FOREST TAXATION IN THE UNITED STATES 269 
As in the analysis of the relation of taxes to forest income in an 
earlier part of this section, the results of forest research and the 
experience of the national forests are here used as indications of con- 
ditions likely to be found on privately owned forests in the future. 
In fact the same data are used in the present analysis as in the previous 
one. The reader should be warned again that, while exact figures are 
presented, they are actually only rough estimates of prospective 
incomes and expenses. Furthermore, this analysis is based on the 
premise that the forests would be grown from bare land—a practice 
which would only occasionally be necessary under actual conditions. 
It is not intended to show whether forest planting, or any other silvi- 
cultural measure, is likely to be profitable for the species and region 
discussed. ‘The assumptions do not include the very common case 
where forest planting may be profitably used as a means of supple- 
menting natural regeneration. But in spite of the nature of these 
assumptions, the analysis is none the less suited to its purpose, which 
is merely to show roughly the place of taxes among the carrying 
charges necessary to the growing of timber under conditions of 
maximum income deferment where such taxes tend to be most 
burdensome. 
Wuitre Pine In New HampsHire 
The effect of property taxes in the case of white pine in New Hamp- 
shire is illustrated by table 108, which is based on the same assump- 
tions as to yields and costs as table 93, in an earlier section of this part. 
The financial rotations and initial forest values are shown, assuming 
(1), no taxes at all, and (2), a property tax at a typical rate for this 
region. The great difference between the initial forest values with 
and without taxes shows the importance of taxation in determining 
the possibility of profitable investment in forestry under the assumed 
conditions. However it should be noted that even with the imposition 
of this tax, growing white pine on good sites would pay a return of 
more than 3 percent if the investment in land and regeneration, 
whether artificial or natural, could be held under $15 an acre, other 
assumptions remaining the same. 
TaBLeE 108.—Financial rotation and initial forest value, with and without taxes, for 
white pinein New Hampshire, on different sites, and with and without planting | 
GOOD SITE 
Planting Natural regeneration 
Initial Initial 
Tax rate Financial forest Financial forest 
rotation value per rotation value per 
acre acre 
Years Dollars Years Dollars 
Gperce mt aean a sare oi mene Ee Ong) ee ops Pus ea ee 50 61. 70 50 64. 20 
PAGS OY) OS) ON he cap gs pa RON PR a RU 46 15. 50 45 16. 40 
MEDIUM SITE 
ONDER COTE ets eee as ate ah cea a ene LE Puen suc 53 44, 20 51 46. 60 
ZANDERCCN Gael Be Ne wism Nh AR hh A Ae ee ie Le De 48 10. 70 47 11. 40 
POOR SITE 
UDC Cor tee eM eA ROR AD TOA) VER SN IAS NS NOE SRS cg PO 63 29. 10 61 | 30. 80 
SMnPEccHtuuenE MiN EN rtp Vii ic el be 50 5. 90 50 | 6. 60 
1 Assumptions and method of computation are the same as described in connection with table 
83. Interest rate used, 3 percent. 
