FOREST TAXATION IN THE UNITED STATES 487 
NEUCHATEL 
The property tax applies uniformly to all property, real and per- 
sonal, after deduction of debts. The cantonal rate is progressive, 
varying from 0.16 percent on taxable capital up to 5,000 francs, to 
0.7 percent for that part of the taxable capital above 5, 000, 000 francs. 
A fortune of 100,000 frances ($19,300), for example, would bear a tax 
of 0.278 percent (278). 
The income tax permits the taxpayer to deduct from his net income 
an amount equal to the usual return on the capital used in his business 
up to a maximum of 4 percent.” This provision means that practi- 
cally all forest operations are exempt from this tax. 
The communes are permitted to levy additional taxes on property 
and income on the same base as the Canton. Therates may be either 
proportional or progressive. If proportional, the total local tax 
levied cannot exceed 0.4 percent on capital or 4 percent on income. 
If progressive, the maximum rates for local purposes must not exceed 
0.8 percent on capital, or 8 percent on income, and the schedule of 
rates must be approved by the State council. However, in addition 
to these taxes on general property and income, the communes may 
levy supplementary taxes on real estate.“ 
Real estate transfers are also subject to tax at a rate of 4 percent on 
selling price, and inheritance taxes are levied on collateral heirs at 
various rates. 
Assessments of real-estate for the property tax are made by the 
tax commission of the Canton. The assessment of forests is made 
with the assistance of the cantonal forest inspector. The general 
rule for the valuation of real estate for the property tax is that lands 
are assessed in accordance with intrinsic value, disregarding differ- 
ences in the skill and industry with which they are cultivated. In 
the case of forests and wooded pastures, consideration is given to the 
value of the soil, density of stocking, and productivity under regulated 
management on silvicultural principles. On the basis established in 
1923, both public and private forests are valued at net yield capital- 
ized at 4 percent. Private forests not under management, for which 
necessary data for a direct appraisal are lacking, are valued by esti- 
mating certain factors and relating these to the value by means of 
established relationships expressed in tables. The productivity of the 
site and growing stock is estimated in cubic meters of annual yield 
per hectare, the range being from 3 to 8 cubic meters for a fully stocked 
stand (43 to 114 cubic feet per acre). These figures are discounted 
for the density of the growing stock, five different grades being 
recognized. It is exceptional in Switzerland to give the actual timber 
on the ground any recognition in determining taxable value. The 
price to be applied in order to determine the net yield in money is 
based on a consideration of quality of the stand, logging conditions, 
and accessibility to market. Each of these 3 factors is divided into 
4 grades which are expressed by the ratios 1.0, 0.8, 0.6, and 0.4. The 
combined effect of these three factors is determined by multiplica- 
tion, which gives a coefficient applicable to the optimum price for 
timber stumpage in the Canton, as determined by the cantonal 
forester. ‘To reduce the work of calculation, a table is supplied giv- 
ing the value per cubic meter for all of the 64 possible combinations 
4 Law of Apr. 30, 1903, art. 15. 
44 Law of Oct. 29, 1885, arts. 1, 2, 3, and 4; modified by decree of Nov. 29, 1917, and law of Feb. 9, 1921. 
