Compounding—It has already been stated that, as a general rule, only the occupiers of rateable properties are liable to pay the rates thereon, the notable exception occurring when the owner compounds and so assumes the liability. The compounding system is only possible in the case of properties of small value, where the rates payable arc small in amount, and the occupying class are very poor and always removing from one place of abode to another. Upon compound ing for the rates payable in respect of such properties the owners can fix the rents at a figure that will cover the full amount of the rates, whilst the authorities allow them to deduct a percentage as a recompense for the trouble of collection. And if the owners agree with the authorities to pay the rates whether the properties are occupied or not, then, in consideration therefor, a further percentage is allowed. The most obvious drawback to this system is that the occupier who is really rated, and pays the rate, does not have an opportunity to appreciate its weight, and is consequently generally indifferent in his capacity of elector to the expenditure of the local authority. When he pays only his rent to the land lord, and his rates separately to the rate collector, he is likely to note the variations in the amount of the rates, and any tendency to extravagance or economy on the part of the local authority.
There are two systems of composition for rates—not regarding compositions in particular districts authorised by local Acts. These two systems relate to the Poor Rate and the General District Rate respectively, the former depending upon sections 3 and 4 of the Poor Rate Assessment and Collection Act, 1869, and the latter, except where there is a local Act, upon section 211 of the Public Health Act, 1875. The Act of 1869 allows a composition where the rateable value of the hereditaments does not exceed, in London, £20 ; in Liverpool, £13; in Manchester and Birmingham, £10; and in other places, £8. If the owner voluntarily agrees to pay the rate whether the premises are occupied or not, the overseers may, subject to the control of the local authority, allow him a commission of 25 per cent. on the rate. But the local authority has power to order him to be rated instead of the occupier, whether he desires it or not. In such a case the owner is entitled to an abatement of 15 per cent. from the amount the rate ; but this abatement can be increased to 30 per cent. at the owner's op ion by a further deduction of 15 per cent., which must be allowed him by the authority if he gives notice that he is willing to be rated whether the premises are occupied or not. An owner who compounds has the same right of appeal as an occupier. The Act of 1875 relating to the
General District Rate, confers upon the local authority an option to rate the owner instead of the occupier where the rateable value of the premises does not exceed £10, or where they are let weekly or monthly, or in separate apartments, or where the rents are collected at shorter periods than quarterly. When the option is exercised, the owner is to be assessed at not less than two-thirds nor more than four-fifths of the net annual value ; and if the assessment be in respect of tenements, whether occupied or not, it may be one-half of the amount at which it would be if the rate were levied on and paid by the occupier. The following table (drawn up by Mr. Richard Hill llawc, Town Clerk of Hull, for the Royal (Jommission) shows the differences in compounding under the two Acts :— Unoccupied properly is not, in England and Wales, generally liable to rates, but in the City of London unoccupied tenements are liable to one-half of thc sewers rates. On this subject the Royal Commission report that they think it would be fair if some charge were made in respect of unoccupied properties, which, undoubtedly, receive some benefit from public expenditure. But at the satne thne there would be hardships if' the full burden of rates were imposed in such cases. They considered that the equity of the case vvould be met by requiring the owners to pay a portion of tht, rates in respect of unoccupied tenements. They are very specific, however, io declining to suggest that this liability should attach to land which, although might conceivably be utilised for building purposes, is for the time being in actual bond fide occupation either as gardens or recreation grounds, or for pasture, agriculture, or other similar purposes. As a general rule the occupation of a mere caretaker of otherwise unoccupied premises is not an occupation that carries with it a liability for rates.
The machinery of rating is mainly provided by the Union Assessment Acts, 1862 to 1880, a series of statutes in force throughout England and Wales, except in ten special places, and in the administrative county of London. In London these statutes are modified by the Valuation (Metropolis) Acts. The ten exceptional places are Hull, Plymouth, Southampton, the parishes of Alverstoke, Barrow-in-Funtess, Birmingham, East Stonehouse, Liverpool, and Stoke Damerel, and the township of Manchester. These places are subject to the general autho rity of the Parochial Assessments Act, 1836, and he Poor Law Amendment Acts of 1848 and 1868, and a number of them are also ubject to the provisions of local Acts. This article is necessarily confined to only an outline of the general law.