FOREST TAXATION IN THE UNITED STATES 69 
The timber and land taxes combined are then 
X=rV, tp" a en rin] C4 BA <n |—nrb-+rn CEP. 
This when simplified reduces to formula 138, 
ary, SEP tet (ptr yi] OEP a |- 
This formula is preferable to formula 12 whenever Vp is known. 
By definition, 
Wi C(ANiese Crp 
ap) eal 
Substituting this value for Vy in formula 13 and simplifying, results in formula 12, 
he Gig CEPT) 4 tet (pt SE —n|- 
Yo= 
ptr 
The tax ratio will be the ratio of either expression for X to 
sige gue Oar i) Licael 
Pp 
A useful expression for the stocked land value of an even-aged 
forest, Vj, with X eliminated and V,—C substituted for LZ, may be 
found by solving formula 13 simultaneously with 
alate allay aioe 
Vai tpi 
This results in 
Formula 14, 
DIFFERENTIAL TIMBER TAX 
As a third remedy for the inherent disability of the property tax 
when applied to deferred-yield forests, it will be proposed in part 12 
that the required tax payments under the property tax be lowered, 
under certain conditions, by reducing the assessed value of the timber 
by a certain percent termed ‘‘the reduction factor.’’? Since, under 
this plan, only the tax on timber is affected, the tax burden will 
obviously lie between a full property tax and a bare-land tax, its 
position in relation to these depending on the reduction factor. Let 
r' represent the ratio of the taxes paid on timber to the value of the 
timber and w the reduction factor. Then r’=r(1—w). The taxes 
under this plan may be © CUE sete from the following formulas: 
Formula 15, 
iw CeO) NN ile Ol Geta & Car pyinnk, 
oO eel pr pie 
