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Hornsby Ratepayers Slugged for 'Overvalued' Land

HORNSBY ratepayers have been forced to pay about 50 per cent more for their rates than they should have, according to Hornsby state Liberal MP Matt Kean.

He said the Office of the NSW Valuer General has valued land in Hornsby at more than 52 per cent over the market value between 1996-2006, raising concerns over the accuracy of land tax bills and rates assessments.

Figures from the Department of Finance and the Department of Housing reveal that valuations used for land tax and ratings purposes between 1996 and 2006 outstripped market growth by more than half, meaning residents could be paying more than their fair share of council rates and land taxes.

Mr Kean, Chair of the Joint Standing committee on the Office of the Valuer General, has called for a complete overhaul of the NSW valuation system.

Figures compiled by the the Valuer General for the past decade have also revealed Hornsby landowners have had their private and commercial property values reduced by $55 million after challenging official decisions.

Mr Kean, formerly an audit manager at Price waterhouseCoopers, said the valuer general had overvalued property in Hornsby to the tune of 52 per cent.

"I don't think Hornsby ratepayers should be forced to pay more in council rates because of the valuer generals broken system," he said. "I am calling for a complete overhaul of the way valuations are done in NSW because families in Hornsby are being penalised while the big end of town laugh all the way to the bank."

Valuer General Phillip Western rejected Mr Kean's analysis.

"The values used for comparison in the Housing sales tables approach and the LPI values are not the same; LPI representative values take into account land value only, whereas the housing sales data refers to sale or improved value," he said.

"From 1996 to 2006, and beyond, there have been substantial improvements made in resources available in determination of land values. These developments would also contribute to greater confidence that 2006 land values represent the market value of the land."

Read the full article in the Hornsby Advocate here.