THE GOVERNMENT LAND POLICY.

Gisborne Times, Volume XXV, Issue 2137, 20 July 1907, Page 2

THE GOVERNMENT LAND POLICY.

WELLINGTON, lust night. Tho three Bills embodying the Government's land policy wore introduced by Governor’s message in tho House of Represents Lives this aftor-

TriE MAIN BILL. The Band Bui was presented tins uiternoon. Hie eiu clears uou only with Crown lands but also with laud ior settlements mud. Part I contains pro visions rciuuug to tho lormer and part it tnose concerning tho tatter, on tho passing ot the n.ot idle renew - aoio ic-uoe Lakes tlio place of tlio le-uses-in-porpetuity. The renewable lease is for a term of 66 years wit-.i perpetual right of renewal. This right is an extension of last year’s provisions. The rental is 4 per cent. per annum. There is provision in the BiP for valuation of improvements at tlio end of successive terms. The fee simple and yearly rental will be fixed by arbitrators appointed by the parties. If they fail to agree and if the lessee does not accept the renewal tho Crown pays the value of tho improvements. The tenant in the case of a renewable lease or a lease-in-porpetu-ity can pay up to 9 per cent, of the capital value.of t'he land comprised in his lease, when the rent will be proportionately reduced. AVlien 5 per cent, has been paid the tenant holds tho land free of conditions other, than rent, residence and liability for commission of waste. Any amount paid over 5 per cent, will be refunded on application. The moneys paid under these provisions are paid into the Land for Settlements Act, which pays interest to the Consolidated Revenue at the ratepOf 4 per cent. The general provisions of tlio lease-in-perpe-tuity apply to tho renewable lease. Owners of loase-in-perpetuity may surrender their leases or obtain renewable leases. Tho owner of a lease-in-perpetuity niay purchase the freehold at a price equal to the capital value of tlie land at the time of purchase, and the value of tho land is determined by arbitration. On such a. purchase tiio lease naturally determines. The limitation of area provisions apply to lands purchased under this clause. In order to facilitate settlement power is given to the Land Board, with the consent of tlicf Minister, to provide that for a number of years not exceeding ten no rent shall be payable under the renewable lease. The provisions following tho above are largely machinery amendments of a comparatively non-contentious nature. In the classification of land a third class is '-added, where a tenant is allowed to hold up to 3000 acres.. A clause has been introduced whereby the Minister csyti consent to the holder of a pasturage lease or license culti-' rating a portion of his land to grow winter feed for stock, and also ior ploughing and laying down grass on an additional area not exceeding 3000 acres, and providing for such to reckon as improvements for valuation purposes at the termination of the lease. In cases of ballot, t'he landless shall have preference over those who have land. The Board may examine applicants before a ballot. Tlio successful applicant who has disposed of his land shall bo ineligible for five years after such disposal. Provisions are contained in the Bill making clear tho powers of executors on the death of a lessee or licensee, so that all Boards may work on a uniform plan, and any uncertainty as to procedure which may exist in the minds of the public may be removed. In connection with ’-•art 11., which deals with Land for Settlements land, such lands are disposed of by way of renewable lease. In these cases, however, the term of lease is 33 years with perpetual right of renewal as before, the rental of the first lease to bo not less than 5 per cent on the capital value. At tho end of each term the new rental is assessed as in the case of the 66 years’ lease. "Where Laud for Settlements lands are-Ldis-posed of by way of public tender to tlie highest tenderer, subject to provision as to minimum rental. In case of tenderers for the same amount the successful one is to be determined by ballot. Regulations are to be drawn up laying down the procedure for ballot. In taking-land compulsorily under the Act its value is assessed as on the valuation roll in force at the time when the acquisition is Gazetted, provided that any increase in value since the date of valuation can be ascertained and added. There shall be paid as compensation in addition to the value tlio following sums : —lf property exceeds £50,000, 2-j per cent ; if under £50,000 and over £25,0000. 5 per cent ; under £25,000, 10 per cent. Minor provisions are inserted to smooth tho working of the Act generally.

THE ENDOWMENT PROPOSALS. I. This Act may be cited as the National Endowment Act, 1907. 11. The Crown land described in the schedule hereto, and hereinafter called national endowment land, is hereby set apart as a permanent endowment for purposes of education and old age pensions. 111. Save so far as expressly provided by this Act, national endowment land shall continue to be administered and dealt with in the same manner as other Crown land under the provisions of the Land Act, 1892.

