Taxation in New Zealand 17 



about 10 per cent less than the true selling value, but presently 

 much less, because of increase in land values. At present, how- 

 ever, the valuation seems to be rather high from the investor's 

 point of view. The valuation is not made at stated times, but is 

 constantly being revised, although it is sometimes out of date. 

 The officials say that there are no insuperable difficulties in the 

 way of determining unimproved values as distinguished from the 

 value of improvements. 



The Act of 1896 defined unimproved value as "the difference 

 between the total capital value of the whole property and the total 

 capital value of all buildings and improvements," but the defini- 

 tion was found to be inadequate, and the amendment of 1900 

 gives a number of more elaborate definitions, thus : 



"Capital value of land means the sum which the owner's estate 

 or interest therein, if unincumbered by any mortgage or other 

 charge thereon, might be expected to realize at the time of valua- 

 tion if offered for sale on such reasonable terms and conditions 

 as a bona fide seller might be expected to require." 



"Improvements on land means all work actually done or mate- 

 rial used thereon by the expenditure of capital or labor by any 

 owner or occupier of the land ; nevertheless, in so far only as the 

 effect of such work or material used is to increase the value of 

 the land, and the benefit thereof is unexhausted at the time of 

 valuation, but shall not include work clone or material used on 

 or for the benefit of land by the Crown or by any statutory public 

 body, unless such work has been paid for by the contribution of 

 the owner or occupier for that purpose ; provided that the pay- 

 ment of rates or taxes shall not be deemed to be a contribution 

 within the meaning of this definition." 



"Land means and includes all land, tenements, and heredita- 

 ments, whether corporeal or incorporeal, in New Zealand, and 

 all chattel or other interests therein, and all timber or flax grow- 

 ing or standing thereon ; provided, that native bush or native 

 trees which have been planted for shelter or ornamental purposes 

 on an area not exceeding" twenty-five acres shall not be included 

 in the definition of land in this section." 



"Owner means the person who, whether jointly or separately, 



26 s 



