LAND TAX.

Press, Volume LXVII, Issue 20179, 6 March 1931, Page 15

LAND TAX.

IMMEDIATE REDUCTION ASKED. WRITING DOWN VALUATIONSTTIiiIe re-affirming its decision that Jand tax should be abolished by 193*, the Council of tho Canterbury Chamber of Commerce decided at its meeting last evening to urge the Government to make an immediate reduction in the tax in sympathy with the f a 'l ni primary produce prices and reduced returns j'rojji business generally- As a basis for reducing tlie tax, the Chamber suggested that land valuations throughout New Zealand should brought down to 25 per cent, below the 1909-1913 level. The Land Tax and Rural Interests Committees reported their opinion that in view of the Chamber's consistent pressure for tho abolition of land tax, it would bo inadvisable at the present t|me to make suggestions for an alteration merely in the date for collection of tho tax. 1 The committee recommended .to tho Council that the Government urged: "To reduce land valuations generally throughout New Zealand to 25 per cent.. below the 1009-13 level in view of tho reduced value of wool and other primary products, and that this valuation should operate for the purpose ot the current year's land tax, "To laud tax after the present year,' 1 Jt was also deeded that for the puF' pose of supporting these representations tho Chamber should prepare facts and figures showing' the comparative value of land between 1909 and 1913, and at the present time, and tho relative values qf primary products during these two periods. Of the first paragraph of the report, Mr W. Macliin, who moved its adoption, said that they realised that no time in the year was a convenient tirno for payment foj- those who had to pay hind tax. The committee thought that if it spoke o£| altering the date, it might be assumed to be favouring a retention Of the ' tax.

Some Belief Necessary. It was obvious to the committee, however, that farmers and others should get some relief because of the present grave depreciation in land values. It would tako years to make revaluations of lands according to their respective values, so that the committee ultimately decided that the 1909-13 rateg should be arbitrarily reduced as a basis for the tax. It was thought desirable to produce data to support thfc nroposal. "Tho prices of primary produce today are low compared with those in 1909-13," continued Mr Machin. "Land is worth only what it produces, and if wo are to gauge land vahjOß by production values, then since those values have shrnjjk, we jpst consider it ilujust and inequitable that those deriving income from the land should be ta*ed on the supposition that the values are maintained. Our facts bring the injustice home in a concrete form, and ir-ight result in concession# that are due and urgently needed. 1 ' v

Questioned by the president (Mr H. S. E, Turner), Mr Machin said that a. mass of. evidence could be produced in support of the recommendation. \ City and Country. Mr A. L. Maofarlane asked if what Mr Machin had said was true of the country was not also true of tho City. Mr Machin: My remarks were supposed to cover all the land. ' - Mr Macfarlane added that many farmer# had invested money in the, City. He would venture to say that properties all over the City had depreciated' enormously. If the country man wag to get a concession, why should not the City man? v Mr Machin: The committee's suggestion was that the 1909-13 basis should cover both urban and rural lands; Mr V. B. Hamilton said that if the old valuations were reduced, there would bo insufficient revenue, and the Government would have to increase tha tax in order to balance its budget. Ho did not think it yras much good asking for a change this ye^r, v

City Values Doubled. Mr f. W. Hoblm fnid that central City propertied were at least doubled in prjco since 1913: Fdr that reason, 25 per cent, below the 190943 basiq would scarcely be fnir. Mr Machin said that tho Chamber hud consistently uraed tho abolitioit of land tax, T|io committee's reoonritnendatinn wns fyroueht forward be* cause it was felt that the taxation, if it could not be abolished, ought tq be qn ft considerably reduced basis, it was hoped to bring pressure to bear to the complete abolition of the tax; but members felt that it would be too hard Pn the government to do this in so little time, and accordingly decided to taper the end of the wedge, ■ Mr T. N. Gibbs asked if it would not be more practical to «*k the Government to.reduce the land tax this year. A reduction of valuations would mean the preparation of new rate hooks for local bodies.

Local Body Sates.' Mr Machin replied. t}iat if the valu* were lejucud and tjie amount of the rates inciensed, ratepayer? woujd ho encouraged to scrupjrdw lliejr demands. end 'haste?i the tims when looal body rating - must ease down. Mr Hobbs: In a City, like Christ', church, where rating is on unimproved value, if w«» reduce valuations, the rate which it' would bo necewary to striko might he greater thon that whjch the City is allowed to strike. ■' . Mr Machin:. The committee reqop. niaes that it he. ' Mr Hobbs suggested that they should ask fpr a reduction of 25 per cent, on present value. -Mr Machin; That would be ridicu-r lous in rural land. : One' of pur primary products has fallen by wore than 60 per cent. Mr Hobbs asfajd whgther thoy were justified in askijig for a reduction on the value of groduce for one year only, . ■ Mr Machin replied that the whole theory of taxation was that it should be levied on income. . The farmer thought, therefore, that his taxation should be, commensurate with his mediate incom>v • - : The report was adopted in a slightly amended form. k