SUSTAINED ANNUAI, YIKI.D 829 



over-topping growth of sprout oaks, poplar, and maple. Such plant- 

 ings, however, require attention regularly in the shape of releasing 

 cuttings and reinforcement plantings. What is true here will most 

 certainly be true in large measure on all forestry operations in the 

 coniferous regions. 



RATIONAL TAXATION OF PRIVATE TIMBER LANDS AND SUSTAINED ANNUAL 

 YIELD ARE INSEPARABLE 



In discussing relations of taxes to forests, three types of forest 

 businesses may be recognized : 



1. The going forest business, in which growth equals the quantity 

 of the product, and the value of the product is approximately equal 

 year after year. This is a common enough condition on a number of 

 large woodlots. The tax is based primarily upon the quality of the 

 soil to produce revenue in the shape of timber cut. The proposition is 

 essentially similar to a farm, and can be taxed as a farm is taxed with- 

 out hardship to the forest business. The scheme of taxation of farms 

 has been evolved after a great many years of trial and apparently is 

 the best scheme in sight. 



2. The second style of forest is one which is composed of either 

 much bare land which must be replanted if crops are to be produced, 

 or of much young stuff, or at best is lop-sided of ages — heavy with 

 immature trees and light with mature trees of poor quality. In this 

 case the owner must wait many years before obtaining a revenue from 

 his property commensurate with the productive value of the soil. The 

 stand may be potentially large in value but at present of little com- 

 mercial worth. The trees have to grow. The land may not be well 

 stocked with trees, proljal^ly is not in fact, and planting or other means 

 of reproduction employed, or thinnings made, to obtain good stocking. 



This is the condition on a matter of 300 million acres of land in the 

 United States (Capper Report). 



A fair tax for such land is not easily determined, and above all the 

 tax must be suited to the individual conditions of the forest property. 

 The State of Michigan pays a flat tax of 5 cents per acre for cut-over 

 lands within the State forests to the county in which the forests are 

 located. 



Such lands, although at present practically worthless, are yet a burden 

 and a menace to the surrounding territory. They cannot well be iso- 

 lated and left to the whims of nature. Routes of travel must be estab- 



