OTAHUHU RATING POLL.

New Zealand Herald, Volume LXVIII, Issue 20827, 20 March 1931, Page 14

OTAHUHU RATING POLL.

Sir, —The unimproved value of tfie land ! in Otahuhu according to the last valuation made in 1926 was £420,000. On this amount tho borough has to strike a rate of tenpence aud five-sixteenths of a penny in tjje pound to obtain £IB,OOO in rates. The improvements according to the valuation are shown as £BOO,OOO, but of course under the present system .there pay no rates. If tjie proposal to rescind is carried and capital rating comes into force the borough will be revalued. With the great increase ip land values in the main street, together with the vast amount of building that has taken place in the borough since tho last valuation, we can safely say that the capital value of Otahuhu will touch £2,000,000. Now we shall see what rate in the pound Is required to return £IB,OOO in rates. If the rate on £420,000 is tenpence and fivesixteenths of a penny in the pound, then the rate on £2,000,000 will, be, roughly, twopence and one-sixth of a penny in the pound. Thus a small bungalow valued *at '£2oo for land and £750 for buildings will pay less in rates. But the wealthy man'with buildings valued at more than four _times the value of his land will pay more rates. Tills will make the rich man with a large stake in the district contribute according to his interest. Under the unimproved value system the rates have steadily increased, but under capital or rental value the rates naturally decrease as money is spent in the borough. Rental Value.