IV. (1) Tho gross revenue received from national endowment land after the 31st day of March, 190 S, shall be paid by the Receiver of Land Revenue into the public account to the credit of a separate account, to be called the National Endowment Account ; (2) all revenue received from national endowment land on or before the said 31st day of March, 1908, shall be dealt with as if this Act had not been passed.

VI. Out of the moneys in the National Endowment account there shall bo paid the cost of the administration of the National Endowment land, and also all sums which are now payable bv law out of the revenues so received from that land to any local or public authorities. VII. Of the residue of the moneys in the National Endowment account 75 per centum shall in each year be applied for the purpose of education and 30 per oentum for the purpose of old age pensions, in manner hereinafter provided. VIII. (1) The moneys so available for tho purpose of education shall be applied from time to time without further ' appreciation than this Act in payment of all amounts which by any Act now in force or hereafter to be passed are charged on the Consolidated Fund for educational purposes, whether higher, secondary. or primary, and whether general or technical; (2) the residue of the moneys so available for the purposes of education after payment of all such charges as are mentioned in the last-preceding subjection shall be paid .from time to time as tile Colonial Treasurer directs, and withopt further appropriation than this Act to the Education Boards for educational purposes in accordance with law and in aid of the annual appropriations made to the said boards; (3) an account shall ho taken periodically at such intervals, being not less than a year, as the Colonial Treasurer directs, showing the amount of all moneys so received by each Education Board, and the amount so received by each hoard shall thereupon be deducted from the total sum payable to that board by virtue of any annual appropriation. IX. The moneys so available for the purpose of old age pensions shall from time to "time without further appropriation than this Act he paid bv tlie Colonial Treasurer into the Rost Office Account/, and shall he then applied in the payment of old age pensions in accordance with the provisions of the Old Age Pensions Act. 1898. X. Notwithstanding anything in this Act contained it shall he lawful for any portion of the National Endowment land to be set apart as a resprve for any purpose under the authority of any Act, in like manner as if this Act had not been passed. XI. (1) Notwithstanding anything in this Act contained it shall bo lawful for the Land Board of tlie district in which any National Endowment land is situated to sell with tlie consent of the Minister pf Lands, and in such manner and on such terms as the said Land Board and the said Minister think fit. any portion of such Jancl not exceeding five acres in anv one case, as a site tor any bunding to bo erected for any educational, religious, charitable, or public Purpose. or for any other purpose which j in tho opinion of the said Lana

TEEJURE, ENDOWMENTS, AND TAXATION. ABOLITION OF THE ETERNAL LEASE.

Board and the said Minister renders such salo expedient in the public interest : (2) the purchase money of land so sold shall be paid into the National Endowment Account.

Nil. (1) It shall he lawful for tho Colonial Treasurer from time to time in accordant-/ with tho provisions of sections "3 to 75 of the Local Bodies Loan Account, 1901, to issue and apply such sums of money, not exceeding in any one year the sum. of £50,000, as are appropriated I) y Parliament for the purpose of tho fonnation of roads and bridges upon any National Endowment land _ or otherwise for the purpose of facilitating tho -settlement of any such land; (2) the said sums shall be in addition to, and not in substitution for, sums authorised to be expended bv section 73 of the Local Bodies Loans Act, 1901.

