LAND TAX AND VALUATIOS

Hawke's Bay Herald-Tribune, Issue 178, 14 August 1937, Page 7

LAND TAX AND VALUATIOS

Presd A^sociati'on.j

- " ■ ■ 9 m Minister Replies to Farmors' littion froduction not basis

(By Telegraph—

WELLINGTON, Last Night. Land valuafeidns, a subjeet very prominfent in the deliberatiohs of ; the recent eonference of the Farmers ' . Union, were discussed by the Miiiister. in Charge of the Yaluhtion DepartMent, •Hon. F. Langstone, in a statement this .evening. -He said people, through the pveryday transactions of buying, selling) leasing, exchanging an'd btherwise disposing of land, established the jbasis on which valuations were made/ Land was worth.what it could be ma'de to produce but the assesSment of uhimpVoved vialue could not ahd should not be arrived at from the actual production of eaeh individuhl farin. ; ' 'Ln regard to the claim that no sound ' system of valuing iarm lands can bo 'evolved until the whole system oi' farm .accountancy and^ past, present and .future responsibilities have been comipletely invesligated, I maintain this as fpu^ely a, question for the farmers.them> iselves and for their organisationsi In no way can the Valuation Departmfent become responsible for laxity on . thc ipart of farmers in this eoimectioni Tho ! claim that irnprovemfents arO writ'tOn idbVrn 50 per ceht. and this hgure is Jadded to the uilimprovOd value, thus eausing Ihe f afmor to be takfed tivice, is absurd and will not bear close ahalysis. ; As I have' alre'ady pbint'ed but, ihiiprovemehts either ih town br 'cohntry :fbrm piactifeally no part of the uhiEi•proved value of a pr&perty. • "Referring to land taxatioh. I 'fih'd ,that of the £l,049,6l0 tax assessed in 1936-37. £629,766 came from ru'ral areas and £419, S44 from urbaii areas. Siity ;per cent. of tas is eollected . 'from a •verv large area and 40 per cent. from a jcomparatively small. area. ' The gradu!ated land tas, approximately £590,000, was eollected in the sa-me propertion. Earmers who oceupy or own an hrba of an unimproved valu.e of less than £3000, pay no ineome tas on their earnings therefrom ahd if th'e land is mbrtgaged, 'they liave also esomption from assessments of lahd tax \ip to the hikouht Of .the moft'gage, I khow cttsfes whero .farmers hdving i'heombs of £1000 to £1500 per annum pay nfeithbr land, tas hor incbme tas. The maximuhi bxemption ih respoct of the gradtiated lahd tax applics to ptbpOVtibs 'of an uhimproVed vhbic of £7500 whfef'e, if ihe 'iuortgage oquals or eiceeds that amount, a de.duction up to £7500 irolu Ihe assessable uhimprbved value is allowod. Thus no land tax is payable in such cas'es. ti Ihe unimproved valuo cxceeds £7500, ihe mortgage deductioh hllowable is decreased by £1 for eVery £1 bf -such exccss; Mortgage exeruption Ceases whon the uhimproved .value reaehbs £15,000.