LAND AND INCOME ASSESSMENT.

Taranaki Daily News, Volume L, Issue 60, 28 September 1907, Page 2

LAND AND INCOME ASSESSMENT.

BILL FLUXuEit i-ONSiLEuED. per Press Association. Wellington, Last Night. The House, on meeting, went into committee °" tue Ullli ai,d i" 001 " 13 Assessment Bill. At c'ause if, "No convey .nee, transfer, declaration of tiust, settlement, or otner disposition of laud, whether made before or after the passing of this Act, shall be effective so as to exempt the person making the same, so long as lie remains or is in possession or in receipt of the rents or profits of any such land, whether oil his own account or on account of any other person, from any graduated land tax which should have uecoiue payable in respect of such l.ind had no such conveyance transfer, declaration of trust, settlement or other disposition taken place, ;uid for the purpose 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, lie deemed (though not to exclusion of the liability of any other person) the owner of the said land," ; ..-, Mr Wilford said he intended to move that the words "whether made before or after the passing of this Act," bo struck out, as under the clause there was no limit to the time they could go back. He strongly supported the clause in reference to future dealings, hut was opposed to it embracing con : vcyiuices, etc., that had already taken place.

Mr Fraser said the case would press hewily in the case of a man who held land- under mortgage Some means should be devised to prevent hardship Jn cases where a genuine transfer had taken place. Mr Si;ioy said he ngre „, . mTn Mr AiHord m not making the clause )e----trospective. Mr Massey said In enscs where at mar, had a mortgage on his land, and eond not obtain the mortgagee's confont to cut up the land, ho would be Penalised under the Bill/as no matter " to subdivide Ms t.iv lie could not do ?o TT„ ,„.„„! «■«« something needed t°o be meet such cases. Jhe Premier said mortgagees w , rP Tne amendment was negatived l, v 'jy mo ".Providing "that an equit n do owner of land should be liable for aadnated_ land tax as if,eg,l owner « J: n , 1V " ndv ' w '' it m not apply to natne lands and leases. The eW I'assnd without amendment are liable for graduated tax as if tli»v were beneficially interested in tne In J „ Ho ™ ™ R «f "Pinion that Mm 'lause did not meet the ease of (he Public Trustee and West Chart Settle that tie Public Trustee held the lands as a whole TTe was not able to «e t , he reductions for individual owners h n W °™ W " 0t if hc 1««H diem in severalty. Hie clause passed unamend-

Ohliso 20. which provides that for the purposes of graduated tax, no deduction from unimproved value on account of mortgage monev or unpaid Vmrch;So monev, the Premier .aid tint it this provision were not inserted, it would defeat the object of the Pill. The House adionrned at 5.30. After further discussion, during which Mr I'll said tiint out of 128.01!) laudowners, onlv 20.407 paid nriv , aml hx at -,11: 12,720 paid under ~vr,- IMP, paid under .-cm; and only 2420 paid over £SO, the clause was agreed to bv <lO to 28. I

Clause 21. which provides that mortcnuees are not liable for graduated tax, but that mortgagees in possession are li Pile, like lessees, was passed without amendment, on the voices. Clause 21 A. which provides "that for ibe purposes of the Act all standing timber shall be assessed at half its value and no more, and the liability of all persons for graduated land t*x "ball lie determined accordingly, but. that the increase of 25 per centum provided for in section 7 of the Act; shall not be added to any land tax payable in respect of staiidinc timber." Mr Mmsev urged that timber should not be taxed. | Mr Rutherford asked the Premior if

the provisions of the Bill applied to plantations. The Premier said they did not apply. Ln reply to Mr (Stevens, the Premier ■aid the present propos.il was to tax ax land on the unimproved value, llr Stevens said if they took into consideration the value of the il.is on .and, they would be taxing on the full inpi'ovcd value of the land. He urged that one-third of the value should be exempted in the same mine: as *he 0 per cent exempted on timber lands. lie said if they w.T". to cliar.-" a tax in (lax, then they should charge tlie avmei' a tax on his wheat by tue same mode of reasoning.

Mr Massey said the arguments of j Jr Stevens were absolutely unanswerable. The flax-millers found there was . ;ot suilicicnt ilax growing to meet ro•vuirements, and swofmps were being Irained for the purpose, and Ilax then sprang up, but in other cases men ilanted Ilax, and In these cases tlie ro suit was a crop, and "crops' should lot be taxed. ' H The Premier, referring to timber lands, said it was not a fair thing to ask that they siiould be relieved of the tax. Flax and timber were nob in the same position, and he could not igree with the request of the member) for Manawatu. A big concession had liecn made, but some members were not atisfied. Mr Mnssey F.aid the Premiers reterence to plantations 'being exempt was wrong. The existing law provided that improvements wire not exempted beyond first cost. Mr Wilford saiid flax growers were o\rn : ng more money than any section of the community excepting farmers, and should pay graduated tax. Clause 23, providing for the. returns of land and income,' was agreed to without amendment. A new sub-clause was proposed to\ clanso 10, "when any agreement lias been roiuc for the sale of land whether before or after the passing of this Act, and whether the same has been complied by conveyance or not, the seller shall be deemed to remain the owner of the land for the purposes of this M, (though not to the exclusion of the liaMlity of any other person), until possession of the land has Ven delivered to the purchaser, and at least 15 per centum of the purchase money its been paid." Mr Massey sai.l this clause was against the professed intentions of (lie Bill, as it would prevent many men of small means t iking up land, under a compulsory deposit of 15 per cent.

The Premier said tlic clause was to prevent evasions anil bogus sales. Mr Aitken said there were many eases in which nothing like 15 per was asked as a deposit, and this-clause would prevent these bona fide sales taking place, and thus closer settlement would be retarded. Mr T. Duncan said he knew of two estates where the owners were prepared to sell to employees, at practically any terms they liked. He uvgrj thajp the Minister should reduce (he amount to 10 per cenl, Mr Rutherford urged that the amount should lie reduced to 10 per cent. He suggested that in order to prevent bogus sales, vendors should be required to submit transactions to the Minister to establish their bona fides. Mr Wilford said it did not matter what amount was fixed, if two parties set out to swindle the Government, they would still carry out their swindles.

Mr Hauan pointed out what he considered was a serious and fatal defect in the Bill by reason of there being a conflict between clauses 15 and lfi. Mr Rutherford and Mr Hemes. sill the point raised by Mr Hanan was a very important one, and the defect should be remedied. Progress was reported, and the House adjourned at midnight.