The New Zealand Times (PUBLISHED DAILY). THURSDAY, DECEMBER 11, 1879.

New Zealand Times, Volume XXXIV, Issue 5835, 11 December 1879, Page 2

The New Zealand Times (PUBLISHED DAILY). THURSDAY, DECEMBER 11, 1879.

The property tax may now be considered au accomplished fact. The main principles of the Bill have been acquiesced in by the House without any very decided opposition, and there is little likelihood of the measure being blocked in the Upper House. Time will not allow of any very lengthy discussion, and all that remains to be done in respect of the Bill is to pass it through its final stages with as little delay as possible. The main alterations which have hitherto been made are the raising of the exemption from £3OO to £SOO, the shifting of liability for the tax from the mortgagor to the mortgagee in respect of Inoney lent by the latter, and the decision that a man’s property shall be valued for taxa-

tion purposes at the price which it might reasonably be expected to fetch if sold by auction for cash. All three amendments aio manifest improvements upon the Bill in its original form. There are comparatively few men who own more than £SOO worth of personal property. Almost all those who hold much personal and unproductive p:' .perty are men of independent means. .-'. small class of speculators in goods or in land will feel the extreme pressure of the tax, and it is quite possible that its imposition may have the effect of placing a few individuals in the position of a clas3 of men well known in the United States as "land " poor," i.e., liable for rates and property tax on land which is lyiDg waste and unproductive, and is also unsaleable for the time being. In regard to the other amendment, under which all property will be valued at the actual value to sell by auction for cash, it may be assumed that in a great majority of cases this implies a very considerable discount off extreme values. In England, assessed values for purposes of taxation are always assumed to be at least 30 per cent, below the actual market value. A similar reduction is always allowed by persons valuing property which has to be placed at once upon the market, without considering whether the time is favorable for selling or not. Property i3old under such conditions for cash must be looked upon as being offered at a forced sale, and a reduction of at least one-third in value will kave to be allowed by the assessor. The amendment by which the mortgagee, and not the mortgagor, will have to pay the tax on money lent under mortgage, will have but little permanent effect, inasmuch as it is well known that in the long-run the borrower has to pay all extra charges on the sums lent. A property-tax of a penny in the pound means an increased charge of at least an extra half per cent, on all monies lent by capitalists to New Zealand borrowers. The Colonial Treasurer will certainly require all the revenue which he can raise undei the Bill as amended. It is not reasonable to suppose that any Ministry would have incurred the odium of introducing so unpopular a measure if they had not been assured of its being absolutely required. It will probably be found that the objections to the tax will prove less serious in practice than they appear in theory. Merchants and storekeepers complain most loudly, because they will have to pay tax upon stock-in-trade. But this only applies to the goods which they have paid for and which are absolutely their own and above £SOO in value. It is not to be supposed that they invested their capital in stock-in-trade except with a view of making a considerable profit on the investment. The State can fairly claim a right to a share of the profits in return for having rendered fresh markets accessible and introduced large numbers of customers under the Immigration and Public Works policy. __^______