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In 1891 the national property tax was abolished, and in its place an income-tax and a land-tax were imposed. The land-tax was imposed on the actual value of the land with an exemption of improvements On land up to £3,000 in value. " Actual value " was defined as " The capital value of the land for which the fee-simple of the land with all improvements (if any) could be purchased for cash." Improvements were defined as including " houses and buildings, plant for draining of land, clearing of timber, scrub or fern, laying down in grass and pasture or any other improvement whatsoever, the benefit of which is unexhausted at the time of valuation."(') In 1893 the land-tax on all land was levied on the unimproved value —unimproved value being calculated by deducting from the capital value the value of the improvements as defined above( 2 ). The present definition of unimproved value of any land is as follows : " Unimproved value means the sum which the owner's estate or interest therein, if unencumbered by any mortgage or other charge thereon, might be expected to realize at the time of valuation if offered for sale on such reasonable terms and conditions as a bona fide seller might be expected to impose and if no improvements . . . had been made on the said land( 3 )." The present definition of improvements is: " ' Improvements 'on land means all work done or material used at any time on or for the benefit of the land by the expenditure of capital or labour by any owner or occupier thereof in so far as the effect of the work done or material used is to increase the value of the land, and the benefit thereof is unexhausted at the time of valuation ; but does not include work done or material used on or for the benefit of the land by the Crown or by any statutory public body, except so far as the same has been paid for by the owner or occupier, either by way of direct contribution or by way of special rates on loans raised for the purpose of constructing within a county any road, bridge, irrigation-works, water-races, drainage-works, or river-protection works : Provided that the value of improvements made out of loan-moneys raised for the purpose of constructing within a county any road, bridge, irrigation-works, water-races, drainage-works, or river-protection works as aforesaid shall not exceed the amount of principal estimated by the ValuerGeneral to have been repaid by the owner in respect of any such loan by way of special rates."( 4 ) In 1896 the Rating on Unimproved Value Act was passed, which enabled local authorities to rate on the unimproved value if a poll of ratepayers affirmed the proposal( B ). Unimproved value is defined as follows : " The gross value of land . . . less the value of all improvements thereon."(°) By the 1896 Act a poll was deemed carried if affirmed by a majority of the valid votes recorded, and if at least one-third of the ratepayers on the roll recorded their votes( 7 ). In 1900 a simple majority of ratepayers voting for unimproved value rating was provided( 8 ). Since 1896, therefore, local authorities may levy rates on the capital, annual, or unimproved value of the land in their districts( 9 )( 10 ). A local authority rating on the capital value may by resolution determine to rate on the annual value, and vice versa( n ). The relation between capital and annual value is set out in several places : — (a) The annual value shall in no case be less than five per centum of the value of the feesimple^ 2 )^ 3 ). (Ib) "... every five pounds annual value shall be deemed to be equal to one hundred pounds of capital value, and vice versa " for determining the number of votes to which a ratepayer is entitled. ( H ) (c) " One shilling in the pound on the annual value shall be deemed to be equal to three farthings in the pound on the capital value of any property( 16 )." (d) " The annual value for any rateable property shall be the sum equal to six pounds per centum on the capital value of such property, and vice versa respectively^ 6 )." (The last two definitions are in connection with the conversion of one form of rate collection to another.) (e) " A general rate of not exceeding two shillings and sixpence in the pound upon the annual value of such rateable property or twopence in the pound upon the capital value thereof( 17 ). (/) " Whenever for the purpose of any water rate, gas rate, or other rate fixed by any Act or Provincial Ordinance, it is imperative to fix any annual value for any rateable property then such annual value shall lie deemed to be the sum of which is equal to six per centum on the capital value."( 18 ) Summarized, the position is as follows : Annual value may be (a) not less than 5 per cent, of the fee-simple ; (b) not less than 5 per cent, of the capital value ; (c) not less than 6J per cent, of the capital value ; (d) not less than 6 per cent, of the capital value ; (e) not less than 6§ per cent, of the capital value.

( I )Land and Tncome Tax Assessment Act, 1891, Schedule A (1). ( 2 ) Land and Income Tax Act Amendment Act, 1893, section II (1). (») Rating Act, 1925, section 2 ; Valuation of Land Act, 1923, section 2 ; Land and Income Tax Act, 1923, section 40. (The definitions are the same in all tho Acts.) ( 4 ) Rating Act, 1925, section 2 ; Valuation of Land Act, 1925, section 2; Valuation of Land Amendment Act, 1927, section 2 (b). (The definitions in all these Acts are identical.) ( 5 ) Rating on Unimproved Value Act, 1896, passim. ( a ) Rating on Umimproved Value Act, 1896, section 2. ( 7 ) Rating on Unimproved Valuo Act, 1896, section 6. ( 8 ) Local Government Voting Reform Act, 1899, passim. (") As to valuations, see p. 140. ( 10 ) Subject to subsequent discussion as to hospital rating, water rates, &c. (») Rating Act, 1925, section 4. ( 12 ) Ibid., section 2. ( ls ) The term "the value of the fee-simple "is not used in connection with the definition of "capital value" but is obviously related thereto. When capital value was first defined in 1882 it was defined in terms of the " fee-simple." ( 14 ) Rating Act, 1925, section 94. ( IB ) Ibid., section 91. ( 16 ) Ibid., section 91. (< 7 ) Municipal Corporations Act, 1933, section 77. ( ,8 ) Rating Act, 1925, section 93.

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