Failure by the owner to observe land use restric- 
tions results in cancellation of modified assessment 
privileges retroactively to the date of dedication. 
In such ease, taxes are payable equal to the dif- 
ference between taxes actually paid and those 
that would have been due from assessment in the 
higher use, plus a penalty of 5 percent per year. 
Failure to observe land use restrictions is defined 
as (1) failure for a period of more than one calendar 
year to use the land as outlined in the petition, or 
(2) overt change of use for any period. 
Tax treatment 
Land and timber. Dedicated land is to be as- 
sessed at its value in the dedicated use. 
In the absence of dedication, land within a Con- 
servation District is to be assessed with considera- 
tion given to the use or uses that may be made 
thereof as well as to the uses to which it is then 
devoted. 
INDIANA 
Modified Assessment Law!. 
Optional. Enacted 1921. Amended 1945, 
1947, and 1967. 
Annotated Statutes 1949. Secs. 32-301 to 
319. 
Classification 
Qualification. Forest tracts comprising at least 
10 acres may be classified if they qualify as ‘forest 
plantations” or as “‘native forest lands’. 
The term “forest plantation” refers to cleared 
land which has growing thereon a good stand of 
timber-producing trees as that concept is under- 
stood by competent foresters; the State Forester 
determines whether the tract meets this standard. 
The term “native forest land” refers to land 
never plowed or cultivated, which contains native 
timber-producing trees aggregating at least 40 
square feet of basal area per acre or 1,000 timber- 
producing trees of any size per acre. 
For purposes of the Act the following are not 
considered to be timber-producing trees: dog- 
woods, water-beech, ironwood, red bud, sassa- 
fras, persimmon, pawpaw, black haw, willows, 
pomaceous trees or Christmas trees grown for 
commercial purposes. 
1 Known as the “‘Classified Forest Law.” 
17 
No land shall be classified which has dwellings 
or other buildings situated thereon except that 
operation of sugar-camps or sawmills to utilize 
trees or timber grown on classified lands is per- 
mitted. 
Procedure. The owner makes application to the 
State Forester attaching a survey or aerial photo- 
graph locating the property. The tract must be 
appraised by the county assessor and the appraisal 
forms part of the application. Upon acceptance of 
land or classification, the State Forester notifies 
the county recorder, the county auditor, and the 
applicant. 
Lands proposed for classification are assessed 
at fair market value (exclusive of timber but in- 
cluding any mineral wealth); such assessed value 
is made a matter of record for use in future deter- 
mination of declassification taxes as outlined below. 
Sale of classified land does not release the pur- 
chaser from obligations under the Act. 
