LAND BILL EXPLAINED

Auckland Star, Volume XXXVIII, Issue 172, 20 July 1907, Page 6

LAND BILL EXPLAINED

AN OFFICIAL SUMMARY.

(By Telegraph.—Parliamentary Reporter.)

WELLINGTON. Friday. The Land Bill was circulated to-day. The following is an official summary of the measure: —

The Land Bill deals not only with Crown lands, but also with land for settlement.

After the parsing of the Act. the renewable lease takes the place of the lease-in-perpetnity. The renewable lease is for a term of 66 years, with a perpetual right of renewal. This perpetual right of renewal is an extension of last year's provisions for a rental of 4 per cent per annum. Provision is contained in the bill for valuation of improvements at the end of successive terms, the fee simple and yearly rental to be fixed by arbitrators appointed by the parties. If they fail to agree as to the amounts, or if the lessee does not accept renewal, the Grown pays the value of the improvements.

The tenant, in case of a renewable lease or lease-in-perpetiiity. can pay up to 00 per cent of the capital value of the land comprised in his lease, when i-enn will be proportionately reduced. When 50 per cent has been paid the tenant holds the land free of the covenants and conditions of the lease other than payment of rent, residence on the property, and liability for commission of waste.

Any amount paid over 50 per cent, will be refunded on application.

Moneys paid under the last-named provisions are paid into the land for settlements account, which pays interest to the consolidated revenue at the rate of 4 per cent.

The general provisions of the lease-in-perpetuity apply to the renewable lease.

Owners of leases in perpetuity may surrender their leases and obtain renewable leases. J

if such surrender takes place within two years the term can be made to commence from the original taking up of the lease, and any overplus of rent calculated to the tenant.

The owner of a lease-in-perpetnity may, if he wishes, purchase the freehold at a price equal to the capital value of land at the time of purchase.

Machinery is set up for giving effect to tliif, provision, and the value of land is determined by Arbitration. On such, purchase the lease naturally determines. The Ihnrtation of area provisions apply to lands purchased under this clause.

In order to facilitate settlement power is given to the Board, with the consent of the Minister, to provide that for a number of years not exceeding ten, no rent shall be payable under a renewable lease.

In the classification of rand a thirdclass is added, in which, the tenant is aflowed to hold up to 3000 acres.

A clause has been introduced whereby the Minister can consent to a holder of pasturage lease or license cultivating a portion of his land to grow winter feed for stock, and also for the ploughing and laying down of grass on an additional area not exceeding 3000 acres, and providing for this to count as improvements for valuation purposes at the termination of the lease.

In cases of ballot, the landless shall have preference over those who have land.

The Board may-examine applicants before the ballot. A successful applicant who has disposed of his land shall be ineligible for five years after, such disposal to again apply.

Provisions are contained in the bill making clear the powers of executors on the death of a. lessee or licensee, so fhat all the Boards may work on a uniform plan, and any uncertainty as to procedure which may exist in the minds of the public may be removed.

The last clause, dealing with Crown lands, is to provide for cases where in the past land has been bought for cash, and, the. improvements not having- been made within the time limited, no title has been issued. A further time of seven years is granted to enable the tenant w> fulfil the conditions, otherwise the land will be forfeited.

Forfeiture for non-compliance is provided for future buyers.

In connection with Part IL, which deals with land for settlement lands, such lands are disposed of by way of renewable lease- In these cases, however, the term of lease is thirty-three years, with perpetual right of renewal as'before, the rental of the first lease to be not less than 5 per-cent on the capital value. At the end -of each term a new rental isdssued as in the case of the-66 years' lease.

Where- landirfor settlement lands are disposed of they will be disposer of by way of public tender to the highest tenderer, snbjeet to provisions as to a minimum rental. In the case of tenderers for the same amount the successful tenderer is determined by ballot. Regulations are to be drawn up laying down the procedure Cor the ballot.

In taking land conmulsorfly under the Act its value is assessed as on the valuation roll in force at the time when the requisition is gazetted, (provided thac any increase in value-since the date of valuation* can be ascertained and added.

There shall be paid as compensation, in addition-to value, the following sums: —If the property exceeds £5o!o00, 2£ per cent: if under £50,000 and over £25.000. 5 per cent; under £25,000, 10 per cent.

Minor provisions are inserted to smooth the working-of the Act <*enerallv.

LAND AND INCOME ASSESSMENT.

In '.he new provisions dealing with laud and income assessment, '-land" doe = not include mortgages, but otherwise has the same meaning as in the principal Act. Every person shall be liable to pay in each year, commencing with year ending on March 31. 190S, graduated'land tax on all land of which he was owner at noon on March 3l in the preceding year, and the unimproved value of which is £5000 or more.

