WAIRARAPA NORTH COUNTY

Wairarapa Daily Times, Volume XV, Issue 4439, 9 June 1893, Page 2

WAIRARAPA NORTH COUNTY

LOCAL TAXATION.

Tbe following report of a Committee of tbe Wnirarapa North. County Council, appointed to consider the best means of bringing before the noiice of Government and other local bodies interested, the question of uttering the system of local taxation, by rating ou tl>e unimproved value of property came before the Council yesterday afternoon,

"Tbe Committee beg to recommend that a memorial be addressed to the Government, embodying the reasons which influence tbo Council in suggesting an alteration in the svsieni of local taxation, and requestin® that the subject may be considered with a view to giving elTeot to tbe proposal by necessary amendments in the Bating Act, and that copies of the memorial be forwarded to all County Councils aud Road Boards in the Colony, inviting their co-oper r ation. The Committee suggest the following reasons, which may be urged in support of the proposed change (1). That the present system of local taxation is unfair and unequal. (2), That the taxation on improvements for local purposes tends to stop the development of the country, whereas, were local bodies empow* ered to tax on unimproved value only, improvements would be materially encouraged,

(3). That the proposal to relieve improvements from local taxation would tend to stop land being taken up for purely speculative purposes, and, further, would equalise taxation.

(4), That the true land value being ascertained, the heavy cost of triennial valuations would bo saved, and tbe clerical expenses of local rating bodies thereby much reduced. (5), That confidence would be given to intending land purchasers, as they would then know the maximum amount which they could be called upon to pay in the shape of looul rates,

(6). That the actual improved values being ascertained once and for all, by competent experts, the serious discrepancies arising from having numerous valuers, whose opinions as to value differ widely, would disappear. Vour Committee further recommend that in the event of the proposal to alter the system of taxation indicated being given effect to, tbe maximum rating power should be raised to fourpence in the £.

That with a view to the more equitable adjustment of the inoidence of taxation, to meet interest onSptcial Loans, local bodies should bo empowered to raise all Special Rates, calculated on land values only, to a sum sufficient to meet interest and annual charges on existing loans, That, as not infrequently happens, in cases of very Bmall properties, the amount of rate collectable is not sufficient to cover clerical charges, postage, etc., i minimum rate (in addition to any special rates) of say la6d, should be paid on all properties, the general and separate rates on which, would not—at the rate struck by tbe local body—reach that amount.—R. Maunsell, Chairman."

Or Maunsell said the movement was important aud desirable. He believed the present system of taxation was bad. For active energetic settlers who were working to improve properties, it acted as a deterrent, to "find a settler—perhaps next to tbem-do-ing nothing.

CrVonßedin asked tho Chairman's ruling as to whether the principle could be debated.

The Chairman said the resolution had been paßaed at the last meeting. He was not in favour of it because it appeared like jumping from tho fry* ing'pun into the fire. Cr Guild moved the adoption of the report,

Or Stuckey asked if a valuation was proposed to be made to stand good for the next fifty years, say. Again on what basis were improvements to be valued. Cr Guild said the Government bad laid down a system, which he presumed would be adopted. Cr Smith thought the proposal would be fairer to all concerned,

Or Btuckoy said he did not understand from the wording of the clause what improvements were to he taxed and what not to bo taxed. Cr Cockburn-Hood said that tho object was to exempt all improvements, and to base taxation on the unimproved value of the land wholly. Tho object was to encourage the industrious settler and to force the land speculator to improve his land or relinquish it, By having one valuator for the whole district, they would be able to deal mow fairly all round. They did not expect to get perfect taxation, but the system suggested was a fairer one than that in force. The Chairman said that when a man put improvements on his land ho did it to make it pay, In his opinion there was very little land taken up now for speculative purposes, and if people tried it, it generally resulted in a loss, Referring to clause 4, he thought there would bo a great difficulty in valuing. How would a man fix the value of a drained swamp?. It might have been useless before draining, and therefore how, could an unimproved value be set on it. He believed that the best plan was to value the, land as it stood at each valuation, Competent experts fjould not be found to value land once and for all

Cr Guild in reply to the Chairman said there would be no difficulty in lading the land value of a swamp, If the value of the swamp was 5s au acre before draining and £2O an acre after draining it was an injustice to tax the land at its value after draining.

Or Handyside said in valuing claimed swamps, the cost of the Improvement could be deducted from the value after draining. Cr von. Bedin pointed out that land value did not change very quickly, except through the increase of population. Cr Stuckey said that there seemed to be a lot of difference of opinion amongst the Committee as to how they were to get at the value, It was impossible to get at the exact value of unimproved land, In years to come it would be imjpsaiblo. to know what improvements bad been made.

C»' Guild said that a man who had knowledge of land, knew that what the land would carry per aore was best index of its value, Cr Cockbom-HowJ said if it was impossible to, got at the value of an swamp, how did the Government get at the property tax ? It was simple; the value of the improvements were simplydeduoted. If fiftj or a hundred years hence a property wero valued at £2O,OOQ v ajjd, the owner only estimated bfe impraveraents at £5,000, the. land value must be £15,000, The object of the proposals was to euQoaragt sen

t<> go on rwugli unbroken land I I without . the fi'ur. of being, taxed -l jby the local bodies to tbo same tx- - tent as tbe man who hud been fortn- 1 nate enough to take up land D&tuiallv 1 clear. ' I Cr Groves thought the Government I had already worked the thing out in their methods of valuing, 1

The Chairman spoke at length on the difficulty of obtaining a man who could put a fair ralue on land on the basis suggested. Cr Stuck?/ moved as an amend-, nifnl, "That the report be referred ■ bock to the Committee." Cr Hatidyside seconded pro forma.—Tlieamendmi'nt was lost. ,J^ The motion was then put and carried.