Farm Rate EvaluationCouncil evaluating farm rate discount By Latrobe City Council - 16th July 2002 - Back to News Latrobe City Council will evaluate the present farm rate discount as part of this year’s budget process. The discount of 25% has historically been the highest farm discount in Gippsland and one of the lowest relative farm rates in the State. The farm rate was an extension of a similar rate which applied in the Morwell Municipality in the years prior to amalgamation.
Latrobe City Mayor, Cr Brendan Jenkins, said there had been a number of calls to review the farm rate in line with the changing nature of rural living in Latrobe Valley.
"Many people see the present farm rate applying only to farming properties as an anachronism when you take into account all those living on rural residential properties who presently pay full residential rates," Cr Jenkins said.
"Councillors have received a number of enquiries over the years and requests to review an apparent inequity in rating farm properties and rural residential properties; and the present budgeting process provides that opportunity," he said.
"It is difficult to explain the difference between the rates applied to farms and other non-farm rural residents; or to justify why one sector living in a rural environment should receive a discount on their rates, while another group of rural dwellers do not.
"Latrobe City presently has in excess of 1,200 properties which qualify for the farm rate while another 4,500 rural residential properties presently pay full residential rates in the same way as urban areas. If for example we were to redistribute the existing discounted rate across all rural properties, it may allow for a 5-10% reduction for all rural residential property rates," Cr Jenkins said.
Cr Jenkins said that one of the options was to apply an environmental rural rate, which would recognise the responsibility of rural ratepayers to undertake certain environmental actions to preserve the natural environment on their own properties, as well as roadside verges.
Cr Jenkins was at pains to point out that no decision had yet been made on possible changes, and said that Council would welcome submissions from interested parties on options for a rural, or continued farm rate.
Latrobe City’s Chief Executive Officer, Richard Hancock, said that changes to the way in which Council rated individual categories of ratepayers, could have an effect across the whole rating base in order to maintain the amount of rate revenue required.
He reiterated that the draft budget was being prepared in accordance with Council’s current preference for a CPI based rate increase
Source: www.gippsland.com Published by: news@gippsland.com
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