592 MISC. PUBLICATION 218, U. S. DEPT. OF AGRICULTURE 
property, the income from which must be deferred for several years, 
would reduce its initial value to $2,343. The unmodified property 
tax would increase quite rapidly except in the years immediately 
following the receipt of income. After the receipt of the $800 yield 
in the twelfth year, there would be a sudden large decrease in taxes in 
contrast to the slight increase under the adjusted property tax plan. 
Subsequent taxes would again increase under the property tax until 
TAXES (DOLLARS) 
1 TAX CURVE UNDER ADJUSTED PROPERTY TAX 
2 TAX CURVE UNDER UNMODIFIED PROPERTY TAX 
FicurF 11.—Comparison of adjusted property tax with unmodified property tax on a deferred yield forest 
starting from bare land. (Yield $1,736 at end of sixtieth year with intermediate yield $900 in fortieth 
year. Interest rate 3 percent, tax rate 2 percent, cost of planting $100.) 
sustained annual yield were attained, when they would become a 
constant amount each year. 
It will be seen from an examination of this graph (fig. 10) that the 
receipt of income brings the taxes, as under this plan and as under the 
unmodified property tax, closer together; and the greater the part of 
the total cumulative increment received in any 1 year, the closer the 
2 tax levies approach each other. 
Figure 11 is illustrative of the operation of this plan on a forest 
property, planted to trees at a cost of $100, where the tax rate is 2 
percent and the interest rate 3 percent. No income whatever is 
received until the intermediate yield, having a stumpage value of 
