LAND AND INCOME TAXES (REPORT AS TO), BY THE COMMISSIONER OF TAXES).

Appendix to the Journals of the House of Representatives, 1892 Session I, B-17

8.—17.

1392. NEW ZEALAND.

LAND AND INCOME TAXES (REPORT AS TO), BY THE COMMISSIONER OF TAXES).

Laid on the Table by the Hon. J. Ballance, with Leave of the House.

The Commissioner of- Taxes to the Hon. the Premier. Sir, — Land- and Income-tax Department, Wellington, 7th July, 1892. I have the honour to submit results, as far as ascertained, of the assessment of land and income. It will be understood that exact figures cannot yet be arrived at, but those I state may be relied on as accurate. I make sufficient allowance for alterations that may have to be given effect to in respect of assessments for land-tax and graduated land-tax, including reductions made by Boards of Review. The ordinary land-tax is taken at Id. in the pound on land and mortgages, less amounts owing on mortgage, and less the value of improvements up to £3,000 for each owner and the exemption —that is to say, the scheme laid down in the Land and Income Assessment Act. It must be remembered that assessments have, in all, cases, to be again checked before demands for tax are sent out, and sending out demands always leads to claim's for reduction in assessments. The total taxable value for land-tax is £55,105,920, which at Id. in the pound gives £229,608. In levying the tax it would be prudent not to estimate its yield at more than £219,608, a deduction of £10,000, which will be sufficient to cover all reductions that can be necessary. The graduated tax is on the unimproved value, no deduction being conceded for mortgages, and no exemption being granted. I have not had the additional absentee graduated tax yet calculated, but the amount will not be important as regards the revenue. I anticipate that many alterations may have to be made in finally adjusting the assessments for graduated tax; and, although the result now comes out at £72,307, it would be prudent in levying a tax to allow for a possible reduction of £5,000. A table giving values and tax in the various grades is attached. The yield of income-tax from companies, including tax on debentures, is still to a great extent an estimate, but it may be set down, at Is. in the pound, as £47,000. I hope shortly to have more exact information under this head. The total debenture debt of companies is about £10,000,000. Eeturns of income from firms and persons give these totals, an exemption of £300 being deducted: — Business, — £ £ Up to £1,000, £470,437 at 6d 11,761 Over £1,000, £298,893 at Is 14,944 26,705 Employment and emolument, — Up to £1,000, £434,011 at 6d. 10,850 Over £1,000, £63,766 at Is 3,188 14,038 Summary of income-tax, — Companies 47,000 Business 26,705 Employment and emolument 14,038 Total • £87,743 Time has not permitted any scrutiny of returns of income. lam certain that many returns will be materially increased upon investigation, and that the number received will be largely added to as soon as demands are sent out to those persons who have neglected to forward returns. I estimate that the present-result, £40,743, will be increased to £45,000.

8.—17.

To summarise the foregoing, I may state that the following may be accepted as the results that will be reached : — Land-tax ... ... ... ... .... ... ... £219,608 Graduated land-tax ... ... ... ... ... 67,307 Income-tax— Companies ... ... ... ... ... ... 47,000 Business, employment, and emolument ... ... ... 45,000 Total ...» ... ... ... £378,915 I have, &c, C. M. Crombie, Commissioner of Taxes. The Hon. the Colonial Treasurer.

Graduated Land-tax.

Approximate Cost of Paper.— Preparation, not giveii; printing (1,500 copies), £110s.

• By Authority : Gbobqb Didsbuby, Government Printer, Wellington.—lB92.

Price, 3d,

2

Value of Owners' Land, less all Improvements. Total Value in Class. Rate of Tax. Tax. £5,000 and less than £10,000 ... 10,000 „ „ 20,000 ... 20,000 „ „ 30,000 ... 30,000 „ „ 40,000 ... 40,000 „ „ 50,000 ... 50,000 „ „ 70,000 ... 70,000 „ „ 90,000 ... 90,000 „ „ 110,000 ... 110,000 „ „ 130,000 ... 130,000 „ „ 150,000 ... 150,000 „ „ 170,000 ... 170,000 „ „ 190,000 ... 190,000 „ „ 210,000 ... 210,000 and over £ 4,906,830 4,955,331 2,726,228 2,008,197 1,338,394 3,095,334 1,612,060 769,462 932,138 133,259 1,140,777 357,309 202,373 2,565,678 d. 0* Of 04 04 Oi 0-& u 8 Oi 1 If 1-a 14 14 x 8 12x 8 £ 2,555 5,162 4,259 4,184 3,484 9,672 5,877 3,206 4,369 694 6,534 2,233 1,370 18,708 Total 26,743,370 72,307