612 MISC. PUBLICATION 218, U. S. DEPT. OF AGRICULTURE 
TaBLE 160.—Specval forest-tax plans compared with the property tar and income 
tax, for 60-year rotation forests, with various income cycles, and yielding a net 
return of 3 percent;! land value, under the income tax, $7,500 
PROPERTY-TAX RATE, 1 PERCENT; INCOME-TAX RATE, 25 PERCENT 
Forest E-1, income | Forest E-2, income Forest E-3, income 
cycle, 5 years; yield, cycle, 10 years; eycle, 15 years; 
$10,579 yield, $21,157 yield, $31,736 
Plan Mfotn cagic sear Fs, SP iPars panne 
Tax nitia a nitia Tax Initial 
Taxes -, | forest | Taxes -.| forest | Taxes forest 
Tatio value rue value Fatlo value 
———————————— en 
Per- Per- Per- 
Dollars| cent | Dollars| Dollars| cent | Dollars| Dollars| cent |Dollars 
IPOD Chinyg ta Xa eee eee 2, 349 27 | 40,360 | 5,028 29 | 35,690 | 8, 043 32 | 31,340 
Income (net yield) tax__------------ 2, 218 25 | 41,190 | 4,435 26 | 37,410 | 6,653 26 | 33, 830 
Special forest tax: 
Adjusted property tax__-------- 2, 218 25 | 41,190 | 4, 435 26 | 37,410 | 6,653 26 | 33, 830 
Deferred. cimben Lax] 2, 237 25 | 41,060 | 4,526 26 | 37,150 | 6,875 27 | 33, 430 
Differential timber tax: 
Reduction factor, 10 percent_| 2,192 25 | 41,350 | 4,698 7 | 36,650 | 7,514 29 | 32, 290 
Reduction factor, 20 percent_| 2, 028 23 | 42,370 | 4,348 25 | 37,670 | 6,961 27 | 33, 280 
Reduction factor, 30 percent_| 1,855 21 | 43,460 | 3,981 23 | 38,730 | 6,375 25 | 34, 330 
Immature-timber exemption___- 515 6 | 51,880 | 1,113 6 | 47,070 | 1,805 7 | 42,520 
Yield tax, rate 10 times prop- ; 
erty tax rate------------------ 1,470 | 17 | 45,880 | 3,005| 17] 41,570} 4,617| 18 | 37,480 
PROPERTY-TAX RATE, 2 PERCENT; INCOME-TAX RATE, 40 PERCENT 
Forest F-1, income } Forest F-2, income | Forest F-3, income 
cycle, 5 years; cycle, 10 years; cycle, 15 years; 
yield, $12,796 yield, $25,592 yield, $38,388 
Plan SS oa SEE ae lh Sa Ea 
‘i initial a i Initial a Initial 
axes : orest axes : forest axes ~~ | forest 
ratio SHG ratio value Tatio value 
Per- Per- Per- 
Dollars} cent | Dollars| Dollars| cent} Dollars| Dollars| cent| Dollars 
iPropertyataxs soe os eet eee 4, 694 43 | 39, 560 | 10,030 46 | 34,030 | 16,000 50 | 29, 000 
Income (net yield) tax___-_--------- 4, 435 40 | 41,190 | 8,870 41 | 37,410 | 13,310 41 | 33, 830 
Special forest tax: 
Adjusted property tax_--------- 4, 435 40 | 41,190 | 8,870 41 | 37,410 | 13,310 41 | 33, 830 
Deferred timber tax__---------- 4, 467 41 | 40,980 | 9,024 42 | 36,960 | 13, 680 43 | 33,150 
Differential timber tax: 
Reduction factor, 10 percent_| 4, 432 40 | 41,200 | 9,477 44 | 35,650 | 15, 130 47 | 30, 570 
Reduction factor, 20 percent_| 4, 148 38 | 42,980 | 8, 874 41 | 37,400 | 14,170 44 | 32, 280 
Reduction factor, 30 percent_| 3,834 35 | 44,950 | 8, 214 38 | 39,320 | 13, 130 41 | 34,150 
Immature-timber exemption __-}| 1,171 11 | 61,680 | 2,528 12 | 55,850 | 4,102 13 | 50,330 
Yield tax, rate 10 times prop- 
erty bax fate. =e) ee ee 3, 330 30 | 48,130 | 6,7 31 | 43,480 | 10, 380 | 32 | 39, 080 
1 Assumptions and formulas are described in the text. 
TaBLE 161.—Special forest-tax plans compared with the property tax and income 
tax, for even-aged forests managed on various rotaiions, and yielding a net return 
of 3 percent;! land value, under the income taz, $3 
PROPERTY-TAX RATE, 1 PERCENT; INCOME-TAX RATE, 25 PERCENT 
Forest A, rotation 30 | Forest C, rotation 45 | Forest E, rotation 60 
years; yield, $15.02 years; yield, $28.87 years; yield, $50.78 
Ben dh Land si Land Ay L 
ax an ax an ax and 
i Taxes ratio | value 
Per- Per- 
Dollars| cent | Dollars| Dollars| cent | Dollars} Dollars 
T2509 0:2) BUEN fal Pa» Gales oie Se 3. 67 st 2025 9. 08 54 1765). 1903 
Income (net yield) tax____________--_ 31 3. 00 5. 62 34 
Special forest tax: 
Adjusted property tax__-.--.--- 2. 61 31 . 00 5. 62 34 3.00 | 10.64 35 
Deferred timber tax______--__-- 3. 08 37 . 67 6. 84 41 2. 56 13. 20 44 
2 
1 
Per- 
cent |Dollars 
64 13° 
00} 10.64 35 4 
Sd 
for) 
rar 
we 
Differential timber tax, reduc- 
tion factor 50 percent_--_--_--- 
Immature-timber exemption ____ 
Yield tax, rate 10 times prop- 
€riy-tax Tate 2-2 ose eee 2. 85 34 
2 
3. 49 21 3. 76 6. 33 21 
72 21 
. 83 5. 66 | 34 2.99 | 10.14 34 | 
3 
3 3 
2. 6 2. 
12 33 2.92 6. 42 38 .71} 13.30 44 2. 
3. 62 3. 
2 3 
1 For assumptions and formulas refer to table 159, from which this table is calculated. Columns 2, 4, 5, 
ne 7 we computed by dividing corresponding figures in table 159 by 2,500; columns 3 and 6 are the same as 
table 159. 
