LAND VALUATIONS

King Country Chronicle, Volume XXVI, Issue 3445, 19 March 1932, Page 5

LAND VALUATIONS

AND PRODUCTIVE CAPACITY.

AN INTERESTING CASE. A case in connection with the valuation of farm lands for the purposes of assessment of estate duty in a deceased person's estate was heard in the Eketahuna Magistrate's Court last week. It took the form of an appeal to the magistrate (Mr. J. G. L. Hewitt, S.M.) against the Valuergeneral's valuation of the late Mr. E. R. Saunder's farm property for estate duty purposes. The main point for argument was whether the valuation of farm lands for the purpose of estate duty should be reduced in conformity with the reduction in the price of produce dUe to the present depression.

Lengthy evidence was given by district sheep farmers as to the estimated receipts, and expenditure of the property under the present conditions, and by land agents as to the possibility of a sale of a property such as that in question under the present conditions. The appeal was allowed, the court holding that in fixing valuations such as this the conditions at the time of the death must be taken into account. The valuation was materially reduced accordingly. The court also held that in arriving at land values by way of capitalising income, the owner should be allowed 8 per cent, per annum on his farming ventures.