PART 12. THE FOREST-TAX PROBLEM AND ITS 
CONTENTS 
Page Page 
The problem—conditions to be corrected - ---_. 521 | Changes in the tax system, etc.—Con. 
Intro GWebiO ee sy eee ee RN Iu ety s 521 Immature-timber exemption_-_-__-------_- 608 
Imperfect operation of the property tax... 522 Application of forest-tax plans to second- 
Inherent nature of the property tax------- §25 erowthiforests {20 220. hee ae ee 611 
Limited base of the property tax__-_------ 527 | A more inclusive base for the property tax__-. 618 
Predominance of the property tax_-_----_- 528 | Diminished reliance on the property tax_-_---- 620 
The absolute burden of taxation on Relieving the absolute burden of taxation____- 621 
LOTS ES es UEN SIM HAE DU AT SA a La el 529 Reorganization of local governmental 
OPHentaxesie see Oe Me eae ee ee Led 529 PT CAS we Le Me RANA AU AC Satter er 622 
Taxation in the broad forestry problem_-_--_--- 533 Disorganization of local governments in 
Introduction tec see sek ak eRe see 533 sparsely settled areas_.__.__----------- 624 
Old-growth forests___.---.--------------- 533 Control of further land settlement_______- 625 
Second-growth forests__...-------------- 537 A redistribution of governmental func- 
SS ULTMUTIT a Tay eee os rene em Rea) eee 528 EL OTIS ep eae NOR NP Sn cL a Oe 626 
Improving the operation of the property tax. 539 Appraisal, coordination, and curtailment 
The perfect assessment. -_-_-------------- 540 of governmental services___----__-__--- 628 
Devices for improving assessment _ __---- 541 Administrative personnel of local govern- 
Assessment organization and personnel_.._ 546 LAYS) OT Feats 2 a SSS A eh eae ae eT 629 
Improved tax-collection procedure. ------ 549 Better financial practices___......_----_- 630 
Results to be expected____-_------------- 651 Improved tax-collection procedure_--_--- 631 
Changes in the tax system relating especially State supervision and guidance___-___.-_- 631 
CORMOreStS heey Ss ei Le ne ee 552 More effective popular control____-__.-_- 632 
General considerations____..__.-__--___- 552 Serna aris Soe lees CR Ul gy ae 633 
The nyiel diutax: 202 eke ee ne Seeks ea 560 | Modifications in other taxes___.-...-----..-- 634 
Adjusting the property tax to the nature General income taxes___-...-_-.-----.--- 634 
of forest property-_-_-_--__-------------- 576 Deasthitaxess! msl 0Ua Teun len nn Me 634 
Adjusted property tax____-.......------- 578 Severance taxes eae aN ee ee a 635 
Deferred timber tax__._.__---_.-_.--__-- 594 | Summary of conclusions and recommenda- 
Differential timber tax__...-.--.-------- 603 GLO TS ee NST CIE LU ADE 635 
THE PROBLEM—CONDITIONS TO BE CORRECTED 
INTRODUCTION 
The preceding parts have dealt with the principal phases of taxa- 
tion as it affects forest property and the forest-growing enterprise 
and have presented the forest-tax problem in detail. Before pro- 
ceeding to a discussion of recommendations looking toward the solu- 
tion of this problem, it may be helpful to review in summary form the 
various conditions which need correction. 
The American tax system has proved a serious obstacle in the way 
of progressive forest management. Although income taxes, death 
taxes, and certain other taxes have some slight bearing on the forest- 
tax problem in this country, the property tax is the chief offender. 
This situation is in part the result of the destructive forest policies 
of the past. Skillfully organized forest properties yield annual or 
short-period incomes; but it takes time to develop such properties 
from badly overcut forests. The property tax, even assuming perfect 
administration in accordance with the law, places a disproportionate 
burden on property that does not yield a current income, and therefore 
on the heavily depleted forest lands that pzevail in the older forest 
521 
