LAND TAX. Property in land has been subject to taxation from the earliest days, but a specific land tax implies a peculiar treatment of agricultural land in taxation. In the United States land bears a large share of local taxation, either under the general property tax or under a tax upon real estate. In the general property tax no distinction is made between landed prop erty and other possessions—all property is as sessed according to its value, and the taxes paid pro rata. A real-estate tax draws no distinction between agricultural land and city property.
In the countries of Continental Europe. on the other hand, a distinction between urban prop erty (building tax) and rural property (land tax) is general. The difference consists largely in the method of assessing the tax. Agricultural land is assessed according to the productive ca pacity of the land: and this depends not only on its quantity, hut on its character and quality as well. To determine this requires an accurate register of all lands, distinguished as woodland, meadow, arable land. etc. Each kind of land is further classified according to its quality. This record forms the basis of assessment, while the rate is frequently determined by the amount of money allotted to he raised by the tax.
The English land tax was in the first instance assessed upon the value of land, and not on the productive capacity, as on the Continent. The valuation of the land made in 1692 has not been altered. nor has the rate ebangea since 1798. when it. was fixed at 4 shillings on the pound. Sueh a tax offends all principles of taxation, and falls very unequally upon different pieces of property. On the other hand, the considerable rise in the value of land since the assessment was made makes the burden comparatively light. Such a tax, since it is a fixed charge upon the land. is normally discounted in the purchase price: accordingly it is generally held that the entire burden was borne by the one who held the land when the tax was first levied. In the aggregate of national income its product is incon siderable.
In Scotland the term eess is applied to a per manent land tax fixed at £47.954 per annum. sub ject to a power of redemption. and payable partly from the boroughs and partly from the shires. The apportionment of the tax is determined by the local authorities. See TAX AND TAXATION;