THE RATING LAW.

Otago Witness, Issue 3987, 12 August 1930, Page 61

THE RATING LAW.

UNIMPROVED VALUE SYSTEM.

AUCKLAND, August 9. The effect of the Appeal Court’s decision in the Northcote rating case is considered likely to be far-reaching. A conference of representatives of the four North Shore boroughs—namely, Devonport, Takapuna, Birkenhead, and Northcote —has been called by the Mayor of Takapuna (Mr Williamson) with the object of securing amending legislation. Mr Williamson said that, if the court’s judgment stands, the principle of rating on unimproved values will be seriously challenged.

An originating summons was brought by the Mayor, councillors, and burgesses of the Borough of Northcote against George Buchanan, of Auckland, commission agent. Section 69 of the Rating Act. 1925, provides that where a dwelling house or other building remains vacant for a period of not less than six months, whether continuously or not, and the person rated gives the local authority, within 14 days after the expiration of the said period, notice in writing of the date on which the house became vacant, such person shall be liable to pay only half rates otherwise payable. The defendant is the owner of a property with a dwelling house erected thereon in Queen street, Northcote, where rating on unimproved value is in force, and his property being vacant for six months during the rating year ended March, 1929, and having given notice required by section 69, he applied for remission of half the rates levied. The Appeal Court held that the judgment should be entered for the defendant. In delivering the judgment of the court the Chief Justice said: “We can see no reason whatever for limiting the construction of section 69 of the Rating Act in the manner contended for by Mr O’Shea. Reading the word 4 such dwelling house or other building ’ as we think they must be read, as meaning the land and dwelling house, or what is the same thing, dwelling house or building and land within its curtilage, the basis of system upon which the property is rated seems to us to be quite immaterial. Where a person owns the land upon which a dwelling house is erected his rates are still payable whatever basis or system it may be upon which the rates are made or levied. The point is that we think that the words 4 in respect to such dwelling house or other building ’ whatever they may mean, and we have indicated what we think they mean, apply to the same subject matter, whatever the basis or system of rating may be. When once this point is appreciated the supposed difficulty ceases, and it follows that section 69 does apply to a district where the system of rating is on unimproved value, as well as to the district where the system in force is that of rating on either annual value or capital value.”

A fine of £5O was imposed on Percy Herbert Basley, solicitor, of Rotorua, on a charge of failing to have has trust account audited.