LAND AND PRICES

Manawatu Times, Volume LIII, Issue 6766, 21 November 1928, Page 10

LAND AND PRICES

QUESTION OF HIGH VALUES.

Tho question of land valuation is of great importance in the Dominion at the present time, states the New Zealand “Herald,” and is a matter waxen should receive serious attention from the public. Considering that, _it is the standard on which local rating and several forms of taxation are based, it affects the farmer naturally, and undoubtedly in some cases it affects him unfairly, and it also affects the balance of taxation between different parts of the Dominion. The capital value of land and improvements in New Zealand at the latest statistical period was £603,250,306, the North Island valuation being £-102,877,448 and the South Island £200’372,858. Since the South Island has 25,500,000 acres in occupation and the North Island only 17,500,000 acres, tho discrepancy is remarkable and since the total North Island valuation is twice as much, on a little more than half tho acreage, it shows that its occupied lauds have to pay nearly foul times as much on rates and taxes as the South Island. There are few people who would arguo that the average value of land in the North Island is anywhere near four times as much as that of the South Island, and since valuation is Jixcd by Government officers, and not by capacity for production, there is evident need of sonic adjustment. • High Land Values.

There have been during recent years numerous statements made by bankers and other financial authorities to the effect that land values in New Zealand are far too high, and various leading politicians have dealt with this matter as if it were entirely- the tault of tho farmer and land owner. It is true that during the regrettable land boom a small proportion of land owners, or, more properly speaking, land speculators, bought and sold properties at a very high figure, and it may also be added that the State Lands Department . did the same thing. This would not . have been a very serious matter from a taxation or rating point of view if those who had bought and sold at a high figure alone were taxed upon their own buying and selling values, or near them, but the high values created by speculators were taken as a general standard by the Government valuation officers and whole districts were penalised just because a few properties were bought or sold at an unduly high price; In many cases, suburban lands purchased for cutting up into residence sites were used as tho standard value for small farming properties, the owner of which being compelled to pay as much in rates as’ would equal a fairly heavy rental. All this has pressed heavily upon the legitimate farmer, who did not wish to sell his land, and could not sell it If ho -wished. System of Valuing Lands. The system of valuing lands on the price asked by a few individuals has had an injurious effect upon those who use land for agricultural purposes only and has largely been the cause of the present unsatisfactory conditions. The system 'has undoubtedly been supported by those who depend upon rates and taxes, for naturally the higher the iand is valued the more it has to pay ia taxes and rates. If, as is so often stated, lands in New Zealand arc overvalued, a very simple remedy would be for the State Valuation Department and for County councils and other local bodies to cut down their book values by 15 of 20 ppr cent. Such a course would not injure one legitimate farmer engaged in the work of production, and it is logical to argue that it is the simplest way of attacking the evil of higk land values. It would of course, result in a considerable loss to the State in the shape of taxes and to local bodies in the shape of rates, but neither taxes nor rates should be dependent on a false or extravagant basis.

A reduction in the book value of New Zealand lands is surely a more reasonable method than asking tho individual owner to offer his holding at a lower price, for many of them do not wash to sell, but to work their land. It is, of course, somewhat difficult to estimate what would bo the effects of a reduction, even in the book values of land, on the banking and financial insitutions, which have so persistently argued against the evils of high land values, but undoubtedly it would, in many cases, lessen tho value of their securities; but if,.a reduction is essential, the land owner alone should not bear the loss.