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How does Land Value Rating affect Business?
Business people should give their support to a just rating system.

Vacant blocks do not provide customers for business.

  • Land value rating, by forcing land into use and occupation, increases the number of customers in the area.

  • A rating system that encourages the holding of land out of use should not receive support from anyone engaged in business.

  • Land Value Rating does not penalize the retailer who upgrades their premises.

  • Land Value Rating brings more customers to the shops, by encouraging home building.

  • Land Value Rating attracts new citizens, meaning more customers and better business.

  • Under Land Value Rating, most home owners will pay less rates, so savings can be spent in local shops.
The pragmatic businessman
Rates are a relatively small proportion of business costs - as low as 2%.

Rates are recognised business costs. They are fully tax-deductible.
Increased turnover to the shopping community is more important than the rates bill, whether higher or lower.

The effect of taxing any commodity is to make it scarce. We can logically expect that removing taxes from buildings will stimulate building numbers and quality.

Increased building activity, which will follow the introduction of site value rating, will benefit traders as well.

How does Land Value Rating affect primary producers?
Land Value Rating makes rural rating more equitable.

Under Land Value Rating, farm improvements do not attract higher rates, as they do under AAV.

  • Under AAV rating, the most improved, productive farms bear the bulk of the rural rate bill, while poorly developed land held for investment or tax evasion gets off lightly.

  • Rural interests strongly support Land Value Rating in NSW.

A Local Government perspective on Land Value Rating
Land Value Rating will lead to the income of the municipal authority being increased as land values increase through building activity in an area.

  • Land Value Rating will create a buoyant revenue position from steadily increasing land values allowing a continual reduction of the rate in the dollar.

  • Land Value Rating will result in closer settlement by bringing idle land into use, thus reducing the cost of providing transport and public services.
    • The reduction in vehicle use will reduce greenhouse emissions and have an effect on climate change.

  • Land Value Rating will provide local authorities with finance, in advance, for the planning and construction of services, because more revenue accrues on vacant and under developed land in advance of development.

  • Land Value Rating will avoid the higher post-occupation costs of constructing services such as stormwater, drainage and sewerage.

  • Land Value Rating will reduce the cost of town planning to the extent that land acquired for public purposes would be reduced in price.
  • Under Land Value Rating, hardship is less likely, because rate increases are spread over all owners in small amounts.


 
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