Municipal and Official Handbook of the City of Auckland, New Zealand/Valuer's Department

by Percy F. Notley

VALUER'S DEPARTMENT.

VALUATION OF PROPERTY FOR RATING PURPOSES.

The Valuation Department provides the figures upon which the major portion of the revenue of the local body is obtained. It is a matter that very few take an interest in until after the Rate Demand has been sent out by the Rate Collector, when, of course, it is too late for redress should there be any just grievance.

An attempt has been made to extract the main features of the Rating Act, as pertaining to the valuations for the City of Auckland, with the following results:—

The local authority of any district (other than a district wherein the system of rating on the unimproved value is in force) may at any time, by resolution, determine whether the system of rating on the annual value or the capital value shall in future be in force in the district, and any such resolution may, after three years, be rescinded and a new resolution passed.

Where the system of rating on the capital value or on the unimproved value is in force, the valuation used is that supplied by the Valuer-General under the Valuation of Land Act, prepared by valuers employed as permanent Government officers. The valuation rolls are revised from time to time as required, but there is no fixed period between one revision and another.

Where the system of rating on the annual value is in force the local authority appoints and pays its own valuer, and the valuation may be made annually or triennially.

The annual value is deemed to be the letting-value less 20 per cent. in case of houses, buildings, and other perishable property, and less 10 per cent. in cases of land; but in no case less than 5 per cent. of the value of the fee-simple. The capital value is deemed to be the selling value of the land, including improvements, at the time of valuation. The unimproved value is deemed to be the selling value of the land at the time of valuation, excluding the value of any existing improvements.

The system of rating adopted for the City of Auckland is that of annual value. The following examples illustrate the modus operandi:—

A dwelling let at £1 per week (worth £700), equals	£52	per annum
Less 20%	10
The annual value is	£42

but if a dwelling is worth £900 and lets only at £1 per week, then the value would be £45. (5% of the £900.)

All properties are dealt with as being freehold.

In the case of vacant land, the freehold value is arrived at, and 5% of that is the annual value, so that idle land does not escape local rates.

In certain cases where during the rating period a building has been untenanted for six months, the owner may, on application, obtain a refund of half rates.

The valuation list for the City of Auckland is compiled by the City Valuer, and deposited with the Town Clerk on January 15th each year. It is then advertised as open for inspection until February 15th, and objections to any matter contained therein may be lodged during that period.

After the objections are lodged, an Assessment Court is held, and is presided over by the District Magistrate, who becomes the Judge of the Assessment Court. On the day of the sitting of the Court, which is fixed by the judge, the objections are heard and dealt with. The valuation list is signed by the judge, and it then becomes the Valuation Roll. After this, the total ratable value is submitted to the Mayor and Council, and a rate in the £, which will bring the necessary revenue for the City's expenditure, is duly struck.

The total number of assessments on the 1922–23 valuation list, which was submitted by the Valuer on January 15th, 1922, consisted of 21,179.

The total ratable value for the City of Auckland, submitted on January 15th, 1922, was	£1,596,324
Less reductions made by the Assessment Court	4,798
Net total ratable value	£1,591,526

As an indication of the real estate market during the last twelve months (November 1st, 1920, until October 31st, 1921) no less than 2,927 letters were received from solicitors and others notifying sales of properties.

Appended is a table showing, for the last decade, the increase in the valuations for the City of Auckland. A portion of the increase is accounted for by the merging of outside districts.

The ratable value per acre, in 1913, prior to the era of amalgamation, was, for the City of Auckland, £389. This has gradually been reduced by the amalgamation of various suburban districts, and at the present time the ratable value per acre is £154; but as building operations progress this will rise in proportion. At the present date, the ratable value of the City, omitting the amalgamated areas, 1s £553 per acre.

In 1913 the following comparison was made, viz:—

		Ratable value per acre.
The City of Auckland	(1,878 acres)	£389
Parnell Borough	(470 acres)	£125
Arch Hill District	(125 acres)	£94

Another interesting fact is that practically 16% of the ratable value pertains to Queen Street alone.

P. F. NOTLEY,

City Valuer.

Rating Year.	No. of Assessments.	Ratable Value submitted to Asmnt. Court.	Reduction made at Asmt. Court.	Net total Ratable Value on which rates were levied.		Remarks.
1912/13	9,468	£681,986	£2,617, or .38%	£679,369		The City of Auckland at this period included Ponsonby, Grafton, and Newton districts (1948 acres)
1913/14	9,648	£732,289	£1,670, or .22%	£730,619 57,878 14,369 Total £802,866	Parnell, Arch Hill	The City of Auckland was enlarged by the amalgamation of the Parnell Borough (470 acres), 15/2/1913, and Arch Hill District (152 acres), 1/4/1913.
1914/15	11,540	£864,820	£12,300, or 1.4%*	£852,620	Exclusive of Grey Lynn area, but inclusive of Parnell and Arch Hill.	*This large reduction was the result of an appeal by the Gas Company. Grey Lynn Borough (900 acres) amalgamated with the City, 1/7/14, conditionally on being rated on the unimproved values, as supplied by the Government Valuation Department (for 7 years).
1915/16	11,769	£893,346	£5,570, or .62%	£887,776  111,548 Total £999,324	Remuera based on 5% of Govt. Captl. Valuation. Exclusive of Grey Lynn.	The City of Auckland was enlarged by the amalgamation of Remuera Road District (3,500 acres), 1/3/15.
1916/17	14,916	£896,881	£5,331, or .59%	112,358 £891,550 19,440 Total £1,023,348	Remuera based on 5% of Govt. Captl. Valuation. Eden Terrace based on 6% of Govt. Captl. Valuation Exclusive of Grey Lynn.	The City of Auckland was enlarged by the amalgamation of Eden Terrace District (98 acres), 1/10/15.
1917/18	15,277	£1,066,552	£6,909, or .64%	£1,059,719 58,393 Total £1,118,112	Inclusive of Rem. and E. Ter. Epsom based on 5% Govt. Captl. Valuation Exclusive of Grey Lynn	The City of Auckland was enlarged by the amalgamation of Epsom Road District (1,139 acres), on 1/2/17.
1918/19	15,321	£1,072,613	£5,486, or .51%	£1,067,127 58,571 Total £1,125,698	Epsom based on 5% of Gov. Captl. Valuation Exclusive of Grey Lynn.
1919/20	15,569	£1,081,508	£2,485, or .22%	£1,079,023 58,276 Total £1,137,299	Epsom based on 5% of Govt. Captl. Valuation. Exclusive of Grey Lynn.
1920/21	16,779	£1,258,698	£6,130, or .40%	£1,252,568	Includes Epsom by not Grey Lynn	The City at this date included Parnell, Arch Hill, Remuera, Epsom, and Grey Lynn.
1921/22	19,719	£1,388,758   100,510	£4,449, or .31%   £339, or .33%	£1,384,309 100,171 12,615 Total. £1,497,095	City, etc. Grey Lynn area 1st year on annual value. Point Chevalier, based on 5% of Govt. Capital Valuation	The City of Auckland was enlarged by the amalgamation of Point Chevalier Road District (1,220 acres), on 1/4/1921.
1922/23	21,179	£1,596,324	£4,798, or .3%	£1,591,526		Includes the whole area under the City Council's control.