Rating
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PAYMENT OF LAND DRAINAGE RATES
The function of the Internal Drainage Board, being a statutory body, is to supervise all matters of land drainage within its district. The Board directly maintains an adopted network comprising some 182km of main arterial watercourses together with nine pumping stations which discharge surpus surface water to main river. The Board also pays an annual precept to the Environment Agency in respect of costs associated with main river. Owner/Occupiers of land are themselves responsible for all other private dykes which are not adopted for maintenance by the IDB. The Board is not responsbile for foul sewerage which is a function of Yorkshire Water.
The Boards main source of income is derived from land drainage rates levied on occupiers of agricultural land within the drainage district and by issue of a special levy on East Riding of Yorkshire Council in respect of all other land within the district. The special levy is calculated by reference to figures derived from rateable values previously published in respect of all non-agricultural land including domestic residences, business premises and utilites. It reflects the proprtional benefit of land dainage services to the non agricultural sector. The drainage rate and special levy are set annually by the Board for application in the financial year commencing 1 April. The rate is set at a uniform amount in the pound (currently 9.1p) which when multiplied by the annual (rateable) value of the agricultural assessment produces the amount of drainage rates payable by the occupier. The rate is due on demand on 1 April each year. The special levy in effect acts as a collection mechanism whereby occupiers of domestic and business premises contribute indirectly towards the expenses of the Board through the general rating systems. The Board rigourously enforces rate collection procedures.
The Annual Value of an agricultural assessment is based on what would have been a fair rental value for the holding in year commencing 1 April 1988. It assumes active operation of the agricultural holding by a competent tenant. The valuation takes account of character and situation, productive capacity relating to earnings potential including any fixed equipment and comparable rents on similar holding within the district. Valuations for drainage rate purposes are fairly broadbanded and rounded for similar holdings to allow for some degree of fluctuation in circumstances. Reassessment will only be considered where significant changes in circumstance have taken place.
A more formal explanation of drainage rating and procedures is given as follows:
The expenses of the Board which are not met by the Environment Agency are raised by means of drainage rates in respect of agricultural land and agricultural buildings, and Special Levies issued on local billing authorities (i.e. District Councils).
A Drainage Rate made by the Board is assessed at a uniform amount per pound on the annual value of the agricultural hereditament as determined in accordance with chaper II of Part IV of the Land Draiange Act 1991.
Special Levies are issued in accordance with Part III of the Internal Drainage Boards (Finance) Regulations 1992 in proportion to the aggregate annual value of all land and buildings other than agricultural land and buildings which lie within the Board's district in respect of each billing authority.
The expenses of the Board which are raised by means of drainage rates are defrayed out of the product of the set rate without regard to the purpose for which any such expenses were incurred, and this rate is levied on the occupier of the land or buildings. Effectively the separate owner's rate has been abolished, and the occupier no longer has any right to claim proportional reimbursement of the rate from the owner.
The basis of assessment of agricultural land and agricultural buildings and rights of appeal and petitions by ratepayers are dealt with by Sections 40 to 54 of the Land Drainage Act 1991.
SALE OF AGRICULTURAL LAND SUBJECT TO DRAINAGE RATES
This section is for the information of vendors, purchasers, conveyance agents and solicitors involved in the sale of agricultural land which is subject to land drainage rating. It affects any land being sold off during the rating period extending between 1 April through to 31 March.
The drainage rate is assessed on the person who is the occupier or owner/occupier of the land at the date of making the rate. In practice the rate demand is issued to the occupier on the 1st April, and payment is due from that person on that date. Any subsequent recovery proceedings will be taken against the occupier for the full amount of the rate as being due from him on that date. Section 49 of the Land Drainage Act 1991 also provides that the Board may recover the full amount of drainage rate from any person who is the occupier of the land at any time during the period of rating. If the agricultural holding is unoccupied the owner is deemed to be the occupier. Section 49 also provides that any person who is required by the Board to pay the full amount of rates, but who occupies the land for only a part of the rating period, may in turn recover the appropriate proportion of the rate from any other person who occupies the land for the remaining part of the rating period.
Clearly it is in the interest of all parties involved in the sale of agriculural land to ascertain the position regarding drainage rates, and to arrange for any outstanding payments, together with any appropriate apportionments to be made out of purchase monies at the point of sale. The Board willingly provides advice on how apportionments should be made by reference to annual values, and expects in turn that vendors Agents will arrange for full payment of any outstanding rates due to the Board. Please note that the Board does not issue rebates on amounts already paid, it is up to the ratepayer through their agents to obtain reimbursement of the appropriate proportion direct from the purchaser.
It is incumbent upon the Owner of any agricultural assessment to keep the Drainage Board informed at all times of the name and address of the Occupier of rated land. The Boards records are only as good as the information which we receive. Cooperation by all concerned in these matters would be greatly appreciated by the Boards adminstrative staff. This will help avoid mistakes being made and we thank those involved for their cooperation.