TNAG-1319-FCO40-1723-Future-of-Hong-Kong-land-leases-1984 — Page 9

GRS 950

RESTRICTED

RESTRICTED

FM HONG KONG 231115Z JULY 84

TO IMMEDIATE PEKING

TELEGRAM NUMBER 697 OF 23 JULY

INFO IMMEDIATE F CO

M.I.P.T.

Fam.

FUTURE OF HONG KONG : LAND.

FOLLOWING IS A NOTE ON RATEABLE VALUE.

24 JUL 1984

Jep!

80

RICE: LD FI

JAK

24 J

ALL PROPERTIES ON HONG KONG ISLAND, IN KOWLOON AND NEW KOWLOON

AND NEARLY ALL PROPERTIES IN THE NEW TERRITORIES ARE SUBJECT TO

A TAX, KNOWN AS ''RATES'. THE AREAS THAT ARE SUBJECT TO RATES ARE

DESIGNATED UNDER THE RATING ORDINANCE (CAP. 116) AS ''SPECIFIED

AREAS''. THOSE AREAS ARE :

k

2282617

See 186

79

AREA A

HONG KONG

AREA BC

KOWLOON/NEW KOWLOON

AREAS D TO S VARIOUS PARTS OF THE NEW TERRITORIES.

2. ALL TENEMENTS WITHIN THOSE SPECIFIED AREAS, VALUED BY THE

COMISSIONER FOR RATING AND VALUATION FOR RATING PURPOSES, AND APRTICULARS OF THESE TENEMENTS, THEIR ADDRESSES AND RATEABLE VALUES

ARE ENTERED ON A LIST CALLED THE ''VALUATION LIST''. THE MAXIMUM RATE

IS 3 PERCENT (GENERAL RATE) TWO AND A HALF (URBAN COUNCIL RATE),

1.E. TOTAL FIVE AND A HALF PERCENT.

3. THERE IS PROVISION IN THE ORDINANCE FOR PROPSALS, OBJECTIONS

AND APPEALS TO BE MADE IN RESPECT OF THE RATEABLE VALUES ENTERED

IN THE VALUATION LISTS.

4. IN THE NEW TERRITORIES AGRICULTURAL LAND, AGRICULTURAL DWELLINGS

AND VILLAGE HOUSES ARE NOT RATED. THEY ARE THEREFORE NOT AT PRESENT

ENTERED IN THE VALUATION LIST AND DO NOT THEREFORE HAVE A RATEABLE

VALUE. THE PRESENT INTENTION IS, HOWEVER, THAT ALL PROPERTIES IN THE NEW TERRITORIES WILL IN DUE COURSE BE GIVEN A RATEABLE VALUE AND

WILL BE SUBJECT TO RATES.

5. THE RATEABLE VALUE OF A TENEMENT IS ASCERTAINED IN ACCORDANCE

WITH SECTION 7 OF THE RATING ORDINANCE. BASICALLY THE RATEABLE VALUE

IS AN AMOUNT EQUAL TO THE RENT AT WHICH THE TENEMENT MIGHT REASONABLY

BE EXPECTED TO BE LET, FROM YEAR TO YEAR, IF

-

(A) THE TENANT UNDERTOOK TO PAY ALL USUAL TENANT'S RATES AND

TAXES

AND

(B) THE LANDLORD UNDERTOOK TO PAY OTHER OUTGOINGS SUCH AS

GOVERNMENT RENT, COST OF REPAIRS AND INSURANCE AND ANY OTHER EXPENSES NECESSARY TO MAINTAIN THE TENEMENT IN A STATE TO

COMMAND THAT RENT. RESTRICTED

16.