GRADUATED LAND TAX.

Dominion, Volume 6, Issue 1667, 6 February 1913, Page 8

GRADUATED LAND TAX.

AND CITY PROPERTY. AN AUCKLAND PROTEST. (From Our Special Correspondent.) Auckland, February 5. Tho protest against tho graduated land tax being. imposed upon city property voiced at the annual meeting of tho Auckland Gas Company by the chairman of directors (Mr. J. 11. Upton) has aroused much interest in tho city, and tho liberal sympathy and support of business men. Mr. G. Elliot (president of tho Auckland Chamber of Commerce) brought the matter before that body recently, and as a result a deputation is to wait upon tho Prime Minister at the first opportunity and point out tho effect of the existing law. Mr. Elliot said yesterday that it was common knowledge that, it was never the intention of Parliament that the Act should apply as it did to city properties. Mr. Arthur M. Myers, M.P., said that a reference to the debate which took place in ■ the House last session on the Land Tax and Incomo Tax Dill clearly showed that tho object of the present Act was not to get increased revenue, but to induce those who held largo areas of agricultural land suitable for closer settlement to cut them up. Tho Hon. James Allen, who had charge of the Bill, said emphatically that the aiin of tho Government was to put such taxation on the unimproved values of larger estates as would induce tho owners to cut them up. The whole trend of the discussion on the •Bill was on similar lines. Owitig, however, to the abscnco of any special provision. dealing with the taxation of urban lands, this class of land "was naturally taxed on the same basis, as tK5t in the country districts, and this hardship was felt even more in Auckland than elsewhere, because in, addition to theincreaso in tho new graduation, the valuation recently made had also to be taken info account. "Do you then think that it was the intention of tho Legislature that this tax should affect city lend in the manner it docs?" "No, I think I might venture to say that members probably misunderstood the effect of the 25 per cent, increase in the valuation of agricultural lands, and concluded from the provisions of tho Act dealing with this increase that business premises were to bo exempted from tho graduated land and income tax."- < / .'.'You do not therefore favour small sections within the city limits?" "Certainly not. I would just instance mv own property, the Strand ' Arcade, where it would , nave been impossible to erect such a fine building on a smaller frontage." '