53Annual rent

53 Annual rent

53 Annual rent

(1) Annual rent is to be calculated for an urban Western lands lease as follows—

where—

LV represents the land value (within the meaning of the Valuation of Land Act 1916) of the land comprised in the urban Western lands lease.

p represents a percentage specified by subclause (3) with respect to the class of land to which the urban Western lands lease belongs.

(2) However, the annual rent cannot be less than the minimum rent applicable under section 6.4 of the Act.

(3) For the purposes of the symbol p in the formula in subclause (1)—

(a) 6 percent is the percentage for Western lands leases of the Urban (Business) class (which is a class consisting of leases expressed to be granted or issued for business purposes),

(b) 3 percent is the percentage for Western lands leases of the Urban (General) class (which is a class consisting of all other urban leases).