EFFECTS OF THE NEW SCALE OF TAXATION.
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A Clear Explanation of the Changes in the Scale of Licence Duties that Comes into Force on January 1st.
IN an earlier issue of The Commercial Motor—that of November 9th, and entitled "The 1927 Outlook
Number "—we gave, in the only complete form in which it has anywhere been published, the new scale of motor vehicle taxation that comes into force on January 1st, 1927. We prepared it in a form which we had hoped would be absolutely clear, but we find that that was not the case, and for a very peculiar reason, to which we shall refer. There was one error in it (relating to the reduced quarterly fees applicable to the travelling showman's tractor), which we hasten now to
correct. • We have completely checked the particulars in the scale as published by us, and we now reproduce it in a form which we -think should prevent any misunderstandings. When we inquired recently, we found that the application forms for licences were not ready for issue, but we should imagine that they will be available by the time this issue is published.
The Difference Between Conveyance and Haulage.
The term which has been misunderstood by about 30 of our readers (those who have written to us), and, therefore, in all probability, by others, is "Haulage." We took the different types of vehicle and tractor and grouped them under the proper headings, "Conveyance" and "Haulage," but we find that many users refer to the conveyanct of goods as haulage, not knowing that, when it comes to a strict definition of the purpose of a lorry the word " haulage" cannot then be properly used. To convey goods (or passengers) is actually to carry the load on•the vehicle; to haul goods Is to draw them upon another vehicle. The articulated six-wheeler (the Scammell, for example) is a Combination of conveyor and hauler, because whilst it consists of a tractor and a trailer, part of the load is superimposed upon the tractor portion.
Lorries, vans, wagons, sidecar combinations, hackney vehicles, etc., are, therefore, vehicles, because they convey the goods (or the passengers, as the case may be). The word "vehicle" comes from veho—to carry ; hence it cannot be applied to a tractor or haulage engine. Unfortunately, in the Schedules of the Finance Acts of 1920 and 1926, the word "vehicle" is used in connection with tractors, with, however, a qualification which makes the meaning clear, and we were forced to use the phrase employed in the Acts. Some of our readers, as we have said, misapplying the term "haulage" and not reading the definition, have thought that the apparently lower scale applicable to tractors could be adopted for lorries used for "haulage" as they understand the term. In our revised presentation of the scale of taxation we have removed all excuse for misunderstanding by using the descriptions of the machines as the headings to the sections (thus, "lorries and vans" instead of "conveyance—goods" and "tractor-class vehicles" instead of "general haulage").
The Sidecar-taxi Classification.
We have also decided to include in the tables the lighter types of motorcycle; they make the tables complete, but the information as to the duties thereupon will concern few of our readers except sidecar-taxi owners.
The paragraph numbers are, of course, those which are employed in the Schedules to the Acts and we keep to them so as to facilitate reference to the Schedules should occasion demand.
c36 It will be seen that in one reseect (and in that one only) the new scale of taxation is in favour of the user. The owner of a hackney motor vehicle which seats over six but not exceeding eight persons is no longer called upon to pay a licence duty in the 14seater category, a new category for this class of vehicle being introduced. Hitherto his tax was f30 per annum in the Metropolitan Police area and £24 in all other
districts. He now pays per annum. Put in another way,the lowest taxable capacity has been raised from six to eight seats.
The increases are best set out in tabular form :— Para. 3.—Hackney Motor Vehicles.
Taxing the Municipal Vehicle.
Taking vehicles employed in carrying goods and materials, the Schedule to the Act of 1926 is much better framed than that to the Act of 1926, in that it leaves no anomalies. Vehicles used by municipalities for the conveyance of refuse were not "vehicles employed in the conveyance of goods in the course of trade," and as Paragraph 6 of the Schedule of the old Act embraced "all other vehicles" not included in the provisions of Paragraphs 1 to 5, under it were brought the municipal vehicle which, therefore, had to be taxed on the basis of per horse-power. The steam engine happens to have a more favourable horse-power formula even than the petrol engine, and this was why the steam wagon could romp away with much of the municipal business. The definition of a taxable vehicle is now one "constructed or adapted for use and used for the conveyance of goods or burden of any description whether in the course of trade or otherwise." This has drawn into the net of Para. 5 the steam vehicle and the municipal appliance. It covers the gully emptier and the street-watering and washing appliance.
The _electrically propelled vehicle which does not exceed 25 cwt. in weight unladen still enjoys the low tax of 16 per annum. The privilege of drawing a trailer will now cost £6 per vehicle—a substantial in
crease' over the fee of hitherto paid.
The following scale shows the difference in the taxes applicable to electrically propelled vehicles and those propelled by steam or internal-combustion engines;—
The six-wheeled vehicle with an articulated frame and conforming to the definition contained in our table is treated as if it were a single vehicle used for drawing a trailer. The rigid-framed six-wheeler is treated as any other commercial vehicle having four wheels, the tax, therefore, being according to its unladen weight.
W4th regard to commercial travellers' broughams, cars and sample vans, the line of demarcation would appear to be the character of the fittings. If the vehicle be fitted with a shelf or cupboard or rack or other receptacle for samples, it could be registered under Para. 5 and the tax would be chargeable according to its unladen weight. If there be no such fittings for the carrying of samples and 11 the body be that of a private vehicle, it would be taxable on the horsepower basis. The steam tractor and the road locomotive are again more heavily taxed under the new scale, as the following table shows:— The 12-ton machine is now absorbed in the category of machines exceeding 10 tons unladen weight. The taxes on agricultural engines and tractors are not increased nor is the tax on vehicles taxed on horsepower.
The unladen weight of a vehicle is the weight of the vehicle inclusive of the body and all parts (the heavier being taken where alternative bodies or parts are used) which are necessary to or ordinarily used with the vehicle when working on a road, but exclusive of the weight of water, fuel or accumulators (other than boilers) used for the purpose of propulsion or of loose tools or loose equipment.