GRADUATED LAND TAX.

Manawatu Herald, Volume XXXIV, Issue 1083, 15 August 1912, Page 3

GRADUATED LAND TAX.

GOVERNMENT BILL

ITS CHIEF PROVISIONS

The increase in the graduated land tax foreshadowed in the Budget is proposed in a Land and Income Assessment Bill introduced by Governor’s Message in the House of Representatives on Tuesday afternoon. Under the existing system the graduation is by large amounts, which the Government considers inequitable, and it now proposes to alter the law, so that the graduations will be regular, and increasing with every pound increase in unimproved vasue. The 25 per cent, additional graduated tax which is now imposed on estates of £40,000 or more will be made to apply to estates of £30,000 or more in value.

The following is the new system of graduated tax : Unimproved value ot from ,£5,000 to ,£15,000 —a duty for every pound ot one-thirty-second of a penny, increased by one-thirty-two thousandth ot a penny for every pound in excess of £5.000. Unimproved value of more than ,£15,000 to £30,000, a duty for every pound of eleveu-thirty-secouds of a penny, increased by one forty-thousandth of a penny for every pound in excess of £15,000. Unimproved value of more than £30,000 to £200,000 —a duty for every pound ot twenty-three-thirty-seconds ot a penny, increased by three one-huudred-tbousaudths of a penny for every pound in excess of £30,000. Unimproved value of more than £,'200,000 —a duty of five and fivesixths of a penny for every pound of the unimproved value. An important effect of the proposed change will be that the tax on estates of the value of £SOOO and under will be reduced. When a widow has children dependent on her, the Commissioner may in his discretion allow an exemption from taxation not exceeding £3500. The income of a married woman is to be included in the husband’s income for income tax, and any special exemption will be computed on the total of both incomes. Another new proposal is that income tax is to be paid on all moneys received from the lease or sub-icase of premises licensed as hotels or accommodation houses, except that a deduction is to be made of five per cent, of the capital value of the taxpayers’ interest in the premises. No income tax is to be levied on interest payable beyond New Zealand on stock or debentures issued by the Government or any public body in New Zealand.

Profits Irom Crown reserves and endowments occupied for pastoral purposes are to be assessed for income lax as other Crown pastoral lands are at present.

A number ot technical amendments are proposed, with a view to securing the proper incidence of taxation.

The existing provisions relating to adjudication on objections to assessments (Sections 22 to 36 of the 1908 Act) are to be repealed, and the procedure is set forth in the new Bill. No important changes are proposed.