i irruHl J( J 



FOREST YIELD TAXES 21 



There are advantages in administering a law such as the yield-tax 

 law at the local level. However, unless a fair and sympathetic ad- 

 ministration of the law can be assured at this level, experience indicates 

 that it is wise to vest the authority to approve applications in a State 

 board or commission, 



Contractual relations. — In seven States legislation provides for a 

 contract between the owner and the State and in five States such a 

 contract is required. The contract runs for a definite period of time 

 and provides for the manner in which land and timber will be taxed 

 during that period. In some cases the contract also specifies the forest 

 practices to be conducted by the owner. The nature of the contract 

 is illustrated by the Idaho law under which the State agrees that 

 "* * * no change in or repeal of this chapter shall apply to any 

 land which has been designated as 'forestation lands,' except as the 

 State Cooperative Board of Forestry and the owner may expressly 

 agree in writing." 



In Alabama the Governor enters into a contract with the owner. 

 The owner agrees to devote his lands to forest culture, to protect them 

 against fire, and not to withdraw his lands for a period of 5 years 

 after classification. The law does not fix any length of time for con- 

 tracts. Contracts have been made for from 5 to 40 years. The con- 

 tract is a covenant running with the land and presumably is renewable 

 upon expiration. 



In Idaho the verified petition of the owner and the approval by 

 the board of forestry constitutes a contract between the State and 

 the owner running with the land for a period of 50 years. In this 

 contract the State agrees that no change or repeal of the law shall 

 apply to the classified lands during the contract period. The con- 

 tract is renewable upon expiration. 



A contract between the State and the owner is required in Louisiana. 

 No contract may be written for longer than 40 years and the law 

 contains no provision for the renewal of contracts. The landowner 

 is obligated to practice forestry and to plant where necessary in 

 accordance with a plan filed with the application. The contract fixes 

 the value of the land for tax purposes. Contracts have been made in 

 Louisiana for periods running from 15 to 40 years. 



A contract is also required under the Minnesota law. These con- 

 tracts are covenants running with the land and may be made for 

 periods not exceeding 50 years. In addition to the method by which 

 the land and timber will be taxed the contract prescribes forest prac- 

 tices to be carried out by the owner. Upon expiration the contract is 

 renewable for an additional period not exceeding 50 years. 



In Wisconsin, as in Idaho, the filing of the petition and its approval 

 constitute a contract between the State and the owner running with the 

 land for a period of 50 years. The contract is renewable by mutual 

 consent upon expiration. It provides for the method of taxation 

 during the contract period and further provides that no change or 

 repeal of the law shall apply to any land under contract. 



Classification under the laws of Oregon and Washington does not 

 constitute a contract but the laws of these States have similar pro- 

 visions under which the owner may enter into a contract with the 

 State. There is no specified period for these contracts but they are 

 intended to be for the period of time required for the growing timber 



