WEDNESDAY, JANUARY 21, 1987
26
BILL SEEKS TO ABOLISH RATES RELIEF SCHEME
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THE RATING (AMENDMENT) BILL 1987 SEEKS TO ABOLISH THE RATES RELIEF SCHEME TO ENSURE THAT THE EFFECTS OF THE LAST GENERAL REVALUATION IN RE-DISTRIBUTING THE RATES BURDEN ARE FULLY IMPLEMENTED BEFORE THE NEXT REVALUATION TAKES EFFECT, THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
MOVING THE SECOND READING OF THE BILL, MR JACOBS EXPLAINED THAT THE CURRENT SCHEME LIMITED THE AMOUNT OF RATES INCREASE FOR A PROPERTY IN ANY YEAR TO A CERTAIN PERCENTAGE OF THE RATES PAYABLE IN THE PRECEDING YEAR, SO THAT, IF THE RATES OF ANY PROPERTY WERE INCREASED SUBSTANTIALLY ON A GENERAL REVALUATION, THE INCREASE WAS PHASED IN OVER A PERIOD OF TIME.
+ AT PRESENT, THE LIMIT IS 20 PER CENT OVER THE AMOUNT PAID IN THE IMMEDIATELY PRECEDING YEAR.
+THE LIMIT IS IMPOSED UNTIL THE RATEPAYER IS PAYING THE FULL INCREASED RATES RESULTING FROM THE REVISED RATEABLE VALUE OF HIS PROPERTY,+ HE SAID.
JACOBS NOTED THAT DURING THE CURRENT FINANCIAL YEAR APPROXIMATELY 390 400 RATED TENEMENTS, OR 47.2 PER CENT OF THE TOTAL, HAD BEEN SUBJECT TO RATES RELIEF. IN 1987-88, THIS WOULD DECLINE TO 65 500 OR 7.3 PER CENT IF THE PRESENT RELIEF SCHEME WERE TO BE CONTINUED.
HE POINTED OUT THAT THE SCHEME HAD ALWAYS BEEN REGARDED AS A TEMPORARY CONCESSION. AND IT WAS ENVISAGED THAT THE CHANGES CAUSED BY A REVALUATION SHOULD BE FULLY IMPLEMENTED BEFORE THE NEXT REVALUATION TOOK EFFECT.
+OTHERWISE, SOME RATEPAYERS WILL CONTINUE INDEFINITELY PAYING RATES BASED ON COMPOUNDED INCREASES ON THE AMOUNT PAYABLE IN 1983 - THAT IS BEFORE THE LAST GENERAL REVALUATION IN 1984 AND NOT ON THE CURRENT, RATEABLE VALUE. TO SOME EXTENT THIS DEFEATS THE OBJECT OF CARRYING OUT THE REVALUATION IN THE FIRST PLACE,+ HE SAID.
IT WAS THEREFORE PROPOSED TO ABOLISH THE RELIEF SCHEME WITH EFFECT FROM APRIL 1 THIS YEAR.
MR JACOBS SAID THE RATING AND VALUATION DEPARTMENT WAS CURRENTLY CONDUCTING A FURTHER REVALUATION OF TENEMENTS INTENDED TO TAKE EFFECT FROM APRIL 1, 1988.
+CURRENT PROJECTIONS ARE THAT OVERALL INCREASES WILL BE AROUND 10 PER CENT WITH FAIRLY SIMILAR INCREASES FOR MOST TYPES OF PROPERTY.
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/+THERE WILL