These provisions are subject to any! exemptions from the graduated land tax created by the principal ActS. If the unimproved value of the land 1 is not less than £5000, but is less than l£ 40.000, the rate of graduated land tax payable in respect thereof shall be as follows:—Land tax shall be the percentage determined in accordance with the provisions hereinafter contained of the said unimproved value. If the unimproved value of the land is not less than £40,000, but is less than £41,000, the percentage shall he 8/ for every. £100 of the said value. For every additional ;£IOOO over the amount of £40,000, the percentage shall be increased by onefifth of 1/, and the percentage so injcreased shall be charged on the total.unSnrproved value of the JanrLjjt teggeeifjof getedfcjfcg tas'-ji3-as3essed T

Notwithstanding the provisions contained tor the progressive increase, the -percentage shall reach its maximum in the case of land of which the unimproved value is £200,000, and in this case and all cases in which the unimproved value exceeds £200,000 the percentage shall be £2 for every £100 of total unimproved value. Each of the percentages shall be increased by 25 per cent thereof, in case of all land other than business premises. The term, •'business premises," means any piece of land included within the superficial area of a building used for business purposes, together with such additional land as is contiguous thereto, and is used and occupied in connection therewith, and does not exceed in extent the superficial area of the building itsdf. A "building 13 shall be deemed to be used for business purposes, if it is exclusively or principally used, or intended to be used, for purposes of any business, trade, or industry. When the satni person is the owner, both of the business premises and other land, graduated land tax shall be assessed in respect of the whole of such business premises and other land without the increase of 25 per cent, and the increase shall then be calculated only on the amount of the graduated land tax that would be payable by him if he were not the owner of business premises.

Every taxpayer who on March 31 in any year is an absentee within the meaning of the Act shall be assessed and liable for graduated land tax at a rate greater by 50 per cent than the rate at which he would have been assessed otherwise. Every person shall be deemed to be an absentee unless he has been personally present in New Zealand for at least one-half of the period of four years immediately preceding the year in and for which he is assessed for' graduated land tax, provided that no .person who has acquired all his land in New Zealand within the period of four years shall be deemed to be an absentee if he has been personally present in New Zealand for at least one-half of the period which has elapsed between the time when he first acquired any of that band and the commencement of the year in and for which he is assessed for tax. If an absentee is liable to be assessed for graduated land tax jointly with any other taxpayer who is not an absentee, 'they shall be assessed and liable jointly, as if neither wa*s an absentee, and the absentee taxpayer shall also be separately assessed and liable in accordance with provisions for additional tax.

The owner of any life-estaie in possession, or of any other freehold estate in possession less than the fee simple shall be deemed for the purposes of this Act to be owner of the fee simple, and shall be assessed and liable for graduated land tax accordingly. No person owning a freehold estate which is not in possession shall be liable to pay graduated land tax in respect thereof. A freehold estate shall be deemed in possession notwithstanding existence of any trust or of any estate of leasehold or of- any estate by way of mortgage or other securitr.

Land owned by a. company shall be deemed (though not to exclusion of liability of the company, or of any other persons) to be owned in common by the shareholders of that company in the proportions winch their interests in the paid up capital of tlie company bear to j the total paid up capital. In case of I every shareholder there shall be de- , ducted from graduated land tax payable by 'Mm such part of the amount of tax payable in respect- of land by the company as i3._proportiqna±e to his interest in the paid up capital of the company. If two or more companies consist substantially of the same shareholders, these companies shall be deemed for the purposes of graduated land tax, to be a single company, and shall be jointly assessed and liable accordingly with such rights of contribution or indemnity between themselves ai shall be just. Wherever two or more persons own land jointly, or in common, whether as partners or otherwise, they shall be assessed and liable for tax.

No mortgagee or other person owing any legal or equitable estate or interest in any land by way of security for money shall be liable to pay graduated land tax in respect of that, mortgage or other estate. Any mortgagee in possession of land or any other person who is in possession of land by way of security for money shall be liable, so long as such possession continues, for graduated land tas: in the same manner as if he were'the owner of a leasehold estate in land.

No land tax, whether ordinary or graduated, shall be assessed or payable in respett of the value of any minerals, timber, or flax, and for the purpose of any such tax the value of minerals, timber, or flax shall not be taken into account in estimating the value of the land. All inoome derived by any person from or by reason of the extraction, removal, sale, or treatment of minerals, timber or flax, whether by the owner of the land or by any other person and whether income is derived by way of rent, .royalties, commercial profit, or otherwise, shall so far as it is derived from or received in New Zealand be deemed to be income derived from business within the meaning of section 59 of the principal Act, and income tax shall be assessed and payable thereon.

