Marton News

Wanganui Chronicle, 1 November 1950, Page 2

Marton News

CHANGE TO UNIMPROVED RATING SYSTEM IN RANGHIKEI ADVOCATED While it was recognised that there v. ere anomalies in both the capital and unimproved systems o; rating, the latter method was considered Ihe fairer system. This was the opinion expressed at a meeting of Rangitikei County ratepayers at Greatford on Monday night to discuss the two issues which are to be the subject of a poll at the local body elections on November 18. The meeting was convened by Mr F. M. Friedrich, a candidate for the Rangitoto Riding, wtk,, with Mr C. F. Scott-Maundrell, a ratepayer in t,he Rangitira Riding, sponsored the petition recently circulated throughout the county requesting a change in the system ot rating. At the present time, rating is on capital value in the county, and has been so for the past 73 years. At present 49 counties in the North Island are rated on unimproved value, and 24 cn capital value. This information was given the meeting by Mr F. L. Nicol, county clerk, who said that a bare majority at the election would carry the proposal, which wo'.d have to remain in force for three years. He pointed out that one county recently carried an alteration in the rating system. by five votes.

Discussing the recent re-valuatior. of the county, Mr Friedrich said ratepayers were not objecting to the valuations placed on their land, but to the system of rating. Rating, he said, ought to be on the land and the land alone, and not on improvements It was the buildings erected which made the rates soar. It was penalising the man who made improvements, whereas the mon who did not, got off free. Some rates had doubled and even trebled, said Mr Friedrich. He cited a case of a Turakina resident whose total rates last year for a 14acre property were £l4. This year they were up to £6O. His unimpioved value was £5OO, or £35 10s sn acre, while the capital value was £4525. The general rate on the capital value of this property was £49 9s 10d, but if the rating were altered to the unimproved value, the general rate would drop to £l2 14s 2d. The small farmer, who had to keep his land in good order, was the one who v/as most penalised by the capital rating system, said Mr Friedrich.

The general rate in the county this yenr was expected to produce £119,744 and Mr Friedrich thought that individuals in the five southern ridings were paying more than their fair share of rates at the present time. They were really subsidising the northern ridings.

Quoting the case of the three dairy factories in the district, Mr Friedrich said that at the present time Rata, on capital value, was paying £262 10s in rates, but on the unimproved value the rates would be only £5 Ils lOd, a saving of about £256. The Rangitikei factory paid £l2O 15s in rates, but this would be reduced to £22 12s lid if the rates were levied on unimproved value. Again, the Whangaehij factory paid £lO2 13s, but on the unimproved value the rates would be £3 3s 6d. If the system of rating were changed, said Mr Friedrich, the... difference should go back to the suppliers in the way of bonuses.

At the present time the county rate was 2 5/8d in the £ on the capital value, but by law the maximum allowed was 3d. To raise the equivalent in rates this year if the unimproved system were adopted, the rate would he 6 l/10d in the £. with the maximum allowed of 7d. The capital value of the county was £1.950,930 and the unimproved value £4,711,185. Therefore ratepayers were paying rates on £6,230,000 "worth of improvements. “This does not give people much encouragement to go on improving their properties,” said Mr Friedrich. One of the greatest arguments for unimproved rating was that it was mere reasonable for the man who improved his property, said Mr ScottMaundrell. A person who did not improve his land was no asset to the district. The person who tried to improve his standard of farming was obviously the man who should be encouraged, he said. It had been said that by adopting the unimproved system of rating it would place an added burden on the large properties. “I would suggest that it is one way to help them with their income tax problems,” he said. Mr Nicol said the chairman of the county (Or. K. W. Dalrymple) had asked him to point out to the meeting that it was no concern of the council what system of rating was used. It was a matter solely for the ratepayers themselves, anti he wanted them to know what they were voting for. Whatever system was adopted there were anomalies. Mr Nicol pointed out that on (be present rate of 2 5/8d on capi'at values, the five northern ridings paid £55,259 in rates, while the five southern ridings paid £6l 510. If the chan- P took place, the northern ridings wo’M'l l-ave to find £58,024, a rise of n.enr'y f. 3000, and the southern r'din”s £61,750. a decrease of nearly £3OlO. The meeeting then resolved itself ir.’o a round-table discussion. Two alternative rating sl’stams were suggested and Federated Farmers arc to be asked to pursue their investigations. Mr Rex Homes (Parewanuil said some ratepayers were not satisfied with the capital rating system, while others were dissatisfied with the un- ; im-roved system. What was wanted I was something "in between.” He made the suggest!' n that the unimproved value be added to the canital i vahie and that the rate be struck on both. In Ra'ipitikei the rate th’s year. U such " system was adopted, would be 1.83 d in the £l. to raise the

£119,744 required. This, he contended, would eliminate the anomalies of both systems. Mr Nicol marie a further suggestion that the average of the capital and unimproved value be taken for rating purposes. He volunteered to take tne suggestions up with county clerks at a meeting in the near future. BE AVEN STREET (T/OSED. Beaven Street, between Ross Street and Lyon Street, is at present closed to vehicular traffic while the sewerage main to serve State houses being erected in this area is installed. The work will take about a week, and the road is expected to be open again for traffic by next Tuesday.