THE REFORM OF THE I,AND TAX I09 



lates the public enforcement of the previous laws. The two latter meas- 

 ures complete the regime instituted by the first. 



In view of the importance of the breeding of live stock, and of indus- 

 tries thence derivative, to Uruguayan economy, we will devote a para- 

 graph of this short study to the reaction of the new financial arrangements 

 on tliis form of activity-, and will therefore briefly examine the present state 

 of breeding in relation to fiscal burdens. 



§ r. The xew t,aw as to the contribution of reai, estate. 



a) i*^ Chief Provisions. 



x\rticle I of the law of 14 January 1916 institutes an annual tax on 

 privately owned real estate, whatever be the form of ownership, which is 

 situated in any territory of the republic except the department of Monte- 

 video. Tliis tax is one of 4 per thousand on the value of rural lands, apart 

 from that of anj- improvements which they ma}^ have received, if their 

 estimated value do not exceed 2500 pesos (i) and if the\' constitute the 

 only rural property of their owner. On lands of which the estimated 

 value exceeds 2500 pesos the tax is of 4 14 per thousand (2). Within urban 

 and suburban districts it is of 6 y, per thousand, on the combined valued 

 of land and improvements. 



According to article 3 owners of fields within rural districts, of which 

 the area does not exceed 50 hectares (3) and of which at least 60 per cent. 

 is under cultivation or has been reforested, will be taxed on only half the 

 taxable value of these lands as determined by the valuation. When their 

 total extent exceeds 50 hectares, only that portion of them which is 

 destined for agriculture or forestation will benefit by this preference. 



Of the revenue yielded by the tax -of 6 ^4 P^r thousand on urban and 

 suburban property i per thousand will accrue to the economic admi- 

 nistrative commissions of each department and 5 14 P'^r thousand to the 

 general revenue of the country. The product of the 4 I/2 P^r thousand 

 tax on rural property will be divided as follows : (a) i per thousand to 

 the economic administrative commissions of each department ; [h) ^ per 

 thousand to the permanent fund for routes of comnumi cation : and 

 [c) 3 per thousand to the general revenue of the State. 



Article 6 estabhshes that for the two financial years 1915-1916 and 

 1916-917 the tax on rural real estate will be fixed by the general directing body 

 of land valuation and according to the estimated value determined b}' the 

 new census of rural landed proi)erty, less 20 per cent. " The general direc- 



(i) I peso -= about 4.s- yi at par. 



(2) This preferential treatment ot small property was not provided In- the original scheme, 

 which fixed the land tax at 5 per thousand without making distir.ction^. 



(3) I hectare = 2.47 acres. 



