UNIMPROVED VALUE.
Manawatu Times, Rōrahi XXVII, Putanga 7957, 21 Kohitātea 1905, Page 3
Mō tēnei niupepa
UNIMPROVED VALUE.
(To the Editor.)
Sic, —I have noticed in recent issues ot the Manawatu Times that a local body, after due deliberation, voted in favour of rating on " unimproved value" in preference to rating on the capital value of lands. Are you inclined to give space in your columns for further consideration, not of the particular case to which I have referred, but to the general question of rating and taxing on " Unimproved Value ?" If so, I offer the following thoughts:-Judging by recent debates in Parliament, by various books, and by volumnious correspondence in many newspapers, the " unimproved value" of land means " unearned increment," and " unearned increment" means a value created, not by the individual holder of the land, nor by his individual predecessors, but by the community subsequenily to the original sale of the land by the State to an individual. Consequently this " unearned increment" is held to be a property, not of the individual bolder of the land, but of the State. Well, if this doctrine is true and just, I ask why is *his "unearned inore-ment"—this property of the State—left in the hands of individual landowners, at a rate of ..interest less that per cent per annum, while the State is paying from 3 to 6 per cent interest to outside money-lenders ? Why, indeed, are the individual landowners not called upon to pay up this " unearned increment" at once, or at least current interest on it ? According to valuations under the present Land Tax Act, the capital value of farm lands is, on the average, divided into Is 3d " improvement " and 2s 3d " unimproved value," or "unearned increment" ; that is to say, as I understand it, 2s 3d of the capital value of a farm is not the property of the farmer at all, having been " created not by him, but by the oOmmunity."; and the hoider is required to pay one penny in the pound on this property of the State, i.e., less per cent interest. That seems to me absurd. Either the doctrine of "unearned increment " is not true, or the authorities are far behind their duty to the community by leaving State money in the hand's of individuals at such a low rate of interest. Personally lam inclined to think that it is the dootrine of " unearned increment" that is not. true. 'But if it is true, then I say " Hurrah!". Let us take all the land we have sold back at Is 3d, its present capital value; then we I can sell it over again, and remit much i Customs duties.—! am, etc., '■ j
EUQOIBER.
