PAYMENT OF RATES

Otago Daily Times, Issue 27346, 23 March 1950, Page 2

PAYMENT OF RATES

Wage Basis Suggested Present System Held Unjust Rates should be paid on a wage basis like income tax, contended Mr G. H. Claridge, president of the Kew Ratepaers and Householders’ Association, at its annual meeting on Tuesday. Speakers denounced the present system of levying rates on the capital value of property as unjust and detrimental to the city, and agreed that jt was time for a change. Mr Claridge suggested that the amount of rates to be paid by each wage earner should be assessed like income tax. Such a method would have the effect of an overall reduction in rates, because people not owning property would pay their share to the upkeep of the amenities of the city. A man with seven or eight properties today had to increase his rents to cover rates and gain a profit. Under the wage system, the tenant would pay his own rates and would have a cheaper rent, while the owner, who would also pay only his own rates, would gain a profit.’ Rating on the unimproved value of land was also unjust, Mr Claridge said. Under this system the man with the large property was paying the same amount as the man owning the small property, irrespective of income. Mr R. J. Calvert said that he was strongly opposed to the present system of rating because of its injustices. People who bought homes prior to the war were treated more favourably under the system than those who bought homes at post-war values.