384 MISC. PUBLICATION 218, U. S. DEPT. OF AGRICULTURE 
the amount on which the yield tax theretofore levied was based, and if so it 
notifies the tax commission, which then levies a supplemental yield tax. Fail- 
ure to make any report required by this paragraph or intentionally making 
any false statement in connection with the requirements of this paragraph is a 
misdemeanor, subject to a fine of not more than $1,CC0 or imprisonment for not 
more than 1 year or both. A penalty of 10 percent of the amount of the tax 
is imposed if the tax is unpaid for 30 days, and thereafter both tax and penalty 
draw interest at 1 percent per month until paid. The tax is collected by the 
State treasurer. All revenues from the yield tax are credited to the general 
funds of the State. The State retains from yield-tax revenues an amount equal 
to the total payments made under paragraph VI below with interest thereon at 
5 percent, and an amount equal to 5 percent of these payments (made under 
paragraph VI) to cover administration costs. Any yield-tax revenues in excess 
of these amounts are paid by the State to the town treasurer to be apportioned 
by him as provided in paragraph III above. 
V. Amounts expended in the planting, maintenance, and protection of forest- 
crop lands may be deducted in computing net income taxable under the State 
income-tax law. 
VI. The State in consideration of the expected loss to local revenue on account 
of the law] pays annually to each town the sum of 10 cents per acre on all forest- 
crop lands in the town, or proportionately less in case of insufficient appropria- 
tion. This State contribution is apportioned by the town treasurer to the county, 
town, and school districts in the same manner as the “‘acreage share.” 
VII-1-a. The initial qualifications for classification are as follows: The prop- 
erty must comprise not less than 40 acres, except in case of farm wood lots or of 
small tracts contiguous to larger ones already classified, and must appear to the 
commission to be destined permanently for the growing of timber rather than for 
agricultural, mineral, recreational, or other purposes. The forest must be such 
as to give reasonable assurance that merchantable timber will result within a 
reasonable time after classification. If any of the land ‘‘bears a stand of mer- 
chantable timber’’ and “less than 50 percent of the original volume thereof has 
been removed since 1915, such land is entered under special classification.” 
VII-1-—b. The procedure of classification, including ‘‘special classification’’, 
is initiated by a petition of the owner to the commission. Such petition must 
state, among other things, that the owner intends to practice forestry on the 
forest-crop land and that he believes this land to be more useful for forestry than 
for any other purpose. The commission, after public hearing and independent 
investigation, determines whether the qualifications have been met and, if so, 
orders the property so classified on condition that all unpaid taxes against the 
property be paid within 30 days. If the tax condition is met, such order is re- 
corded by the county register of deeds and is filed with the tax commission, the 
assessor of incomes, and the town clerk. No recording of “special classification” 
is required. If the commission orders the petition denied the order is final in 
case of areas under 40 acres, otherwise the owner may appeal to the courts. 
VII-2. The requirements for continued classification are as follows: The 
initial qualifications must be maintained so far as they are applicable. The 
forest-crop land must, except in case of farm wood lots, be open to the public for 
the purposes of hunting and fishing under such regulations as the commission may 
from time to time prescribe; it must not be used for any purpose other than 
forestry except that grazing is permitted on farm wood lots. The forest-crop land 
continues classified for a period of 50 years, subject to an extension of another 50 
years, by mutual agreement. The commission is required once every 5 years to 
make an investigation to determine whether forest-crop lands are entitled to 
continue so classified, and such investigation may be made at any time on appli- 
cation of the tax commission, any owner of forest-crop lands, or the town board, 
or on the motion of the commission itself. Transfer of the property does not 
affect classification. Whenever 50 percent or more of the merchantable saw tim- 
ber shall have been removed, “special classification’’, if in effect, is discontinued. 
VII-3. Declassification is effected by the owner’s withdrawal, by the commis- 
sion upon the owner’s failure to comply with the initial requirements, or by the 
expiration of the 50-year term. Use of the forest-crop land for purposes other 
than forestry, except grazing on farm wood lots, any time after 5 years results 
in declassification by the commission. The owner has the right of appeal to the 
courts from any findings of fact. A deciassification tax is imposed, which varies 
according to the cause of declassification. If the owner at any time withdraws 
his forest-crop land voluntarily, or if, any time after 5 years, he uses such land 
for anything other than forestry, except grazing on farm wood lots, the declassi- 
