A NEW rating proposal has hit Launceston City Council's agenda for Monday's general meeting.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The proposal, forwarded by Alderman Ted Sands, would see the council explore the mapping of a flexible differential rating structure and adoption of an average area rate for residential properties.
The motion would see council general manager Robert Dobrzynski prepare a resolution for 2016-17 financial year to allow for a differential rate across various use of land and vacant land to allow varying rates within each sector.
If approved, a rating model to identify the impact of increasing a fixed rate component of the general rate for the year would also be prepared, and a model identifying the impact of adopting an AAR across residential properties based on localities, non-use of land and the current annual assessed value range for 2017-18.
Alderman Sands' motion also reads ... "that council directs the general manager to begin the process now of the adoption to an average area rate due to the lengthy lead time which is required by local government".
If the council is to adopt the rating system, it must by legislation consult every home owner within the municipality and advise them of the change.
Mr Dobrzynski said it was crucial to ensure the council's rating strategy was considered through an informed evidence base that modelled the impact on low income areas.
"Responding without comprehensive information has great potential to lead to an unfair outcome and social disadvantage," he wrote.
Corporate Services director Michael Tidey said the aldermen must decide on what property useage categories were increased in rating and which decreased, as well as which suburbs, rural and urban areas were increased or decreased in rates.
"It may be argued that this adjustment was necessary as the change in property values had caused some large rate increases ... that need to be mitigated," Mr Tidey said.
"This is not an adequate justification for abandoning basic taxation principles as occurs with an average residential area rate."