NEW LAND TAX BILL.

Taranaki Daily News, Volume L, Issue 60, 22 July 1907, Page 3

NEW LAND TAX BILL.

THE GOVERNMENT inuruSALS. OPERATIONS OF THE GRADUATE TAX. This Act may be cited as the Land and Income Assessment Act, 1907, and shall be read together with and deemed to form part of the Land ill Income Assessment Act, 1000 (hereinafter referred to as the principal Act).

2. In this Act, unless a contrary intention appears from the context or subject | matter, "Land" does not include mortIgages, but otherwise has the same meaning as in the principal Act. ''Year" means a financial year ending on the 31st day of .March.

3. Sections forty-four and forty-five of the principal Act, section five 'of the Land and Income Assessment Amendment Act, 1903, and the schedule to the last-mentioned Act are hereby repealed, but all lund tax for any period prior to the year commencing on the fust day of April, 1907,5ha1l continue to be assessed, levied, paid and recovered as if the said sections and schedule hud not been repealed. £SOOO EXEMPTIONS.

•I. (1) Kverv person shall be liable to pay in each year, commencing with the year ending on Ihp thirty-fn»t ilav of March, 11)08. graduated land tax at the rate hereinafter set forth, on all land, of which he was the owner at noon on the

31st day of "March in the preceding year, and the unimproved value of which is five thousand pounds or more; (2) the provisions of this section are subject to any exemptions from graduated laud tax created by the principal Act. 5. If the unimproved value of the said land is not less than live thousand pounds, hut is less than forty thousand pounds, the rate of graduated 'and tax payable in respect thereof shall be in ae-

•ordance with the schedule hereto. GRADUATED TAX FROM £40,000. 0. (1) If the unimproved value of the

said land is not less than forty thousand pounds, the rate of graduated land tax shall be a percentage, determined in accordance with the provisions hereinafter contained of the said unimproved value. (2) If the unimproved value of the said land is not less tlian forty thousand pounds, but is less than forty-one thousand pounds, the said percentage shall be eight shillings for every hundred pounds sterling of the said value. (3) For every additional thousand pounds of the said

value over the amount of forty thousand pounds, the said percentage sliail be increased l»y one-fifth of a shililn;r, and the percentage so increased shall he charged on the total unimproved value of the land in respect of which the said taxis asspssed. (4) Notwithstanding the provisions herein before contained for a progressive increase, the said percentage shall reach its maximum in the case of land of which the unimproved value is two nundred thousand pounds, and in all cases in which the unimproved value exceeds two hundred thousand pounds, the said percentage shall lie two pounds for every hundred pounds of the total unimproved value.

EXEMPTION OP BUSINESS PRE WISES.

1. (1) Notwithstanding anything hereinbefore contained, each of the said ccntages determined as aforesaid shall be increased by twenty-live per centum thereof in the ease of all land, other than business premises, as herein defined. (2) the term "business premises" means any picu- '■• r! riciuded within the superficial area of a building used for business ! .i-|«ses. together with i;uch additional land as is continguous thereto, and is used and occupied in connection therewith. and does not exceed in extent the superficial area of the building itself. (:i) A building shall be deemed to be used for business purposes within the meaning of this section if it is exclusively or piincipally used or intended to be us«t whether by the owner or by any occupier or occupiers, for the purposes of any business trade or industry. (4) When the same person is the owner both ol' business premises and of other land, the graduated land tax shall lie assessed in respect of the whole of such business premises and other land, without the said increase of twenty-five per centum, and the said increase shall then be calculated only on the amount of graduated land tax that would he payable by him if he were not the owner of the business premises. (5) Nothing in this section contained shall alfect the rate of graduated land tax payable in accordance with the schedule hereto. "SCREW" APPLIED TO ABSENTEES.

