based on a 100-year rotation and 75% of normal 

 stocking. This productivity class includes West- 

 ern white pine site class II and Ponderosa pine 

 site classes II and III. Two hundred seventy- 

 eight (278) board feet per acre MAI shall be 

 used in the evaluation formula. 



C. Good productivity class is defined as 

 forest type land having a median mean annual 

 increment (MAI) of 451 board feet per acre, 

 based on a 100-year rotation and 75% of normal 

 stocking. This productivity class includes West- 

 ern white pine site class I and Ponderosa pine 

 site class I. Four hundred fifty-one (451) board 

 feet (MAI) shall be used in the evaluation 

 formula. 



EVALUATION OF PRODUCTIVITY 



CLASSES 



To determine the full cash value of forest 

 type land, a minimum base of $5.00 per acre 

 will be used. This value takes into consideration 

 the inherent rights and uses of ownership (Sec. 

 63-329 I.C.) 



A. The poor productivity class shall have 

 a full cash value equal to the minimum base full 

 cash value. 



B. The formula for determining the full 

 cash value of the medium productivity class is : 



Med. Prod. Class MAI/acre 



X Base Value 



Poor Prod. Class MAI/acre 



Full cash value of the medium productivity class 



278 



Example : 



106 



X $5.00 = $13.10 per acre 



C. The formula for determining the full 

 cash value of the good productivity class is: 



Good Prod. Class MAI/acre _ TT , 

 f^ - — ts — i — 7^r~ ■»«• at / ~ x Base Value = 

 Poor Prod. Class MAI/acre 



Full cash value of the good productivity class 



Example 



451 

 106 



X $5.00 = $21.25 per acre 



The same assessment ratio will apply to the 

 full cash values established for forest type lands 

 as is applied to other rural real property full 

 cash values within the county wherein the land 

 is located. 



ART. 326. ASSESSED VALUE 

 OF FOREST CROPS 



"Forest Crops" are defined as any forest 

 growth having market value, whether standing 

 or down, alive or dead, and irrespective of age 

 or size. 



"Severance" is defined as any act or acts by 

 which saleable forest crops are cut or removed 

 from the stump, or down material is removed 

 from the land. 



Forest Crops will be considered separately, 

 under this law, from the land on which they are 

 situated, and as such will be classified as "Per- 

 sonal Property" and exempt from taxation until 

 the year of harvest. In the year of harvest all 

 forest crops severed from privately owned land 

 will be subject to a full year's "severance tax." 

 This is not to be confused with the personal 

 property tax on log inventories which have come 

 from publicly owned lands. 



Timber harvested or severed from any pri- 

 vately owned land, regardless of its classifica- 

 tion, will be subject to the one year's "severance 

 tax." That is, the land from which forest prod- 

 ucts are harvested does not have to be classified 

 as forest type land in order to make these prod- 

 ucts subject to the "severance tax." 



In computing this one year's severance tax 

 on all forest crops harvested from privately 

 owned lands, the same assessment ratio used on 

 all other personal property will be applied to 

 the full cash value of the forest crop immedi- 

 ately prior to severance, in other words, its 

 stumpage value. 



Factors to be considered when determining 

 stumpage values: 



1. Average Timber Quality by Species 

 The market selling price of lumber and 

 logs, and in turn the value of standing 

 timber from which those products are 

 derived, varies greatly between species 

 and between individual trees of the same 

 species. For this reason every effort 

 should be made to determine as accu- 

 rately as possible the average grade or 

 quality, by species, of the material har- 

 vested from the tract. 



2. Logging Costs 



The cost of converting standing timber 

 into marketable logs varies primarily 

 with distance from market, the amount 

 of road development necessary, topog- 

 raphy, and to a lesser degree with the 

 volume per acre harvested and the 

 method of logging. 

 For example, good timber may cost very little 

 to log, and as a result, will bring premium 

 prices for stumpage; whereas timber of the 

 same species and identical quality a few miles 

 away may present a set of logging costs so high 

 as to bring the stumpage value down to a mini- 

 mum. 



All of the above mentioned logging cost fac- 



33 



