December, 1911.] 



551 



Miscellaneous. 



With reference to the local personal 

 income tax (" property and ability tax ") 

 the following new-main provisions ought 

 to be mentioned : — 



(1) In future the income tax is to be 

 paid not only by persons living in the 

 municipality (parish), but also by per- 

 sons who earn their means of livelihood 

 there. This will be of no little import- 

 ance, not only for the cities, which will 

 be able to levy taxes on persons who 

 have their business in the city but their 

 residence outside, but also for. the 

 parishes, where it will not be necessary 

 to tax the land to the same extent as 

 formerly, the landlord being no longer 

 in a position to evade the income tax by 

 residing outside the municipality. The 

 provisions as to the manner in which 

 the municipality of residence and the 

 municipality (or municipalities) of trade 

 are to share the tax are too detailed to 

 be specified here. 



(2) The local assessment had formerly 

 to be based on the "whole financial 

 position" of the person concerned, where- 

 as in future the income used for the 

 assessment cf the State income tax will 

 also be used as the first basis for the 

 local income tax. The County Councils 

 have to form rules for the assessment 

 of the parishes according to the pro- 

 posals of the Parish Councils, In the 

 rules it can be provided that the local 

 tax-paying income is fixed by adding to 

 the tax-paying iucome for gtate income 

 tax purposes : (1) Up to 50 per cent, for 

 incomes from capital, tithes, or other 

 perpetual rents ; (2) up to 35 per cent, 

 for incomes from real properties ; (3) up 

 to 25 per cent, of pensions, annuities, &c; 

 (4) up to 15 per cent, for incomes which 

 may later on be replaced by pensions. 

 This additional amount is to represent 

 the same percentage for all incomes 

 derived from the same source in the 

 same parish. Further, it may be provided 

 in the rules that the tax on income, 

 fixed in this manner, can be raised in 

 respect to any individual tax-payer, ac- 

 cording to his ability, up to 25 per cent, 

 on such grounds as proportionately great 

 incomes, small family, exceptionally high 

 profit during the last year, or special 

 success in business. Or it can be dimin- 

 ished up to (55 per cent, on account of 

 proportionately small incomes ; many 

 children, old age, sickness, great losses 

 or failures duiinn the la»t year. In- 

 come less than 800 kr. (4W.)-l,0u0 kr. 

 (55£.) in the towns— may Ue diuiuished 

 at the discretion of the Board of Assess- 

 ment, but the tax is not to be entirely 

 remitted. (The last provision is made 

 in order to preserve the inhabitants' 

 voting rights.) 



The practical results of these provi- 

 sions, that leave only a limited power 

 with the Board of Assessment, cannot 

 as yet be told. 



(3.) Limited companies, co-operative 

 societies, &c, will in future have to pay 

 local income tax, but never more than 

 3 per cent, of their net profit, and in the 

 taxation of their net profit they are 

 relieved from such part of the tax as 

 corresponds with that part of their gross 

 profit, which they earn outside the 

 country. Co-operative societies do not 

 pay the tax, except when transacting 

 business outside the circle of their 

 membership, and the tax, therefore, will 

 be of but little interest for the rural 

 districts. 



(4.) From the financial year 1901-05 the 

 State pays 1,500,000 kr. (82.500Z.) yearly 

 to the local bodies. This State subsidy 

 is distributed to the towns and the 

 counties in proportion to figures, obtain- 

 ed by multiplying the total expenses 

 for school teachers' pay, old age pensions, 

 out and in-door relief to the towns and 

 the counties, by the percentage which 

 these expenses amount to in proportion 

 to the State income and property tax 

 as paid in the towns and counties. The 

 counties pay half of their subsidy to the 

 parishes on the same principle. After 

 the commencement of 1904 05, a parish 

 cannot assess a higher amount than was 

 assessed in any of the years 1901, 1902 

 and 1903, less the subsidy, unless the 

 Parish Council so decides by a majority 

 or its members on two meetings held 

 with at least a fortnight's interval. 



Conclusion. — Taking it all round, the 

 reform of taxation has undoubtedly 

 helped to relieve the agriculturists. It 

 is difficult to say whether the larger 

 and the smaller agriculturists have been 

 relieved proportionately. From several 

 parts of the country complaints are 

 made by the smaller farmers, but very 

 little is heard from the larger ones, and, 

 bearing in mind that dissatisfaction in- 

 variably arises whenever a new tax is 

 introduced, these complaints may per- 

 haps be regarded as of little conse- 

 quence. The townspeople hive more 

 reason to be dissatisfied. 



Whether the old land tax and tlie 

 tithes were taxes or ground rents, their 

 abolition has certainly made room for 

 a more equitaole system ot taxation. 

 It is difficult to sa> what effect the 

 reform may have on agrit'uitiu'e, and ii 

 is very probable that it may have hardly 

 any traceable effect, for with all its 

 deficiencies the old system did not 

 obstruct agriculture. As a matter of 

 fact, the farmers have now succeeded in 



