NEW TAX LAWS 115 



2. Land worth twenty-five dollars or more is not considered 

 forest land and does not come under the provisions of the act. 



3. An existing forest placed under the ne\v law pays not over 

 ten per mill on actual value of the forest as a yearly tax, and when 

 the timber is cut it pays a yield tax which is varied as follows : 



If cut in first ten years, yield tax. .. . 2% of stumpage value 

 2nd 3% of stumpage value 



3rd 4% of stumpage value 



4th 5% of stumpage value 



5th 6% of stumpage value 



after 5th 7% of stumpage value 



4. New plantations are not exempt, but pay: 



a. Yearly tax on the assessed value of the land alone at not 

 over ten per mill ; 



b. Yield tax of ten per cent of the stumpage value of the ma- 

 terial removed, to be paid when the timber is cut. 



In the Pennsylvania law of 1913 the harvest or yield tax is 

 also set at ten per cent of the stumpage value, the land is assessed 

 at one dollar per acre and the state pays the yearly land tax and the 

 owner of forests is free to avail himself of the law. 



g. Basis of new tax laws. 



1. The various efforts at some reform in forest taxation clear- 

 ly show a lack of uniformity in the basis for such tax law. Even 

 with regard to the land we have : 



Lands worth over twenty-five dollars excluded: 



Lands assessed at sale value ; 



Lands assessed at one dollar, in Pennsylvania, and assessment 

 at five dollars recommended by Massachusetts. 



A reasonable sale value should be employed, and there is no 

 reason why even fifty dollar land should be excluded. Efforts at 

 tax dodging would be taken care of by the sale value assessment. 



2. The greatest amount of uncertainty, however, was involved 

 in finding a proper rate for the yield tax. Should it be five or ten 

 per cent, should it be ten per cent of the stumpage, of logs at land- 

 ing, at mill, etc.? 