THE GRADUATED LAND TAX. This Act may be cited as the Land and Income Assessment Act, 1907. and shall be read together with and deemed part of the Land and Income Assessment Act, 1900 (hereinafter referred to as the principal Act). In this Act unless contrary intention appears from the context land does not Include mortgages, but otherwise has tin same meaning as in the principal Act. Sections 44 and 45 of the principal Act, section 5 of the Land and Income Assessment Act, 1903, and the schedule to the last mentioned Act •are hereby repealed, but all land tax for any period prior to the year commencing on first day of April, nineteen hundred and seven, shall continue to be assessed, levied, paid and recovered a,s if said sections and schedule had not been repealed. Every person shall be liable to pay in each year commencing with tho quarter ending on the 31st March, 1908, a graduated land tax at the rate hereinafter set forth on all land of which ho was owner at noon on 31st March, in preceding year and the unimproved value of which is £sooo_ or more. The provisions of this section are subject to any exemptions from graduated tax created by the principal Act. If the unimproved value of the said land is not! less than £SOOO, but is less than £4OOO, the rate of the graduated land tax payable in respect thereof will be in accordance with schedule hereto ; if unimproved value of the said laud is' not less than £4OOO the rate of graduated land tax shall be the perecentlage determined in accordance with provisions hereinafter contained if the said unimproved value of the said land is not less than £40.000 but is less than £41,000 the said percentage shall be eight shillings for every hundred pounds sterling of the said value. For every additional thousand pounds of said value over tho amount of £40,000 the said percentage shall be increased by onefifth of a shilling and the perecentage so increased shall be charged on the total unimproved value of the land in respect of which tho said tax is assessed ; notwithstanding the previous provisions contained for progressive increase the said percentage shall reach its minimum in case of land of which the unimproved value is £200.000, and in this case.and all cases in which the unimproved value exceeds £200,000 the said percentage shall be two pounds for every hundred pounds of total unimproved value. Notwithadditional land as is contiguous theretnined each of the said percentages determined as aforesaid shall be increased by 25 per cent, of all land other than business premises. The term business premises means any niece of land included within the superficial area of a, building used for business purposes together with such additional laud as is conteguous thereto and is used and occupied in connection therewith and does not exceed in extent the superficial area of building itself. When the same person is the owner both of business premises and other land the graduated land tax shall be assessed in respect of the "'hole of such business premises and other land without the said increase shall then he calculated oidy on the amount of graduated land tax that would be payable by him if lie-were not. owner of the- business premises. Nothing in this section contained shall effect the rate of graduated land tax payable in accordance with schedule hereto. Notwithstanding anything hereinafter contained, every taxpayer who on 31st March in any year is an absentee within the meaning of this section shall he assessed and liable for graduated land tax at rate greater by 50 per cent than the rate at which ho would have been assessed independently of tliis section. Every person shall be deemed to he an absentee for purposes of this section unless he has been personally present in New Zealand for at loat one half of a period of four years immediately preceding the year in and for which he is assessed for graduated land tax, provided that no person who lias acquired -all his land in New Zealand within tho said period of four years shall be deemed to be an absentee if he has been -j»«i£oiially present in New Zealand at least one half of the period which has elapsed between the time when he first asquired any of that land and the commencing of the year in and for which he was assessed for the graduated land tax. If an absentee taxpayer is liable to be assessed for the graduated land jointly with any other taxpayer who is no absentee he shall bo. assessed and liable jointly as if neither was an absentee and the absentee taxpayer shall also bo separately assessed and liable in accordance with the provisions of section thirteen hereof for additional tax imposed by this section. The owner of any life estate in possession of a u- other freehold estate iii possession less than the fee simple shall be dcoined for purposes of this Act to be the owner of the 'fee simple and shall lie assessed and liable for graduated laud tax accordingly. No person owning a freehold estate which is not in his possession shall be liable to pay graduated land tax ill respect thereof. For the purposes of this Act a freehold estate shall be dceineci to be in iiossession notwithstanding the existence of any trust or of any estate qf leasehold or,of any estate by way of mortgage or other security. Any person owning any leasehold estate in land whether legal or equitable shall be deemed fqr tile purposes of this Act (though not to the exclusion of the liability of any otln*r person) to be owner of tlie fee simple cf the land and shall be assessed and liable for land tax accordingly. In easo of the owner of a leasehold estate in land there sliall_ be deducted from the amount of the graduated land' tax so payable by him in respect of that land (so'far as it exceeds the graduated land tax if any that would he payable by him in respect of the value of his leasehold estate independently. of the section) the amount of graduated land tax (if any) payable in respect of that land by the owner of any freehold estate or of any precedent- leasehold estate ill the said land or any part- thereof. The provision of this section shall not apply to leasehold estates in any land of the crown or in any native land or in any land vested in any person who in respect thereof is wholly exempted from the land tax both ordinarv and graduated. For the purposes of this'Act all land owned by a company shall be deemed (though not to the exclusion of tho liability of the company or of any other persons) to be owned in common bv the shareholders of that company in the proportions which their interests in paid : up capital of the company bear to the , total paid -up capital and the said , shareholders shall he individually as- j sessed and liable for flip graduated , land tax accordingly in a manner pro- , vided by section thirteen thereof. In , the ease of every shareholder there , shall be deducted from the graduated c land tax so pavalile by him in respect ( of the land of the company such parts t of the amount ot the graduated land -j tax payable in respect of the said land _ bv the company as is proportionate to l/is interest in the paid up capital ot the company. The term shareholders shall for the purposes of tins section t include all persons on whose behalf a d share in the company is' held bv a t trustee or bv any other person. The p

