FOREST TAXATION 



TABLE II. (Continued) 



149 



(A'. Taxes levied on sale value, revalued at 20 years and every 10 years thereafter.) 

 * This saving is largely due to the fact that the capital values of forests A and B are com- 

 puted for the year in which these values are lowest, and remain at this valuation for fifty years. 

 See|i6i. 



Per Cent of Values Taken by Taxation, Computing Taxes with Compound 

 Interest to Year of Final Yield 



In the problem discussed, the tax rate of 2 per cent on full 

 value is nearly twice the average rate of taxation on present 

 values of forest property. But the crop of timber chosen as 

 the basis of the problem is more profitable than that produced 

 by most species and localities. The coincidence between total 

 cash taxes for 50 years at 2 per cent and capital value would 

 hold good only for the same period and rate, since 2 per cent X 

 50 = 100 per cent of value. 



159. Scientific Taxation: Forest Property Tax. The value 

 given for the forest in case C is found by deducting the annual 

 cash expenses, $5.00 for planting and 3 cents X 50 acres or 

 $1.50 for protection. This gives $161.99 as the "net" value 

 of the annual crop, which, capitalized at 5 per cent, equals 

 $3239.50. (Formula XII.) 



The tax, 2 per cent, yields $64.79 annually. This is just 

 40 per cent of "net" stumpage value and a slightly smaller 

 per cent of sale value. The annual profit or net income of 



