FOREST TAXATION IN THE UNITED STATES 435 
due. Estate and succession duty, therefore, operate as a kind of 
yield tax on the proceeds of the timber felled ; in this case 37 per- 
cent of the net proceeds from the sale of timber 1 is paid in this form of 
tax. 
These taxes are payable on the net income received from timber 
after deducting all necessary expenses since the death of the deceased, 
and therefore deductions may be made for management of the areas 
felled from the time of death, cost of advertising sale of timber, cost 
of felling if the timber is felled by the estate staff, and the cost of 
replanting. This last allowance is very important. Interest at 4 
percent per annum is charged for the period between the receipt of 
income by the estate and payment of taxes to the inland revenue. 
The net value of timber felled and sold between the death of the 
previous owner and 1930 was £22,037 ($107,244), on which estate 
and succession duty with interest amounted to £8 4497 ($41,351). 
Standing timber to the value of £2,003 ($9,748) was also disposed of 
on an outlying part of the property which was sold. Though this 
timber was not felled, estate duty amounting to £541 ($2,633) had 
to be paid on it. 
PROPERTY NO. 2 
DESCRIPTION 
This property is located in the south of England and includes 
2,579 acres of woodland. It is mostly situated on marginal agricul- 
tural land, and the forest quality of the soils on which the woods are 
growing is moderate to good. The present owner is a wealthy man 
and, as the woods had been largely devastated by previous owners, 
his object of management has been to build up the capital value of 
the property rather than to obtain an annual income. 
The nature of the woodlands of this property is as follows: 
High forest: 
Plantations (mostly coniferous): Acres 
BU yea Tis ages tes a mele Ce a NS a Pea Ey ch le a a 2 91 
TESA RCPEW Sy, 1s ap an eg Sal Ml NA NGS le UN 182 
Pa SA VAS SEIS a AR OA aie ie eR 2a RU CEP a AN ge Nghe 185 
{WOE Isat catenin 2 SV lah ay Seer 2S ea Sell 8 OK i AMMO 458 
ODS TS Se soc RSIS ae oat Nea Pa Ps YY tS Tare a 2, 077 
(CY EIB ay sa a a ee a eg) a am a MUR RA 44 
el NCOREE ps oS es NEDA Re Bi 9 2A AU a J a ee ee 2, 579 
The high forest is of poor quality, and most of the value resides in 
the plantations, which are not yet ripe for felling. There is no local 
market for mine timber as on sample property no. 1. 
The estate possesses a sawmill and a creosoting plant, which are 
used principally for manufacturing estate requisites. 
No assessment of the capital value has been made, but it probably 
lies between £60,000 and £100,000 including the land. 
INCOME AND EXPENDITURES 
The income and expenditures during 4 successive years are as shown 
in table 125. The figures in this table do not take account of the value 
of certain saw timber used on the property. It is estimated that, if 
these figures had been available, an average annual net income of 
about £500 would have been shown. 