owned by a u Wo or panies shall beseemed for the P«*> noses of the graduated land tax to L , single company and sljaU be jointly assessed and liable according y with such rights ofcontribuUonor'ndemnity between themselves as shall bo iust. For purposes of this section companies shall be deemed to consist substantially of tho same shareholders if not less than three-fourths of tho aid up capital of each of them is held l,v or on behalf of shareholders in the other. Shares in one company held or on behalf of another company shall for this purpose he deemed to be held by shareholders in tiic last-mentioned company. Whenever two oi more persons (hereinafter called join on!) own land jointly or in common, whether as partners or otlici u i_. they shall ho assessed and liable foi tho graduated land tax in accordance with the provisions of this section. Joint owners shall ho jointly assessed and liable in respect of land so owned By them jointly or in common (hereinafter called joint estates) as it m was owned by a single person without regard to their respective interests in the same, and without taking into account any land owned by any one of them severally or jointly o • in common with any other peisuii. .Each joint owner shall in addition be assessed and liable in respect of his individual interest m tho joint estate, together with any other land owned by him in severalty and with his individual interests in any other land. The share of the joint owner in tax so payable in respect of tho joint estate shall bear tlie same proportion to the amount of that tax as his interest in the joint estate bears of the whole value of the estate. When two or more persons own land in severalty but occup- it jointly, whether as partners or on joint account or otherwise, the same graduated land tax shall be payable by them as if they owned , lie whole'of said land jointly m the proportion which the unimproved value of lands severally owned bear to another, and for the purposes of this Act they shall bo deemed to be joint owners of the said land accordingly. Without limiting in .any wa y 1 11 ■ meaning of the term joint occuoation, two or more poisons shall be deemed to occupy land jointly within the meaning of this section if these binds are occupied, worked, or managed bv any other person as trustee fo/ or otherwise on behalf of all of those persons. When any agreement has been made for the sale of land, whether before or after the passing of this Act, the buyer shall be deemed to be the owner of the land for the purposes of this Act (though not to the exclusion of liability of any other person) so soon as lie has obtained possession of the land so purchased, whether.an agreement has been completed by conveyance or not. No sale of land whether made before or after the passing of this Act shall he effective so as to exempt the seller from liability in respect of the graduated land tax until all of the following conditions have been compelled: The sale must have been completed I, » duly registered transfer or conveyance ; possession of the land must have been delivered to purchaser; at least one-fourth of the purchase money of said land must have been paid for by the nurchaser. In estimating the amount of the purchase money which has been so. paid all money owing by the purchaser to seller and secured by anv mortgage or other charge on the land, and any money owing bv the purchaser to any other person, and directly or indirectly guaranteed by the seller, shall be deemed to be unpaid purchase monev. When by virtue of tli is and last preceding sections the buyer and seller of the land are both liable for graduated land tax, there shall be deducted from the tax so payable by the seller in respect of the purchased land tlie amount of said

tax payable in respect thereof by Mm buyer. No conveyance. transfer, declaration of trust, settlement or other disposition of land shall be effective so as to exempt the person makin" the same so Ion" as he requires or is in possession or in receipt of rents or profits of anv such land, whether on his own account or on account of anv other person from any graduated tax which would hare become payable in respect of such ’and had no such conveyance, transfer, declaration of trust., settlement, or other disposition taken place, and for the purposes of this Act persons so making same shall while he remains or is so in possession of the land or in receipt of rents or profits thereof be deemed, though not to the exclusion of the liability of any other person, the owner of said land. Subject to the other provisions of this Act the owner of any equitable estate or interest in land shall be assessed and liable in respect of the graduated land tax as if the estate or interest so owned by him were legal, but there shall be deducted from the said tax so payable by him ill respect of the estate or interest the amount of any graduated tax payable in respect thereof by the legal owner of the laud. Any ppj-son in whom laud is vested as a trustee, executor, or administrator shall be assessed and liable inrespect of the graduated land tax as if lie were beneficially entitled to such laud, save that when he is the owner of different lands in' severalty in trust for different beneficial dwners who aye not by reason of joint occupation or otherwise liable to be jointly assessed for the graduated land tax in respect of tile same tax so payable by him shall he separately calculated and assessed in respect of each of those lands, and save also that when a trustee is also beneficial owner of other land he shall be separately assessed in respect of that land and of the laud of which lie is a trustee, unless by reason of joint occupancy or for any other reason lie is liable to be jointly assessed independently of this section. For purposes of the graduated land tax no deduction from the unimproved value of the land shall be allowed in respect of any mortgage or other charge to which the said land is subject or ill respect of any unpaid purchase money, and the mortgagee shall bo assessed and liable for the said tax as if he were the legal owner of an unencumbered estate.

