10 MISC. PUBLICATION 218, U. S. DEPT. OF AGRICULTURE 
the way of the best use of the forests and forest lands from the view- 
point of the public interest. In pursuance of this ideal, a balance 
should be struck between the needs of the forest owners and the needs 
of the forest communities. The forest owner should have the oppor- 
tunity to pursue his forest business without the obstacle of unreason- 
able taxation; the forest community, on the other hand, should have 
money to supply necessary governmental services. This money may, 
to some extent, be obtained from the State in the form of aids and 
grants, but public policy demands that local communities, no matter 
how poor, shall supply at least some of their vovernmental services 
out of their own pockets. An entire community placed on the dole 
is not a part of the American ideal. 
It is not to be presumed that an ideal tax system would require that 
large areas of forest or other land be placed on the delinquent-tax rolls 
year after year. To confiscate forest property by taxation is as much 
against public policy as to exempt it from carrying its fair share of 
governmental burdens. 
The search for a just tax begins with a presumption against special 
favors to forest owners. Nevertheless, consideration of the use of 
special tax favors for the purpose of encouraging forestry has not been 
excluded from this investigation. The question will receive appro- 
priate attention in connection with the discussion of proposed reforms 
in forest taxation. 
SCOPE OF STUDY 
The scope of this study has been determined primarily by the 
authorization of the Clarke-McNary Reforestation Act, i. e.— 
to study the effects of tax laws, methods, and practices upon forest perpetuation, 
to cooperate with appropriate officials of the various States or other suitable 
agencies in such investigations, and in devising tax laws designed to encourage the 
conservation and growing of timber * 
Federal taxes having never presented any serious obstacle to the © 
practice of forestry, this study has been concerned almost entirely 
with State and local taxation. 
As will be elaborated in the next part, the property tax is the 
most important form of taxation imposed by the States and practi- 
cally the sole tax of the local governments. Complaint of the forest 
landowners has centered about the property tax, and the burdensome 
effect of this tax was cited to the Senate Committee as a serious or 
insurmountable handicap to forest perpetuation in private ownership. 
A predominant share of this report is accordingly concerned with the 
property tax. 
Special forest-tax laws have been enacted, amended, and repealed 
from time to time during the past half century in 35 of the States. 
An important part of the present study is the critical examination of 
the provisions of the State forest-tax laws and the results which have 
been achieved in their administration. 
There are other taxes which, as regards their effects upon forests 
and forest perpetuation, are ‘of minor importance. These were 
studied briefly. 
The general income taxes, as imposed by the Federal Government 
and by many States, were considered with reference to their indirect 
effects on forest perpetuation. 
Death taxes, including succession taxes and estate taxes, have 
potentially at any rate, an important bearing on the perpetuation of 
