TAXATION OF FOREST PROPERTY IN NEW HAMPSHIRE 4: 



applied to forests, it is especially wrong the past have been moderate no real 



because the income from the forest is injustice is done the owner if the valu- 



available only at long intervals and in- ation is raised. The mature timber 



stead of being removed each year to represents a definite value which may 



be spent and enjoyed or reinvested else- be realized at any time. From the 



where, is stored up on the trunks of point of view of expediency, however, 



the trees and taxed not once but each it is still unwise to increase the valu- 



succeeding year, over and over again, ation abruptly. Except in the case of 



for forty or fifty years longer, until timber mature or nearly so the situ- 



the timber is mature and ready to be ation is entirely different. Valuations 



cut. There is a fundamental differ- are now much higher than they used 



ence between levying an annual tax on to be. There is little inducement to 



property producing an annual income the private owner to establish forests 



and levying an annual tax on property or preserve his young growth when 



producing an income only at long in- there is every promise that the taxes 



tervals. The difference is a matter of and accumulating interest during all 



compound interest. the years to come, when the forest is 



It may be illustrated in the case of yielding no tangible return, will ulti- 



two lots of land of equal value with- mately consume a very large part of 



out any growth. One is planted to his profit. Who can say that some 



forest trees and the other to field crops day after perhaps a third or a half of 



in such a manner that each lot will his future returns have been eaten up 



produce an annual revenue of $10. in taxes, his still immature forest may 



The field crop is harvested annually not be destroyed by fire? It is not a 



and the $10 received each year for Peasant prospect for an owner who 



sixty years. The forest crop is har- has spent so much in taxes to thus have 



vested but once, at the end of sixty his principal wiped out of existence 



years where the accumulated income wlth ut havm S ! d an 7 returns j rom 



of $600 is received. But during all * whatsoever. There is little induce- 



these sixtv years the income of $10 ^ent to the private owner to plant for- 



filij ests or preserve young growth when 



withdrawn each year rom the field he does ^ ^J f ^ * tQ 



crops has been accumulating at com- whether the t will be assessed 

 pound interest until at the end of the ^ or whether the assessment 

 sixty years at 5 per cent the total vat wiu bg increased 5Q cent or 200 

 is not $600 as is the case with the cent Qr mQre ^ thjs {& ^ s}tu _ 

 forest crops, but actually or ation tha( . confronts the forest owner 

 nearly six times as much. Old fidds re f orested now w i t h pine 

 lots are assumed to be physically and assessed at $ 10 per acre, if al- 

 same and are so taxed then no man i owed to grow f or 50 years w j t h a tax 

 would invest his money in forest prop- rate of 2 per cent and money valued 

 erty. at 5 per cent, will at the end of this 

 It is only fair to state at the out- per i od have accrued taxes amounting 

 set that the burden of unjust taxation to at i east $5 per acre. With a net 

 has never fallen upon timber prop- return of $300 an acre, from the sale of 

 erty which is now mature. In the past the timber, this means over 28 per cent 

 taxes have not often led to premature o f the final profits absorber! by taxes, 

 cutting. The serious problem today A valuation of $10 an acre is not ex- 

 rests with the young and partly ma- cessive under ordinary circumstances 

 ture timber and upon the land whose and the rate of 2 per cent is lower 

 owner wishes to re-forest. It is the than the present average in New 

 most serious obstacle to planting on a Hampshire. With a higher valuation 

 large scale by private owners. Timber and a smaller net return the money 

 now mature and ripe for the axe is kept spent in taxes might easily reach 50 

 longer on the tax list if the assess- per cent or 75 per cent. In some cases 

 ments are low, but since the taxes in it might mean confiscation. 



