Valuation was dealt with under Phase III. 

 The following excerpts are taken from a 1963 

 report of the State Forester's Evaluation Com- 

 mittee "Proposed Valuation of the Reclassified 

 Private Forest Lands." The system developed 

 in the report has since been adopted by the 

 Board. 



Guiding Principles and Facts: 



This valuation has been based on the follow- 

 ing principles, facts, and assumptions: 



A. The valuation system will be utilized in 

 Ad Valorum Taxation under existing 

 laws. Proposed changes in taxation meth- 

 ods requiring legislation were not consid- 

 ered as assigned to this committee. 



B. The system will make maximum utiliza- 

 tion of the information collected under 

 the Operation Manual for Reclassification 

 of Private Forest Land as Adopted and 

 Revised by the Board of Equalization. 



C. The system is designed to be practical 

 from the assessor's standpoint. 



D. The valuation system was designed from 

 the standpoint of a prudent man in the 

 business of growing trees. 



E. This valuation system must be re-exam- 

 ined periodically and revised to meet eco- 

 nomic changes that may occur. 



F. Lands will be valued as timber lands only 

 when the value of the timber exceeds other 

 values of the land. 



G. All forest lands must carry some value. A 

 minimum assessed value of $1.00/acre is 

 assigned to all forest lands. Care must be 

 taken that this minimum value is NOT 

 added to any value placed by the grazing 

 or other values that may be present. 



H. This valuation does not consider any 

 watershed or recreational values that may 

 be present. 



I. The marketing of miscellaneous forest 

 products including poles, piling, posts, 

 pulpwood and other minor items is of 

 such sporadic and incidental nature that 

 separate valuation, thereof, would prove 

 extremely difficult and impractical for ap- 

 plication by county assessors. In view of 

 the difficulties involved, separate valua- 

 tion of these products are not included 

 herein, only the discounted potential value 

 of future merchantable sawtimber stands 

 has been calculated. Such valuation may 

 be considered to include the miscellaneous 

 forest products produced. 



J. Christmas trees present a separate prob- 

 lem. Due to the extremely variable factors 

 affecting the value of this product, diffi- 

 culty of making an inventory thereof, and 

 the localized character of commercial 

 Christmas tree operations, this product is 

 not considered in this valuation. 



K. Experience indicates variables within in- 

 dividual tracts eliminate any calculable 

 advantage that a favorable classification 

 (accessibility and topography) may have 

 over an average classification. Therefore 

 favorable and average classifications (ac- 

 cessibility and topography) have similar 

 values. 



L. Calculated values per Mbf assume a cer- 

 tain minimum volume available to har- 

 vest. Favorable or average rate per Mbf 

 will apply only to stands with at least 5 

 Mbf/ Acre. Difficult rate when between 2 

 and 5 Mbf/ Acre. Impractical rate will ap- 

 ply to the remainder. 



M. No differential over and above minimum 

 land value (G above) should be applied 

 to non-stocked forest lands for any poten- 

 tial use they may have as timber lands. 

 Costs of ownership normally exceeds this 

 value. For example, fire protection is a 

 cost of ownership required by law which 

 absorbs in some cases all the value that 

 may be applied to the bare forest land. In 

 addition, the application of a bare land 

 value to some forest types creates an ob- 

 viously unrealistic valuation of that land, 

 especially in Eastern Montana. 



N. Forest stands of Seedling-Sapling Stand 

 Size are subject to so many variables for 

 such a long period of time that no account 

 value may be applied. The same factors 

 listed above (under M) eliminate, in many 

 cases, what little value may be present in 

 these stands. 



Calculated Valuation Factors: 



A. Land Value Per Acre : None 



(Non-commercial, "Map Symbol — NC" 

 and all non-stocked, "Map Symbol — 6" 

 assigned Timber Grade U, minimum as- 

 sessed value of $1.00/ Acre assigned.) 



B. Seedling-Sapling Stands Value Per Acre: 

 None 



(All seedling-sapling size stands "Map 

 Symbol — 7" assigned Timber Grade U, 

 minimum assessed value of $1.00/Acre 

 assigned.) 



C. Board foot Value/Mbf. (Table 1) (Table 

 2a) (Table 2b) 



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