POM rates under review
The National, Tuesday September 9th, 2014
By HELEN TARAWA
PROPERTY owners in Port Moresby will likely face a hike in rates following a fresh valuation of land and properties, Valuer-General Gabriel Michael says.
The increase in rate has been attributed to the rapid increase in infrastructure development in the National
Capital District. Michael said a similar valuation exercise would be carried out later in Lae, Madang, Kundiawa and on Bougainville.
He said the valuation report on Port Moresby to be completed at the end of December would determine the market price for the value of land and properties.
“NCDC had been billing people based on the old roll and not taking into account the current market trend,” Michael said.
“That’s why it’s our duty to update these rolls.
“We are carrying out this exercise basically to find the market trend within the city so that no one is burdened.
“We are relying on the sales information provided to us from the market – people buying and selling will put value on the market situation.
“That’s why we need the three months to come up with the research to justify the value that we have, which is influenced by the market value.”
Michael said the State through the Lands Department collected 5% of the total value of the land. People with titles over the land are charged annual fees.
He said the land rate for the National Capital District was 2% and the fees were mainly for services provided to city residents which could change because of the expansion of development.
“The Government through the Department of Lands carries out land tax on most urban areas as they have been declared valuation zones, approved and gazetted,” he said.
“When a town is declared a zone area, the population is taken into account and the authorities will have to collect tax to provide services.
“The city is zoned into industrial, commercial, residential, high-cost, low-cost, special-purpose.
“Values are placed depending on the market situation.
“For that reason the valuation rolls are reviewed every five
years to reflect the market
situation so that is justified for the city authorities and property owners.
“If there were rezoning and new subdivisions carried out on the land, then the changes in the markets would determine the cost.”