8. (1) Notwithstanding anything hereinbefore contained, every taxpayer who on the thirty-Jirst day of March in any year is an absentee within the meaning of this section, shall be assessed and liable for graduated laud tax at a rate greater by 50 per centum than the rate at which he would have been assessed independently of this section. (2.1 Every

person -hall bo denied to lie ail absentee for tbe purposes ot this section unless he has been personally present in New Zealand for at least one-half of the period of four years immediately preceding the voar in and for which lie is assessed for graduated land tax, provided that no person who has acquired all his land in New Zealand within the said period of four years shall be deemed to be an absentee, if he lias been personally present in New Zealand for at least one-half of the period which lias elapsed between the time when he first acquired any of that land, and the commencement of the year in and for which he is assessed for graduated land tax. (3) If an absentee taxpayer is liable to be assessed for graduated land tax jointly with any other taxpayer who is not an absentee, they shall bp assessed and liable jointly as if neither was an absentee, and the absentee taxpayers shall also be separately assessed and liable in accordance

with the provisions of section thirteen hereof for the additional tax imposed by i this section. I LIFE POSSESSION", ETC. 9. (1) The owner of any life estate in possession, or of any other freehold estate in possession less than the fee simple, shall be deemed for the purposes of this Act to be the owner of the fee simple, and shall be assessed and liable for graduated land tax accordingly. (2) Xo person owning a freehold estate which is not in possession shall be liable to pay graduated land tax in respect thereof. (31 For the purposes of this Act a freehold estate shall lie deemed to lie in possession, notwithstanding the existence of any trust or of any estate of leasehold or of any estate by way of mortgage or other security. LIABILITY OF LEASEHOLDERS. 10. (1) Any person owning any leasehold estate in land, whether legal or equitable, shall lie deemed for the purposes of this Act (though not to the exclusion of the liability of any other person) to lie the owner of the fee simple of the land, and shall be assessed and liable for graduated land tax accordingly. (2j In the ease of tiie owner of a leasehold estate in land, there shall be deducted from the amount of graduated land tax so payable by him in rc-perl ol' that land (so far as it exceeds the graduated land tax, if any. lliat wouM be payable by him in respect of tin 1 value of bis leasehold estate independently of tills section) the amount of graduated land tax (if any) payable in respect of that land by the owner of any freehold estate or of any precedent leasehold estate in the said land or any part thereof. (3) The provisions of this section shall not apply to leasehold estates in any land of the frown or in any native land or in any land ves'cd in any person who in respect thereof is wholly exempted from Land Tax. both ordinary and graduated. ' HOW COMPANIES AI!E ASSESSED.

11. (1) For the purposes of this Act all land owned by a company shall be deemed I though no! to the exclusion of the liability of the company), or of any other persons) to be owned in common by the shareholders of that company in the proportions which their interests in the paid-up capital of the company bear to the total paid-up capital, and the said shareholders sball be individually assessed and li..be for graduated and tax accordingly in manner provided by section

thirteen hereof. (2) In the ease of every slureho'der there shrill be deducted from the graduated land tax so payable by him in respect of the land of the company, such part of the amount of the graduated land tax payable in respect of the said land bv the company, as is proportionate to his interest in the paid-up rapital of the company. (.1) The term shareholder shall, for the purposes of this section, iin-lude all persons on whose behalf a share in the company is held jl.v a trustee or by any other person. li-fi The nrnvTsioiis of this section shall ioyfend to a 1! hind which is deemed to (be owned by a emntiauy under any of the jnrovlsions of ties j 12. fit Tf two nr more compnnies conik'.4 ?obs!f!ntiallv of the same shareholders. tboso r-ompanies sj 1; ,il | )0 deemed for 1 tile purposes of the graduated land tax*

to be a single company, and shall be jointly assessed and liable accordingly, with such rights of contribution or indemnity between themselves as shall be just. (2) For the purposes of this section, two companies shall be deemed to consist substantially of the same shareholders, if not less than three-fourths of the paid-up capital of each of them is held by or on behalf of shareholders in the other. Shares in one company held by or on behalf of another company, shall for this purpose, be deemed to be bold by shareholders in the last-mention-ed company. "JOINT" OWNERSHIP.

| 13. (1) Whenever two or more persons (hereinafter called joint owners) own land jointly or in common, whether as partners or otherwise, they shall be assessed and liable for graduated lhnd tax in accordance with the provisions of this section.(2) The joint owners sliall be jointly assessed and liable in respect of the land so owned by them jointly or in eomomn (hereinafter called the joint estate), as if it was owned by a single person without regard to their respective

interest in the same and without taking to account any land owned by any one into account any land owned by any one common with any other person. (3) Each joint owner shall, in addition, be assess-

oil ami lir>Me in respect of his individual interest in the joint estate, together with any other la nil owned by him in severalty and with his individual'interests ill any oilier land. (4) In the ease of each joint owner, there shall he deducted from the tax so payable by him in respect of his individual interest in the joint estate under Hie provisions of the last preceding subsection,' his share of the tax so payable in respect of the joint estate. (5) The share of a joint owner in the tax so payable in respect of the joint estate shall bear the same proportion to the amount of that tax as his interest in the joint estate bears to the whole value of that estate. JOINT OCCUPIERS.

