The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1906-08-07
TAXATION IN
NEW ZEALAND

Editor Advertiser: Your editoria
reference to the above subject in las
Il Saturdays issue of the Advertiser con
veys a wrong impression. Land il
taxed according to its value, whether
occupied or not. Under the rating OF
unimproved value of land, Act of 1896
| local bodies-i. e., counties, towns OF
/! boroughs-were permitted to adopt the
| principle of rating which is expressed
in the title OF the measure in lieu of
| the then current system of taxing real
| and personal property as is at present
| the custom in this Territory.
The act provided that a proposal to
adopt the system must be voted on in
county or subdivision desiring the
same, at least one-third of the rate
payers to vote on the question and
a majority of the votes cast to deter
mine the matter. This was altered
under the Local Government Voting
Reform Act of 1899. SO that now
majority of all votes cast, irrespective
of the number of ratepayers voting
shall decide.
One provision of the act of '96. is that
when a local body has voted on the
subject, either adopting or rejecting
the same, the matter can not again
be submitted to vote until three years
have elapsed.
The tax rate under the unimproved |!
land valuation is so adjusted as to +
bring in the same amount of revenue /
as would the general tax system were
that in force-i. e., if the general tax
at L per cent. would realize $4,000 rev
enue and levy of "a per cent would
realize the same amount from unim
proved valuation, then the tax rates
under the latter system could not ex-l
coed 81 per cent, although it might i
be less.
While, as above stated, the general
tax is similar to our own, there is
added to this a graduated tax on real
running from 1-16 penny in
the pound to pence in the pound ON 4
worth $1,OOO,O0O or more.
The New Zealand tax on incomes all
ows an exemption up to 800 pounds.
makes the rate 6 pence in the pound
IN the first taxable 1000 pounds and
ne shilling in the pound for all in ex-
ess of this sum.
Illustrative of the justice of taxing 4
and values only take the destruction
xample. Everything that was above
round was wiped out and became a
irect loss to either the owner or
ONE insurance company-but the q
and? 1t was there just at it had been
efore the fire and, as matter of fact,
rices in excess of value of land and 4
uildings before the fire We're offered &
hereafter for the bare lots.
Our present system is extremely IN 4
st and burdensome. Ia
Take the case of the McCand1ess
lock now in course of erection, adj q
lining the Gazette building. When 1
,mpleted it will be an ornament to ]
e city-with no possible comparison q
stween it and the aggregation of L
acks it has replaced and yet, under Z
If present system of taXation, the -
SCISSOR is on still hunt to determine
e cost of everything going into this p.
instruction and will soak the owners
r every dollar they put into this con-
ruc1ion
Which is better--to create conditions
at will yield a maximum of develop
ant, coupled with prosperity, or the
eating of Industrial enterprise by
acing unseemly burdens thereon?
These are issues that :can not be
oided and the Advertiser is to be
for the stand it has taken
the subject. -
The Governor should appoint a com
ssion to inquire into this matter and IT
bnit him data to be Incorporated
his message to the next LegisIa-
re, and the public should demand
'ertion in party platforms, some a.
INK expressive of their attitude on
S subject.
Hoping that discussion may become
i've and that the pros and cons of -
s vital matter be threshed out. I -m-
yours for TAX REFORM