('.((n(t<li(in Forcslri/ JournaL Aiu/usl. Hi 17 



121:3 



How Shall Planted Lands Be Taxed? 



Redeeming Waste Areas Requires Uniform 

 Method of Taxation. 



The taxation of waste lands plant- 

 ed in forest trees is so closely bound 

 up with the problem of reforestation 

 in Canada that any great extension 

 of forest tree planting must await a 

 decision of the tax question. 



The municipality that wishes to 

 redeem its stripped lands and turn 

 them to account cannot expect that 

 any private company or individual 

 is going to invest large sums on the 

 prospect that when the growth reach- 

 es a twenty or thirty year size the 

 investment is to be swept into the 

 municipal exchequer as taxes. 



Why A Company Ads'! 



A pulp and paper company may, 

 and often does, find a practical ad- 

 vantage in planting up cut over 

 or farmed-over areas near the mill, 

 in which case long-term tax agree- 

 ments are arranged locally. But this 

 is managed frequently by the com- 

 pany's undertaking to build certain 

 roads and give employment in the 

 nursery work to local farmers. In 

 the case of the Laurentide Company 

 at Grand Mere the planting up of 

 waste lands — now in excess of 500 

 acres — has given employment to num- 

 erous settlers, many of whom were 

 working on poor land nearby, and 

 has resulted in greatly improved 

 roads. Indeed at one point, the fin- 

 ancial impetus of the nurseries, road 

 building, etc. has put one community 

 closer to real prosperity than ever 

 could have resulted from farm work 

 alone. 



In the same section, the timber- 

 lands are taxed one tenth of one 

 per cent, on the valuation which 

 does not amount in anv case to more 

 than $4.00 to $5.00 per acre for tim- 

 ber lands. 



Assessment S4() an Aerel 



How grossly the estimates of assess- 

 ors and municipal councils vary may 

 be seen from an attempt near Saya- 



bec P.O. to assess i)ush lands at no 

 less than $10 an acre, the tax on 

 which would have forced the owner 

 to turn the area to immediate account 

 whether or not it was ripe for utiliza- 

 tion, or whether the owner's market 

 could have absorbed the material, 

 at the moment. 



It has been suggested to the Can- 

 adian Forestry Association that one 

 of the most pressing subjects which 

 could be submitted to the next re- 

 presentative meeting of timber own- 

 ers is that of taxation. As matters 

 are to-day, it has no uniformity. 

 Even if the available information on 

 the subject were gathered together, 

 and a clear argument given, why a 

 real distinction should be made be- 

 tween forest and other crops in the 

 interest of timber conservation, and 

 the restoration of waste lands to 

 timber bearing condition, a grea,t 

 service would be done. 



Certainly few private individuals 

 can be asked to undertake forest 

 tree planting on even a small scale, 

 unless there is a guarantee that at 

 maturity the municipality will per- 

 mit the deduction of original cost, 

 plus interest, plus cost of protection 

 and cultivation before arriving at 

 present value for taxing purposes. 



Ontario Allows Exemption 



Ontario had a happy impulse in 

 the planting direction some years 

 ago and passed an Act empowering 

 municipalities to grant tax exemption 

 on woodlands up to 25 acres. The 

 land in question must be held for 

 timber production solely and no graz- 

 ing could be allowed within its bor- 

 ders. The Act defined the term 

 "woodland" as one containing a given 

 number of mature or semi-mature 

 trees "or 400 trees of all sizes" which 

 would, presumably, cover a planta- 

 tion. As far as the Journal is aware, 

 the Act has never been applied by 



