Manamatu Herald. TUESDAY, JANUARY 13, 1880. THE PROPERTY ASSESSMENT ACT.

Manawatu Herald, Volume II, Issue 40, 13 January 1880, Page 2

Manamatu Herald. TUESDAY, JANUARY 13, 1880. THE PROPERTY ASSESSMENT ACT.

In fulfilment of our promise, Aye publish in the present article a precis of " The Property Assessment Act, 1879," under which the property tax Avill be levied. When the financial proposals of the Government were brought down, Major Atkinson estimated the revenue _i*om the property tax at ..470,000. But in stating tliis estimate, he said : — I shall, therefore, ask the House to impost* a property tax upon the Amencan model, excluding incomes, and thereby *o affirm the principle that realized wealth, iv whatever form, shall bear its fair share o. the burdens of the State. ... It is very difficult, with tho data at my command, to estimate accurately what such a tax will produce. We know, however, that the valuation under tne Land Tax Act gives £99,500,000 ns the improved valuo of real property. Ifc i_ estimated that the total personal property owned in the colouy is not less than £18,700,000, making a gross total of taxable property ot £118,200,000. Deducting from this, _;5,0-0,0()0*on account ofthe £-:.00 ex emotions, we get £113,200,000 aa the not taxable amount as far as item now be estimated. I give thia estimate with some diffidence, bufc I think I have rathor under* than over-stated the sum which will be subject to taxation. Taking, therefore, £113,200,000 as the sum liable to taxation, tbis, at. one penny in the pound, the amount the Government propose to ask for, will give £470,000 as thepr odncfc of tho prope ty. tax. ; At a later period of the session, I when the Bill was about to.be read a third time, Major Atkinson said : — By tl.o amendments wo made in the Property Assessment Bill, wo have reduced tlie taxable property by an amount thet would produco more thin 4,15,000 a year, speaking roughly. Ido not bind myself to these figures as being accurate ; but 1 doubt very much whether, und r the Dill as it stands, we shall raise more than £300,000 at the rate of ld in tho pound. It will therefore be seen that considerable alterations had been effected in the Bill during its passage through the House, for instead of " realised wealth, in whatever form," being taxed, the following exemptions were made : — (1.) All agricultural implements in actual use. (2.) All property of the Crown, or of any looal body, or of any Oompany or society of persons not forme.] wholly or mainly for the purposo of gain or profits divisible amongst tho shareholders. (3.) All churches and other placea used exclu sively for Public Worship. (-_.) All property of. or vested in, any body or persons for public charitable, or pub'io educational purposes. (5.. All property of, or vested in, aay public body, society, or persons.and used only for the purposes of public health or receation. ((..) All public reserves of whatever nature mado under any law granted to, or vested in, any body or per sons. (7.) All propeity of Maoris. (8.) All property owned in reversion, remainder, or expectancy of any kind, tlie owner thereof not having any present beneficial interest therein at the time an assessment is made thereof. (9.) All vessel** of any kind. (10.) All polioies of lug assurance. Glauses 1 to 11 create the necessary machinery for working the Act, being very similar to that already existing for the purposes of the land tax. The Colony is to be divided into districts ; Coinniissioners and Deputies are to be appointed, though these appointments may be held cpnjointly ; an oath of secrecy is to be taken by all officers, and twelve months' imprisonment may be inflicted upon all pOrsons who violate their oath. Regulations having the force of law may be made by the Governor. Clauses 12 to 29 deal with the " property liable to taxation." Clause 12 says : — " All property within the Colony of which any person is owner, shall be liable to taxation in respect of so much of the value thereof as shall exceed £500, but subject to the exemptions and deductions provided." Companies are liable to taxation only on their capital, which is declared, for the purposes of the Act, to be the balance of the assets over the liabilities of a company, as appearing in the statement of its property required by this Act, but the liabilities are not to include the amounts received in .respect of shares ; whilst the assets shall be the " marketable value of the company's property, and shall not include unpaid up capital." Eveiy Bank, the principal office of which is in the Colony, will pay the tax on its paid-up capital and accumulated undivided profits ; whilst those whose head office is out of the Colony pay the tax on one- eighth of their total assets and liabilities in the Colony for the previous year, as shown by the Gazette returns. Foreign loan companies trading in the Colony will be assessed on the amount of paid -up capital and accumulated undivided profits employed in the Colony, whilst insurance companies are to be assessed on the amount of their premiums, after deducting the reinsurance premiums. All shareholders in companies liable to taxation are exempt from taxes upon their shares. Clause 19 provides that eveiy agent for absentees and every trustee shall be assessed sepa-

rately in respect of property represented by them, and chargeable with the tax payable in tlie same way as if he were the actual owner, the Government having the same remedies againat tlie ageut a. it would have against the owner. The agent is empowered to recover or retain the amount of the tax from moneys received by him in his representative character. Joint trustees aye to be assessed jointly in respect of property held by thorn, but are severally and jointly responsible for the furnishing of statements required liy the Act The same applies to partners, who are assessed jointly as to the property of the firm, such partnership assessment beii-<2* kept distinct from that of the individual partners. Clause 22 provides that a mortgagor shall " be liable to taxation only on the difference between the whole valuo of the land mortgaged and the amount of the money advanced on mortgage of the land," but he must append the name and address of the respective mortgagee, who will be required to pay the tax ou account of mortgage moneys, and to furnish in his statement sufficient particulars to identify the situation of land mortgaged to him, and the name of the mortgagor. In tliis clause is contained one great line of distinction between the present tax and the land tax of the late Government. Under that the whole tax was paid by the individual holding the land, quite irrrespective of mortgage ; uuder this Act the taxpayer contributes one penny per £ only on the amount of money he has actually invested in the property. For instance, a man holds property of the value of £2500 ; he owns an interest of .£IOOO, the remaining ; g 1500 being held ou mortgage by a second party. Under the laud tax the person in possession would pay the tax on the whole ; under the property tax, ho pays it on £500 (tho balance of his share ovor the £500 exemption), tho mortgagee paying the tax upon the £1500 "lie has lent upon the land. Clause 21 provides that the interest of every person in any property is to be separately -assessed, provided however that in respect of land held in any tenancy exceeding a yearly tenancy, the interest of the owner of such land shall bo estimated at a sum equal to an amount of fourteen times tho annual rental received by the owner in respect of such land. The interest of tho occupier is to be the amount such interest might bring "if offered at public auction for cash." Althongh lands belonging to churches, schools, &c, are exempt, the interest of an}' tenant or occupier of same is to be assessed at its value, and the tenant or occupier is liable to taxation upou the value of such interest. The same provision applies to property leased or rented irom Maoris. All contracts contrary to the Act are void. We have been able to explain only the provisions relating to " property liable to taxation," and must leave for a future occasion reference to the manner of making the assessment, collecting the taxes, &c.