464 MISC. PUBLICATION 218, U. 8. DEPT. OF AGRICULTURE 
However, property the income from which is subject to taxation 
by the States and communes may not be taxed by the National Gov- 
ernment at a rate higher than 0.5 percent of the taxable value (253, 
pp. 2-18). 
STATE LAND TAXES 
The land and house tax (Grundsteuer), in some States separated 
into land tax (Grundsteuer) and house tax (Haussteuer or Gebaude- 
steuer), is levied by the States (Linder), communes (Gemeinden), 
and communal associations (Gemeindeverbande) and is by far the 
most important State or communal tax from the point of view of 
farm and forest owners. The land tax is a very ancient tax (247, 
p. 65), though it has been brought up to date in some of the States, 
and its administration varies from State to State. 
In the administration of this tax two systems of assessment have 
been in use. The ultimate use in all States of the uniform value 
(Einheitswert) of the National Government valuation has been pre- 
scribed. The old method of assessment was by means of the cadastre. 
This method was in effect in most of the States when this study was 
made. 
These cadastres were very detailed appraisals intended to be effec- 
tive over a long period. In Bavaria, for instance, the cadastre which 
was in force as late as 1931 was made during the period from 1818 to 
1840. The cadastre gives a separate value for each parcel of land, 
each building, and each kind of personal property. The total assessed 
value of any property is the sum of its constituent parts. This system 
is described in greater detail at a later point. In none of the States 
is any deduction allowed for debts from the land and house taxes. 
As stated above, the communes and communal associations levy 
additional rates (Zuschlage) on the State land taxes. 
INCOME TAXES 
The national income tax (Einkommensteuer)*’ is a progressive tax 
on the incomes of natural persons. Its rates are graduated from 10 
percent on the first 8,000 Reichsmarks ($1,906) of taxable income to 
40 percent on that part of the taxable income in excess of 80,000 
Reichsmarks ($19,060). There is an exempt minimum of 1,300 
Reichsmarks ($310), and certain deductions for dependents are 
allowed. Deductions are also allowed for insurance premiums, edu- 
cation, cost of traveling from home to place of buisness, and, in 
special cases, business losses or unusual responsibilities. 
The determination of taxable income in case of ordinary forest 
properties which yield a regular annual income presents no special 
difficulties. The practice is to reduce the gross income from sale of 
products and other resources during the tax year by the current 
expenses of the same period, including costs of regeneration and 
management. In such properties there is no depletion of capital, 
since the fellings are offset by growth and regeneration. 
In connection with determination of income when there are ex- 
traordinary cuttings or in the case of very small forests which are cut 
irregularly, special problems have arisen. It was the practice prior 
to 1930 to disapprove the inventory method (or deduction of deple- 
37 ia tax law (Einkommensteuergesetz) of Aug. 10, 1925, with amendments through 1929 (246, pp. 
217-271). 
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