Manawatu Herald. SATURDAY, OCT. 8, 1898. Rating on Unimproved Values.

Manawatu Herald, 8 October 1898, Page 2

Manawatu Herald. SATURDAY, OCT. 8, 1898. Rating on Unimproved Values.

We have drawn attention to the above system of rating in the hope 'hat the thoughtful members of our Borough Council before now would have set up a committee to consider the principle, and not with tbe hope that if would be brought into force. When a new principle of taxation ie made law it is Well that some lead ing people in the distriot should make themselves acquainted with its working, if only, Bhould the scheme be considered unsatisfactory, to warn those who look to them for guidance to bave nothing to do with it. This rating op unimproved values can easily, in a rough and ready manner he shown to be moßt satisfaotory to the small and poor ratepayer, the argument of " why should your im provements be taxed ?" seemingly to be just to the point. This is however, to our mind, just where the error is made, for while the small ratepayer is getting out of taxation for his improvements, so, it must be remembered are the large ratepayers doing likewise. In a mixed Borough like Foxton, where the rural land is in greater preponderance to the aotual urban land, the imposition of the unimproved rating would very seriously affect overy small farmer and every holder of every acre but that which was most highly improved by buildings. The land in a district, held in either large or small areas is both a necessity to tbe holder and the oolony. aa from it is the revenue of the colony derived and is the only justification for any town. Single taxers like to argue that this forms the very reason why the land should be tbe only •hing taxed, but without at this tim* 3 oning generally into the merits or demerits of tbe Single tax theory, itwill be patent to all that a trial locally, instead of colonially, must result in excessive taxation of the holders of any land, and as the rating of land on unimproved value? U a step towards the hope ofthe Biogle taxer, so it is likely to be to the harm of land owners. We have shown, in a previous article, that one result of adopting this system of rating in this Borough would be tn throw the whole cost of Hospital and Charitable Aid upon the land. Now whilst land is the necessity, as im provements upon country lands helps to swell the exports of the distriot and are rightly exempt from taxation, but as to get that exemption it entails on the small land owner the burden of taxation lost by thej exemption of improvements made on town and subnrban lots, an investigation into their respective values would show that under the idea of getting rid of one taxation be would find himself overburdened with hi« town neighbours rates. This of course would bo a serious thing. Buildings are not necessities in the ■jfime manner as land is, as the class of building and its value depend on the whim or the purse of the builder, and the rioher he grows, the larger does his house grow. By the present system of rating the taxation is oven, if. t^e townsman build*, be is taxed, if the countryman builds or fences, he is taxed. What the unimproved rating proposes is, that the townsman may make all the money he can from the country people and build large stores and fine houses, and not be called upon to pay any rates, though he has of oourse to pay on a valuation of his quarter aore seotion. A quarter of an aore in the best site in town has the unimproved value of £ 100, the lowest unimproved value of land in the rural district is valued at £5 per aore. No man oould live on one acre of this land, and the smallest, holdings run from 20 to 40 acres. Anyone can pioture the value of the landowner's buildings and improve-

ments upon one of these small 20 acre farms, and can then compare buildings that are on some of the quart, c acre lots in the Main street, when he can estimate whether it seem, fair that the contribution made by the two owners should be the s**rae to the Borough revenue. It wiil be seen that the town lot is £100, and 20 acres at £5 per acre equals £100. It is impossible to say that the 20 aore man uses the roads more than the £100 lot man, or tb it he reaps much benefit from expenditure on footpaths, lighting and other conveniences. From a Government return the capital valne of the Borough is stated to be £100,051 and the unimproved value £42,412 which, without farther data, it is not possible to Bay with accuracy how much of the improvements are agricultural and how much are for buildings, but if the unimproved value of rating is introduced it means that over £58,000 of value now distributed under the head of capital value would have to be •li vided pro rata over the land in the Borough, as it goes without saying we must get an equal revenue as exists at present, and the Act permits extra rating to secure att equivalent amount. We think we have shown good reason--? why a change in taxation should not bf. spoken of at random, and why, if there appears to be any desire to think of suoh a thing our represpnta>ives in the Council should approach the question in a calm and judicial manner, seeking all information and compiling fair samples of ir,*** w ik ing. For ourselves we b*.i* j v> the present system H both fair ai*H satisfactory as we are all called upon to pay in proportion upon the whole of our possession?, for the whole of the advantages secured by the administration of the Borough.