Land values ruling sets precedent
A COURT case which reduced State Government land valuations south of Stanthorpe could set a precedent for the region.
Landowners at Wallangarra copped valuation increases as high as 341% from the State Valuer-General in October 2009.
Aghast at the massive hike since their last valuations in 2004, seven landowners on Paling Yard Rd appealed in the Land Court of Queensland, which on June 21 reduced their unimproved capital value (UCV) amounts.
With state land valuations used to calculate council rates, the ruling could have implications for the Southern Downs Regional Council if more landowners challenge the Valuer-General.
The basis of the appeal was that the properties were close to each other and had similar topography and access to Paling Yard Rd, with the appellants pointing to a "large discrepancy" in their valuations.
In one instance, the per hectare value given to land at 88 Paling Yard Rd was a maximum of $775, yet just a few driveways down at number 70 it was a whopping $28,716.
The Valuer-General defended the valuations on the basis that some of the properties were rural residential rather than farming, arguing "lifestyle blocks" attracted a higher market value than primary production land.
But Land Court president Carmel MacDonald threw out that defence, stating the Valuer-General was "unable to articulate any convincing explanation as to why the market would draw such a distinction between the two types of property".
Her Honour also said it was "inconceivable" that a prudent purchaser would pay a premium for a farming property so they could use it for rural lifestyle purposes.
But she also said the property sales evidence produced by the appellants was not persuasive and accepted the Valuer-General's minimum percentage rise of 226%, with the properties revalued at amounts ranging from $61,000 up to $117,500.
What do you think about the methods used to calculate state valuations?
