The laws of most states are sufficiently stringent on the subjects of 
fraudulent returns and neglect of tax payments to give adequate 
protection; and so as regards yield and severance taxes, the modern 
tendency is to eliminate as much red tape as possible and to arrange 
payments with the minimum annoyance to the taxpayer. In Massa- 
chusetts and New Hampshire the tax is paid annually; in Maine six 
months after cutting. Michigan and Pennsylvania collect within 90 
days; Mississippi within 60 days. On the other hand, New York, 
Connecticut and Vermont levy the tax before the timber is removed. 
Many states require that the timber be inspected and valued by a 
representative of the tax collector before it is moved from the ground. 
Michigan requires that a bond amounting to twice the estimated 
tax be deposited before cutting is started. 
Compensating Local Governments for Loss of Annual Revenue 
The establishment of federal and state forest reserves and the 
removal of these areas from the general tax list sometimes results 
in a considerable loss of revenue to the state, county, parish, or town- 
ship. Naturally this has caused opposition in certain quarters. Simi- 
lar objections have been raised to the classification of lands for yield 
tax purposes and the reduction of annual revenues from these lands 
to nominal amounts. 
The objection has been met by turning over to the local govern- 
ment all or a large proportion of the yield taxes collected. In Penn- 
sylvania it is all credited to the town and county road, school and 
poor funds. In Massachusetts, the state takes one-tenth of the tax 
and the rest goes to the town. In Michigan the yield tax funds 
are divided equally between the state and county, and in addition the 
county receives from the state 5 cents per year for each acre classified. 
Alabama and Ohio return to the counties one-half of the yield tax 
receipts. 
Bounties 
The desirability of trees and forests was recognized first in states 
having large prairie areas, and it was, felt that definite steps must be 
taken to encourage the production of local timber and fuel supplies 
and to provide for the protection, shading and beautification of the 
highways. During the latter part of the past century this encourage- 
ment took the form of bounties in a number of the Middle Western 
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