tenanted the whole year? This does not seem to encourage tho house builder, who is actine: in accordance with the so-called beneficial results which follow in tho train of rating on unimproved values. Agent-owneh.