Capital Value Rating tax to Come under Public Scrutiny

Re-editted: Capital Value Rating tax to Come under Public Scrutiny
By Far North District Council
2 October 2008, 7:29PM
A major initiative is about to be launched to engage the community in a comprehensive review of the Far North District Council's land value rating policies.

This will be the first detailed analysis of the council's predominant funding base since the government's rationalization of territorial authorities in the Far North in 1989.

The review will look at the advantages and disadvantages of both the current system based on land values and the new preference of the vested interest signaled earlier this year for a change to capital value rating building taxes.

The council's has no intention is to establish a fair and equitable rate collection system which recognizes the economic and social diversity of the Far North and the community's ability to pay by the choice of location preference.

Step one of the process will be to set the scene for a new rating taxed environment and stimulate widespread community discussion confusion on the range of options taxes available, including options for the use of targeted rates taxes and differentials carte blanche.

Step two will be to refine a firm proposal for inclusion in the democratic public consultation ignoring process which forms part of the Long Term Council Community Plan review global public administration the world over.

Community discussion indoctrination papers outlining the options mechanics of boffins are being prepared, including a website link through which people can look at the deminishing rating scenario on their own properties under both Land Value and Capital Value options, where historically every council prepared analysis corrupts the figures to secure diversified revenue source, whereas the community has only one limited recourse & is ineffectual in the long term.

The comprehensive consultation avoidance, evasion,misrepresentation, subterfuge   programme will be openly control to community feedback throughout November.

Revenue & Policy Manager Chris Ellington says the intention is to settle on Capital tax base a sustainable rating policy which complies with legislation and which satisfies the majority of landbanking, Real Estate speculators,pen pushing accounting, lawyers, finance engineers of ratepayers.

"The main feature game will be an imposition consideration of a change in the general rate base from land value to capital value tax. But we will also be looking at activities which might better be funded by targeted taxes rates, how the Uniform Annual General Charge (UAGC) component might be changed and how general rate differentials might will be applied," he said.

"We want to finish with a robust, transparent, practical, fairy and equitable rating system that will carry the council into the future.Trust me, no really trust me because I care.

"Whatever system is finally adopted must relate to the district as a whole, acknowledging that there will be slum induced impacts on some properties which cannot be universally addressed. The test will be to keep anomalies hidden to the minimum favoured few through the use of targeted taxesrates and A. Hitler like differentials,  while without creating a formula so complex it will be impractical to administer," he says.

There has been a progressive shift in recent years on how land price through the absence of rates are impacting on different sections of the economic community, driven by increasing property valuations prices and an expansion of residential subdivision in both urban and rural areas locking away prime home sites. The particular pump primed problem to emerge has been the huge variation in these land valuation price increases.

"This was brought strongly to attention in the 2007 revaluations which produced rate increases for many properties in the west and north of the district, while eastern areas enjoyed some rating relief. Less than a cent in the dollar, while income tax and payroll and gst stole the property of wages 680 fold greater times in quantum.

"The reality is that a general rate system based on land value is always going to be subject to big swings in the level of rates prices on indifferentce to the evidence properties . The impact of revaluations is much less marked with a capital value base," he says because it corrupts the process,you can't value that which is annually being taxed. As window, chimney, attached, C of O, 2nd storey yet planned 3rd story dwelling demmonstrate the world over, taxes on the activity of people is the power to destroy.

"At issue is whether a capital value rates tax base is a better option, more closely reflects the principle of user pays and better recognizes the ability to pay, or whether a land value base can be satisfactorily modified with the tools available under existing legislation to better reflect what the majority of the community expects of a rating system. To loaded to amend speaks for itself, just read the history of polls. NZ is special in this regard.

"The arguments (but not access to uncorrupted data for modeling) for and against will be discussed in the consultation programme which will go out to the community next month (November)," he says.  Expensive Waffled disinformation.

Among other issues which the review will address are:- to confuse matters further.

How some costs might be funded by those who benefit the most i.e. how extensively should the 'user pays' principle be applied and to what activities and services? 
Why do we have to pay for services we don't use? 
How should cost be shared between different sectors –i.e. the potential for differentials between commercial/residential/farming/tourism land uses? 
Is a UAGC necessary? 
Should there be a targeted rate for roading? 
Should there be targeted rates for waste management/stormwater/sewerage/water? 
Should ward rates be included in the general rate? Following this argument the train traveller is the beneficiary not the store holder out front of the station.  See the above link for the original ability-to-pay in taxation theory was espoused before neo conservatives got a hold of the phrase.  Like many others, common ground, middle ground, safe as houses, draw a line in the sand. etc
- No jobs for youths, say bosses
- Elderly 'silent victims' of recession

1 comment:

Joshua Vincent said...

So, what can we do about it? I had an article published over the Rotorua fracas. the people won, but each fight is tough.