I.—Ba

4

was not altered. But he eleics not appear to have realized that flic combining of the ordinary anel graduated land-tax had brought about a far-reaching and serious alteration. I have' prepared in connection with some: of the leased lands of the: Trust a table' showing flic rents received and land-tax deducted therefrom, between 1912 anil 1.921. Thus on four blocks in 1913 the rents totalled £3,180 Bs. 5d., and the land-tax deducted £131 7s. Bd. In 1918, the year after the passing of the: Finance Act, 1917, the, proportions had changed to £3,631 19s. lei. rents anel £545 9s. land-tax. In 1921 they were: £3,907 12s. 3d. rents and £1,068 Is. lei. land-tax. The 400 per cent, increase in 1918 was duo to the passing of the Finance Act. The increase; of 1921 over 1.918 was dim to a combination of increased values and of a graduation base:d on these increased values. It must be 1 remembered that these lands were leased when land-values were very low and access difficult. To induce lessees to take up the lanels, low rentals and easy terms were given, and the element of taxation was not prominent. Still, the proportions of rent deductible for land-tax would have increased with each Government valuation of the lands in the district, assuming that the rate of the. tax had remained at a flat rate of Jd. in the pound. But a combination of increasing value's and a graduated tax thereupon has caused the tax to increase out of all proportion to the revenue. This in Mangopoike A the rent has remained stationery at £722 18s. 6d., whereas the tax has increased from £38 6s. 3d. in 1912 to £428 15s. 9el. in 1921, and is now nearly 60 per cent, of the revenue. In Tahora 2e; 1, Section 3, the tax has increased from-£9 15s. in 1913 to £287 Is. this year, and is now equal to 51 per cent, of the rent revenue' (see' schedule attached). The graduation principle of taxing as applied to leased Native- lands has probably come to stay, but it seems to be oppressive as regards the; larger blocks held under lease. There should be some provision fixing a maximum proportion as between land-tax and rent —say, per cent. —otherwise trust estates (including lands vested in Maori Land Boards) must become bankrupt. Alternatively, a proportion of the liability might, be passed on to lessee's." There are two schedules that are; attached, one showing the rents received from sonic of the' leased lands of the Trust, and the land-tax deducted therefrom, between 1912 anel 1921, anel the; other showing the percentage of the land-tax received to flic rental, which were referred to in the Judge's remarks to the Taxation Commission,

Schedule showing Rents received from Leased Lands, and Land-tax deducted.

Schedule showing Rental, Tax Payable, and Percentage of Land-tax to Rental, of Certain Blocks

The figures show conclusively that the operation of the graduated tax imposes an unduly heavy burden on leased Native lands ; but, in addition to the facts laid, before the Commission, there are points which I would like to bring to the attention of the Committee. Tax on leased Native land is assessed at half of the amount on European land, so that in the case of Mangatu No. 1, if the land was in European ownership, it would in 1920 have been charged with tax amounting to £10,440, while the annual rental would be a sum of £5,910 —a deficiency of £4,530 —a position which, I venture to say, would not be tolerated for a moment. The explanation of this inequity is that the land was leased some twenty years ago at a small rental, and the closer settlement and progress of the East Coast district has now sent up the value of land enormously, so that with each separate valuation the

Mangahi i-i 2D. Mangap [loike A. Mangapolke _3. Tahora 2i :l -»"- fax - received. L ""' u " x - received. £ s. d. £ s. el. £ s. el. £ s. d. I 38 6 3 218 18 0 47 3 1.0 i 30 19 10 328 7 0 5 15 8 369 3 2 i 36 15 10 328 7 0 7 16 8 300 3 2 - 37 13 4 744 7 0 .. 309 3 2 i 38 17 9 744 7 0 10 19 I 440 4 (i i 30 10 7 744 7 0 27 1 7 567 5 6 i 156 17 6 744 7 0 107 IS 10 404 13 10 • 275 3 1 744 7 0 107 1!) 0 440 4 6 i 275 3 1 744 7 0 107 19 0 570 18 0 > 428 15 9 853 16 0 117 14 9 570 18 0 538 4 5 * Equal to S8 per cent. 01 Sec. '. Mangatu No. 1. Year. Rent received. Land-tax, , Rent reoelved. L '""- ,;1X - |l to?" s c 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 £ s. d. 1,759 19 9 1,759 19 9 1,759 .1.9 9 1,759 19 9 1,759 19 9 1,759 19 9 1,759 19 9 1,759 19 10 1,759 19 10 1,759 19 10 £ s. d. 45 17 7 43 4 4 41 1.5 6 40 10 2 32 3 6 43 10 7 234 9 7 234 9 7 234 9 7 234 9 7 £ a. d. 722 18 6 722 18 6 722 18 6 722 18 6 722 18 6 722 18 6 722 18 6 722 18 6 722 18 6 722 18 6 722 18 6 £ s. el.j £ £ 9 15 10 .. 0 16.. 0 15 I()| .. 9 15 10 .. 9 15 10 .. 46 3 1 .. 40 3 1 .. 40 3 I 5,910 5,200* 287 10 ..

(Note. —The tax payable is under the F'inaiicc . „, , Government ,p,.,„i ,,i BIock - Unimproved Value. r ° tal Jlclltal - A lot, 1 1017.) Tax Payable. Percentage, Land-tax to Rental. " " £ £ s. el Grant 3778 (Mokoia perpetual leases) .. 07,435 3,435 17 Grant 3800 (Ihuwai perpetual leases) .. 47,080 1,420 8 Grant 3780 (Ngatitupaea perpetual leases) 20,750 1,001 11 Grant 3887 .. 12,495 503 15 North Island "tenths" .. .. 75,300 1,859 7 Palmerston North Reserves .. .. 38,440 1,077 17 Nelson Native Reserves (city sections) .. 28,646 1,219 13 Gfeymouth Native Reserve .. •• 114,300 4,335 6 Reserve, Palmerston .. .. .. 62,202 1,077 17 £ 97,435 47,986 26,756 12,495 75,300 38,440 28,646 114,360 62,202 £ s. el. 3,435 17 3 1,420 8 0 1,001 11 0 503 15 0 1,859 7 0 1,077 17 0 1,219 13 0 4,335 0 0 1,077 17 0 d. 3 0 0 0 0 0 0 0 0 s ) ) ) i ) 1 £ s. el. 1,575 13 6 44 ti 8 9 170 0 8 54 13 I 986 7 2 306 14 10 189 II 3 2,118 4 0 701 10 4 £ s. d. 1,575 13 5 4-10 8 9 170 0 8 54 13 1 080 7 2 300 14 10 189 11 3 2,118 4 0 701 10 4 45 i 31 : 17 0 53 28 15 48 65 45 31 17 0 53 28 15 48 65