No mortgagee or other person owning any legal or equitable estates or interest in any land by way of security for money shall be liable to pa./ graduated land tax in respect of that mortgage or of other estate interest. Nothing i„ this section contained shall affect the provisions of section 78 or section 81 of the principal Act, but the owner of a mortgage existing at the time of the passing of this Act shall not become liable under the provisions of those sections to pay ally greater sum than lie would have been liable to pay if this Act had not been passed; 'notwithstanding anything "in this section contained, any mortgagee in possession of land or any other person who is in possession of land by wav of security for money shall be liable so long as such possession continues for graduated land tax in the same manner as if he were the owner of leasehold estate land in accordance with the provisions herein contained in respect of such an estate. No land tax, whether ordinary or graduated, shall be assessed or payable in respect of the value of any minerals, timber, or flax, and for the purpose of any such tax the value of mineral, stone, .or flax shall not bo aketi into account in estimating the due of tlio land: the term minerals means all minerals, metals, coal, oil, gum. clay, stone, or other valuable thing existing beneath the surface of the land; all income derived by anv person from or by reason of the extraction, removal, sals, or treatment of minerals, timber, or flax, whether b.-' the owner of the land or bv any other person, and whether the said income is derived by way of rent, royalties, commercial profit, or otherwise howsoever, shall, as far as it is derived from or received in New Zealand, be deemed to be income derived from business, within the meaning'of section 59 of the principal Act, and income tax shall lie assessed and

payable thereon accordingly; nothing in this section contained shall affect the liability of any person to pay land tax in respect of mortgage; this section shall •conimence to take effect in respect of land tax and income tax payable for the year commencing on the Ist April, 1907: notwithstanding anything contained in this section. if the Commissioner is of opinion that any land containing minerals or Inlying standing timber or flax thereon is not being worked and used in good faith and to an adequate extent for the purpose of extracting the said minerals or of cutting the timber or flax, such minerals, timber, or flax shall be excluded from the provisions of this section, and land tax, both ordinary and graduated shall lie assessed and payable accordingly in respect of tile value of such minerals, timber, or flax as if the .section had not been enforced: section 7 of the Land and Income Assessment Act Amendment Act, 1903, is hereby repealed.

Returns of land owned at noon on the 31st March, 1907. and of income derived during tlie i-ear ending on that day shall he made by every taxpayer as and wheu required' by the

( ’nminissionor, and all returns of such land or income mav be r © v^ e <l in accordance with the Act, and shall bo subject to the provisions ot this Act, in addition to any returns required to be made jjjuW the provisions of the principal Act, every taxpayer shall as and when required by the Commissioner make all gmh returns as are deemed bv the Commw sioner to ho necessary .for the pu poses of this Act; sectionSdofthe liri ncinal Act is hereby amended oy adding thereto the following para-„aph:-“(5) The Commissioner may reauire any person (whether a tax naver or not) to furnish in writing any information in his possession concerning the land and income property or assessment any person, anc 1 anv person failing or refusing to furnish anv information so required is guilty of an offence. SCHEDULE. When the total unimproved value of all land of a taxpayer is not less than £SOOO and less than £'ooo, the rate of graduated land tax or such total unimproved value is one-six-teenth of a pennv in the £; £7OOO to £9OOO, two-sixteenths of a penny in the £ : , £9OOO to £II,OOO, three-sixteenths of a penny in the £ ; . £II,OOO to £13.000, four-sixteenths of a nenny in the £ ; £13,000 to £15,000, five-sixteenths of a penny in the £; . £15,000 to £17,000, six-sixteenths of a penny in the £ ; £17,500 to .£20,000, seven-sixteenths of a penny in the £; , £20,000 to £22.000, of a penny in the £-; . , £22,500 to £25,000, nine-sixteenths of a penny in the £; • £25,000 to £27,000, ten-sixteenths of a penny in the £ : £27,500 to £30,000, eleven-six- ' teenths of a pennv in the £; £30,000 to £35,000, twelve-six-teenths of a penny in the £; £35.000. to £40,000. tlnrteen-six- ■ teentlis of a penny in the £.

SCHEDULE. Districts. Areas. Auckland 900,000 Acres 135,000 Acres 90,000 Acres Wellington 90,000 Acres Nelson .. 1,350,000 Acres 450,000 Acres Westland .. 1,035,000 Acres Canterbury — .. 1,800,000 Acres Otago .. 2,250.000 Acres Soutliland 900,000 Acres Total .. 9,000,000 Acres