THE LAND TAX.

Dominion, Volume 5, Issue 1518, 14 August 1912, Page 7

THE LAND TAX.

NEW SYSTEM OF GRADUATION GOVERNMENT BILL. ITS PRINCIPAL PROVISIONS. The increase in the gindnatcd land taJ foreshadowed in the Budget is proposed in a Land anil income Asu'.i'inent Bill introduced by Governor's Messago in tho House of Representatives yesterday afternoon. Under tho existing system, tho graduation is by largo amounts, which the Government considers inequitable, anil it now proposes lo alter (lift law/so that thfc graduations will be regular, and increasing with every pound incroaso ia unimproved value. The 25 per cent, additional graduated (nx which is now imposed un estates of JMO.OOO or more will bo niado to apply to estates of .£30,000 or more in value. . Tho following is the new system of graduated taxiUnimproved valuo of from JCSOOO to ,£ls,ooo—a duly for every pound of one-thirly-socond of a penny, increased by-one-thirly-two-thousandlh of a penny for each pound in excess of ,£SOOO. Unimproved value of more than .£15,009 lo JUnOjOOO, a duty for every pound of eleven-thirty-scconds of a pound, increased by one forty-thousandth of a penny for every pound in excess of .£15,000. Unimproved value of moro than ,£30,000 to ,£2oo,ooo—a duly for everjr pound of l.wenly-three-lhirty-soconds of a penny, increased by lliree-onO hundredthousandths, of, a penny for every pound in excess of .CM,OOO. Unimproved value of more than .£200,• 000—a duly of five, and five-sixths of a penny for every pound'of tho unimproved value. An, important effect of the proposed change will lie that the lax mi estates' of tiie value of ~£SCOO and under will bo reduced,. n widow, has children dependent on her, fiio Commissioner may iu his discretion allow on exemption from, taxation not exceeding ,£3500. Tho income of a married woman is to Iks included in tho husband's income ■ for income lax, and any special exemption will be computed on tho'total of both incomes. , , : ;, " Another' new♦ proposal is l , that-.income tax is to bo paid on all moneys received from the lease or sub-lease of premises licensed as hotels or accommodation houses, except that a deduction is to' bo lhado of five per cent, of the capital value of tho taxpayers' interest in til* premises. • No income-tax is to be levied on interest payable beyond Now Zealand on stock or debentures issued by llm Government or-any public body in-New Zealand. Profits from Crown reserves and endowments occupied for pastoral purposes are to be a;sesscd for income lax as oilier Crown pastoral lauds are at present, A number of technical amendments are proposed, with , a view to securing the propel" incidence, of taxation, \. The existing provisions relating to ad-i judication on objections to assessments (Sections 22 to Dfi Of,,tho 1908 Act) aro to bo repealed, and the procedure is iet forth, in the new Bill. No important chaugcs are proposed.