FOREST TAXATION IN THE UNITED STATES. 



PREMISES : In America taxes depend on the value of prop- 

 erty. In the less densely settled sections, where most of our for- 

 ests are situated, the taxes amount to i per cent, of the property 

 value. 



Given a forest, which when 90 years old contains $20 worth of 

 timber per acre. The soil alone, when cleared, is worth only $1 

 per acre. Rate of interest 4 per cent. 



QUESTION : What taxes ought to be justly imposed upon 

 the owner, — if taking i per cent, of the forest value is just taxation 

 — at the 6oth and 30th year of the development of the forest, and 

 further, in the year, in which the seedlings were just starting 7 



POINTS: 



1. The taxes being i per cent, of the value of the forest, that 

 value — a prospective value— must be ascertained for the years 60, 

 30 and o. 



2. The forest 90 years old is worth $21.00— $o.2i, the 21 cents 

 being the amount of taxes due in the year 90, 



$21.00— $0.21 equals $— x 21 



.^. , ^ o ij • ..•. ,.L$ 99 X 21 $ 99 X 21 _ I 

 The forest 89 years old .s thus worth ^^^^^ ^^T^'' IBS 



equal to [-99.]' JL. 

 ^ L 100 J 1.04 



The forest 88 years old is thus worth f 99 I * 21 



t 100 J 1.04' 



The forest 87 years old is thus worth f 99 "1 * 21 



L 100 3 1.04' 



3. The forest 60 years old is thus worth r 99 1 3> 21 



L 100 J 1.04™ 



4. The forest 30 years old is thus worth r 99 1 °> 21 



I 100 i 1.04*' 



5. The forest o years old is thus worth f 99 "j °> 21 



I 100 J 

 EQUATIONS: 

 Taxes in forest 60 years old t C 99 I " 21 



100 I 100 J 1.04*' 

 Taxes in forest 30 years old i 



i.04"« 



r 99 ] " 21 

 1. 100 J 1.04* 



21 



106 J I.O^ 



Taxes in forest years old i f 99 "j 



100 L 106 i 



RESULT: At 60 years 4 7-10 cent. 



At 30 years i i-io cent. 



At o years 2-10 cent. 



22 



