FOREST TAXATION IN THE UNITED STATES 515 
It may also be assumed that in the year in question the owner 
of the farm sold timber on the stump for 5,000 SMK. If this hap- 
pened, say in 1930, then 25 percent of this sum must be added to 
the net return of the forest as calculated in table 149. This addi- 
tion is made only for the purpose of communal taxation, not for 
national taxation, and is a temporary measure even for communal 
taxation. 
If the net return from agriculture for the entire farm is 20,000 
markka and the taxable income from all other sources 5,000 markkaa, 
the total taxable income for communal purposes may then be sum- 
marized as follows: 
Markkaa 
Netereturnefrom HOrestny 2 4 Se On pO as Te ee Me ee 4, 625 
25 percent of the stumpage value of timber fellings__________________~_ M745) 
INetireturnefromaericulture: si hes Ei AEE, EM Ee ar 20, 000 
Othembtaxableyincomle S25 Oh VLG ess 2 ee ea aes ee pl ate) 5, 000 
SLRCOR EET Hohe Geog 22 Ye ISSIR IRD Weer CPN Renta fe eel nega Nhe a oy OR MEU Led 30, 750 
Specific exemptions allowed for communal taxation____-__________---- 4, 000 
Raxablesanno mint os ey ta) SE AY ba AEE Oe NTN gh A ee a ee 26, 750 
If the tax rate in the commune is 8 percent, the communal income 
tax payable by the farm owner will be 2,140 markkaa. 
Under the same assumptions the taxable income for purposes of 
the national income tax would be ca!culated as follows: 
Markkaa 
INGrTeCUEMerronmehones(ttmyynme ss 2 88h SOY Nae hE Pas So | Dee eee 4, 625 
INetarequiEneinomuacricultune st). 2 oa. Fae Se a 20, 000 
Wtheriuaxa ble MMCOMe nto aye falar a Nee nee eek ed De af Ce) appa ian 5, 000 
AR Gee Lig se Re eh ene a I MRR IPS OPRLSL THN es SEN Las | Dat oe Se 29, 625 
Specific exemptions allowed for national taxation________.------------ 5, 000 
MTearscraliol ea TAN OMUNIN Gp ee, PE N ee  N li th a ea ee 24, 625 
The tax corresponding to this income is 439 markkaa, calculated 
according to the progressive rates in effect in 1930. 
The property tax which the owner of the above farm must pay 
may be calculated on the basis of assumed values and debts as 
follows: 
Markkaa 
Nalneronthestorestuand andustanding, timbers 2 =)". 42) sae ae 200, 000 
Walreromotnentarming capitals... 222-2220) 222 ee eee eee 300, 000 
Oiirenvaxsblesproperty 2200) 2 kee ees Ee ee eee 50, 000 
ASG teal epee tek eb ak aM he a ye ahd 1 Np oh M8 i) ie i ls ie 550, 000 
VECICHHOMBRORIG CUS uote one ee ae cee ta, re he ee 50, 000 
Maalleramoumters ei yk)! ame he EE Cee Cee ee Ee Sere 500, 000 
The property tax in the above case would be 360 markkaa, calcu- 
lated according to the progressive rates in effect in 1930. 
To summarize, the total taxes paid on account of the farm wood- 
lot of 100 hectares (247 acres) having a capital value of 200,000 
markkaa ($5,040) and a hypothetical annual net return based on 
the quality of the soi of 4,625 markkaa ($117), plus an extraordinary 
income from timber cutting of 5,000 markkaa ($126) is as follows, 
assuming that the wood lot is taxed at the same rate as the owner’s 
r 
