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Hokitika Guardian, 20 May 1930, Page 4

The question ot local body taxation is always a recur,ring subject. Just at present the Municipal Association has the matter ih hand, and its Executive is seeking to evolve a system equitable to all classes of ratepayers in the towns. It is perhaps easier to reach a dcision in regard to boroughs than the larger areas of countries, for the reason that with boroughs (as also road boards and town districts), the area is more confined, and what community value may be created, is practically enjoyed by all the ratepayers. With respect to country areas the expanse is so great that community values are not uniform and there is a special difficulty on that account. The two chief systems of rating are or. capital and unimproved values, respectively. Each have tiieir anomalies, as well as, perhaps in a lesser degree, the system of annual rental assessment, the last named is the more readih adjustable because it is an annual estimate, revised every year, and can be adjusted according to the fluctuations of trade, on the effect of local developments. Opinions of municipal officers differ as to the merits of the respective .systems, and on that account it is doubtful if anything approaching unanimity will be reached. Local conditions affect each district, and on that account it will be difficult to find a uniform system acceptable to all. The unimproved system pleases the land tax advocate, for it bases the taxation only on the land. The capital system covers both land and buildings thereon. The annual system is founded on the rental value. In the main the- capital system is the more general. A wave oT advocacy for the unimproved system caused many boroughs to adopt it, but it is doubtful if they are convinced that its actual working is an equitable system. Whether anything can lie suggested to meet the differentviews remains to bo seen. It would appear that the present provision of the law to allow the ratepayers or their representatives to de..ide as to the system of rating, is the most democratic. There are three options, and in the adoption of any one, local conditions have to be taken into account. The local authority, or the people within its area, have the legal machinery to deal with the matter, and in the absence of anything hotter, it is well that the rateTVayers have withitn their call, the right to choose for themselves the system they will adopt.