14. (1) When two or more persons own land in severalty, but occupy it jointly, whether as partners or on joint account or otherwise, the same graduated land tax shall be payable by tliem and by each of them as if they owned the whole of the said land jointly in the proportions which the unimproved values of the lands so severally owned hear to one another, and for the purposes of this act they shall he deemed to be joint owners of the said lands accordingly. (2) Without limiting in any way the meaning of the term "joint ocupation," two or more persons shall be deemed to occupy lands jointly within the meaning of this section, if those lands are occupied, worked or managed by any one or more of such persons on behalf of all of them, or on a joint account, or if those lands are occupied or managed by any other person as trustee for or otherwise on behalf of all of those persons.

BUYERS AXD SELLERS DEFINED. 15. When any agreement lias been made for the sale of land, whether before or after the passing of this Act, the buyer shall )kj deemed to be the owner of the land for the purposes of this Act (though not to the exclusion of the liability of any other person), so soon as he has obtained possession of the laud so purchased, whether the agreement lias been completed by conveyance or not. 10. (I) Xo sale of land, whether made before or after the passing of this Act, shall be effective so as to exempt the seller from liability in respect of gradua ted land tax until all of the following conditions have been fulfilled—(a) The sale must have been completed by a duly registered transfer or conveyance; (b) possession of the land must have been delivered to the purchaser; (c) at least one fourth of the purchase money of the said land must have been paid by the purchaser to the seller. (2) In estima- ' ting the amount of purchase, money | which has been so paid all money owing by the purchaser to the seller, and sc- j cured by any mortgage or other charge , on the land, and all money owing by . the purchaser to any other person, and I directly or indirectly guaranteed by the seller, shall be deemed to be unpaid pur- I elv.isc money. (3) When by virtue of 1 ; this and the last preceding section, the buyer and seller of land are both liable I for graduated land tax in respect thereof, j there shall be deducted from the tax so payable by the seller in respect of the said land the amount of the said tax payable in respect thereof by the buyer. 17. Xo conveyance, transfer, declaration of trust, settlement or other disposition of land shall be effective so as to exempt the person making the same, so long as he remains, or is in possession or In receipt of the rents or profit* of any sueh land, whether on his own account or on account of any other person, from any graduated land tax which would have become payable in respoet of such land had no such conveyance, transfer, declaration of trust, settlement or other disposition taken place, and for the purposes of this Act the person so making the same shall, while he remains or is so in possession of the land or in receipt of the rents or profits thereof, be deemed (though not to the exclusion of the liability of any other person) the owner of the said land.

KiHTI'AIILK EST ATE U ABILITY. 18. Subject to the other provisions of this Act, the owner of any equitable estate or interest in land shall be assessed and liable in respect of graduated land tax as if the estate or interest so owned by him were legal, but there shall be deducted from the said tax so payable by him in respect of thai estate or interest, the amount of any graduated land tax payable in respect thereof by the legal owner of the land. LIABILITY OF TRUSTEES, ETC.

1!(. Any person in whom land is vested as a trustee, executor, or administrator, shall be assessed and liable in respect of the graduated land tax as if he were beneficially entitled to such land, save that when he is the owner of different lands in severalty in trust for different beneficial owners, who are not by reason of joint occupation or otherwise liable to be jointly assessed for graduated laud tax in respect of the same; the said tax so payable by him shall be separately calculated and assessed in respect of each of those lands, and save also that when n trustee is also the beneficial owner of other lands, he shall be separately assessed in respect of that land, and of the land of which he is a trustee, unless by reason of joint occupancy, or for any other reason, he is liable to be jointly assessed independently of this section.

