496 MISC. PUBLICATION 218, U. S. DEPT. OF AGRICULTURE 
3.5 for land and 16.5 for trees. Thus the net money yield per hectare 
i: ees by 3.5 to get the assessed value per hectare of the forest 
and. 
Before the net money yield is capitalized to get the value of the 
trees, the yield is adjusted for “‘relative growing stock.” If a forest 
has a normal distribution of age classes, it has a normal growing stock 
and no adjustment is necessary. The relative growing stock in this 
caseisl. If aforest has an excess of the older age classes, its relative 
growing stock is greater than 1, and if there is a deficiency of the older 
age classes the relative growing stock is less than 1. After the net 
money yield per hectare has been multiplied by the relative growing 
stock factor, the product is multiplied by 16.5. This gives the assessed 
value per hectare of the trees. The per hectare values, both of land 
and trees, are multiplied by the area of forest land to get the total 
assessed value. 
In Sweden the assessed value is not the tax base. First, the assessed 
value is converted arbitrarily to an income basis by applying a speci- 
fic rate, either 6, 5, or 4 percent, depending on the type of property as 
explained later. This conversion to an income basis is made for two 
purposes: (1) It aims to put the property tax base on a common basis 
with the income tax base thus facilitating their combination into one 
amount and thereby reducing the computation of the two kinds of 
taxes to one operation; and (2) to provide for a differential treatment 
among the different kinds of property and among certain elements of 
value in the same kind of property. ‘Then this converted assessed 
value is divided by 100 to obtain the real estate tax base, presumably 
for ease in computing the tax. If this division were not made, it 
would be necessary to carry a large number of zeros in some of the 
tax rates, and this always increases the danger of error. To the real 
estate tax base is added the income tax base (to be described at a 
later point) before the tax is computed. If there is no income tax 
base the owner of the property pays only the real estate tax. This is 
called the ‘‘guarantee”’ feature of the tax, that is, an annual tax on 
all forest real estate value is assured, regardless of whether or not any 
actual income has been received from such property during the year. 
As stated above, the first adjustment of the assessed value is made 
by applying different rates depending on the kind of property. For 
farm real estate and for the land value of forest property 6 percent of 
the assessed value is taken. For residential and business properties 
the rate applied is 5 percent. For forest growing stock (trees), only 
4 percent of the assessed value is included in the tax base. 
The fundamental basis for the income-tax base is the actual net in- 
come received from the property during the year. The net income is 
determined from the personal declaration of the owner which contains 
a detailed statement of the gross income received and the expenses 
incurred in maintaining that gross income. In the case of forests 
where annual cutting is exceeding the annual growth, a depletion 
charge is deducted. Net income is determined differently for the 
various kinds of property—a very complicated procedure, which it is 
not necessary to go into in this brief description of the system. 
From the total net income as determined from the personal declara- 
tion of the owner is deducted that part of the net income which is 
taxed under the real-estate tax. This deduction consists of 100 times 
the real-estate tax base. In other words, the deduction is the arbi- 
