The method is considered consistent with the equity, ability to pay, efficiency and simplicity principles of taxation. Policy Statement 2 Exemptions – Adelaide City Council’s practice is to identify and value all land in the council area. Once identified each separate piece of land is assessed for rateability. Section 147 of the Local Government Act 1999, specifies those types of properties which shall be exempt from council rates. Adelaide City Council has the highest proportion of property of any ‘rate-exempt’ Council in South Australia. Properties can be identified as exempt from council rates in certain circumstances: Crown Land - public properties used or held by the Crown for a public purpose; University Land - properties occupied by a University; Recreation Grounds - properties satisfying the criteria set out in the Recreation Grounds Rates and Taxes Exemption Act 1981; Council Land - public properties occupied or held by the Council; Another Act - properties specifically exempted from council rates by virtue of another Act (either Commonwealth or State). Council is mindful that wherever properties are exempt from paying council rates, or where a rebate is applied, those rates foregone must be contributed by the rest of the community. The principles of equity dictate that Council remains diligent in only awarding exemptions where they are warranted. It is Council’s practice to adopt valuations for exempt properties. Where exempt properties become rateable part of the way through the financial year, rates are then calculated and recovered. Policy Statement 3 Differential General Rates – Council has determined that Differential General Rates will be applied to all rateable properties based on their predominant land use. In formulating the rating structure, Council should consider issues of consistency and comparability across council areas in the imposition of rates on various sectors of the business and wider community. The Local Government Act 1999 allows Council to differentiate rates based on the use of the land. Definitions of the use of the land are prescribed by regulation and the current classes are: Residential
The method is considered consistent with the equity, ability to pay, efficiency and simplicity principles of taxation. Policy Statement 2 – Exemptions Adelaide City Council’s practice is to identify and value all land in the council area. Once identified each separate piece of land is assessed for rateability. Section 147 of the Local Government Act 1999, specifies those types of properties which shall be exempt from council rates. Adelaide City Council has the highest proportion of ‘rate-exempt’ property of any Council in South Australia. Properties can be identified as exempt from council rates in certain circumstances: Crown Land - public properties used or held by the Crown for a public purpose; University Land - properties occupied by a University; Recreation Grounds - properties satisfying the criteria set out in the Recreation Grounds Rates and Taxes Exemption Act 1981; Council Land - public properties occupied or held by the Council; Another Act - properties specifically exempted from council rates by virtue of another Act (either Commonwealth or State). Council is mindful that wherever properties are exempt from paying council rates, or where a rebate is applied, those rates foregone must be contributed by the rest of the community. The principles of equity dictate that Council remains diligent in only awarding exemptions where they are warranted. It is Council’s practice to adopt valuations for exempt properties. Where exempt properties become rateable part of the way through the financial year, rates are then calculated and recovered. Policy Statement 3 – Differential General Rates Council has determined that Differential General Rates will be applied to all rateable properties based on their predominant land use. In formulating the rating structure, Council should consider issues of consistency and comparability across council areas in the imposition of rates on various sectors of the business and wider community. The Local Government Act 1999 allows Council to differentiate rates based on the use of the land. Definitions of the use of the land are prescribed by regulation and the current classes are: Residential
Rating_Policy_-_30_June_2015.DOCX