224 Forestry Quarterly. 



keit) of the land, and is expressed as a percentage of this capacity. 

 Not the actual yield, but the yield capacity is assessed, no matter 

 whether the owner lets the land lie barren or uses it not in a manner 

 most suitable to its capacity. Hence this tax leaves out of consider- 

 ation whether the piece of land bears forest or is improperly stocked ; 

 the site quality alone is involved in determining tlie amount of aver- 

 age wood growth to be estimated, which, figured at the current price 

 per unit, less hervest cost, gives the capacity of production of a prop- 

 erly stocked woodland, relatively as correctly as the capacity of a 

 farm land or meadow may be estimated on a similar principle. Since, 

 however, such a yield can be secured annually only when the area is 

 stocked with the normal stock, the annual interest on the capital in- 

 volved in the normal stock is to be deducted in order to secure the 

 correct net yield on which to determine the soil rent. 



For instance, if timber forest is managed in 80-year rotation, cop- 

 pice in 20-year rotation, an expression for the value of the normal 

 stock or wood capital is found according to the formula N = ''/2 I, i. 

 e. multiplying the net money yield by 40 and 10 respectively; and if 

 an interest rate of 2%i for timber forest, and of 6% for coppice is 

 assumed, — differences in interest rates for different conditions being 

 considered proper, — the annual interest on the wood capital is 

 40 x 7 x 2 and 10x7x6 i. e. 4/5 and 3/5 of 7 respectively; hence 



100 100 



the taxable value is 1/5 or 2/5 of the actual yield. The author does 

 not make any difference as regards annual and intermittent manage- 

 ment. It is faulty to use for soil tax caluculations the accidentally 

 actually present wood capital or building or factory, etc.; these are 

 to be considered only in the property or income tax. On account of 

 the difficulty of estimating the yield capacity the author advocates 

 the abolishment of the soil tax, at least for State purposes. It could 

 however, be used with fairness for local taxation, since "it may be 

 assumed that all realty belonging in a municij^ality participates ac- 

 cording to its yield capacity in the advantages of communality, hence 

 should bear the burdens in equal proportion." 



The property tax is a personal one, consisting in a percentage on 

 the possessions of the owner free from debt. In assessing the taxa- 

 ble value the sale or exchange value is to be the basis, and if it is 

 a business, its sale value as a whole under normal conditions with a 

 view to its continuance. In the case of forests a simple summary 

 method of ascertaining the value approximately is required. Such 



