INFLUENCE; OF TAX RATES 113 



costs ten dollars an acre and is located on land worth ten dollars 

 more. It is assessed at twenty dollars and pays taxes at three per 

 cent for thirty years. So far the owner has had no income but has 

 paid sixty cents per year for taxes alone. This together with inter- 

 est at three per cent makes thirty years holding- of the plantation 

 cost $28.54 for taxes. If now the value of the stand 



At 30 years is $100 



At 50 years is 250 



At 70 years is 400 



and- if the assessment is raised, as it should be according to law in 

 some states, to these values at thirty and at fifty years the case is 

 as follows : 



Taxes and interest between 30-50 years $ 80 



Taxes and interest between 50-70 years 200 



and the growth in value of the stand between fifty and seventy years 

 fails by as much as fifty dollars to make good the expense of taxes. 



In addition to taxes there is a charge of $39.14 between 30 and 

 50 and a charge of $70.68 between 50 and 70 on the original invest- 

 ment of land and plantation. 



The above case presents no special peculiarities, the rotation of 

 seventy years is below the ordinary and the value of the stand at 

 seventy is liberal. It is evident therefore that with present methods 

 of assessment and rates, forestry, even at such favorable conditions 

 as in the above case, must be carried on at a large loss. 



The fundamental fallacy of this method lies in the fact that 

 the same year's growth is taxed over and over again, for seventy 

 years, in the above case. This is never done in taxation of farm 

 property. 



3. From the standpoint of the state or people the following 

 is true : To the state the taxes on standing timber are only of mod- 

 erate importance ; in the Lake states and east of very little import- 

 ance. On the other hand the secondary benefit through manufac- 

 ture of timber is of great value to the state. With the counties this 

 varies. In well settled farm counties the taxes from woodlots are 

 unimportant and there is no reason why woodlots should not be 

 treated like the rest of the farm land, i. e., the value of the timber 

 left out of consideration. In sparsely settled forested counties the 

 taxes from timber are important and there is usually clamor for 

 large sums and also for a steady income, to enable development. 



