FOREST TAXATION IN THE UNITED STATES 605 
classes of forest property, to which materially different rates would 
be appropriate. Under ordinary conditions, however, it is believed 
preferable to keep the plan as simple as possible by use of a uniform 
reduction factor for an entire State. 
The retention of land value in the property assessment, nine inate 
ished by any reduction, besides having a tendency to stabilize the tax 
burden, would insure the taxation in full of any elements of value in 
the property that are not entitled to any tax concession in the interest 
of forestry because they arise from other possible uses than the pro- 
duction of forest crops. It would also exact a proper tax contribution 
from the owner who is holding cut-over lands for speculative purposes 
and is doing nothing to protect and improve the forest growth. Such 
an owner would receive a concession only in case fortuitous forest 
growth occurred in spite of his indifference, and then only to the extent 
of the tax on a portion of the timber value. 
OLD-GROWTH FORESTS 
Two methods are proposed for old-growth timber, depending on the 
conditions. Old-growth forests would be so defined as to include not 
only virgin forests but also culled forests on which there had been 
cutting of selected species and qualities of trees, provided that at the 
time of adopting the plan such culled forests should have contained 
sufhicient volume of merchantable timber to form a basis for commer- 
cial logging or lumbering operations. 
In those States where such timber is not a sufficiently important 
element in the tax base to warrant different treatment from that 
accorded second-growth, old-growth forests should be given the benefit 
of differential taxation using the same reduction factor which had been 
determined for second-growth timber. In such States the few remain- 
ing old-growth stands, if they were being depleted, would be partially 
relieved of the usual property tax. This relief, though without theo- 
retical justification, would under such conditions be permissible for 
the sake of administrative simplicity. 
Where old-growth timber is an important element in the tax base, 
a transition period of 20 years or longer should be provided before the 
aeval differential would apply to such timber. During this transition 
poet, old-growth timber would be classified apart from second- 
erowth. 
Operated forests would be taxed under the ordinary property tax. 
It has been shown that old-growth or virgin forests which are under 
operation so that their capital value is being reduced are favored under 
the unmodified property tax as against properties yielding a regular 
annual income. Where these forests occur in substantial volume, 
there appears to be no reason why this advantage should be increased 
by differential taxation. 
On the other hand, old-growth timber which is held for future sale 
or aS a reserve supply for future operation is overburdened by the 
property tax. There is adequate reason to encourage the continued 
holding of such timber through some modification in the tax system. 
Encouragement of reserve timber holdings without favoring of timber 
which is under operation may be accomplished by applying a graduated 
reduction factor to old-growth forest properties which are being kept 
intact. Any owner who filed with the designated county official a 
