FOREST TAXATION IN THE UNITED STATES 431 
on an amount which equals £10,000 less the cost of selling, manage- 
ment, and replanting. 
Also if the amount of the estate taxes has not been paid off by the 
date of the next death, then all liability ceases and the new owner is 
responsible only for the duty incurred at this subsequent death. 
Underwood (coppice) is not liable for death duty. 
TAXATION OF SAMPLE FORESTS 
The actual operation of the tax system in Great Britain as applied 
to forest lands may be better understood by considering in detail the 
taxation of some sample properties containing woodland. 
PROPERTY NO. 1 
DESCRIPTION 
This property is a ducal estate in southwest England, which includes 
2,000 acres of woodland on good soil. This woodland is favorably 
situated with regard to markets, especially for materials which are 
used in coal mines. Itis very well managed. 
The nature of the woodlands of this property is as follows: 
Coniferous plantations: Acres 
OSMOR Car semys Men aie ee eer Ame Oh i he ce ee 249 
UDA) Ske ASL os ag ele aC a ch ln NA CSU ll Ot eR 38 
ZINA Way Ce TiS ty ee aN Sk AE TR 8) i SU LOA aii Bledel Lp sem cage gC 100 
ON ered Oye air sy MINI NEN TV sal aly Lilo Binal al al ll RE A ED 66 
TRO ee Ti «SE I Te NE A A Sl NS 453 
Hardwood plantations: 
CUO CES ea eee Wino esate. OEE oer sa iT he de ek aang eee 9 
ON CT AUO RV CAT SO GaN Mh 28 Goi Sal Nol Ns ele shea BUR MOTE 13 
LISTEN) SIU CPM 0 lS en A a coe eG Eo 22 
Coppice under standards (hardwoods): 40-200 years___-_-____-.-_----- 1, 366 
Clearedearecisw seme eter ets Ryne a ie be as 159 
Soap SA = ese a Ne MRI LE Be ecient Oe ALT ye ey MRL CL an SA A 2, 000 
MANAGEMENT 
The management of the woodlands is very intensive as regards the 
quarter which is classified under plantations. Over 40 acres are now 
planted annually, and this area is increasing in value each year. The 
area under coppice with standards is being gradually converted to 
young plantations and the cut in this class of woods is probably about 
equal in volume to the growth. There is thus a certain capital incre- 
ment which should be added to income, but its amount is uncertain. 
CAPITAL VALUE 
The capital value of woodlands of this nature is difficult to deter- 
mine, but if merchantable timber is assessed at its current stumpage 
value on the assumption that it can all be cut in 1 year, and immature 
stands are evaluated on a compound-interest curve associating their 
original cost with their expected future value, the growing stock is 
probably worth rather more than £100,000. The land is valued at 
£5 per acre, or a totai of £10,000. 
