FOREST TAXATION IN THE UNITED STATES 495 
Forestry and the principal industries dependent on it gave employ- 
ment to the following numbers of individuals in 1931 (240): 
VOWS ES aah a Bh ne Ne Ea SA th a of he's SM OST Rl MUP SN IN MA Lie leas 99, 313 
Sawinilistand iplaning mail ss a ee L Ce eS LR ON a 37, 297 
GIMME Ry BANC LUT MUG Tee ik Piet seep pig Mae eee 0 ar oye en iy PN GE Ud fey aki oe 16, 674 
NIH/CONONG | OTN) OS eS oa ges rae (7A LEA He aver Neva cen ae Pye 2 VE LHL eam SOW LS og 
Bapermand: pasteboard maiillsi smug. Vee en eS Ne na a 17, 096 
LAE 9 PCI Gy ENE OVEN SAIS We Be Ma Real a ER I al A, A dea i be ay at 4,985 
LUCY 7) Lageee Shia ey el Rope ap ALD ie 2 OIRO a EL ee at a 194, 076 
TAXES THAT AFFECT FOREST PROPERTY 
Most of the important taxes in Sweden, both national and local, 
are very intimately connected one with the other. It is therefore 
difficult to explain the various taxes in logical order. For the sake 
of simplicity those taxes which use the same tax base will be discussed 
together, whether they be national or local, income or property taxes. 
For illustration of the various taxes the reader is referred to the 
example at the end of this section. 
COMMUNAL INCOME-REAL ESTATE TAX 
The most important tax on rural property is the communal income- 
real estate tax. This is actually the basic tax of the entire Swedish 
system. As its name implies it is a tax on the amount of real estate 
owned and on the income received from that real estate. The tax 
base therefore consists of two parts, namely, the real estate tax base 
and the income tax base. 
The first step in arriving at the real estate tax base is the assess- 
ment. <A general assessment is made every 5 years and the work is 
performed by local boards. These boards consist of 2 members ap- 
pointed by a previncial assessment board (1 representative of the 
province and 1 of the national government) and from 3 to 10 members 
elected by the people of the local district. The work of these local 
boards is reviewed by a board of supervisors consisting of from 8 to 
15 members appointed by the provincial assessment board. 
Real estate is assessed at its market value less debts outstanding 
against it. In the case of forest property, however, a uniform method 
of appraisal is used, which more or less disregards market value in 
individual cases. Forest land is appraised on the basis of its normal 
productive capacity. The normal productive capacity of each tract 
of forest land is determined by estimating the average annual volume 
in cubic meters per hectare of wood produced by the whole forest over 
a long period of years. This is called the site-quality index. The 
money value of this normal annual volume is determined by multi- 
plying the volume by the average stumpage price obtained in the 
particular locality for similar grades of timber during the preceding 
5 years. A deduction of 25 percent (as much as 50 percent in the 
case of the more inaccessible forests) is made from this normal money 
yield for expenses to arrive at the net money yield per hectare. 
In capitalizing the normal annual yield to arrive at the assessed 
value a multiplication factor of 20 is used. This corresponds to a 
capitalization rate of 5 percent. For the purpose of giving a separate . 
value to land and to trees this factor is divided into two parts, namely, 
48 Svensk Forfattningssamling 1927, no. 308, pp. 586-595; 1928, no. 370, pp. 1027-1095. 
