INCIDENCE OF TAXATION

Hokitika Guardian, 10 February 1926, Page 1

INCIDENCE OF TAXATION

CAPITAL VALUE AND POPULATION. 0 AMARU, Feb. 8. Some weeks ago a meeting of ratepayers of AVaitaki County passed a resolution urging tlie Government to alter the incidence of hospital taxation so that relief would lie extended to country settlers. Tlie North Otago executive of the Farmers’ Union has received the following reply from the Hon J. A. Young, Minister for Health :

AVith reference to our letter of the 18th. ultimo, forwarding a resolution carried at a meeting of ratepayers on the loth. idem.. I have to state that

none hut essential capital expenditure is approved by me as regards incidence of hospital rating. This has been the subject of much discussion and enquiry, particularly when the Hospital Bill of 1923 was before the House, when ti resolution that the

burden of the hospital levy should he partly on population and partly on valuation was lost on a division. Further, tire whole matter has been thoroughly gone into by the Department, which considers that the present system should not be altered, in which opinion it is supported by the Hospital Board’s Association. Tbe matter was referred to tile Commissioner of Taxes, who reported as follows: “1 have looked into tbe matter of the incidence and computation of hospital levies and I am of the opinion that the present system of rating on capital value should he adhered to. f may state that the committee on local taxation which reported to the British House of Commons in 1912 came to the conclusion that annual value, which is euivalent, to capital value, is the fairest, basis of local rating. Certainly rating on capital value should, by reason of tbe greater proportion of improvements on urban lands, give sufficient differentiation between urban and rural lands. To adopt population as a factor for rating purposes, would, T think, be wholly indefensible.”