Annual value is regulated degree by in some situation. Mode of ascertain value. The demand for renting land and buildings has a great influence upon their annual value, and it is often found that property of the same quality and extent fetches, on an average, two or three times as much rent in one situation as in another. In populous districts, land is occupied for pleasure and convenience, rather than profit, and in such situations commands very high rents, whether of good or bad quality, although not capable of yielding near so much produce, at the same expence, as land in a more remote part of the country, let at a low rent. This subject requires great consideration in laying a rate upon landed property; as there is seldom enough difference made in fixing the relative value of lands or buildings in different situations. There are three ways by which the aning annual nual value of landed property may be estimated for the purpose of a rate. First, by a suitable per centage on the purchasemoney or value of the building or land, deducting therefrom the average amount of repairs that may be required; second, by an average rack-rent charged by landlords. And, third, by a valuation of the profit to be derived from occupation, if the subject under consideration be a farm; and by comparison with the rents charged upon similar property in the neighbourhood, if it be occupied for trade, convenience, or pleasure. The first mode supposes the price given for a house or field to be exactly what each may be worth, or that the value of it may be ascertained. To arrive at either of these points exactly, is impossible; near approaches may, in some instances, be effected; but for the general purpose of making a rate, they are not sufficiently applicable to situations and local annual value. If the house or field have been bought at a sale, although several bidders might be disposed to give as much for it as it was fairly worth, yet each might form a different opinion of its value; and, in the hurry of contending for it, might be led to bid more than was first intended, and thus give more than it was actually worth. In purchasing by private contract, property E Property is not rateable according to the sum that it cost, unless that sum be its value. is often sold above its value, especially if there be several purchasers in competition. Sometimes property is sold for less than its value, from the want of competition in purchasers. The price given for land or buildings depends more upon the demand fair average for such property, than upon its real intrinsic worth. Persons will often give twice the real value of a house or field, to suit their convenience, rather than miss the purchase; and the value of real property often varies very materially in a few years, during which no purchase may take place. Besides, in some instances, property remains in the same families for centuries, in which it may never be requisite to ascertain its value, except for the rate. In all these cases it is necessary, first, to find the annual value, and reckon so many years' purchase upon it as might appear reasonable which annual value is the thing sought for; therefore the annual value cannot be found from the purchase-money; but the worth of property may be computed from its yearly return. Laying the rate according to purchase-money, is, in its nature, quite fallacious; for it fixes the tax upon the chance of good or bad fortune of the purchaser, instead of the proper annual value, thus operating as a bounty upon a good bargain, and as a penalty upon a bad one. Rate upon purchase money fal lacious. laid accord rents, when under lease. Rack-rents are seldom a fair criterion of Rates not the rateable annual value, especially if the ing to rackproperty be under lease. Lands and houses are rateable according to their improved value at the time of making the rate; and although a farm on lease may be held under a rack-rent, which is supposed, at the commencement of the term, to be a fair average annual value; yet if its local advantages prove greater than was expected, or if substantial improvements be made by the tenant, by which the value of the farm is increased, the farm becomes rateable in a higher degree, without regard to the lease by which the rent is fixed. are seldom The rack-rent, or full yearly value, is Rack-rents seldom paid even by tenants at will. Their paid. rents are, in some measure, apportioned Some te nants agree to give more than an average rack-rent. according to the circumstances of their landlords; as we find it not unfrequently happens, that those tenants, who are so fortunate as to be fixed on the farms of noblemen and gentlemen of great property, are under more indulgent rents than others under landlords, whose very limited incomes oblige them to demand the most rent they can obtain. Small proprietors are not in the habit of fixing their rents by valuation of expences and produce; but, in general, by bargaining for as much as they can induce a tenant to give. Thus rents are, in some cases, strung up to more than their proper value. If there be competition, one person bids against another, according to his situation and necessities. Each calculates on the advantages to be derived in his own peculiar case; and rather than miss the present chance of suiting his convenience, is induced to bid more rent than the property is worth for an average of years. Certain situations are more valuable to some persons than to others; much depends upon the place con |