TAX ON PETROL.

Hokitika Guardian, 15 July 1924, Page 1

TAX ON PETROL.

AALEJIICAN EXHERIKXCE

MAIX HKVKXCK FROM .MOTOILS

A tax mi petrol was proposed in Now Zealand some time apo, and met with stronp opposition, mainly from farmers. It was a petrol tax which provided before the War the principal revenue in Britain from motors.

In accordance with a promise made at the last meeting of the executive of the New Zealand Farmers’ Union, the Minister of Public Works (fTon J. G. Coates) lias supplied the Union with some interestin'' information in regard to the petrol tax in the United States.

The report, which was forwarded by -Mr F. W. Furkcrt, cnpinoer-in-chicf and uuder-scerctary for public works, states that on I till June, l'J2.'i, the “Engineering News Hecord” published a statement showing that .’PI States out of IS had adopted this form of taxation, while ten other Stales had practically done so, leaving only five States that had not made any serious movement to enact legislation, thus showing that taxation of motor vehicle fuel was considered throughout the country a sound procedure for creating funds for constructing and maintaining public roads. It was estimated by the Bureau of Public Hoads that a tax of one cent u gallon ill the present rate o| consumption would produce about •10,000,0110 dollars per annum. The tax ranged from I to .‘1 cents in various States. Deductions drawn from this article \v**rv tlnit prartioe nntl <_*xi>c?ric*nco fstvoured the collection of gas tax, as it was called in the States, from the wholesale distributions and not from retail dealers. Monthly reports of sales and payment of tax were required in all hut two of the Id Stales reporting. Practice also favoured the collection of the tax hy existing State officials. in which event experience showed that the cost of collection was an insignificant percentage of the amount collected. Opposition to this tax was confined to tin* automobile associations and to the motor-truck operators’ organisation. Opposition from farmers, motor-lioat users, and manufacturers had been eliminated by

exemptions. “MOST SCIF.YI’IFI C IMPOST.” In tile "Engineering News Hecord" of ldth December, l!’,2.’i, dealing with the question as to what car-owners should nay for road building, the highway engineer of Wineonsin said that the motor fuel tax was hy far the most scientific impost upon motor vehicles. "The consumption iff gasoline,” he proceeded, “varies with the weight, speed, and mileage of the motor vehicle. Xo other factor in the ear’s domestic economy reflects so closely the benefits received from highway use. Gasoline is bought usually from day to day, is best bought in that way, and can thus lie handled more cheaply and more safely than it shiplied and stored for individual use. It is the only practicable way to colled imposts which marks relative highway use for the relative benefits therefrom. MV believe that many States will find it necessary, at least during the (liming heavy construction period, to impose fuel tax of about •> cents per gallon. M’e believe it will be usual to exempt fuel used other I ban in highway transport from paying the tax. Ibis will cau-o some abuses, hut there are abuses in every tax system. As soon as motor fuel lax ot quite uniform amount is in elfoot in every State, practically every objection to tile gas tax will have been eliminated, and a method of highway taxation and ol highway linancing will become universal, which is as nearly in accord with equities in the case as human ingenuity can devise." Further inloi million. Mr I'iirkert staled, had been derived from American sources. The estimated yield from such taxes for the current year was Il,()(l7,s:n dollars, or approximately cs.tiltn.noi) upon an estimated consumption of 2,ii()7.11J2.n:iS gallons, so that over all the tax averaged l b

(•t ilts lit'! - yallnn. Iho latest nvailehl'.-ccii.-ii- showed that i!:<tc won- I I,(l(l0,(11 til iiMitm- ill I lII’ I'uitfil Stn Lf'Sso that nssumilly all wore highway Vfl»l»-lo«, llu* average consumption per vehicle would work out ai gallon-.. A simple- method I'm- exempting mmhighway used gasoline Imtl been devised. Section - of liili No. 101. ( alit>>rnin. provided lor tor billowing exemptions and refunds: (a) Aliy person ate., using fuel lor ' purposes other tlia.n on highways ; (li) any luel used in rural free delivery mails: fe) any person who can show that he has already paid throat'll vendor or otherwise, certified .hy oath of claimant, who shall state amount purchased and used otherwise than on public highways. The controller, upon proof, shall refund amounts efpial to license taxi". Claims must he within six months id purchase of such luel. ••New /.calami being a self-contained country, and there being no local production.” concludes Mr Purkert. a petrol tax would probably be collected through the Customs Depart incut.