﻿WHITE PINE UNDER FOREST MANAGEMENT. 31 



Protection and Administration. 



Protection and administration may involve a slight annual outlay, 

 though in States which employ an efficient patrol during the fire 

 season that for the former may be so small as to be scarcely a factor 

 in timber raising. Administration provides for time spent in looking 

 over the property. In Table 12 an annual administrative and pro- 

 tective cost of 5 cents per acre is compounded at 4 and 6 per cent 

 interest for 10-year periods up to the age of 70 years. 



Taxes. 



Tax assessments on timberlands are commonly based on rough 

 appraisals in which the land and the timber are not considered sepa- 

 rately. 1 The tax rate varies considerably, but a common one in 

 the pine regions of New England is $2 per $100 on a two-thirds 

 valuation. In computing the accumulated tax per acre for this 

 bulletin land and timber were assumed to be valued separately. 

 Since the value of the land is a constant one of $5 per acre, the taxes 

 are figured as an annuity. The increase in value of the growing 

 timber is taxed on the basis of the stumpage values given in Table 11, 

 which implies that the taxable value of the stumpage remains reason- 

 ably constant for a 5-year period. The taxes accumulated for each 

 period are carried at compound interest to the end of the rotation, 

 when the total accumulations from all the periods represent the total 

 accrued stumpage tax at a specified age. These amounts are shown 

 in Table 13. The tax rate used is 1J per cent on full valuation, 

 corresponding to 2 1 per cent on a two-thirds valuation. This rate 

 is slightly higher than the usual one, and together with the strict 

 valuation imposed by Table 11 results in accumulated taxes probably 

 in excess of the actual amounts. This was done to avoid the danger 

 of underrating the total cost of growing the timber. With a lower 

 tax rate the age at which the stand can be most profitably cut would 

 be slightly extended and the profits increased. 



The relation between stumpage value, taxes, and other producing 

 costs, and their effect on the length of the rotation, is shown in Table 

 34, Appendix. 



1 Taxation of forest lands is discussed in a paper under this title by J. H. Foster (Biennial Report, 1907-8, 

 Forestry Commission, State of New Hampshire, pp. 47-118), and also in a report of the Wisconsin State 

 Board of Forestry in cooperation with the Forest Service, entitled "Taxation of Forest Lands in Wiscon- 

 sin," by A. K. Chittenden and Harry Irion. 



