REPORT OF THE COMMITTEE ON SPECIAL RATING TAXATION.

Evening Post, Volume XXIV, Issue 40, 6 September 1882, Page 3

REPORT OF THE COMMITTEE ON SPECIAL RATING TAXATION.

The Select Committee on Special Taxing for Publio Works sent in their report yes« terday. After summing up the various proposals and provisions hitherto made in this direction, the Committed say that there is no evidence in any of the Acts relating to publio works of as intention to. specially '* tax property inoreased in value by the construction with publio money of railways, roads, bridges, harbours, and other publio works." In the opinion of the Committee, the prinoiple on which such taxation can be justifies is a reasonable one, but, so far as the* Committee is aware, it has never hitherto beon successfully aoted on by any Government. The plan whioh former legislation suggests, of speolally taxing provinoial diatriots, the Committee reject, as involving serious unhirntss in many oases, and as being opposed altogether to a national system of publio works, especially railways. Tho raising of the property tax has been proposed as an easy and equitable mode of obtaining a contribution for the additional value Riven to properties by pnblio workn. Thia involves suoh larga and very complicated questions, that the oommitteo are not prepared to give any opinion as to suoh a plan, whioh could of course be tasily oarried out, but would probably be very unfair in its operation. In many oases, it would lav additional burdens on property not benefited by pnblio works expenditure, while Crown and native lands, and property below JBSOO in value, however much they might be benefited, would make no contribution. The proposition to tix only properties ' specially inoreased in value, appears at first sight to be fair : but, as regards the past, is open to the objection that, in many oases, probably the majority, the present owners, having beoome purchasers since the construction of the works benefiting their properties, have already paid for the enhanced value in the purchase money. 1 he same objeotion is not applicable to the futura ; and the committee see no objeotion to apply, to that extent, the prinoiple enunciated in the resolution of the House, provided that the owners of property to be affeoted are heard by Parliament before expenditure is inourred. The committee are of opinion that, when any railway or portion of a railway made out of the proceeds of any future Loan Acts shall be open for traffic-, a the net returns from suoh railway or portion of i* railway, after deduoting working expenses, and all oosts of repairs of permanentway, rolling-stock, and plant, be not sufficient to pay thj interest upon the money expanded in miking suoh railway or portion of a railway, thsn the Governor in Council shall raise an amount sufficient to pay suoh interest by imposing and levying a tax on the inoreased value of all land benefited by the formation of suoh line of railway. Any publio works to be commenced henceforth should be undertaken on the condition that property whioh may be specially benefited by suoh works shall be subjected to suoh special oharge or treatment as the General Assembly may hereaftt* determine. Bavins; reuard to the limited time at their disposal, the committee are not prepared to suggest the necessary legislation: and they rtoommend that the snbjeot should be carelully considered during the reoess, and taken. * up by the Assembly in the next teision.