The Opunake Times. FRIDAY, APRIL 26, 1895. RATING ON UNIMPROVED VALUE

Opunake Times, Volume II, Issue 85, 26 April 1895, Page 2

The Opunake Times. FRIDAY, APRIL 26, 1895. RATING ON UNIMPROVED VALUE

In another column wo publish a series of resolutions passed by the Stratford County Council with regard to the basis of valuation for rating purposes, which deeply .interests settlers. The main principle touched on is the desirability of rating on unimproved or prairie value. Those who favor* this system consider that it is unjust to make a man pay on his own improvements, and that the present system is a detriment to the advancement of the colony as a whole, by discouraging people from making substantial improvements, -which would provide employment for artizans and other laborers who are now thrown on the labor bareaus in different parts of the colony. We do not think, in the majority of cases, that this argument is sound. When a man wishes to build a house, erect a new fence, fall bush, or do any other substantial improvement, he does not consider very much what the yearly rate or tax will be on it, but whether ho does it or not, is more often a question of present available means. After he Las effected such improvements, and he finds his valuation increased thereby, then he begins to find fault with the system; therefore, except in the case of very large landed proprietors, such a consideration has not not much weight in deciding on improvement J or not. As most reforms, however, are fought out by the agency of aide issues, this is a very plausible and taking one on the part of the advocates of taxation on unimproved value. The libeual platform laid down on the question of taxation is that it should be based on the principle of equality of sacrifice. According to this principle, a man who hai an- acre of land highly improved should be in a position to pay a higher tax on that acre, than the owner of another acre, which is in its primitive state, should. On this principle, each is expected to contribute according to his present wealth, whether such wealth is his own creation or the natural growth of the unearned increment. Taxation on unimproved value would possibly have a tendency to burst up big estates, but it is questionable whsttier this is essentially necessary for the progress of the colony, whilst there is so much Government and native land still unoccupied. Ratepayers must also bear in mind that the relief would not be so great as they, in many instances, imagine. According to the valuation of 1892, the unimproved value of property in the Taranaki County is given at £604,091, and the value of improvements was set down at £365,488, or a total valuation of £969,579. On this total value a county rate of f d is levied, producing a revenue of £8029, excepting, of course, the amount to be deducted for Crown and native lauds. This amount of revenue is found not to be enorgh to meet the demands, for works, mode upon it so that no reduction in revenue is feai bio by menus of chango in taxation. If (he improveraen's are exempted, it would leave £604,091 taxable, and in order to produce £8029 revenue from this amount, it wo'iid require a rate < n unimproved v. Ino of five farthings in the £, instead of throe farthincs as at present. Iu the Hawera County, where the unimproved value was £807,687, and the value of improvements £489,589, the proportion would be nearly the same. In the Act proposed by the Government last year, they intended giving rating power up to six farthings, instead of the present threefarthings. Such a measure would be quite fair, if it could be made to apply to those who hold land for speculative purposes, and who lio by waiting to derive a benefit from tho

progress effected by the industrious settlerg r «vho, by improving their own property^--.also improve the value of their landshark neighbour's holding. On the c ther hand, it would press unduly bard on the bona fid* settler, who would be called on to pay a higher rate on the prairie value of his place before hfe was in a position to get any income from it. In the Taranaki district, wlnre a v«ry large proportion of the holdings are acquired under compulsory improvement conditions, we do not believe it would effect a very marked change, aud in the majority of cases in which it did, it would be a hardship on the new settler.