488 MISC. PUBLICATION 218, U. 8. DEPT. OF AGRICULTURE 
of ratings of the different factors. The stumpage value thus deter- 
mined is multiplied by the yield in cubic meters, and the fesulling 
product, capitalized at 4 percent, is the assessed value.# 
ST. GALLEN 
All real and personal property is taxed on the basis of value less 
debts, with certain exceptions which will be noted later. The can- 
tonal rate is progressive, varying from 0.1 percent on a total capital 
between 1,000 and 100,000 frances ($193 and $19,300) to 0.25 percent 
on a total capital over 2,500,000 francs ($482,400) (274, art. 8). The 
communal taxes are proportional, not progressive, and have no legal 
maximum limit. The income tax is a supplementary levy, in that 
income from capital taxed under the property tax is not included in 
taxable ncome as long as the latest 3-year average does not show an 
income in excess of 5 percent of the value (274, art. 12). Thus forest 
operations are in practice taxed only under the property tax. 
The assessments for the property tax are in the hands of local com- 
missions under the presidency of cantonal officials. The forest 
officers actively assist in the assessment. The law requires that real 
estate in general be assessed at market value, with due consideration 
to the fluctuations experienced in the past and also with regard to 
average yleld. Open lands, such as plowland, pastures, vineyards, 
and bogs, are taxed on the basis of three-fourths of this value, but 
without reduction for mortgages. Forests under working plans 
recognized by the Canton are valued at 12} times the yield as indi- 
cated by the average net income of the amas dine 10 years. However, 
in computing the average net income for this purpose, taxes and costs 
of constructing new roads are not deductible. Thus the assessment 
method applied to these forests under working plans would give one- 
half of the yield value based on a capitalization rate of 4 percent, since 
such a value would be 25 times the yield. All other forests, that is, 
those without approved working plans, are assessed at one-half the 
market value. 
All private forests, with one exception covering 45 hectares, are 
small parcels not managed under working plans. As there are 
seldom sufficient sales of forest properties to provide a basis for valu- 
ation by direct comparison, a system of approximating market values 
is used, based on the following factors: (1) The average price of 
stumpage under the felling conditions (2) the average annual incre- 
ment, and (8) the age of the stand. 
In order to facilitate computation, it is the practice to use tables 
based on the above-mentioned factors. For example, the table in 
use in 1925 (270, pp. 56-57), gives values computed so as to reflect 
the worth of a stand at various ages if managed on a 100-year rota- 
tion, assuming that the interest rate is 3/4 percent and that the profits 
from thinnings offset the expenses of management and protection. 
By means of this table one may find the assessed value corresponding 
to any 1 of 5 different age classes for each of 5 different stumpage- 
price values (making 25 combinations on the side of the table), and 
to 5 different grades of average annual increment (in 5 different 
columns). Interpolation is required for forests falling between the 
classes provided for. This table shows an extreme range of values 
from 30 to 15,000 frances per hectare ($2.34 to $1,171 per acre). A 
45 For a more complete description of this method of valuation, refer to Biolley (267, p. 781). 
