XN000022-1981-11-13 — Page 3

FRIDAY, NOVEMBER 13, 192-

MR LADD EXPLAINED THAT PROPERTY TAX IS CHARGED ON ALL NON-CORPORATE PROPERTY OWNERS OTHER THAN OWNERS OF

DOMESTIC PREMISES WHO OCCUPY THE PREMISES WHOLLY FOR RESIDENTIAL PURPOSES. IT IS CHARGEABLE AT THE STANDARD RATE OF 15 PER CENT ON THE ASSESSABLE VALUE OF THE PROPERTY LESS A 20 PER CENT DEDUCTION FOR REPAIRS AND OUTGOINGS.

MR LADD SAID THAT ALTHOUGH THE UPDATED VALUES WOULD IN GENERAL SHOW SIGNIFICANT INCREASES, THE REVISION DOES NO MORE THAN BRING LANDLORDS' TAX LIABILITIES INTO LINE WITH OTHER TAXPAYERS FOR EXAMPLE, SALARIES TAX PAYERS OR CORPORATE (LIMITED LIABILITY COMPANY) LANDLORDS WHOSE TAX BILLS ARE ALREADY ASSESSED ON CURRENT INCOME OR RENTAL LEVELS.

+ IT SHOULD BE REMEMBERED, HE SAID, THAT FOR SEVERAL YEARS PROPERTY TAXPAYERS HAVE BEEN IN AN EXTREMELY ADVANTAGEOUS POSITION AS THEY HAVE BEEN PAYING PROPERTY TAX BASED ON OUTDATED VALUES SET IN 1976. HE EXPLAINED THAT THE EFFECT OF THIS OVER THE FIVE-YEAR PERIOD HAS BEEN THAT THE AVERAGE IMPACT OF PROPERTY TAX ON THESE LANDLORDS HAS DECLINED FROM THE STANDARD RATE OF 15 PER CENT ON 1976 VALUES TO BETWEEN 3.5 PER CENT TO FIVE PER CENT ON 1981 VALUES. THE PURPOSE OF THE REVISION EXERCISE NOW COMPLETED IS TO REINSTATE THE CHARGE TO PROPERTY TAX ON LANDLORDS TO THE APPROPRIATE LEVEL.

MR LADD ADDED THAT BECAUSE UNDER THE EXISTING LAW ASSESSABLE VALUES FOR NON-CONTROLLED PREMISES ARE ESTABLISHED BY REFERENCE TO ESTIMATED MARKET RENTAL VALUES THERE MAY BE SOME CASES WHERE, EXCEPTIONALLY, THE NEW VALUES ARISING OUT OF THE REVALUATION EXERCISE EXCEED THE RENT RECEIVED BY THE LANDLORD. ACCORDINGLY, COINCIDENTALLY WITH THE REVALUATION EXERCISE IT HAS BEEN DECIDED TO INTRODUCE AN AMENDMENT TO THE LAW WHICH WILL ENABLE THE COMMISSIONER. UPON OBJECTION TO THE ASSESSMENT, TO REDUCE THE ASSESSABLE VALUE IN SUCH CASES TO THE RENT PASSING ON THE FIRST OF APRIL IN ANY PARTICULAR YEAR OF ASSESSMENT.

FURTHERMORE, MR LADD SAID THAT THE INCREASE IN ASSESSABLE VALUES WOULD HAVÉ NO EFFECT ON EXEMPTED PROPERTIES. IN GENERAL THESE ARE, PREMISES WHICH ARE VACANT- PREMISES OWNED BY BUSINESS PROPRIETORS FOR PRODUCING PROF ITS CHARGEABLE TO PROF ITS TAX- PREMISES WHOLLY OWNED BY CLUBS AND TRADE ASSOCIATIONS- AND PREMISES DESIGNATED AS ANCESTRAL PROPERTY.

FINALLY MR LADD EMPHASISED THAT THE ISSUE OF PROPERTY TAX ASSESSMENTS WHICH IS ABOUT TO TAKE PLACE AS A RESULT OF THE REVIEW OF ASSESSABLE VALUES DOES NOT REPRESENT A DEPARTURE FROM THE BASIC CONCEPTS FOR THE ASSESSMENT OF PROPERTY OWNERS. INDEED, AS IN THE PAST, WHERE OWNERS WITH VALID GROUNDS WISH TO OBJECT TO THE ASSESSMENTS THEY MAY DO SO. EACH CASE WILL BE EXAMINED IN DETAIL WITH PARTICULAR EMPHASIS BEING GIVEN TO THE RENTAL INCOME WHICH THE OWNER RECEIVES.