WHICH TAX?

Manawatu Standard, Volume XLI, Issue 9222, 26 May 1910, Page 3

WHICH TAX?

LAND VALUATIONS AND VARIOUS

GRIEVANCES.

FARMERS IN PROTEST.

At the annual conference .of the Farmers' Union at Marion the question of land valuation once again created a great deal of discussion. There were no lose than six motions dealing with the subject s on the order paper. Mr R. B. Mackenzie (Rongotca) commenced by quarrelling with the remit sent forward by his own branch and particularly to one sent by .Shannon, which stated amongst other things "this conference firmly adheres to tho principle of land taxation on unimproved values." "Do we approve of land taxation at all?" he asked. "The land tax is an unjust tax, an abominable tax, a class tax." Having delivered himself of this protest ho asked leave to alter the motion in accord with his own opinions, but the conference refused permission. Accordingly he moved: "That while farmers ; n general disapprove of the manner in which land is valued for tax, chiefly because the unimproved value is generally too high and the improvement too low, it will not improve matters by taxing buildings and improvements as well as land.-- That this conference protests against the suggestion to make 'the capital value tho basis of valuation of all Jand tax.'" He complained of the manner in which values for taxation purposes wore being forced up year after year. ALLEGED ARBITRARY ACTS.

Mr R. K. Simpson gave an instance whero he had bought a farm of 1400 acres. The actual fencing on the land was reduced by the valuer to one half because the valuer said that was sufficent for the land, and tho value of a house insured for £900 was put down at £400 because the valuer said a house of that value was sufficient for tho place. After some further discussion, in which ono delegate stated that a £900 house should bo taxed on that value,-namely, there should be a property tax. It was agreed that tho following motion should be substituted for the one moved by Mr Mackenzie:—'That while the land tax is in force it be levied on the unimproved values as at present, but that strong pressure be brought to bear on the Government to instruct its valuators to allow fair and reasonable on the improvements, which has not hitherto been tho rase."

This motion had originally been sent forward by tho Marton branch. AN AMENDMENT. Mr Fletcher (Wanganui) and Mr Mayo then moved as an amendment: "That this conference firmly adhc-ros to the principle of land taxation on the unimproved values, but most emphatically protests against the continued increases being made by the Government in the value of rural lands and against the system which enbales their value to be increased at the cost of settlers' improvements."

Mr W. J. Birch (Marton) agreed that tho taxition should be on wealth in fair proportion, but insisted that what they required to do was to see that unscrupulous Governmcns did not impose tax-os in a way which absolutely absorbed tho farmers' improvements. TAX WEALTH Mr W. B. Matheson (Ekctahuna) expressed utter contempt for all systems of 'and taxation. "I intend to move," ho said, "that the land tax be abolished." Let us fight for a democratic change which is inevitable, and offer in place of land tax a tax on accumulated wealth.

Mr M'Lennan (Waituna) said he would support such a i>roposal

TECHNICAL OBJECTIONS,

Tho president, said it would not bo an easy matter £0 tax wealth. The objection to the old property tax was that it taxed dead stock. Then how was stock going to be valued from year to year? He thought that perhaps the Taranaki executive had more nearly hit the position when it passed the following resolution : —"That us the present system of valuing land for taxation purposes has proved •fi complete failure owing to tho impossibility of accurately separating the improved from the unimproved value, this executive considers a much fairer and much simpler way would be to tax on the annual value With the same exemptions as in money value to bo 5 per cent, of the capital value." Mr T. Moss (Eketahuna) advised the conference not to endorse taxation on either unimproved or capital value, but simply £o insist on fair value for improvements, a view which was approved by Mr Hockley. "Minimise the present evils," he said. "Get - capable men as valuers, and leave the valuing to the local bodies." DENMARK'S EXAMPLE. Mr J. 11. Escott (Woodville) said that the tax on tho unimproved value was the best system. In Denmark the taxation of land was based on scientific analysis of the soil, and the producing value thereby ascertained. If such a system were introduced here it would mean a great advantage. 'He did not think it should go forth that farmers were not prepared to pay their fair share towards the administrative expenses of the country. Mr T. Quirke (Pahiatua) endorsed the view of the last speaker. Mr John Morrison (Halcombe) said that they had been passing motions on the question of valuation of land and taxation ever since it came into existence. Why did they not agreo to something, "go" for it. and stick to the matter till their views became law? THROWN OUT. At this stage a vote was taken on Mr Fletcher's amendment, which was lost on the voices, and Mr Matheson then moved as a further amendment:—"That tho land tax be abolished and in lieu thereof a tax be imposed on all accumulated wealth."

This was lost by an overwhelming majority. A further amendment to the Marton remit (which by this time had become the substantive motion) resulted in the conference getting into a thick fog. _ The president said that in rejecting the amendment moved by Mr Fletcher delegates had voted against taxation on unimproved values. This caused much heart-burning, and several delegates op_enly_ admitted that they had been groping in the dark, so to speak. Stray contributions to the debate from various quarters of the room only served to further befog the delegates. Eventually the whole question was disposed of by the passing of the following resolution :—"That this_ conference is in favour of taxation being raised on the unimproved value rather than on the capital value; that valuations be made periodically at intervals of not less than four years, and that valuers bo instructed to allow fair and reasonable value for improvements, which hitherto has not been the case." Mr Wilson (president) described the suggestion that taxation should be on the value of land as disclosed by analysis as a very dangerous principleto enunciate. Without the_ required climatic conditions an analysis of the soil would mean nothing.—Post.