LAND AND INCOME TAX.

Wairarapa Daily Times, Volume XII, Issue 3869, 25 July 1891, Page 2

LAND AND INCOME TAX.

The new taxation scheme Bill was brought down to the House of Representatives, by message from the Governor, on Wednesday afternoon. It contains 48 clauses appertaining to the machinery system, and the schedule fixes the rates of taxation as follows : —Land Tax—Every landholder, whether person or company, is to be taxed upon the actual value, but the value of improvements upon all land owned by any person or company up to L3OOO is to be deducted from the assessed value, together with any mortgage debt then due or owing upon such land. ' Improvements ' are to include houses, buildings, fencing, planting, draining, clearing from timber, scrub, or fern, and laying down in grass or pasture, but the effect or benefit of such improvements is to be visible, and unexhausted at the time of valuation, and improvements made more than ten years prior to the time of valuation are not to be taken into account. When the assessed value less the L3OOO of improvements and mortgage debt does not exceed LI 500, .there is to be an exemption of LSOO. If the assessed value is more than LISOO no exemption is to be allowed. Any owner of land or mortgages producing a less income than LI 20 a year who is iucapacitaced by age, illhealth, or other cause, is to have a further exemption, which, together with the LSOO already mentioned, shall not exceed L2OO.

Mortgages.— Every mortgagee, either a person or a company, is to be taxed, according to the actual value dfthe mortgage to the mortgagee —subject to an exemption of LSOO only. Graduated Land Tax.—The foil awis to be the scale of the graduated land tax :—Where the value is LSOOO and is less than LIO,COO, one eighth of a penny: where the value is LIO,OOO, and is less than L 20.000, two eighths of a penny ; where the value is L 20.000, and is less than L 30.000, three eighths of a penny; where the value is L 30.000, and is less than L 40.000, four eighths of a penny ; where the value is L 40.000, and if less than L 50.000, five eighths of a penny; where the value is L 5.0,000, and is less than L 70.000, six eighths of a penny ; where the value is L 70.000, and is less than L 90,000, seven eighths of a penny; where the value is L 90.000, and is less than LI 10,000, one penny ; where the value is LIIO.OOO, and is less than L 130.000, one penny and one eighth of a penny; where the value is L 130.000, and is less than £150,000, one penny and two-eighths of a penny; where the value is £150,000 and is less than £170,000, one penny and three-eighths of a penny; where tha value is £170,000 and is less than £190,000, one penny and four-eighths of a penny; where the yalue is £190,000 and is less than £210,000, one penny and five eighths of a penny; where the value is £210,000, one penny and sixsighths of a penny. | Income of companies.—All companies, save life insurance companies, are to be taxed upon their gains and profits, including dividends earned, sums carried to reserve funds, and any other undivided profits. Any company which has borrowed money on debentures from persons residing beyond New Zealand is to be deemed the agent of the debenture-holders, and pay tax accordingly without ex« emptions. No company is to be entitled to any exemption in respect of its income, but a person receiving income in respect to shares is not to be liable to a tax thereon. The tax on life insurance companies (the Government office included) is to be assessed upon the income derived from investments of any kind other than in land or upon mortgages, Income tax from business is to mean gains or profits derived or received from any trade, manufacture,

adventure, or concern in the nature of trade, whether carried on in New Zealand or elsewhere. Exemptions are to be made up to L3OO, but no person, whether carrying on business in partnership or alone, is to be allowed more than one exemption. • ' Income from employment' means a gam or profit from any occupation not otherwise liable to taxation, or from any salary, wages, pension, &c, not charged on land. The exemption ►to be L3OO.