[David Nelson]

Hi RP’s

Council has received a request for non-rateability from the Trustees School of Arts for the Freemans Reach Hall. Council has rated this property for at least 20 years. On the title the property is a public reserve owned by The State of NSW. There is no tenure, lease or license and there right to be there is in the gazettal. They leave the toilets there unlocked so that anyone who visits the reserve can use them even when the hall is not hired.

The trustees advise me that in the last 12 months the hall was hired for 19 parties (weddings, 21st’s etc) at a flat rate of $200.00 per party, 10 x 1 hour meetings at $15.00 per hour and a flat fee of $500.00 for a block of 3 weeks for HSC exams. This income is used to maintain the hall and surrounding grounds.

It would seem that in the past Council has determined that the hall is not used for the purposes of the School of Arts and deemed it to be rateable.

The Trustees have also contacted Crown Lands and got the following response.

“Obtaining fees for the hiring of the hall does not constitute a tenure. There is no tenure over this site. Crown Lands is aware (and endorses) that there are many parallel situations across NSW where a community reserve trust board (that is not required to pay rates) will raise fees for the use of a community hall (for birthday parties, weddings, meetings etc). How else is the trust board expected to obtain funds to ensure the structure, a public asset is maintained in an acceptable condition ? “

“If at the end of the day you do not get the desired outcome, I would suggest a visit to your local MP with a view to making representations to the Minister of Local Government might hold some appeal.”

Would you make this hall non-rateable ?

Thanks

[David Grima]

Hi David,
What did you end up doing with this one?
David

[Susan Scott]

Hi David, what was decided in this case? I have a somewhat similar situation here with two properties: one is non-rateable, as it has a museum open to the public free of charge (Sec 556 (1) (a); but the other is a bit more questionable as there is a building which used to be the old medical facility, but has been converted into two offices, with one leased to the local visiting doctor & the other to the local NFP community radio. Both properties are owned by the local community – they were left to the Nimmitabel township as part of an estate.

[David Nelson]

Hi Susan

We ended up refusing the application on the basis that the halls current use falls within the definition of “private purposes” as it is primarily hired out for private functions and is not being used for the purposes of the School of Arts.

I’m not sure if this is actually right but the CFO here hates making anything non rateable and that’s the path we chose to go down. They have been paying the rates since we refused the application.

Let me know if you would like any further information.

[Susan Scott]

Thanks David – that is in harmony with our decision here. Council decided that since the property is leased for a private purpose, the rates would stand. Looks like we are on the same page.

[Author]

Posts