FOREST TAXATION IN THE UNITED STATES 243 
assessed values and the resulting taxes were compounded at 3 percent 
to the end of the 20-year period. A stumpage value of $5 per 
1,000 board feet was applied to the growth during the same period. 
The taxes with interest amount to $9.36, $12.79, and $6.47 per acre 
in Beaufort, Chatham, and Macon Counties, ‘respectively. The 
average erowth in the same counties is worth $30, $45, and $16.30 
per acre, respectively. Since practically no expenses other than 
taxes are incurred by private individuals in these counties in connec- 
tion with growing timber, the ratios of taxes to the value increment 
for the 20-year period are 31, 28, and 40 percent, respectively. These 
ratios would correspond to the tax ratio if the income cycle were 20 
ears. 
y Jack PINE IN THE LAKE STATES 
Jack pine in the Lake States produces earlier returns than most 
other species in that region. It will probably be grown in the future 
on a short pulpwood rotation. The unit price of jack pine pulpwood 
in recent years has been around $1 per cord. When this value is 
applied to prospective yields from an eight-tenths stocked stand,” 
and these yields are reduced by $0.025 per year for losses, the values 
given in table 96 are derived. 
TABLE 96.—Assumed money yields, jack pine in the Lake States } 
Stumpage value per acre Stumpage value per acre 
Age 
Medium Poor Good | Medium Poor 
site site site site site 
Dollars Dollars Dollars | Dollars | Dollars 
20 years 3 OF RoOhyearss=== === $3 25 17 
30 years 13 5 | 60 years_-----.---_- 35 27 18 
40 years 21 12 
1 Basis for these assumed money yields is given in the text. 
Jack pine may be planted for as little as $4 per acre (103, table 10). 
The species may in some places be reproduced naturally at no expense 
other than costs of protection and administration. The miscellaneous 
expenses are here as elsewhere assumed to be $0.10 per acre. The tax 
rate on actual value in the cut-over region of the Lake States, partic- 
ularly in Minnesota, is very high; the average in selected townships 
of Minnesota and towns of Wisconsin is 2.6 percent. 
Table 97 gives the financial rotations, initial forest values, and tax 
ratios under the above assumptions as to costs, yields, and interest 
rate. It will be noted that the initial forest values for the poor sites 
are usually negative. As previously explained, no reference to value 
in the economic sense is intended. A negative initial forest value 
merely means that the particular site is worthless for the growing of 
timber under the assumed conditions. 
8 Computed (103, table 9). 
