19
WEDNESDAY, MARCH 4, 1992
THE RATEABLE VALUES OF ALL PROPERTIES WERE REVISED FROM APRIL 1, 1991, BASED ON RENTAL VALUES AS AT JULY 1, 1990.
LEVEL.
MR MACLEOD SAID TODAY'S RATES WERE AT AN HISTORICALLY LOW
FROM 1931 TO 1972, THEY WERE CHARGED AT 17% OF RATEABLE VALUES. SINCE THEN, THE PERCENTAGE CHARGE HAS VARIED FROM AS HIGH AS 18% TO AS LOW AS THE CURRENT 5.5%.
"AT THIS LEVEL, THEY REPRESENT A VERY MINOR CHARGE ON RATEPAYERS IN RESIDENTIAL PROPERTIES. FOR THE AVERAGE HOUSEHOLD, RATES ARE EQUAL TO LESS THAN 2% OF HOUSEHOLD INCOMES. FOR BUSINESSES, RATES ARE LESS THAN 1% OF AVERAGE OPERATING EXPENSES, HE SAID.
1
FURTHERMORE, MR MACLEOD SAID RATES AS A PROPORTION OF RENTAL VALUES HAD FALLEN SUBSTANTIALLY.
"FROM 1973 TO 1977, THEY WERE AROUND 8%. TODAY, THEY ARE LESS THAN 4%. RATES HAVE THUS DECLINED AS A PROPORTION OF THE TOTAL COSTS OF ACCOMMODATION.
ΤΟ "IT IS VERY LIKELY THAT THIS BENEFIT HAS NOT BEEN PASSED ON TENANTS, BUT HAS BEEN APPROPRIATED BY PROPERTY OWNERS IN THE FORM OF HIGHER RENTS," HE SAID.
HE ALSO POINTED OUT THAT RATES OFFERED SPECIAL ADVANTAGES AS A SOURCE OF REVENUE AS THEY BROADLY REFLECTED THE RATEPAYER'S ABILITY TO PAY, SINCE THEY WERE RELATED TO THE RENTAL VALUE OF THE PROPERTY
OCCUPIED.
"AT THE SAME TIME, THEY ARE A STABLE AND PREDICTABLE SOURCE REVENUE, HE SAID.
11
ON
THE
OF
1.
APRIL RATES RELIEF SCHEME WHICH WAS INTRODUCED ON 1991 AND WOULD END ON MARCH 31, 1992, MR MACLEOD THE SCHEME HAD SERVED ITS PURPOSE AND SHOULD NOT BE EXTENDED.
THE
INTRODUCED TO PROVIDE
WAS SCHEME
RELIEF, TEMPORARY
THE PARTICULARLY FOR DOMESTIC RATEPAYERS, TO ENABLE THEM TO ADJUST TO HIGHER RATES IMMEDIATELY AFTER THE REVALUATION.
A
"BUT THE FUNDAMENTAL PRINCIPLE OF RATING IS THAT RATEPAYERS SHOULD CONTRIBUTE ACCORDING TO THE RENTAL VALUE OF THE PROPERTIES THEY OCCUPY. RATES RELIEF UNDERMINES THIS PRINCIPLE AND SHOULD ONLY BE TEMPORARY MEASURE, HE SAID.
*
MR
MACLEOD
PROPERTIES.
SCHEME SAID AS IT HAPPENED, EXTENDING THE FURTHER YEAR WOULD ANYWAY BENEFIT LESS THAN 6% OF RATEPAYERS DOMESTIC
RATEPAYERS THE MAIN BENEFICIARIES WOULD BE COMMERCIAL AND INDUSTRIAL PROPERTIES (ABOUT 50% OF
FOR A
IN
IN
WHOM
WOULD
BE
BETTER OFF).
0
/20