The San Francisco call., 1908-04-05
TAXATION
WILL BE STUDIED
New Hampshire TO Take Up the
Knotty Problem of Timber
Land Revenue
Tax on Trees So High in Maine
That Capital Is Being
Driven Out


WASHINGTON. April 4.-The 1rst ex-
hsustive study OF the forest taxation
problem, as il is presented by the actual
workings OF existing laws. to be at
tempted by any state has just been be
gun By the New Hampshire state for
estry commission. in cooperation with
the United States forest service. The
study viii take in all of the many ques
tions OF forest and land taxation and
the protection OF New Hampshire for
ests from fires. If necessary 10 com
plete the work So. 600 will be available
J. H Foster OF the forest service has
been sent from Washington TO take up
the Investigations on the ground imme
distely.
Because OF It's thoronEhness New
Hsmpshires study is sure 10 be fol-
lowed with great interest by New York.
Maine. Michigan, Pennsylvania and the
other states which are hnding the forest
tax problem serious check 10 forest
preservation. Mr. Foster viii md out
by peinstaking inquiry in different
parts Of the state and among all classes
CT citizens Just how the present laws
are administered how they are re-
gsrded and what their effect IS or the
lumber industry and forest preserva-
ton The result viii be 10 furnish New
a
vising its system Of taxing forest lands
than any state has ever had before, IL
changes in the present laws are found
10 be needed
TO TAX WILD LANDS
Taxation of timberiand is regarded
BY officers of the forest service as
now Up for discussion. They believe
that upon the right settlement Of this
question largely depends the rapidity
with which private owners adopt for
estry Agitation for 2 change as TAX
ing place along two directly opposite
iines-for an increase in the amount Of
taxes TO ne paid by wild lands, on the
one hand. and on the other for the
passing Of laws which viii partially
or wholly exempt from taxation re-
forested lands or will defer the col
lection OF taxes on the forest crop IN
til il is harvested Those who urge
increasing the tax believe that this
class Of property does not now pay its
inst share OF the general tax bur
den Those who advocate laws 10
tighten the weight OF taxation on forest
lands IN ore way or another maintain
that the public welfare is promoted by
the preservation OF forests. and that
the more heavily they are taxed the
more certain Il is that they viii either
be wiped out altogether or lose most
OF their value through destructive
numbering.
In Maine and New York proposed
changes in existing laws are now Up
for discussion. In Maine a tax COM
mission appointed by the last legisia-
tlre is about 10 hold public hearings. .
and the report goes that IL viii be
asked 10 recommend a scheme whereby
wild lands may ne taxed on the same
~
= per cent annually. In the New York
legislature a bill has been introduced
which would tax timber lands managed
with the approval OF the forest hsh
and game commission al rate not
higher than that for barren unproduc-
tive land in the same tax district. with
an additional tax Of per cent on
the stumpage value OF the timber when
il II cut Both measures would create
a special class OF prOperty-in Maine 20
make II pay heavier taxes, in New
York lighter. In Maine the value Of
standing timber is regarded as part
Of the value of the land. and the owner
is expected TO pay rising tax as his
timber grows more valuable until he
cuts IL on In the New York bill the
timber is regarded as a growing crop.
which like other growing crops. should
be exempted from taxation until IL is
harvested. The New York bill seeks
increasing the wealth Of the state The
Maine plan. If carried through, will
powerfully discourage forestry.
LAW IN OTHER STATES
The New Hampshire STUDY has been
undertaken in the belief that il will
help solve what is undeniably knotty !
problem A forest taxation law which
is both wise and practicable is by
no means easy 70 draw In PennsyI- I
vanis. a state which appreciates the
value Of its forests and the Importance /
OF foresighted action 10 prevent non
agricultural lands from becoming
worthless wastes. law passed in 1895 +
providing for a rebate OF taxes levied /
upon forested lands. was pronounced I
unconstitutional by the courts because !
il destroyed uniformity of taxation. On i
the other hand, the state of Michigan !
has sixth Of its area on the de-
linQuent tax list because the land is
worthless for any purpose but growing
forests and is taxed TOO high to be
held by the owners for this purpose II
IL net easy TO draft a law which is
workable. fair 10 all property owners
and in the best interests Of the state /
as this is involved in keeping its forest
lands productive.
One of the guiding principles 10 be .
recognized, however. the governments -
foresters point out, is that il does not 4
pay any community 10 tax one OF its 1
productive Industries out of existence
Il Is much better TO have timber lands 1
pay a low tax steadily than TO have
them so numbered as TO lose practically /
all of their value. The heavy tax ad-
vocated In Maine. for example will I
probably. II carried through. drive a
great deal Of capital out of the state
This capital is noxt invested in stand
ing timber. At present the owners
have shown that they wish TO cut con-
servatfveIy. protect their holdings
against fire. and plan for growing as
heavy future crops as possible on the /
same land But a tax Of 2 per cent
a year on young timber. they say. sets
a premium on its destruction. A pow
erful incentive is given the owner TO
reduce the value Of his. property by
cutting of everything in sight II this
IS true IL will not help the citizens of
Maine in the long run TO tax heavily
for q short time property which can
and will quickly get away. leaving
only a waste behind.
MAINE SHORT SIGHTED