TAXATION OF LAND.

New Zealand Herald, Volume LXVI, Issue 20363, 18 September 1929, Page 13

TAXATION OF LAND.

PROPOSALS MODIFIED.

SUPERTAX ABOVE £14,000.

EXEMPTION .FROM HARDSHIP.

ALLOWANCE FOR MORTGAGES.

[BY TELEGRAPH. —SPECIAL HE POUTER.] WELLINGTON. Tuesday.

Important modifications of the Government's original taxation proposals are contained in tho Land and Income Tax Amendment Bill and the annual taxing bill introduced into tho House of Representatives to-day. Tho amount of tho unimproved valno from which the super land tax is to commenco will now bo £14,000, instead of the £12,500 suggested l>y the Budget, and provision is made for the relief of hardship arising out of the now taxation In addition, tho amount of tho mortgage exemption will bo £7500, and not £SOOO, as announced in the Budget. Tho annual taxing bills propose to levy ordinary land and income taxes at tho saino rates as last year. Tho amending bill provides for tho payment of the special land tax by all persons who were at noon on March 31 tho owners of farm lands of a total unimproved value of more than £14,000. Lands owned by or held in trust for charitable, educational, religious or scientific institutions aro exempted. Farm lands aro defined to mean lands used or capable of being used for agricultural or pastoral purposes, but not areas regularly used for any purposo rendering impracticable their use for agricultural or pastoral pursuits. Graduation ol Supertax.

The method of assessing tho tax is as follows:—Where tho unimproved valuo of the farm lands in respect of which special land tax is payable exceeds £14,000, but does not exceed £16,500, the rale of special land tax shall bo 1 per cent, of so much of tho ordinary land tax payable as is apportioned to such farm lands for every £SO or part of £SO of such unimproved valuo in excess of £14,000.

Where tho unimproved value exceeds £16.500, the rate of special land tax shall bo 50 per cent, of so much of tho ordinary land tax payable, as is apportioned to such farm lands, increased by 1 per cent, for every £270 or part of £270 of such unimproved valuo in excess of £16,500, but so that in no case shall the special land tax exceed 100 per cent, of tho amount of tho ordinary land tax payable in respect of such farm lands.

In any case where, by virtue of any special provisions relating thereto in the Land and Income Tax Act, 1923, tho amount of ordinary land tax payable is either greater or less than the amount calculated ordinarily, tho special land tax shall bo computed by reference to the amount of land tax that is actually payable in such case.

Commission to Hear Appeals

To meet crises of hardship arising out of the imposition of the special tax, a commission may be appointed, and where it recommends that hardship would be entailed through reason of the financial position of the taxpayer, tho Commissioner of Taxes may refund tho whole or part of tho special tax or release ther taxpayer wholly from his liability for payment. In regard to ordinary land tax, the legislation provides for the consequential repeal as from April 1, 1930, of existing provisions relative to subsidiary valuation rolls, to conform with the alterations proposed in that regard by the Land Laws Amendment Bill.

The amount to be deducted as special mortgage exemption is to be £7500 where the total unimproved value does not exceed that sum, and where it does, the amount will be the same diminished at the rate of £1 for every £1 in excess, so as to leave no deduction when the value amounts to or exceeds £15,000.

Other Amendments of the Law.

In accordance with the Budget forecast, clauses are incorporated rendering the Public Trustee and the general manager of the State Fire Insurance Office liable for the payment of land tax. It is proposed to raise from three to five years the period in which mortgagees in possession may be assessed and in certain cases the Public Trustee is to be assessed as if he were the mortgagee in possession, and not the owner of the lands.

Lands used to provide access to railways and tramways or to the yards or buildings of those concerns, are to be exempted from the payment of land tax, as are also Crown or other land administered by a land board, and held as a small grazing run or for pastoral purposes, and any other land reserved or granted by the Crown as endowments and occupied for pastoral purposes. The time within which charges in respect of land tax may bo registered iu certain exceptional cases is extended from six to 12 months. Income Tax of Farmers.

There is a modification of the Budget proposal to make all farmers and larming partnerships with holdings of an unimproved value of £12.500 and over assessable with income tax on their farming incomes to tho extent that the amount of the unimproved value is increased to £14,000. „ , , Losses made by tho taxpayers affected before March 31, 1928, are not to be set off against tho assessable income for the year which commenced on April 1 last or for any subsequent year of assessment, but the income tax is to bo reduced by the amount of tho land tax payable, to carry out the principle of paying "whichever is the greater." The special exemption of 5 per cent, on the capital value of land used exclusively for the taxpayer's business is not, however, to apply. Other clauses provide for a special computation of assessable income derived from the business of dealing in live stock and for redemption of tho Budget promise regarding an alteration of tho present income tax provisions relating to children's exemption in tho case of children attaining the age of 18 years during the incomo year. There will be a special exemption of one-twelfth of £SO for each complete month that has elapsed before the birthday. and the same provisions will apply in the case of births or deaths. In addition. the age limit of 18 will not apply in cases where the Commissioner of Taxes is satisfied tlfai a child, owing to mental or physical incapacity of a permanent nature, is unable io earn his or hor own living.

BlfK'K ANT) TILE PRICES.

ALLEGATION OF INCREASE.

TdV TELEGRAPH. — SPECIAL ■REPORTER.3 WELLINGTON, Tuesday.

All allegation that a riso in prices had followed tho amalgamation of brick and tile companies was made by Mr. It. MeKcen (Labour —Wellington South) in the House of Representatives this evening. Mr. MrKcen asked what tho Government proposed to do in the matter. Tho Minister of Industries and Commerce, lion. J. G. Cobbe, said his officers were not aware that unreasonable prices were being charged. ' However, the department was watching tho position, and had power to act if necessary. " To say that the officers of the department do not know what is going on is sheer bunkum," retorted Mr. McKeen. He suggested a select committee should be set up to investigate the position.