second, the annual property tax on young growing timber, which 
means a tax every year on the value of the forest when it is growing, 
instead of once when the mature crop is harvested as in other soil 
products. In many communities the tax on mature timber has be- 
come burdensome, for standing timber is practically the only taxable 
asset. From it taxes must be levied to pay for increased need for 
roads, schools and other improvements. The tax on young growing 
timber is criticized because it imposes an annual burden of taxation, 
and secondly, because there is no assurance that rates in the future 
will not be placed so high as to become confiscatory. 
In Referendum 42, the National Chamber approved the 
principle of a yield tax, the collection of a tax on the forest but once, 
when it is harvested. This tax in various forms has been adopted 
in several states. Speaking broadly, under this plan young growing 
timber is taxed but little during its growing period. When it is 
cut, however, a yield tax is levied amounting to a fair per cent of its 
value. In addition, a nominal tax placed on the land alone, which is 
assessed at its “bare land” value, is to help provide annual funds 
for the maintenance of local government. 
A policy of taxation which will wipe out the present uncer- 
tainty of rates and recognize the long-time characteristic of timber 
growing will encourage forest owners to protect their young grow- 
ing forests and bring them to maturity. Obviously such a policy of 
timber taxation must take into account the raising of funds for local 
governmental needs, such as schools and roads. 
33]