TAXATION OF FOREST PROPERTY IN NEW 



HAMPSHIRE 



By J. H. Foster 

 Professor of Forestry, New Hampshire State College 



ffiANY people know that it is un- timber tracts and woodlots were ex- 

 wise for assessors to place high amined and studied individually. Many 

 valuations upon forest property, examples of the most surprising in- 

 since such action encourages a rapid equality were detected but since assess- 

 cutting of timber ; few people, how- ments have been generally low, no great 

 ever, realize how grossly unjust the harm resulted. 



system of general property tax on The New Hampshire Legislature of 

 growing forests may become if the as- 1911 created a permanent tax com- 

 sessed valuations are high. mission, consisting of three members, to 

 The general tax law calls for the as- have general supervision of all matters 

 sessment of property at the actual sale pertaining to taxation within the State, 

 value. In the past this law has seldom This commission within the past few 

 been enforced and its evil possibilities months has in the performance of its 

 have been thus far avoided. The fact duties directed that all property shall 

 that assessors have generally been leni- be assessed according to law ; that is, 

 ent in their appraisal of forest property at its full sale value. By so doing it 

 has made the evil in the law seem less has brought about a crisis in the mat- 

 great and has deferred the issue up to ter of forest taxation, as subsequent 

 the present time. This does not mean events are bound to show, 

 that the working out of the tax law has Why is it? Not necessarily because 

 been satisfactory. It has been most it would be unwise to tax our forests 

 unsystematic, unequal and unbusiness- at their full value and thereby lead to 

 like. Assessments on timber tracts their early removal ; not because we 

 have been ridiculously unequal as re- prize our standing forests and desire 

 gards lots in the same town or in dif- to see them remain ; not because we 

 ferent towns. Many valuable wood- need them to protect our slopes and 

 lots attached to farms have escaped watersheds, and consequently our 

 taxation altogether. Assessors are streams, although these considerations 

 often unfamiliar with the values of are most important ; not by any means 

 forest property and have not taken the because forests should not pay their 

 trouble to examine them. Too often just proportion of taxes ; but entirely 

 they assess from hearsay or place a and fundamentally because the system 

 value only when the property has of property valuation is wrong in 

 changed hands and then frequently principle and when applied to forests 

 only once before the timber has been not yet mature would be iniquitous in 

 cut off. Sometimes they are prejudiced practice. The consequences of the in- 

 in their appraisals and non-residents justice are brought to a focus only 

 are more often the victims. The writer when the assessments approach the 

 investigated the condition of forest tax- actual sale values. 



ation in New Hampshire in 1908 for Why is the system wrong in prin- 



the State Forestry Commission and ciple? It is wrong because it is on 



the Federal Forest Service, the results the principle that the man who does 



of which were published in the report not or cannot use up his income, but 



of the Forestry Commission for 1907- keeps it reinvested with his principal, 



'08. In this investigation over 150 is punished by an excessive tax. As 



470 



I 



