LAND TAX.

Press, Volume LXIII, Issue 19144, 29 October 1927, Page 14

LAND TAX.

j ACT'S EFFECTS IN CITIES. '' i r GRADUATED SYSTEM IN DISFAVOUR. s ' speakers at tile annual ccnrcrcnce ol the Associated Chambers of Commerce yesterday favoured the abolition of the graduated tax on urban land. M H. P. Caughey (Auckland) moved ' the following remit: That this conference is of opinion that should the Government not accept at once the recommendations of the Royal Commission of 192-i on the subject of land tax, the '■ Government should immediately give> ' its favourable consideration to the fol- ; lowing proposals:—(aVJ'liat the present system of graduated land tax on urban properties should be abolished; (b) that the assessing of land tax against lessees •■ and occupiers as distinct from owners > being unjust, should be abolished. He said the burden prevented normal growth and extension of enterprise in urban areas. The present legislation was economically unsound and diverted capital from trade. The business man in the City was given no encouragement to take up farming. Mr W. Gow (Diinedin) seconded the motion. One of the companies suffering hardships, he said, had been rite New Zealand Express Company. He did not suggest that graduation, as regards country property, should hf abolished. It induced closer settlement and prevented land aggregation. Taxation on a graduated scale on City land wa.s not reasonable. Mr W. J. Butler (WestlaiulVmovet' that the following words be added tc the remit: "And that Section 08 of the Land Tax Act should be amended sc that companies that do not aetualh hold half interest in each other shal not be taxed in the aggregate of twe or more companies." Mr Butler pro ceeded to illustrate how the Commis sioner, by tho interpretation he placet on the legislation, caused hardships 01 companies. Sections fa) and (b) were passed, a.iu Mr W. J. Gilherd (Wanganui) seconde< Mr Butler's motion. It was lost by a considerable majo rity. Mr Butler said he would bring i forward again next year, when h would be better prepared.