XN000022-1984-02-29 — Page 37

WEDNESDAY, FEBRUARY 29, 1984

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NEW MEASURES PROPOSED FOR RATE CALCULATIONS

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THE GOVERNMENT HAS COMPLETED ITS REVALUATION OF RATEABLE VALUES WHICH NOW TOTAL $55 BILLION, COMPARED WITH $15 BILLION IN 1983-84, AND CONSEQUENTLY FINANCIAL SECRETARY, SIR JOHN BREMRIDGE HAS PROPOSED CHANGES TO THE RATE CALCULATIONS FOR THE COMING YEAR,

SIR JOHN SAID THAT GIVEN THE CONSIDERABLE INCREASE IN PROPERTY VALUES OVER THE LAST SEVEN YEARS, IT WAS NOT SURPRISING THAT THE NEW RATEABLE VALUES WERE SUBSTANTIALLY HIGHER THAN THOSE ON THE CURRENT VALUATION LISTS ESTABLISHED IN 1976.

THE INCREASE IN RATEABLE VALUES VARIES BETWEEN DIFFERENT CLASSES OF PROPERTY, THE AVERAGE BEING ABOUT THREE TIMES FOR NON-DOMESTIC PREMISES AND ABOUT FOUR TIMES FOR DOMESTIC PREMISES.

+THESE INCREASES IN RATEABLE VALUES DO NOT OF COURSE, DIRECTLY DETERMINE WHAT THE RATEPAYER MUST PAY. THIS DEPENDS ON THE PERCENTAGE RATE CHARGE TO BE APPLIED AND, IN MANY CASES, ON THE EFFECT OF THE LEVEL OF RATE RELIEF TO BE AFFORDED, SIR JOHN SAID.

THE RATES ACTUALLY PAYABLE FOR SOME TENEMENTS MAY ALSO BE AFFECTED BY THE ALLOWANCES TO BE MADE FOR THE LACK OF A POTABLE WATER SUPPLY.

SIR JOHN PROPOSED THAT:

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THE GENERAL RATE PERCENTAGE FOR THE URBAN AREAS BE REDUCED FROM 5-1/2 PER CENT TO 3 PER CENT, AND THE URBAN COUNCIL RATE PERCENTAGE BE REDUCED FROM 8 PER CENT TO 2-1/2 PER CENT, MAKING A TOTAL OF 5-1/2 PER CENT, INSTEAD OF THE 13-1/2 PER CENT APPLIED IN 1983-84. THE GENERAL RATE FOR THE NEW TERRITORIES SHOULD SIMILARLY BE REDUCED FROM 13-1/2 PER CENT TO 5-1/2 PER CENT. IN THOSE NEW TERRITORIES AREAS WHERE RATING IS BEING PHASED IN OVER A FIVE-YEAR PERIOD, THE PERCENTAGE FOR 1984-85 WILL BE REDUCED FROM 12 PER CENT TO 5 PER CENT.

THE RATE RELIEF PERCENTAGE POINT BE SET AT 20 PER CENT, THIS MEANS THAT THE MAXIMUM INCREASE IN ANNUAL RATE PAYMENTS WILL BE LIMITED TO 20 PER CENT OF THAT PAYABLE THE YEAR BEFORE. IN 1983-84, RATE RELIEF WAS LIMITED TO PRE-WAR RENT-CONTROLLED TENEMENTS ONLY, AND THE MAXIMUM PERMITTED PERCENTAGE. INCREASE WAS MUCH GREATER AT 33-1/3 PER CENT.

THE MINIMUM RATEABLE VALUE BE SET AT $1 000. TEŅEMENTS WITH AN ESTIMATED RATEABLE VALUE BELOW $1 000 WILL THEN

BE EXEMPT FROM ASSESSMENT TO RATES. IN 1983-84, THE MINIMUM RATEABLE VALUE WAS $200.

THE CONCESSION FOR THE FEW TENEMENTS WITHOUT FRESH WATER BE EFFECTED BY A 15 PER CENT REDUCTION IN THE RATES PAYABLE, AND FOR TENEMENTS WITH AN UNFILTERED WATER SUPPLY BY A 7.5 PER CENT REDUCTION.

/+THIS MEANS