654 JOURNAI. OF FORESTRY 



tion of a forest policy. Also it is a truism that taxes are levied and 

 collected to meet public expense for the public good and are not levied, 

 or should not be, for the purpose of stifling or fostering trade. The 

 assessment of value should not be full, the rate should be uniform and 

 the tax should be collected yearly. Through the operation of simple, 

 workable machinery it should be collected once and only once, and in 

 a manner to cause as little friction as possible. And above all things 

 else, taxation for revenue purposes should be based on the ability of 

 the individual to pay because he possesses that particular piece of 

 property. Upon these fundamentals there is perfect accord, and when 

 we consider with them the injustice in the systems of timberland taxa- 

 tion now in existence, if measured by these fundamental truths, the 

 axiom pronounced above to the effect that site taxation is possible and 

 desirable, stands out clearly as a solution to a perplexing problem. 



An analysis of these systems that failed will testify to the need for 

 a change and will tend to show the need for an entirely new basis for 

 forest taxation, namely, ability of the soil to produce. 



The application of the so-called property tax system of taxation to 

 a timber tract creates an intolerable financial condition which has been 

 a burning question with American foresters and lumbermen for 

 decades. For example : the sum of a series of variable payments 

 made yearly for a period of 50 years (taxes) based on an ever in- 

 creasing valuation identical with cost (starting with an initial valua- 

 tion of $12 per acre for land and planted young timber) amounts to 

 $2G8.31 when the tax rate is ;>00 cents on the grand list (30 mill tax) 

 and when 4 per cent compound interest is reckoned on all taxes paid 

 from the date of payment to the end of the 50-year rotation. This 

 $3()8.21 represents the tax burden for a single acre. It is the tax 

 money paid out in 50 years and its accumulated interest. It includes 

 neither the investment fund nor interest upon it, nor profits of any 

 kind. To increase the 50-year rotation even slightly means a tre- 

 mendous increase in the tax burden. And since, under present con- 

 ditions, the soil cannot be induced to grow $268.21 worth of timl^er in 

 50 years there is no disputing the fact that such a system is confis- 

 catory ; therefore, another system of taxation must be devised and 

 employed. 



The injustice of the property tax when applied to stands of growing 

 timber was early recognized and decried by foresters, and years ago. 



