CO129-442 - Governor Sir May - 1917 [4-6] — Page 534

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The special war rate, like the previously existing rates, is

made an occupier's tax.

To have made it a landlord's tax would have

throw a heavy burden on a limited class, and the question of inter- mediate landlords would have been difficult. A considerable amount of house property is let out in blocks by the owners to intermediate landlords. These intermediate landlords again, sub-let the houses

in floors, and the tenants of the floors sub-let portions of these floors to others, If it had been desired to make the tax an owners

tax, it would probably have been difficult to prevent the owners from shifting the taxation to the ultimate tenants, at all events in

the central districts.

It is also provided, in section 4, that the special war rate is to be borne by the occupier, irrespective of any agreement which may

have bee in existence at the commencement of the ordinance under

which the owner made himself liable for rates generally.

This was

·

done because the raising of the rates by such a substantial amount

the cannot have been in contemplation of either of the parties to any such

agreement.

It was desired at one time to exempt the poorer classes from the

incidence of this rate, but this was found to be impossible. One

argument in favour of this tax is that its incidence is to a certain

extent graded by the persons themselves who pay it, as they select

their quarters more or less in accordance with their income.

Section 7 provides that the revenue oollected by means of this

special war rate shall be placed at the disposal of His Lajesty!s

Government, and section 8 accordingly provides that the revenue

collected shall not be liable to military contribution.

09

Section 9 is an attempt to prevent landlords from taking advantage

of this special war rate to increase rents unduly. There was evi-

dence