Valuation boosters to pay more
PROPERTY owners whose purchases force up valuations will pay more in rates under Calliope Shire Council's new budget.
In its budget deliberations the council decided the burden of increased valuations would fall on those properties that increased in value by more than 60 per cent.
The decision coincided with a new record sale of a property in The Oaks Road, Tannum Sands, last week.
The beachfront property sold for $1,625,000.
In his 2005/2006 budget report mayor George Creed said a rate cap of 10 per cent would apply to rural and residential properties as a "smoothing mechanism'', but it would not apply to properties that caused nearby valuations to rise.
"Accordingly, council gives notice that properties which change ownership during the 2005/2006 year will not be afforded the benefit of the rate cap in the 2006/2007 year,'' Cr Creed said.
PRD Nationwide Tannum Sands principal Andre Taute said the council scheme would not have a large effect on real estate sales.
"Based on the information available, the rate revenue increase of three per cent is within reasonable guidelines,'' he said.
"From a real estate point of view there should be little effect on affordability in respect to real estate where prices are determined by supply and demand.