The evening herald. (Klamath Falls, Or.) 1906-1942, 1922-12-29
FRIDAY. DECEMBER ~. 1922
TIMBER TAXATION
Governor-olect Pierce is
" formulating his plans for q

" formulating his plans for q
severance tax ca national forest tim
her, We wonder II he Is giving any
thought to the matter OF taxation on
privately owned timber. asks the
Bond Bulletin? Here is big sub
Ject Properly worked out II should
be a great aid to the lumber indus
try and, nj the same time. help TO
secure.to the country timber sup
ply for the future.
Today timber In oregoa pays an
annual tax Just as does real estate or
any other property. Timber is essen
TALLY a crop which returns nothing
until it Is harvested and sold. Faced
with annual payments while no re-
turn Is being realized. the owuer
must meet those payments from 9th
or sources or turn his crop into cash
We have no definite information oa
the subject. hut We think II safe to
assert that this feature Of annual
taxation has much to do with the
/. plans OF any owner TO erect mill
sTpd begin cutting. Whenever this
fes .ture controls. as u undoubtedly
does IN many cases. timber Is cut
when - should not be cut and the
supply Il becoming exhausted sooner
than II should be.
Then. ttco. with the timber oace
cut there is no incentive for growing
another prop. In fact the owner can
not afford the annual cost of fnter-
est. taxes aad fire protection. BY the
time another crop had grown. his In.
vestmelt would be more than the
valne Of the trees.
Recognition of the situation has
given rise to n proposal for the aban.
donment OF IN annual tax on stand
ing timber aad the substitution
therefor Of yield tax to be paid
when the crop is harvested. Such a
tax would tend TO encourage the per.
petuation OF forests; 1, would take
from the question Of harvest the eie-
meni OF taxation, II should tend TO
stabilize the industry. We would
like TO zee the question given serious
confederation here In Oregon.
The National Lumber Bulletin has
the following TO say on the subject
as dealt with In the Massachusetts, /
forest tax law:
"A crop cf cora takes so days to
mature. II the corn crop were tax
ed every day IL would amount 10 the 1
same burden on the owner as the .
present method Of taxing forest land .
every year" says the Massachusetts .
department of conservation. division,
OF forestry, In contrasting the pre-
yiors tax system on forest property
with the receat Massachusetts forest
taNs law by which the standing
grosth shah be free OF tax until cut.
or until II has reached specified
average yield per acre. Concerning
the effect of the previous tax system
the department OF conservation says:
Under the general property tax.
taxation OF forest land is based on
the value of the land aud the stand
ing growth combined Until recently
the annual tax levied on such prop
erty holders was not a serious bur-
den because forest land was usually
much undcryalued, or late, how
ever, although stumpage values have
risdi. timber land valuations have
rlsap tin more. The injustice and
pod business of taxing annually
erop that can only he realized on at 4.
long Intervals of years is beginning
10 he acutely felt"
'rhe new, law proposes that young
tim0cr shall be taxed on the valua-
iiorNof the land alone and the stand
ing Growth shall be free of tax until
cut ~or nntil IL has reached speei-
flelfayerage yield per acre, when the
owner VIII pay tax OF 6 per cent
pn the stumpage value OF the trees.
Commenting unon this Massachu-
'etts forest tax act, Louis 8. Mur-
ply, timber land tax expert OF the J
lnited States forest service. says n $
$ an Improvement in many ways
'yer similar optional yield tax acts 4
n force In other states, lie con S
inuos: s
This particular type of law II
hovld work In Massachusetts, where
heir has been going on for the past