NEW LAND TAX BILL.

Gisborne Times, Volume XXV, Issue 2198, 30 September 1907, Page 2

NEW LAND TAX BILL.

FURTHER CONSIDERED IN COMMITTEE.

Press Association

WELLINGTON, Kept. 27. When the House of Representatives resumed axt 7.30 p.m. clause 17 of tho Land and Income Assessment Bill was further considered. After discussion, during which Mr. Ell said that out of 128.019 landowners onlv 20,497 paid any land tax at all, 12,729 paid under £3,. 1.5,002 paid under £lO, and 4853 paid over £lO, and only 2420 paid over £2O, tlie clause was agreed to by 40 to

28. , Clause 21. which provides that mortgagees are not liable for graduated tax, but that mortgagees in possession are liable like lessees, was passed without amendment- on the voices. . At clause 21a, which provides that for the purposes of tlio Act all standing timber shall bo assessed at half its value and no more, andtlio liability of all persons for graduated land tax shall bo determined accordingly, but that an increffco of 25 per centum provided for in section 7 of the Act shall not . lie added to any land tax payable in respect to standing timber, Mr. Massey urged that timber should not be taxed. Mr. Rutherford asked the Premier if the provisions of the Bill applied to plantations. Tho Premier said that they did not .so apply. In reply to Mr. Stevens the Premier said the present proposal was to tax flax land on its unimproved value. Air. Stevens said that if they took into consideration the value of the flax they would be taxing on the full improved value of tlio land. He urged that one-third of the value should be exempted in the same manner as 60 per cent is exempted on timber lands. He said that n rlioy wore to charge tax on flax then jdie’y should charge the farmer a tax on bis wheat by the same mode of reasoning. .Mr. -Massey said tho arguments or Vlr. Stevens' were absolutely unanswerable. Flax-millers found that there is not sufficient flax growing to meet requirements, and swamps were being drained for tho purpose, and iiax then sprang up, but in oiliic-r cases men planted flax and ill these cases tlio result was a crop, and “crops” should not be taxed. -’Tile Premier, referring to the tunber lands, said it was not a fair thing to ask that they should be relieved of the tax. Flax and Umber were not in the same position, and he could not agree with the-re-quest of the member for M-anawatu. A big concession had boon made, but some members were not satisfied. Air. Massey said the Premier s reference to plantations being exempt wus wrong. The existing law provided that improvements were not exempt beyond the first cost. Mr. Wil-ford said flax-growers were earning more money than any section of the community excepting the farmers nnd should pay graduated ta Clause 22 was agreed to unamend-

of land and income, was agreed to without amendment. The following new sub-clause to clause 16 was moved: Wlien any agreement has been made for the sale of land, whether befoie or after tho passing of tius Act, and whether the same has been completed bv conveyance or not-, the seller, shall be deemed to remain the owner of- the land for tho .purpose of this Act, though not to the exclusion of the liability of an> other person, until possession ot tne land has been delivered to the purchases, and at least 15 per centum of the purchase money has been paid. Mr. Massey said this clause was against the Bill as it -would prevent men of small moans taking up land under a compulsory deposit of 15 per cent. ~ j, , Tho Premier said tho clause was to prevent evasions and bogus sales. Mr. Aitken said there were many cases in which nothing like 15 pel cent was asked as deposit, and tins clause would prevent these boijy fida sales taking place, and thus closer settlement would be ret-ard-

ed. . , Mr. Duncan said lie knew of two estates where owners were- prepared to selL to employees at praeticalh any terms they liked. Ho urged tint the Minister should reduce tin amount to teri per cent. Mr. Rutherford urged t-hftfc, flu amount should he reduced to ten per cent. He suggested that-ir order to prevent bogus sales vendor slirould be required to submit transactions to the Minister to establish their bona fides. > M. Wjlford said it did not matte) what amount was fixed. If two parties se.t out to swindle the Go veiiment they would still carry out the swindle.

Mr.' Han a n pointed out- what ho considered was a serious and fatal defect in the Bill, by reason of then being a conflict between clua.se 15 and 16. Messrs Rutherford and Horries

said the point raised by Air. Honor was a very important one, and the defect should be remedieid. The Premier promised to look into the point. Progress was reported, and the Hou6© adjourned at midnight.