Unimproved Capital Value (UCV) is the best rating system in the world, because it does not penalise the hard-working people who add value to their home or business properties.
So it was disappointing to read that Cambridge council candidate David Berry (Claremont-Nedlands Post 17/4) wants to abolish UCV rating in the endowment lands, but pleasing to read in the same issue Bruce Elliott's thoughtful refutation.
Mr Berry said that 70 per cent of owners in the endowment lands would pay lower rates if the Gross Rental Value (GRV) system replaced UCV. What about the 30 per cent who will pay a fair bit more?
|Published letter to editor of Post, of 2 Keightley Road, Subiaco (a Perth suburb), W. A.|
The unimproved value system causes people to pay rates based on what nature and the whole community has produced in amenities, the value of which is reflected in land prices.
As population increases and the standard of living rises, the price of land rises, so allowing landowners to extract a higher price or rent from their fellow citizens.
These increases are more than would be justified by the cost of the land originally. UCV rating is a small step towards counteracting this injustice.
John Massam, 28 April 1999
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