GRADUATED LAND TAX.

Dominion, Volume 5, Issue 1512, 7 August 1912, Page 5

GRADUATED LAND TAX.

TO BE INCREASED, BREAKING UP LARGE HOLDINGS. It is not always an easy matter to determine' the causes that produce a certain effect, and in all probability by describing one Act of legislation as the sole factor in. bringing about a breakins-up of the larger holdings of country land one may err, and may overlook other influences which have acted as potently as the graduated land tax. There can, however; be little doubt that the higher rate of taxation on.the owners of large holdings has operated to induce them to break up their properties. The Government has no desire to inflict upon' any individual taxation which would bo 'confiscatory, but is determined to bring about a closer settlement of the land, and makes this tho'most important plauk in its policy. To carry this out the graduated land tax will be amended by altering-the present method of graduation, which is deemed inequitable; it will be replaced by a system which will lessen the graduated tax on estates of ioCOO unimproved value, and which will provide that the graduations shall be regular and increasing with every ,£1 increase in unimproved value, while increasing tho tax payable on estates over .£30,000 unimproved value. The Present System Inequitable; ' i That tho present system is inequitable will bo plain from the following table: — Unimproved valuo . ■ '. lof country • Tax under Tax under ' estate new system. old system.. £ .£ s. d. £ s. (I. 3i,9!)9 ' 158 7 1° 100 7. 5 35,000 158 7 '3° 118 9 9 39,999' , 212 ,1 5 e .. 135 S 3 40,000 212 -i 9" 200 0 0* "Includes 25 per cent additional. The total amount of graduated tax derivable from estates of an' unimproved vahio of less than ,£30,000 will not be increased; the amount raised from estates which are in excess of that value will be considerably in excess of the amount hitherto paid, by those estates. The Bill will provide that the 25 per cent additional graduated tax which is now imposed on estates of ,£-10,000 or more in value shall be made to apply to estates of ,£30,000. or more in value, A Concession to Widows. Advantage will be taken of this opportunity to grant a concession to widows who are in indifferent circumstances, and who are maintaining families, so that in future they may be relieved within certain limits of payment of land tax. The graduated laud tax is not considered by the' Government the only means of producing closer settlement, and the Land for Settlement and 'Lands Settlement.Finance Acts will bo utilised to aid ■ the great work of settlement. The Government has also had under consideration the advisability of inducing closer settlement by encouraging the large landowner to break up his estate, and hopes next year to bring in further legislation to effect this purpose. VALUATION ,0F LAND, ' . ACT TO BE -AMENDED. It is the intention to introduce amendments to tho Valuation of Land Act in tho direction'cf securing greater accuracy in distinguishing between the value of land and the value of improvements; under the existing law it is found impossible in practice to, do so. The amendments which will be., proposed will enable the land value and the' value of improvements to be apportioned in on equitable manner so as to ensure an assessment fair to tho State and to tho individual owner, and will apportion, moro fairly than at present, the burden of taxation between and tenant. . •