TAXATION.

Gisborne Times, Volume XXVI, Issue 2259, 3 August 1908, Page 1

TAXATION.

UNIMPROVED VALUE. RATING ON CAPITAL VALUE ADVOCATED. Tho Now Zealand Farmer’s Union on Tuesday discussed tho system of rating upon unimproved values as it is applied by tho Government for taxation purposes. The discussion was opened by Mr. Bell, of Hamilton, Auckland, who contended that the Government’s system of valuation, was helping to create “boom” values, a thing no Government should lend itself to. The evil was very apparent in tlie speaker’s own district. On behalf of the Auckland branches lie moved : “That a scale of values bo drawn up from time to time in conference, between the Government Valuation Department anil representatives of the Farmers’ Union, and that the valuers he instructed, in. making these valuations, not to include the unexhausted value of any manure applied to the laud.” The motion was seconded by Mr. Middleton, of Southland, who'spoke of drains anil subsoilings which were not taken cognisance of when valuations were being made. FOUNDED ON FOOLISHNESS. Mr. Ale Quinn (Southland) contended that unimproved value rating was founded on foolishness. It would require Solomon and Alothusaleh to make it effective. Ho pleaded for lair play to be given to the farmer; if they allowed the farmer to make wealth lie could then ho taxed effectively, and tho means to build up towns could legitimately be got. Air. J. C. Cooper (Tane) spoke of the system as excellent in theory, but rotton at the bottom. It was wrong as a basis of taxation; the only equitable way to strike taxes was on tho capital value of tho land. . Mr. Bell (Hamilton) characterised the system as an iniquitous one, and Air. Alatheson (Eketaiiuna) called for a straight-out motion condemnatory of tho system. Ho thought there was no system ol' taxation that would bo so satisfactory as to tax all men according to the wealth'they possessed. Air. Ataxwell (Opuna'ke) contended that there were highly improved lands in New Zealand, valued at £lO per .acre, which had cost £SO an acre to improve them. He would like to seo the conference do its utmost to improve the system of valuation in the interests of the lessees; and lie did not think the Act was so much blameworthy as its administration. The valuers were tied down too much in their instructions.

Air. Leadley (Ashburton) asked ""hat they were going to suggest as an alternative. (Voices: ‘‘Capital value.” “Property tax.”) He thought taxes should be levied upon the net results of a man’s exertions and income. There was no other equitable system. To-day tho sons of the pointers of tho colony were being driven out of their heritage by tho present taxation system of tho Government. Whether a man made money or lost money ,ho had to pay his land tax. That was most unjust. Wo were bringing in population from abroad, men wfitli capita,! of (only (a! ifew pounds, who were written of as farmers, _ and at tho same time wo are driving away to Queensland many of our trained farmers, who were taking capital with them amounting to many thousands of pounds. Air. Beaston (Hastings) said he doubted if twenty farmers could bo found in New Zealand who would support the unimproved rating system. In answer to a question. All - . Beatson mid “they all voted for introducing the system, hut they did not know then what a beast of a thing it was.” (Laughter.)

CAPITAL VALUE

Question was mado as to what could be done to prevent the holding of land bordering on a town, with a view to increase of values, without making proper use. of it. Discussion to this and other aspects of tho question resulted in tho President of the Conference (Mr. ,J. G. Wilson) drafting tho following motion as embodying views expressed by tlie Conference during the afternoon : “That the present system of revaluation of rural land for land tax purposes upon tho unimproved values is inequitable, and is no reliable basis to enable ajryone to make a valuation other than a purely arbitrary one; (2.) that a capital value is the only ascertainable value which can be equitably arrived at: and (3) that the taxable and ratably value on which the average capital value of land is taken be over a series of years, and not the saleable value of the day.’’ This motion was unanimously adopted.