PROPERTIES currently rated on their unimproved valuation are to be reviewed by the Shire of Northam.
Shire of Northam chief executive Jason Whiteaker said the Shire was required under section 6.28 of the Local Government Act 1995, to review and make recommendations to the minister for local government and communities as to the method of valuation to be used by the Shire for rating purposes.
He said a pack would shortly be sent to all ratepayers currently rated on UVs.
The pack includes an introduction letter, details of the ratepayer’s property according to Council’s rate records, land use declaration form, a discussion paper for a change in method of valuation, an extract of the Shire’s 2014-15 annual budget detailing rates in the dollar and frequently asked questions.
Section 6.28 of the Local Government Act 1995 requires that the general principle for the basis of valuing land is to be:
Unimproved value (UV)where the land is used predominantly for rural purposes and gross rental value (GRV): where the land is used predominantly for nonrural purposes.
“Where the land is used predominantly for non-rural purposes, the gross rental value of the land will be applied,” Mr Whiteaker said.
“Council will seek the minister’s approval to have the property rated on GRV.’’
While the valuer general provides the GRV and UV valuations, the Shire is responsible for ensuring the appropriate method (GRV or UV) is used to calculate rates.
When it came to rate calculations, Mr Whiteaker said UVs were based on unimproved land value multiplied by the applicable differential rate in the dollar.
GRVs were based on the gross annual rental value that the land might reasonably be expected to realize if let on a tenancy from year to year, multiplied by the applicable differential rate in the dollar.
Mr Whiteaker requested ratepayers complete the declaration forms and return them to the Shire.
He also encouraged people to make comment so that their views could be considered.