A STREET-full of property owners who complained to Wodonga Council about their high rates have been told the impost is a “wealth tax” and the owners of expensive homes should expect to pay more than average.
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If you live in a high-value property you are going to pay more
- Cr Michael Fraser
The house owners of Garden Cove, near Wodonga golf course, petitioned the council to “show cause why we are charged the highest rates within the area”.
An answering council report stated “the key and only reason property rates are above the ‘average’ for Wodonga for residents in Garden Cove is that their respective property values are also ‘above average’.”
Cr Michael Fraser noted that Garden Cove inhabitants had compared themselves with a Federation Park street, where properties were older, and the average valuation in Wodonga was $260,000.
“In Garden Cove the property valuations vary from $316,000 to $547,000 compared to the area that they identified in the petition, which is Prendergast Street where property valuations vary .. from $247,000 to $510,000," Cr Fraser said.
“It's a wealth tax, if you live in a high-value property you are going to pay more … for your rates.”
The council report noted Garden Cove properties were classified in golf course frontage residential and golf course residential, whereas Federation Park was a different “sub-market group”.
Cr Fraser and former mayors Mark Byatt and Rodney Wangman stressed the council was not responsible for valuations.
Independent valuers assessed properties on their capital-improved worth and it was subject to state legislation, Cr Wangman said.
“There is no gain for us as councillors or as council staff to be beaten up about elevating a value of a property to increase rates,” he said.
“In fact we take the conservative line and if anything with the independent arrangement we are seeking to make sure that values are lower than market.”
Councillors also noted individual valuations could be appealed.
Cr Wangman suggested there was a mentality of “my mind is made up, rates are too high, don't confuse me with the facts”.
He noted although a detailed rationale for the council's position had been outlined it was unlikely to please the residents of Garden Cove.
“I hope they read the report in the way in which it has been offered back, but I don't believe they will be satisfied,” Cr Wangman said.