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Otago Daily Times, Issue 2003, 1 June 1868, Page 4

There is no tax more equitable than that levied upon the Land to defray the expense of maintaining and improving roads. Facility of communication tends to develop the resources of a Country; and, generally speaking, the value of land increases in proportion to the cheapness 'with which its produce can he transported to a market. The Provincial Government have shown much practical sagacity in presenting inducements to landbwners to assess themselves for tho construction of roads ; and there is little doubt that improvement will bo more speedily effected through the liberal aid afforded by the Treasury than would otherwise have been the case. "No landowner can grudge payment of'the rate, if it is, in the firat place, fairly levied—that is, if the incidence of the rate be'equal upon all concerned ; and, in the second place, if the proceeds be judiciously applied. A recent case in the Resident Magistrate's Court leads to tho doubt whether, in every instance, the rates are levied with that equity which should characterise all local taxation. Mr Holmes successfully resisted an action at the instance of .the, West Taieri> Road: Board, and the collector was nonsuited on a technical point. The question to toe asked is, Was the rate in itself; equitably imposed 1 There are two modes of raising a rate authorised by ths Ordinance: one, an acreage rate which Bhall not exceed i~a any one year one shilling

per aero; tho other, an assessment on tho annual value of all lands, houses, mills, buildings, and hereditaments within tho district. If the lands in tho district be uniform in value, or all agricultural, or capable of being used for agricultural purposes, the acreage rate seems fair and reasonable, and least likely to press unequally on any. But if part of tho hinds are of great agricultural value, and part merely hill pasture, the acreage rate becomes ■unsuitable, and a rate levied on a fair valuation should foe adopted. It is manifestly unjust to tax hind admittedly worth only ten shillings an acre, if purchased absolutely, at the maximum rate of one shilling per acre, when land that none would part with under ten pounds an acre pays only the same rate per acre. In the one case, the tax is ten per cent, on the value, or two shillings in the pound ; on the other, it is only one half per cent., or a penny in the pound. The one tax falls twenty times more heavily on the hill land than it does upon the agricultural. This is out of all just proportion, and it is unreasonable that any settler should be so heavily burdened beyond what other* have to bear. It appears that recently Mr Holmes acquired 9SO acres in the West Taieri Hundred at ten shillings an acre, being land which,under thcoldltegulations, could have been purchased at that price, but found no buyers. Lately it had been been offered at ten shillings, for sale by axiction, without any bidder coming forward. About four months ago, Mr Holmes, having, during last season, bought the neighboring run where he has a valuable stud flock, resolved to buy the land in question, not on account of its valuo as pasture, for which purpose it is very indifferent, but in order to keep a frontier belt for protection of his own flock against the introduction <*f infection o£ any kind. This poor hill pasture has been assessed at a shilling per acre; while the rich agricultural land below has been taxed at no higher rate. It is advisable that the Board adopt in future tho annual value rating, whereby the incidence of the tax will be felt moro equally by the various interests concerned.