Historically, house and land values in Benalla have moved upward slowly.
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Therefore, there was a profound shock in February 1954 when Benalla announced a rate rise that was up to 300 per cent higher than previous years.
Benalla valuations at the time were calculated on net annual value or a property’s annual rental value.
Benalla was one of the dozen municipalities that used net annual value.
There was a mix of other rating systems throughout Victoria.
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A.W. Grubb brought the valuation question to Benalla’s Chamber of Commerce.
On Grubb’s property in Bridge St, the assessment of net annual value had risen from $622 to $2110.
At the time, a council valuer undertook valuations in each municipality.
Valuations were also conducted every five or six years.
There had been only 92 per cent increase in Benalla’s net annual values in six years.
In 1953, ratepayers had appealed when valuations rose sharply in Shepparton.
Rates for many ratepayers were then reduced by a third.
Benalla’s Chamber of Commerce decided on a public meeting.
Ratepayers could form a committee to take any action necessary.
In mid February, a meeting of more than 600 ratepayers formed a Ratepayers’ Protection League and decided to brief legal counsel to fight valuations.
A petition signed by 192 ratepayers demanding a new valuation was lodged at the next council meeting.
Then Mayor, Councillor Harrison, pointed out that a new valuation would cost as much as $3000. Under siege, the council voted for a new valuation.
As months passed, this quarrel over valuations broadened to one over rate levels, their method of calculation and the limited services offered by the Borough.
By 1958, the basis of valuation was put to the vote in Benalla.
By 2067 votes to 512, ratepayers voted to move from net annual value to site value.
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Whether or not there were improvements on the land, costs to a council to put water, sewerage, footpaths and roads past a block are the same.
It was therefore argued that site value or the value of the unimproved land should be the basis for valuing property.
From 1993, most council rates in Victoria, including Benalla, became calculated on the improved capital value of the land or the land value with all improvements.
Victoria’s Valuer-General re-calculates this value for an area every two years.
So, if house and land prices in a region increase, the next valuation for a region will show an increase.
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With that increase comes an increase in rates.
So, with the recent increase in house and land prices in Benalla, we can expect a significant increase in rates upon the Valuer-General’s next valuation for the town.
Appeals against valuation now are to the Supreme Court, not to a Stipendiary Magistrate. They are very seldom successful.
For example, of all the appeals by ratepayers against valuations from 1995-2010, not a single one was successful.
The court ordered the legal costs of all appeals to be met by ratepayers who had brought the action in these cases.
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