Farm Tractors and Taxation

Manawatu Times, Volume 60, Issue 228, 27 September 1935, Page 5

Farm Tractors and Taxation

EXEMPTIONS EXPLAINED Per Press Association, WELLINGTON, Sept. 25. Mr E. W. Hhwko asked the Minister of Transport in the House to-day whether he will exempt from all taxation farm tractors used exclusively for the cultivation of the soil, Mr Coates replied that at present all farm tractors are exempted from taxation provided they do not use the roads. The position of farm tractors which do use roads has changed in recent months, but it is not due to any action taken by tho Government. Until this year successive Governments had arranged with tho registrar of motor vehicles that farm tractors used solely in connection with the owner's farm would bo permitted to uso the public roads to proceed from one part of the owner’s farm to another for distances not exceeding one mile. Provided these conditions were complied with there was no obligation to register or license a tractor under the Motor Vehicles Act, In April this year tho Controller and Auditor-Gen-eral queried tho validity of this arrangement, and it was necessary therefore to review tho position of such tractors. In May last an Order-in-Council was issued by which tractors used on roads only in connection with the owner’s farm work are permitted to traverse roads to an unlimited extent provided they are registered at a ncn-recurring cost of £1 and also insured against third-party risks at an annual cost of 10s premium and 2s for "E.” plates. By this insurance the owner would be protected against j third-party claims for personal damage due to his tractor being used negligently on roads. A refund of the road tax on motor spirits used in all ■ agricultural tractors may be claimed irrespective of the manner in which they are used.