'The main contention of the criticism by the Chinese Ratepayers' Assoclation of the Council's rating policy, which appeared in the local Press on JOctober 30, 1995, is that the Council has abandoned its age-old usage Jof accepting the values stated on rent receipts as the basis for the levy of taxation upon houses and buildings favour of the declaration of The Council therefore desires, without equivocation. to assure rate-Jpayers that it has neither adopted nor considered any change In its rating policy, that the basis of assessment for Municipal Rate is the same to-day jas it has been for the last sixty-five years.
Authority to ensure equality of taxation by declaring an assessment was first invested in the Council under the provisions of the Land Regulations of 1854, and there can be no doubt that such authority was exercised in respect of owner-occupied and leased Joroperties alike as occasion arose. The Council has always acted on the principle that. although the rent is prima facie evidence of the rateable value, there are cases where the rent is not the proper indication of such value. The point has been tested at different times in different Courts from 1867 onwards, and It has been held tu an exhaustive judgment that: "on mature consideration of all arguments pro et contra the Court feels thoroughly convinced that—the Municipal Council was well entitled {to assess for the purpose of taxation the premises of the defendants re-/gardless of their actual rental The building occupied is universally taken as the most suitable basis for apportioning local rates. A flexible standard for all classes is thus established which. automatically Jensures proportionate contribution according to means as evidenced by the value of the premises occupied.
"The soundness of this method needs ino defence since, as stated above, it universal use, Tt will be apparent, however, that since the fundamental aim is to. Japportion the levy fairly amongst the Inhabitants, the rental' value of the building must be fixed in just parison with other buildings. and not solely (on such an unreliable document og a rent receipt.
The basis of assessment for purposes of General Municipal Rate is Fepresented by the rental value from year to year of a house or other building in respect of which the landlord provides no services other than the execution "of external repairs. Rent receipts in the preponderating number of cases are accepted by the Council as prima facie evidence of such rental value, and are adopted [as the basis of assessment.
[bear their full share of taxation on the basis of a rental which repre-Jsents the true value of their premies, "The Association states that an attempt has been made to "camou-JOage" an increase in rates by recourse to that provision in the Land Regu tiations which permits the declaration fof an assessment on houses and buildings as the basis of taxation, ang instances the case of Municipal Rate ald on a rental of $100 per mensem. at the rate of 14 per cent. being $14 only whereas if such rental is increased to an assessed value of $159 with $21 payable as Municipal Rate.
Is tantamount to an increase In rates from 14 per cent. to 21 per cent must be pointed out, however, that person furnishes 'a rent receipt for $100 for premises which are known to have a rental value of $150 per mensem and is allowed to pay Municipal Rate on the basis of the rent receipt, he is actually paying rates in respect of the premise: occupied on the basis of only 93 per cent. instead of the prescribed 14 per cent. thus escaping payment of this fair share of taxes at the expense of other persons whose.rentals are known to be bona fide. to consists of six members of the staff of the Municipality and three members of one of the Municipality's Committees, Summarized replies to the Assosla-Yion's three principles ere set out etuies wher a Imomthie "rear been shaven, wot "Changed, "the to"incaual aimorht of taxation anti, Fesant, Woo he Hewry°to legal'
It would seem, therefore, that the Association's statement referring to "the Council's abandonment of the age-old usage of taking the actual rentals asthe rateable values of houses and buildings in favour of the declaration of an assessment" is a misrepresentation, since the Council has neither abandoned nor modified its established rating principles and practice. It has, however, of late years enquired" more closely into ental declarations with the result that many of the Jess scrupulous members" of the community have Jeeased to benefit by low taxation at the expense of the remainder.
Article 10 of the regulations of the Municipality of Greater Shanghai is Jof note in this connection; it reads follows:—
Article 10: The amount of rent is based upon the rent receipt, for the last two months or upon "the rent pass book." In ease there is too big a difference between the rental value of the house and the actual rent paid. the house should be. re-assessed and be taxed according to the assessed rental value, Likewise, when owners ive in their houses, the betty uy dos Eikor tne"orm of—Counci bowden fire Mee guy Gs tury dianaed nine: oF salon ete "Scand or. vota Shouaer: fei" rhe eect 'Te Shanghai Municipal Counctt announces that on and after January 1, 1986, no puller will be allowed to pull a' private rickshaw unless. he assesses a licence to do so duly renewed for 1938 and wears the appropriate enamelled badge visibly Uupon his left arm, The renewal of Ucences is now proceeding at the Licensing Station "(P.W.D. Depot) Shunteh Road. The feo of 50 cents will be doubled after December 31,
Text read from the printed page and cleaned; old type leaves the occasional error.