INCOME TAX

Poverty Bay Herald, Volume LV, Issue 17410, 7 November 1930, Page 8

INCOME TAX

BACK TO 1917-22 SYSTEM TOWN OWNERS AFFECTED Wellington property owners ape not pleased at the income tax assessments which are now reaching them, which have been increased by the operation of the amendments to the Act. There is no alteration in the incidence of taxation, but an all-round increase of 10 per' cent, in the rate is being levied. Lust year where income was derived from rent of land the owner was entitled to a special exemption of 5 per cent, of the capital value of the property, but this year Hie exemption is 5 per cent, of the unimproved value. Where an exemption has been received on account of mortgages the exemption is 5 per cent, of the taxable balance for land tax purposes. In the case of an hotel valued at £20,000 for the building and £IO,OOO for the land, the exemption of 5 per cent, of the totul has been reduced to the same proportion of the value of the site crilj. Taxpayers are entitled to a reduction on account of depreciation varying from 11, to 3 per cent., according to tbo naturo of the building. It appears to be bard on the farmer, who will pay heavily in land and income tax, while the citizen who invests in debentures escape’s rather lightly, and the man who has invested in an office block in the city, and who in other years lias paid no taxation, is now called upon for a considerable contribution.

The change is a reversion to the method of 1917-1922. In 1923 tbo alteration was made to 5 per cent, on the capital value, and that was deemed to envoi’ depreciation of buildings as well as compensation for the laud tax paid.—Dominion.