Returns of - land owned at noon on March 31, 1907, and of income derived during the year ending on that day, shall be made by every taxpayer as required- by the - Commissioner, and all returns of such land or income may be revised in accordance with the Act.

Where the total unimproved value of all land of the taxpayer is not less than £5000 and less than £7000 the rate of graduated land tax on such total unimproved value is one-sixteenth of a penny in- the £; £7000 to £9000, two-six-teenths of a penny; £9000 to £11,000, three-sixteenths: £11,000 to £13,000. four-sixteenths; £13,000 to £15,000, fivesixteenths; £15.000 to £17.500. six-six-teenths; £17-,500 to £20,000, seven-six-teenth's; £20,000 to £22,500, eightsixteenfhs; £24,500 to £55,000, nine-six-teenths; £25,000 to £27.500. ten-six-teenths; £27.500 to £30,000, eleven-six-teenth's; £30,000 to £35,000, twelvesixteenths; £35.000.t0 £40.000, thirteensixteenths.

EDUCATION AND OLD AGE PENSIONS.

Under the National -Endowment Bill the Crown land described as national endowment land is set apart as a permanent endowment for the purposes of education and old age pensions. Save so far as expressly provided, national endowment land shall continue to be administered and. dealt with in the same manner as other Crown land under the provisions of the Land Act, 1892.

The gross revenue received from national endowment land after March 31, 190S, shall be paid by the Receiver of Land Revenue into the Public Account, to the credit of a separate account, to be called the national endowment aciconnt. ATI reveame.received from naijon-teoiUojß-i>r_ ieiojfi m^wTi

Act S _ be dealt with as if this tint - n °X heea sed - o <* of-the S," 1 the national endowment acthere shall be paid the cost of the ™«*»tion of the national endownow „__* d ,!,™ d al3 ° all su *is are now p a y ab i e by law out of the revenues so received from land to any local or mctv^ th M iUeS - 0f the resid »* °« fc he eoW y -o Ule nati °nal endowment ac- &°, §** cen t shall in each year he applied for the purposes of education, and oO per cent for the purposes of old age pension.. The moneys so available ? UrpoSe3 o£ education shall be applied from time to time without fura tion °^L PPr mL^ fa Payment of all amounts which by any Act now in force or hereafter to be passed are charged on the Consolidated Fund for S^ Wml P ur P° s «, whether higher, secondary, or primary, and whether general or technical. The residue of the S ° availabl e for the purposes of edmatioa after payment of all such cnarges, shall be paid from time to time ™-«r c * C ? 10,,ial Measurer directs, and without further appropriation, to the Education Boards for educational purposes, in aid of the annual appropriations T*e to the boards. An account *nall be taken periodically at such intervals, being not less than one year, as the Colonial Treasurer, directs, showing the amount of all moneys so received by-each Education .Board, and the .amount so-received by each Board shall thereupon.be deducted from the total sum payable to that Board by virtue of any annual appropriation. The moneys so available for. the purposes of old age pensions shall from time to time, without jtarther appropriation, be paid into the .Kost Office Account, and shall be then applied m the payment of old age pensions.

It shall be lawful for any portion of national endowment land to"be set apart as a reserve for any purpose under the authority of any Act. The land board of the district in which any national endowment land is situated, may sell, with the consent of the Minister for Lands, any portion of such land, not exceeding five acres in any one ease, as a site for any building, to be erected for any educationaL-religions, charitable, or public purpose, or for any other purpose which, in the opinion of the land board and the Minister, renders such a sale expedient in the public interest. The purchase money of land-so sold shall be paid into the national endowment account.

The Colonial Treasurer from time to time may issue and apply such sums of money, not exceeding in any one year the sum of £50,000, as are appropriated by Parliament, for the purpose of the formation of roads or bridges upon any national endowment land or otherwise, for the purpose of facilitating the settlement of any such land. The said sums shall be in addition to the sums authorised to be expended by section 73 of the Local Bodies' Loans Act, 1901.

District areas of national endowment land are stated as follows:—Auckland, 900,000 acres; Hawke's Bay. 135,000; Taranaki, 90,000; Wellington, 90,000; Nelson, 1,350,000; Marlborough, 450,000; Westland, 1,035,000; Canterbury 1,800,000; Otago, 2.250,000. Southland, 900,000; total, 9,000,000. ,