Science and Colonial Development 



action of the Government of New Zealand should 

 suffice to show that they have thought out, and put 

 into effect, a reasoned policy in regard to the land. 

 But they have gone further, perceiving the close 

 connection between taxation and development. Of 

 what use was it, they argued, to encourage a man 

 to improve his land if at the same time he was 

 deterred from so doing by taxes and rates that 

 were levied upon his improvements ? So far as 

 the land must bear taxation, it should be levied, not 

 on the total value, but on the unimproved value 

 alone. Under this system, which was introduced 

 in 1891 in the place of the previous property tax, 

 the occupiers of land have every encouragement 

 to improve their properties, as, the more they do 

 so, the smaller becomes the proportion of the total 

 value of their estates on which they are liable to 

 taxation. The abstract principle of the taxation of 

 land values cannot of course here be discussed. It 

 is sufficient to signalise the fact that the Govern- 

 ment of New Zealand aim, through taxation as well 

 as otherwise, at the expansion of the enterprise 

 of the community. They were also in favour of a 

 similar reform in regard to the assessment of local 

 rates, but they preferred to proceed by a permissive 

 measure in order to avoid any appearance of dicta- 

 tion. Under this Act, which was passed in 1898, 

 thirty-three boroughs, including Christchurch and 

 the capital city of Wellington, and thirteen counties, 

 levy their general rates upon the unimproved value 

 of the land alone. 



New Zealand is also worthy of attention for its 

 149 