LIABILITY OF MORTGAGORS. 20. For the purposes of the graduated land tax, no deduction from the unimproved value of the land shall be allowed in respect of any mortgage or other charge to which the said land is subject, or in respect of anv unpaid purchase money, and a mortgagor shall be assessed and liable for the said tax as if he were tli'- legal owner of ail unencumbered es-

lil. (1) \ 0 lIH.lt gagee or other person owning any legal or equitable estate or interot in any land by way of security Jor money, shall be liable to pay graduated land lax in respect of" that mortgage, ov oilier estate or interest. (2) Nothing in ihis section contained shall affect the provisions of section 78 or section 81 of the principal Aet. but the owner of a mortgage existing at the time of the passing of this Act shall not become liable nmV-r the provisions oT those sections i., ~; , y auy greater sum

than he would Imv been liable to pay if this Act had not been passed. (3) Notwithstanding anything in this section contained, any mortgage in possession of land or any other person who is in possession of land by way of a security for money, .--hall l>e liable so long as such

pos-essitui continued, for graduated land tax in the same manner as if he. were (he Owner of a leasehold estate in the land

in accordance with the provisions herein in respect of such an estate. TLMBT-It. :,il\'l<RALS AND FLAX FA'KMPTrONS. 22. (1) No land tax, whether ordinary or graduated, shall he assessed or payable in respect of the value of any minerals. timber or (lax, and for the purpose of any sueh tax the value of minerals j timber or flax shall not be .taken Into | account in estimating the value of the land. (2) The term ''minerals" means all minerals, metal-;, coal. oil. gum, clay, stone, or other valuable thing existing beneath the surface of the land. (3) All income derived by any person from or by reason of the extraction, removal, Sale, or treatment of minerals, timber, or flax, whether hy the owner of the land or by any other person, ami whether the *aiil 1 income is derived bv way of rent, royallies commercial profit or otherwise howsoever. sh:01 so faT'as it is derived from or received in New Zealand, be deemed fo be income derived from business within the meaning of section 50 of the principal .Act, and income tax shall he assessed and r>r\yal>le thereon according*. (41 Nothing in this section contained shall affect the liability of any person to pnv bud tax in respect of a mortgage. (r>) This section shall eom.meuce to take effect in respect of Land

Tax and Income Tax payable for the year commencing on the first day of April, 1907. (0) Notwithstanding any- ' thing contained in this section, if the Commissioner is of opinion that any land containing minerals or having standing timber or flax tliereon, is not being worked and uaed in good faith, and to an adequate extent for the purpose of extracting tile said minerals, or of cutting the said timber or flits, such minerals, timber or flax shall be excluded from the provisions of this section, and land tax, both ordinary and graduated, shall be assessed and payable accordingly in respect of the value of such minerals, timber or flax, as if this section had not been in force. (7) Section 7 of the Land and Income Assessment Act Amendment Act 1903 is hereby repealed. REGULATIONS.

23. (1) Returns of land owned at noon on the 31st day or Slaveli, 1007, of income derived during the year ending on that day, shall he made by every taxpayer as and when required by the Commissioner, and all returns of such land or income may he revised in accordance with this Act.JjJid shall be subject to the provisions of this Act. (2) In addition to any returns required to be made under the provisions of the principal Act. every taxpayer shall as, and when, required by the Commissioner, make all such returns as are deemed liy the Commissioner to be necessary for the purposes of this Act: . (3) Section 83 of the principal Act is hereby amended by adding thereto the following paragraph: "(5) The Commissioner may require any person (whether a taxpayer or not), to furnish in writing any information in his possession or power concerning the land, income, property or assessment, of any person, and any person failing or refusing to furnish any information so required is guilty of an oft'enee." SCHEDULE—GRADUATED LAND TAX Where the total, unimproved value of all the land of any taxpayer is not less than £SOOO, and is less than .17000. the rate of graduated land tax on snch total unimproved value is one-sixteenth of a penny in the pound sterling; .£7OOO to £OOOO, two-sixteenths of a penny in the pound sterling; £9OOO to £II,OOO, three-sixteenths of a penny [in the pound sterling; £II,OOO to £13,000, four-sixteenths of a penny in the pound sterling; £13,000 to £15,000, fivesixteenths of a penny in the pound sterling; £15,000 to £17,500, six-sixteenths of a penny in the pound sterling; £17,500 to £20,000, seven-sixteenths of a penny in the pound sterling; £20,000 to £22,500, eight-sixteenths of a penny in the pound sterling; £22,500 to £25,000, nine-sixteenths of a penny in the pound sterling; £25,000 to £27,500, ten-six-teenths of a penny in the pound sterling; £27,500 to £30,000, eleven-sixteenths of a penny in the pound sterling; £30,000 to £35,000, twelve-sixteenths of a penny in the pound sterling; £35,000 to £40,000, thirtcen-sixteenths of a penny in the pound sterling.