PROPERTY ASSESSMENT BILL.

New Zealand Times, Volume XXXIV, Issue 5821, 25 November 1879, Page 2

PROPERTY ASSESSMENT BILL.

The Bill to regulate the assessment of real and personal property, for the purposes of taxation, prepared by Maj<‘r Atkinson, contains clauses. For the purposes of the Act, the colony shall be divided into districts, which may be sab divided if necessary, aud a Property Tax CommUtdoner shall be appointed, who shall have a deputy in each district ; but offices may be held in conjunction with other offices in the Civil Service. Assessor*, clerks, am! other officers, may be appointed, and the publication of the names in theCru-itftc shall be deemed sufficient. All officers appointed to take oaths of secrecy, and for any breach shall be liable to a term of imprisonment not exceeding twelve months. All property within the colony, to which any person is entitled, shall be liable to taxation in respect so much of the value thereof as shall exceed £3OO, but subject to cerlaiu deductions and exemptions provided by the Act. Every company shall be liable to taxation on its capital, which is defined as the balance of assets over liabilities, as appearing in the statement of its property required by the Act. Every banking company shall be liable to taxation iu manner following ; —(1.) A company, the principal office whereof is whhiu the colony, or is principally carrying on business therein, shall be assessed on the amount of its capital actually paid up, added to the amount of accumulated undivided protits thereof ; ['2.) a company, the principal office whereof is not within the colony, or is not principally carrying on business therein, shall be assessed on a sum tqual to one-eighth of the total amount of their ;tssets and liabilities in New Zealand, taking the average of such assets aud liabilities for the twelve mouths last previous to the making of the assessment, as shown in the periodical returns of the bank published in the Gazette. But individual shareholders are not to be taxed for shares or stock held in banks, or companies liable to taxation. Every company or bank must be represented by a person residing in the colony. Agents, trustees, &c., assessed in the name of the trusts or properties which they represent, shall be responsible, as if the properties belonged to themselves. The mortgagor of any laud shall be liable to taxation only oa the difference between the whole value of the land mortgaged and the amount of the money advanced on mortgage of the laud. The interests of owners and lessees of property are to be assessed separately, and each shall be liable to taxation only for the (amount of his interest, Real property shall be liable for tax, notwithstanding transfer, so long as it remains unpaid. The following shall be exempt from taxation :—All property belonging to the Crown, local bodies, companies or societies not formed wholly for purposes of gain or profit divisible amongst shareholders, churches aud places used exclusively for public worship, property devoted to charitable, educational, or recreation purposes, all public reserves, property belonging to

Maoris, property owned in reversion, the owner of which has not a beneficial interest at the time an assessment is made. But the interest of occupant of exempt lauds is to be assessed at its full value, aud also of European occupants of Maori lands. Covenants made contrary to the Act are to be void. Commissioners are to give not less than one month’s notice of the statements of property required to be furnished ; but persons owning property must provide themselves with the requisite forms. Statements of all properties must be furnished, aud declarations made as to the truth thereof, but they may be forwarded by post to the deputy-commissioner for the district. Fuller returns may be demanded as often as thought necessary by the Commissioner or his deputy. The first assessment is to be made as soon as convenient in the year 1830, aud before the 31st of March in every third year following. Assessors may enter land and premises, and ask questions of the owners; and if an assessment is wrong, a new one may be ordered. When: the name of an owner of any land cannot, after due inquiry, be found, such land shall be entered into the assessment roll to “ the owner,” aud he shall he liable to taxation by that designation. Assessment rolls are to be kept secret, and sealed notices are to bo sent to person affected. Owners and occupiers may object to as-'essiaeuts. aud also the Commissioner or any of his deputies. All assessments are to bo deemed good if not objected to. Boards of Reviewers are to be appointed, and all objections are to be forwarded to them for hearing. The Commissioner may be appointed a reviewer, but no other person holding office under the Act shall be competent to serve on the board. Rolls may be added to or amended whilst in force. If the tax is not paid within fourteen days after it is demanded, the same to be sued for, with 10 per cent, added. Where goods and chattels are not sufficient, in case of distress, the laud may be sold in payment of the taxes, if in arrears three months, unless the same, together with costs, shall bo paid within six months after notice to that effect is served. Summonses on unknown owners of property may be posted on the land, and judgment may be given against the owner. If the owner of land fails to pay the tax, the deputy commissioner shall have

the like remedies against the tenant as ho would have against the owner; hut any person paying the tax may recover from the person liable therefor. The penalty for making false returns of property for evasion of taxation is that treble the amount of the tax sought to be evaded shall be assessed and charged to the person guilty of the evasion, in addition to any tax for which such person would have been otherwise liable, and shall be liable to a penalty of not leas than £5, nor more than £IOO, besides. Persons aiding or abetting in doing anything contrary to the Act to be liable to a penalty of not less than £5, nor more than £SO. Persons obstructing officers under the Act, or refusing to answer questions, or giving a false or evasive answer, shall be liable to a penalty not exceeding £SO ; and any persons making false declarations shall be deemed guilty of perjury, and liable to be dealt with accordingly. We have given all the main features of the Bill, but no doubt some considerable modifications will be mado when it gets into committee. TO THE EDITOR OF THE NEW ZEALAND TIMES. Sir, —A property tax of one penny in the pound does not appear at first sight a very serious matter, and as it is stated that no less a sum than £370,000 per annum will be raised by it, there is a disposition to submit to the apparently moderate sacrifice in consideration of the amount gained. It would therefore bo well for the public to consider what this tax, when put into figures, really means. I think it will be admitted that either the valuations of properties onwhich the estimate isbaaedmnst be enormously reduced, and thereupon a very much less sum than estimated levied; or, if the valuations are maintained, the tax will prove to be so heavy in proportion to income as to be little snort of ruinous. It is notorious that the late valuation for land tax purposes was made at a time when all property had attained a fictitious and speculative value, based in most cases, not on the income derivable from it, but on the idea that the “ unearned increment" would more than repay the immediate loss of interest on purchase money, and therefore prices of properties were forced up to a rate which would not even allow a profit of 5 per cent, on the investment at the then prices o£ produce. The serious decline in all properties sincethenis suchthatit maybesafely said they do not exceed 4 per cent, average on the valuations then made. Therefore a property valued at £IOOO will return now only £4O a year, while the fax will be 1000 d., or £4 3s. 4d,, which is a little more than 10 per cent, on income. Of morse this proves that valuation must be reduced considerably, but in that case nothing like £370,000 will be raised. In the case,"too, of properties greatly improved by building and planting, such improvements not being of a nature to bring in income, the tax will bear an enormous proportion to profits. On the Other hand, it is proposed entirely to exempt incomes, so that the wealthy classes will escape, while the industrious settler improving his property will bo half ruined. Surely such a scheme, when fully considered, can never be given effect to, particularly when it is seen that the object is to escape the necessity for retrenchment, that our enormously expansive system of government is to be carried on without change. The country quite recognises the necessity for making income and expenditure balance ; but it is to be hoped that something better can bo devised for this purpose than a scheme like this, which cannot be enforced without most serious consequences. —I am, &c. A. B. Wairarapa, November 24.