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- Title
THE BRITISH TAXES ON LAND VALUES IN PRACTICE.
- Authors
Tucker, Rufus S.
- Abstract
The article highlights the system of taxes on land values in Great Britain. There is great reason to believe that as a result of recent judicial decisions the values of nearly all agricultural properties, and of a great many others, must be calculated over again on a different basis. Judicial decisions were responsible for much of the delay in valuation in the past as well as at present. After the decision of the Valuation Appeal Court in Scotland, April 18, 1912, to the effect that assessable site value could in no case be a minus quantity, valuations were suspended in those parts of the country where few duties and heavy ground rents are common. This decision was reversed by the House of Lords on May 2, 1913. It results from the method of valuation prescribed by the Finance Act, and occurs only when the net value of a property, after deducting the burden of fixed charges, is less than the value attributable to capital expenditures on the property. It is obvious that if the value of the site increases, even if it does not become equal to or greater than the fixed charges, the owner benefits by the full amount of the increase, since his property is more valuable, while the fixed charges remain the same. Hence for the purpose of a tax on increment, minus site values are a perfectly legitimate device. For any other form of tax they are impossible.
- Subjects
UNITED Kingdom; LAND value taxation; REAL property tax; VALUATION; PROPERTY tax; VALUATION of real property
- Publication
Quarterly Journal of Economics, 1915, Vol 29, Issue 4, p794
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1883309