Taxation in New Zealand 29 



the vote on both sides was less than when the Act was carried. 

 The vote is seldom a large proportion of the total ratepayers. 



The indifference of many ratepayers to the rating on unim- 

 proved values is probably due chiefly to the fact that the rates in 

 most districts are not a heavy burden upon the owners of prop- 

 erty. The general government supports the public schools and 

 many charitable institutions, spends large sums of money on roads 

 and other public works, bears the expense of valuation, and even 

 grants subsidies to the local bodies. The chief items of local ex- 

 penditure are for roads, bridges, drainage, harbors, charitable aid, 

 and hospitals. Besides, over half of the local revenues are de- 

 rived from licenses, rents, governmental subsidies, and other 

 sources. In the year 1906-7 the total revenue from rates in all 

 the local bodies was £1,233,049, and of this amount only £889,711 

 was derived from the general rates, which are practically the only 

 rates that can be levied upon the unimproved value. In the same 

 year the total unimproved value was £149,682,689, so that the 

 total general rates were only 0.6 of 1 per cent of the total unim- 

 proved value. In counties and small boroughs the rates are' low, 

 but much higher in the larger towns. In Wellington the gen- 

 eral rate is 0.83 of 1 per cent of the unimproved valuation, in 

 Christchurch (Central Ward) 1.2 per cent, in Invercargill 1.2 

 per cent, in Devonport 0.6 of 1 per cent, in Stratford I per cent, 

 and in North-east Valley 1 per cent. These figures show clearly 

 that the rating on unimproved values is by no means a thorough- 

 going application of single-tax principles. 



On April 5, 1906, the Secretary of State of the British Govern- 

 ment sent the following telegram to the governors of New South 

 Wales, South Australia, and New Zealand: "Please send home, 

 as soon as possible, any reports or other information available as 

 to the working of taxation on unimproved land, both for munic- 

 ipal and State purposes. Information especially desired as to 

 effects of land value taxation on building trade, on rent, on in- 

 cidence of taxation on house property and vacant sites respect- 

 ively, and on land speculation. — Elgin." 



In compliance with this request the New Zealand government 

 sent a circular to all local authorities rating on the unimproved 



277 



