Q.
a) Explain the principle of "Rebus Sic Stantibus" in carrying out valuation for the purpose of rating for a local authority. (15 marks)
b) "Are Federal Government buildings subject to the payment of rates under the Local Government Act 1976?" Explain. (10 marks)
(25 marks, 2019 Q1)
A.
a) "Rebus Sic Stantibus" is explained in
Rating and its basis "rebus sic stantibus"
Ref:
Earlier post.
b) CAR
"Contribution in Aid of Rates"
Below is extract from The Federal Constitution Article 156:
Contribution in AID of Rates (CAR) is in fact, a way the Local Authority charges the State Government or the Federal Government on the buildings used by the respective parties in the local constituency. As State and Federal Government has buildings which are not really operated as commercial offices, the rating for such buildings is different from the normal calculation. Such special rates is CAR.
For example, State Government has the Jabatan Kerja Raya building in Kuching City South. The rating for this building is a CAR. Similarly, Federal Government has Hospital Umum Sarawak, a Federal Ministry of Health building in Kuching, thus a rating is used to charge the services to the Federal Ministry.
Ref:
Own account.
Earlier post.