Vertical Inequity in the Unimproved Capital Value System – a case study of Suva, Fiji

Vertical assessment equity is a fundamental requirement of valuation for rating purposes. It can be defined as systematic differences in assessment levels for groups of properties. Inequity can either be regressive when high value properties are paying lower property rates, or progressive if the inverse occurs. This paper tests the hypothesis that there is an inequity in the present Local Government Rating System in Fiji. There is strong evidence that the present property rate system in Fiji contains both progressive and regressive inequities. The case study demonstrates that the principles advocated in the rating literature are largely supported and applicable to Fiji, demonstrating the weaknesses and vertical inequity of the current Unimproved Capital Value System. Rider: The views represented in this paper are those of the authors and do not necessarily reflect those of the University of the South Pacific