The Honolulu republican. [volume] (Honolulu, T.H.) 1900-1902, 1901-02-17
THE NEW ZEALAND LAND TAX.

small shop keeper pays undue proportion Of the
internal taxes. Besides paying per cent upon
the full value OF his goods. the small dealer pays
heavy license which, 1t is contended is equiva-
lent TO double taxation It is claimed that sugar
plantations and their improvements pay but small
portion Of the that should be levied against them
That land which produces net revenue of $500 per
per year assessed. In many al less than
500 per acre These charges have led to talk Of the
introduction OF the New Zealand system of land tax.
which is based upon the single idea In order
that the people Of Hawaii may gain knowledge
of the operation Of the New Zealand system out
line Of IT, prepared from recent publication, is here
with given.
The New Zealand land tax expressly planned
90 exempt the small and free the struggling
poor man. The Land and Income Tax Commissioner
thus describes its operation: Let us suppose that
piece OF improved land is worth $4,000 and that the
Improvements it valued at $4,000. 1t follows
that the unimproved value would be $4,000. The
land including the improvements is mortgaged for.
$4,000. In such case tax would be levied
the property Now let suppose that the land is
worth $4,000 and the improvements $4,000. The
improved value would then be 10000. The land and
Improvements are mortgaged for s12,500. In such
case under the New Zealand system, the net value
would be $500 and the exemption is 81 5oo there
would be left taxable value of $4,000 on which the
tax is S2l Tae land begins be progressive or
graduated when the values reach $4,000 above i'm
provements. There is tax improvements large
small but the privilege of exemption is withdrawn
when estates large enough to be subject to the
graduated tax; that is. when the nuimproved value
reaches $4,000 The large owner not only pays a
larger rate Of tax but loses all the exemptions ex
cept those for improvements The extra tax in
creases by oneeighth OF penny up to value of
$500 00. when the maximum is reached of two
pence in the pound. or four cents in every s4.S6
This increment, added TO the original tax of one
penny in the pound, makes possible maximum of
six cents S4.S6 OF value
Thus that even at its heaviest the New
Zealand land taxfs really heavy. The taxes are
not destructive; great estates still exist The worst
that be said OF the graduated land tax is that
notice has been served the monopolists that they
must surrender disappear Under the operation
of the system large number of land owners pay
tax at all Out of 10000 small farmers more than
onehah have been relieved of taxation altogether
by the change from the property tax to the land and
income tax Out of 10000 lano owners only $4,000
pay land tax. No land whose land is worth
less than $4,000 net pays any national land tax in
New Zealand.
Another graduated tax is that on estates which
pass by death Nothing is demanded of property
worth less than $500. estates that descend to
widows widowers. The rate thenceforward up
TO properties worth $1,000 net is 2is per cent 1t
then rises TO Sis per cent until limit of $4,000
is reached. when il becomes per cent up to $780,
O0o. On all estates above that the rate is 10 per
cent Before leaving this topic we should note that
owners OF estates large enough to fall under the
graduated tax further penalized if absentees;
then their graduated is increased 30 per cent
Absentees. however. may escape this tax by peri.
odically returning to the colony But the absentee
some two hundred years ago. it vas enacted that
"absentees are to be assessed a double portion on
their lands stocks and cattle" Even in Ireland in
the reign of Queen Anne absentee Of six sail
lngs in the pound put on all ONCE holders who
did not live half Of the in the country. 1t
that on the passage of the taxation laws some
of the New Zealand capitalists undertook 10 carr
out their threat OF leaving the country TO the
tent of refusing TO lend They said borrowers who
sought TO renew mortgages: You have elected these
labor men; so 10 them for your money The result
that they lost their business for there 9TH
with money to lend who were glad to t5Se the
securities
What part had Henry George in the land tax re.
forms of New zealandg The question: is suggested
by the circumstances. that New Zealand although
obviously rot single tax COUNTRY since II still
rives IS per cent of its from the tariff has
made considerable progress in the direction OF con
centratng taxes upon land. AS matter Of fact tau
national bias in favor of such taxation dates back tn
the apostolate OF Henry George to the Ministry o.
Sir George Grey who in 1878 introduced the land tax
into New Zealand finance Only collection was
made, however, and in the next year the tax was
repealed and replaced by the property tax which
was favored by the monopolists South Australia
subsequently adopted the land and has retained
II. but allows exemption. II not until 1891
that the form OF land taxation which have above
described was reintyoducei into New Zealand. or
feals Of that country declare that the New Zealand
tax was bern before Henry Georges ideas were
known
In 1891 Sir George Grey directed attention. 20 the
fset that vast areas held by a few persons who
would neither sell cultivate The Increasing pop
uiation surged Up against stretches fertile plain
and valley only to End these kept out Of the market
for the purpose OF exacting sufocation price when
the inhabitants Of the island should become more
crowded No fewer than l7.ss757o acres were held
by only 1,eis landowners while 100000 people occu-
pied less than eos Even some years later
Mr. ". p Reeves showed that in spite OF land lnws
land tax and time. out OF s4o0o.ooo acres 2lO0o0oo
are held In areas OF more than 5000 acres each
kcvertheless. the number Of small holdines shows
seeedy though not raid expansion. In 1856 the