140 REPORT O]? THE FORESTRY COMMITTEE 



Michigan Forestry Commission, 1905-6. — Taxation and tax lands. 

 National Tax Association Proceedings. — Discussion on forest taxation, vol. II, 

 pp. 99-110; vol. VI, pp. 394-401. 



Taxation of wild lands in Maine, vol. I, pp. 467-470. 

 Assessment of timber land in Washington, vol. Ill, pp. 335-336. 

 Society for the Protection of New Hampshire Forests. — Discussions in "Taxa- 

 tion of Forests," 1913. 



A large number of short articles and notes on forest taxation have appeared 

 in the various forestry and lumber trade journals of the United States during 

 the past five or six years. No attempt is made here to list all of these articles. 



The principal German works on the subject are Weber, Die Besteuerung des 

 Waldes (Frankfurt a.M., J. D. Sauerlander's Verlag, 1909) and the chapter on 

 Waldbesteuerung in Endres' Handbuch der Forstpolitik (Berlin, Verlag von 

 Julius Springer, 1905). A great number of articles on the subject have appeared 

 separately. 



THE TAXATION OF FOREST LANDS, FOREST COUNTY, WISCONSIN 



THIS study was made covering the tax year of 1912 for the purpose of 

 determining the actual effect upon taxes to owners of forest lands of 

 the exemption of growing timber both under present conditions of local 

 assessments and under ideal conditions of assessments at full valuation. 



It should be remembered that in the tax scheme in Wisconsin, as of most 

 of the American States, the tax on real estate forms the so-called elastic element. 

 Licenses, taxes at fixed rates, etc., furnish a certain basic minimum of revenue. 

 The balance must be extended against the general property and against real 

 estate in particular on a sliding rate. It follows that any reduction in the value 

 or quantity of property subject to taxation must be met by a corresponding- 

 increase in the tax rate. This applies both to the tax to meet local expenditures 

 and to meet State and county requirements. 



This inquiry covers three points. 



First. What is the present tax burden of forest lands in this country? 



Second. What would be the effect on such lands and all other property of an 

 exemption of growing timber, other conditions remaining as at the present time? 



The third inquiry was on the same basis as the second but assumed assess- 

 ment of all property at its full value. 



The first big result indicated by the investigation is that the mere exemption 

 of timber on forest lands is not a solution of the problem. The reason for this 

 lies in the sliding rate. The proportion of forest lands to the total taxable prop- 

 erty of the district bears a direct relationship to the increase of the tax rate 

 resulting from the exemption of growing timber. 



In the theoretical case of an assessment district containing nothing but 

 forest lands there would be no reduction to the owners on such lands in taxes 

 through the exemption of growing timber for the reason that the total tax would 

 remain the same and the rate would be increased to offset the lowered valuation. 



In Forest County as a whole the exemption of growing timber on forest 



