The Specified Area Rate

As the name suggests it is another local government rate applied to a specific area or locality. It is additional to the general rate that is already paid; therefore it is a means available to local government to collect additional money from the owners of land within an area to use for specific work, service, or facility. It can only be applied when the owners.

1. Benefit from it.
2. Have access or will have access to it.
3. Are the reason the work, service, or facility is needed.

It is outlined in the Local Government Act (LGA) under section 6.37.

To collect the SAR the local government will calculate the cost to each separate landowner in the specified locality. To do this they must use the gross rateable value (GRV) of the property as the basis for the calculation. This will result in a variation in the amount paid by each landowner. The GRV of each property is stated on the rates notice (see attached example) and is determined by the on the City’s system Valuer General.

It should be imposed on all land in the locality including, residential; vacant blocks, commercial and industrial. Unimproved vacant land is GRV rated at 5% of the improved value. Government land however is zero-rated.

It is not possible under the current LGA to impose a single levy or flat rate to all landowners. The City of Joondalup wrote to the Minister for Local Government to seek an amendment to allow this but it was denied.

As new properties develop in the locality, the Valuer General will advise the Local Government (fortnightly), they should then update their GRV information. The Valuer General revalues properties every three years; the next revaluation will take effect from July 1 1999. Funds that are collected from a SAR are required to be.

1. Used only for the purpose for which it was proposed.
2. Kept in a separate reserve account.

If they fail to use all the funds in the financial year they can

1. Issue a refund.
2. Allow a credit on future rates.

There is no legal requirement for the local government to seek approval from any party, including the landowners, in order to implement a specified area rate.

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Site last updated: 2^nd September 2008