FOREST YIELD TAXES 15 



forestry provisions could be expected. But the variation in provisions 

 is more an expression of the search for improvement in legislation 

 than of fundamental differences in conditions or attitudes within 

 the States. 



The following review of the provisions of yield-tax laws is not 

 designed to discover specific provisions that would be best suited to 

 all conditions in all States. The purpose of the review is to bring to- 

 gether the many provisions relating to each separate problem of 

 principle or administration so that those interested in amending or 

 enacting yield-tax legislation may have a summary of what others have 

 done in meeting each of these problems. 



QUALIFICATION OF FOREST LAND FOR CLASSIFICATION 



Several objects are evident in the provisions establishing the quali- 

 fications of land for entry under the yield tax. One is to prevent tax 

 evasion by owners who might enter land that would not produce forest 

 crops subject to the yield tax, whether these be nonforest lands or 

 forest lands so low in productivity that substantial forest crops could 

 not be expected. A second object in some provisions is to limit entry 

 to cut-over lands without merchantable timber. A third is to limit 

 entries to tracts exceeding a specified minimum size in order to cut 

 down the expense of administering the law. 



If the object is clear there are no serious difficulties in drafting 

 provisions to carry it out. More difficulties are encountered in admin- 

 istration. It has been the experience in several States that as soon as 

 a yield-tax law is passed there is a flood of applications for classifi- 

 cation, many by real-estate speculators or others who want to escape 

 property taxes but who have no intention of devoting their lands to 

 forestry. In these situations declassification is heavy once adequate 

 inspections can be made. 



In Mississippi and New Hampshire, the States with nonoptional 

 laws, there is no need to establish qualifications. All growing wood 

 and timber is exempt from the property tax and all forest products 

 harvested are subject to the yield tax. 



Merchantable timber. — Six States have provisions limiting the 

 amount of merchantable timber there can be on lands eligible for clas- 

 sification. In Idaho the owner must verify in his petition for appli- 

 cation that there is no timber of commercial value on the lands de- 

 scribed. In Louisiana lands eligible for classification are lands de- 

 nuded of timber or land with growing timber thereon suitable for tim- 

 ber production and timber culture. Land eligible for classification in 

 Michigan must be capable of producing a thrifty forest growth and 

 must actually carry sufficient forest growth to give assurance that a 

 stand of merchantable timber will be developed within a reasonable 

 period of time. The law intends to exclude from classification land 

 carrying any merchantable trees in excess of the growing stock re- 

 quired by good forestry practice to promote optimum growth and 

 development of a fully stocked forest, as well as land used for other 

 purposes than the production of forest products. Selectively logged 

 lands or lands carrying forest growth well advanced toward maturity 

 but still requiring a period of years to produce high-grade forest 

 products are not excluded, however. 



