VALUATION OF LAND

New Zealand Herald, Volume LXIX, Issue 21281, 7 September 1932, Page 12

VALUATION OF LAND

PRIVILEGES UNDER ACT ALLEGATION OF ABUSES LOCAL BODIES' PROBLEMS Complaints that increasing numbers of property-owners were taking advantage of the Valuation of Land Act to have low and unfair values placed on their properties, at the expense of other ratepayers, were supported by replies to inquiries made at a number of sources yesterday. It is alleged by several local bodies that section 45 of t lie Act is being abused. This section provides that, if the owner of any land is not satisfied with the Assessment Court decision, he may have the capital value reduced by the Valuer-General to a certain sum, or, failing that, the land shall be purchased by the Government at tlie sum stated.

It is stated that some property-owners, realising that the Government is not in a position, owing to the depression, to purchase freely, are notifying the ValuerGeneral under the section and placing absurdly low values upon their properties. Effect on Local Bodios The effect of this is said to be that values are being reduced to a level which causes local bodies to increase their rates, so as to meet their commitments, the increased burden falling upon ratepayers who have not had their valuations reduced. The system; does not apply where rating is on the annual value. , "Although (lie question does not affect Auckland City," said Mr,, P. F. Notley, city valuer, "people in areas where it does apply aro taking advantage of this section in the Act. It is a most unjust section and should he wiped right out. The matter should be left to the Assessment Court. It is not only a question of rates. People are taking advantage of it so as to get their land tax on a lower basis." "The district's which arc suffering are those on the unimproved or capital value system oi rating," said a representative of another; local body. "There is a lot of it going on. Instances in my own district show reductions in the past year from £12,515 to £8637, from £8270 to £3IOO, and from £2OOO to £IOOO. Values are being reduced in certain instances to absurdly low leveb, which means that the burden falls on the other man in the form of higher rates." " More Prevalent of Late " "The practice has become more prevalent of late," said an official of another local body. "When times were more prosperous it did not matter very much. We have had one case of a reduction from £4OO to £2OO, which is out of all proportion to the surrounding properties. Such action is undoubtedly putting absurd values on properties." The view, however, that the fault lay in the application of an unsuitable system of rating was voiced by the representative of one local authority. "While an increasing number of people aro taking advantage of the Act, owing to hard times," he said, "the position can only arise where the system of rating allows anomalous positions to exist. In my own district the normal accretions of capital value owing to improvements have more than nullified any losses under that section of the Act. It is by trying to operate unsuitable systems of rating that local bodies have brought the trouble on themselves."