‘Generally, throughout the country, the ratio of 
the property tax to the sum of all taxes has for 
many years tended to decrease. In the decade 
preceding 1930, however, this decrease was brought 
about, not by any decrease in property taxes but 
by increases in other taxes. Subsequent to 1930 
there has been a marked decrease in the absolute 
amount of property taxes in some States. In 
Oregon the annual property-tax levies, which 
totaled in the neighborhood of $50,000,000 from 
1928 to 1931, receded moderately to about 
$40,000,000 in 1935 and 1936 (79, p. 20). 
Washington there was a very marked recession in 
In 
property-tax levies after 1933, brought about 
largely by the enactment of over-all limitations of 
40 mills on urban and 25 mills on rural property 
(Iniat. Meas. 64, 1932), so that the total taxes 
collectible in 1930 of $81,000,000 became less 
than $54,000,000 in 1934, and only a little over 
$42,000,000 in 1936 (23, pp. 10 and 52). 
This decrease in property taxes in Washington 
was accompanied by a large increase in excise 
In both Oregon and Washington, local 
governments now receive practically all the prop- 
taxes. 
erty taxes and the State relies upon other forms of 
Many duties performed in the past by 
the county are now performed by the State, for ex- 
taxation. 
ample, public welfare activities and the construc- 
Moreover the State has 
taken on new duties such as policing highways and 
tion of primary highways. 
protecting forest lands, including large areas for- 
feited to the counties for unpaid taxes. Neverthe- 
less, the State is turning over to local governmental 
agencies an increasingly large percentage of its re- 
ceipts from various sources, retaining some super- 
vision of their disbursement. Local pressure is in- 
creasing upon State and Federal Governments for 
additional subventions and upon the State for 
additional services. 
In spite of the above-mentioned developments the 
need for local revenues is an important aspect of the 
forest-tax problem. The local governments still lean 
Little has been done 
to simplify the structure of local government in 
these States and to adapt it to the needs of the 
sparsely settled communities where forest lands 
heavily on the property tax. 
predominate. Asa result, the property-tax burden 
on forest lands in certain districts is still needlessly 
127, 
high. The most noteworthy recent advance has 
been the consolidation of certain elementary school 
districts in Washington which has somewhat -re- 
duced costs of administration. On the whole, how- 
ever, Improvements in local government organiza- 
tion and functioning remains a task for the future. 
Uncertainty because of irregularities in distribu- 
tion of the property-tax burden is often more serious 
than the absolute amount of this burden. Inclusion 
of forest lands within special jurisdictions, and arbi- 
trary shifting of the boundaries of these jurisdictions 
to transfer timber values from one district to an- 
other, have encouraged extravagance in some dis- 
tricts and in some others have made very high taxes 
necessary to preservation of the districts’ exist- 
ence. This situation is accentuated by fluctua- 
tions in tax rates made necessary in many instances 
by the narrow tax base. 
Another tax hazard to forest growing is the in- 
equality of assessment in many counties. Piece- 
meal and usually inexpert appraisal of forest prop- 
erties characterizes existing assessment practice in 
both Oregon and Washington. Since many prop- 
erties extend across county lines, the county assess- 
ment system at its best can hardly take account of 
their true economic situation and income capacity 
Failure to 
choose assessors with proper technical qualifications 
and lack of State supervision are also important 
handicaps. While it should be recognized that 
some county assessors, in spite of great difficulties, 
as units of operation or management. 
have done excellent work, there is no question but 
that much remains to be done to improve the assess- 
ment of forest lands, thus removing another impor- 
tant element of uncertainty in the tax system as now 
administered. Other steps in tax administration, 
especially collection, also need strengthening, but 
assessment is the heart of the property-tax system 
and the one step in tax administration which has 
the most direct bearing on equity and certainty in 
forest taxation. 
In January 1937 a report to the Governor and 
legislative assembly of Oregon (78) recommended 
reorganization of local government, with consolida- 
tion of small rural school districts and State assess- 
ment of timberlands under the direct administra- 
tion of the State Tax Commission. 
lation recommended in this report was not enacted. 
However, legis- 
