RATING ON UNIMPROVED VALUES.

Lyttelton Times, Volume CV, Issue 12530, 18 June 1901, Page 4

RATING ON UNIMPROVED VALUES.

The only serious objection the Chairman of the Road Board appears to have urged against the adoption of the Rating on Unimproved Values Act at' the annual meeting of the ratepayers of the Avon district ’ last night was that it would involve the preparation of a new rate roll somewhat earlier than would be necessary if the present system of taxation were retained. The additional expenditure would probably amount to £4O or £SO, and though we recognise the importance of exercising economy in the administran tion of local affairs, we cannot regard this as a sufficient reason for delaying a desirable reform. The change from the Property Tax to the Land and Income Tax cost several thousands of pounds, but we do not recollect that even its opponents used this as an argument against Mr Ballancds proposal. The best is always the cheapest, and if it can be shown that the exemption' of improvements from taxation is in the interests of the community wa need not trouble aboutthe initial cost. The principle has been cheerfully accepted in the case of colonial taxation, and we cannot see why it should be rejected in the case of local rates. Mr Morgan’s contention that it would, in his own district, relieve residential property at the cost of agricultural land may be true enough, but it does not affect the main question, in 1 the slightest degree. It would be just as fair to tax the farmer on the value of his crops as it is to tax the owner of the quarteracre section pn the value of his house. The land is the real basis of value in hath cases, and the farmer would benefit quite as, much from the encouragement of building and other improvements as the owner of the quarter-acre section. If'his property is near enough to the centre cf popula-' tion to be absorbed in the extension • of settlement he would benefit much more. If, on the other hand, it is too remote for residential purposes his rates would be very little affected by the change. It is the land held for speculative purposes in the thickly populated I 'districts that would make, up .for the concessions to the owners of improvements..