Miscellaneous. 



550 



[December, 1911. 



capital value of rents, privileges and 

 similar matters of wholly personal char- 

 acter (annuities, &c). Debts are de- 

 ducted from the property. 



The basis for the assessment of the 

 real property tax are recurrent valu- 

 ations (made every tenth year, with an 

 interval of only five years between the 

 hist two valuations.) The valuation 

 includes the trade value of the property, 

 but not live-stock, dead-stock, plants, 



As a guide for the valuers, the actual 

 selling prices and valuations for mort- 

 gage purposes are to be used : the 

 State tax is l'l kr. (I4"85ci.) for every 

 1,000 kr. (551.) value of real property. 

 On dwelling-houses with flats of a 

 letting value as low as dO, 120 and 

 180 kr. respectively (SI. 6s., 6i. 13,s.. 

 101.) for rural districts, towns and Co- 

 penhagen, this tax is not leviable. With 

 regard to agricultural properties, the 

 following sums are to be deducted from 

 the assessed value :— 



Deduction. 



Currency. Sterling. 

 Kronors. £ 



If the assessed sura be — 



Below 8,000 kr. (U0L) ... 2,000 110 

 Between 8,000 and 2,000 



kr. (440£. and 660/.) ... 1,000 55 



On houses for single families, occupied 

 by working men, fishsermen or mechan- 

 ics, without assistant*, and from whose 

 assessed value nothing is deducted in 

 accordance with the above provisions, 

 there is a deduction to the following 

 extent :— 



Deduction. 

 Currency. Sterling. 

 Kroners. £ 



If the assessed sum be — 



Below 3,0U0 kr. (1611.) ...2,000 110 

 Between 3,000 and 4,500 



kr. (167^. and 250£ ) ... 1,000 55 

 Between 4,500 and 6,000 

 kr.(250£. and 330£.) ... 500 27 



Finally, it should be mentioned that if 

 any agricultural property, according to 

 the new law, should have to pay more 

 in State real property tax than it paid 

 formerly in State land taxes, the new tax 

 is to be reduced to the amount that was 

 paid previously. This provision will, 

 however, not apply after July 1, 1929. 



The greatest advantages, however, 

 have been conferred upon the tithe- 

 paying farmers. The abolition of the 

 tithes is arranged so that the tithe- 

 owners will be entitled to receive a 

 compeneation, which is twenty-five 

 times the amount of the yearly paid 

 tithes, and of this sum the State defrays 

 seven- twenty -fifths and the former tithe- 



paying farmers eighteen-twenty-fifths. 

 The subsidy from tha State will amount 

 to between 40,000,000 and 50,000,000 kr. 

 (2,225,000/,. and 2,750,000£.). The tithe- 

 payer has the option of choosing 

 whether he will pay the whole commu- 

 tation sum in cash or half-yearly instal- 

 ments of 2"25 per cent.of the said sum 

 for 5o| years. The tithe-owner receives 

 his money either in cash or in 4 per cent. 

 Government bonds, 



Present Local Taxation— Local Pro- 

 perty Tax. — The agricultural landowner 

 is relieved, as will be seen, of State 

 taxation at the expense of the other 

 landowners and of the people who possess 

 large capitals and incomes, while at the 

 same time his local taxes are reduced. 

 The owner of real property in the 

 country, who does not carry on agri- 

 culture, and accordingly did not pay 

 any local tax on his property (except in 

 proportion to the productive power of 

 his ground, which did not mean very 

 much for the non-agricultural inhabit- 

 ants), will now have to pay on the trade 

 value of his property. The local land 

 tax is abolished, and replaced by a real 

 property tax based on the same valuation 

 that applies to the State tax. In order 

 that too great a revolution in the value 

 and prices of the estates should not take 

 place, as might be the case if both the 

 local and the State land tax were 

 abolished and replaced by another tax, 

 the law provides that from 1905 one- 

 fifth of the local real property tax is to 

 be levied on the new basis and four- 

 fifths as land tax, according to the old 

 appraisement ; from 1910, two-fifths on 

 the new basis and three-fifths on the 

 old, and so on, so that the new real pro- 

 perty tax will not be in full operation 

 before 1925. The principal difference 

 between the State and the local real 

 property tax is that certain properties 

 of a public character, which are ex- 

 empted from the State tax, can be 

 taxed locally, and that the State tax is 

 fixed at l'l per cent, of the property 

 value, whereas the local tax will vary 

 according to the requirements of the 

 different parishes and counties. 



Local Income Tax. — In leaving the 

 local property tax and entering upon 

 the question of the personal taxes, it 

 may be worth noting that the pro- 

 portion that exists in the parishes 

 between assessment on real property 

 and on "property and ability tax" 

 cannot be altered to the disadvantage 

 of the property holders, unless the 

 alteration is decided on by a bare 

 majority in the Parish Council and by a 

 majority of three-fourths of the members 

 of the County Council. 



