Historic, archived document Do not assume content reflects current scientific knowledge, policies, or practices. OCCASIONAL PAPERS* - No. 49 August 25, 1935. SOUTHERN FOREST EXPERIMENT STATION E. L. Demmon, Director New Orleans, La. P 1 5 * ^®fT0FA6Rl^ THE EXTENT OF TAX DEFAULT IN THE GULF STATES IN 1934 By Ronald B. Craig, Associate Forest Economist, Southern Forest Experiment Station. j i i * - This series of publications releases data gathered in connection with in- vestigations being carried on at the Southern Station. The information contained in them is subject to correction or amplification following further investigation. - Editor l: t-r, : u r : 3 . ;y[; THE EXTENT OF CHRONIC TAX DEFAULT IN THE GULF STATES IN 1934 1 By Ronald B. Craig, Associate Forest Economist, Southern Forest Experiment Station, On more than thirty- one million acres of rural land in the states of Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, eastern Oklahoma, and eastern Texas, the owners had failed to pay any taxes for the three or more years preceding 1934. Owing to numerous and involved legal technicalities which will not be dis- cussed, only a relatively small portion of this vast area is in full public title and ownership or in the possession of a second private party following foreclosure of the tax lien by the State, County, or private purchaser of the tax certificate. This paper gives the extent and location of the areas which were in tax default for this length of time in these eight states as units, with tables and a map (Figure 1) showing the distribution of this area by counties; discusses briefly the major causes of tax payment or tax default in each state, and draws a few major conclusions. The period of three years is used as an index of chronic tax delinquency be- cause in all these states except Louisiana 2 the law contemplates that after this lapse of time from the date of original failure to pay taxes, the State (or County in Georgia and Okahoma) or the purchaser of the tax certificate will foreclose the tax lien and obtain possession of the property of the original owner. Whether or not this final step in tax collection has been taken need not concern us here. Suffice it to say that the areas shown here are those outside of towns which were in tax default for three or more years; that is, those rural areas on which the taxes for 1933, 1932, and 1931, and possibly earlier years, had not been paid by 1934. The primary state-wide reasons for these conditions will be discussed under each state. The distribution of the regional total of 31,502,000 acres of tax-defaulted land among the eight states is shown in Table 1, together with the percentage which each state’s tax-defaulted area formed of its gross land area. It is at once obvious that there are very great differences among the states in extent of tax payments. Alabama, for example, has collected taxes during this period on all but 0.6 percent of its rural ’The data in this paper are based on reports and information from the following sources: (l), the Regional Office of the United States Forest Service, Atlanta, Georgia, in cooperation with the Land Policy Section of the Agricultural Ad- justment Administration, in connection with the report of these agencies to the National Resources Board; (2), U. S. Bureau of the Census; (3), the State Land Planning Consultants of the National Resources Board; (4), the State Agricul- tural Experiment Stations of Arkansas and Louisiana; (5), State Land Offices and Comptrollers - General; and (6), surveys and contacts made by the writer since December, 1931 in connection with the New Public Domain studies of the Southern Forest Experiment Station. 2 In Louisiana, the redemption period is one year from date of the original tax- sale. At the end of that time, if the tax - ce rt i f i cate has been purchased by a private party, he can foreclose and take possession. If the certificate is held by the State, however, owner can always redeem. area, while its neighbor state, Georgia, which is very similar in soil, resources, taxes and in social characteristics, failed to collect taxes on 12.0 percent of its area. Similarly eastern Texas had much better collections than eastern Oklahoma, the two regions again being very similar. Florida failed to collect taxes on 34.7 percent of its gross area; that is, on less than one acre out of every three. Why do these striking differences occur between states comparable in so many other respects? An attempt to answer this question will be made in the sections of this paper dealing with the individual states. Table 1. -- Area in tax default for three or more years, 1934 State Area in 3 -year tax default Percent of gross area of state in tax default Alabama Thousands of acres 181 0.6 Arkansas 2,843 8.5 Florida 12,192 34.7 Georgia 4,502 12.0 Louisiana 3,442’ 11.9 Mississippi 1,331 4.5 Eastern Oklahoma 3,518 34.0 2 Eastern Texas 3,493 17.6 3 Total 31,502 13.8 4 1 As of November 15, 1934. 2 Based on gross area of 17 counties in eastern part of state (10,356,480 acres) 3 Based on gross area of 40 counties in eastern part of state (19,813,120 acres) 4 Based on gross area of 228,033,000 acres. Alabama The situation in Alabama in respect to tax default is the best of any of the Gulf States. On only 180,653 acres were the taxes unpaid for three or more years as of August, 1934, or on less than 0.6 percent of the area of the state. Fourteen of the 67 counties had no land at all that had reached this stage of delinquency, and 12 others had less than 0.05 percent of their area chronically delinquent. Only 10 counties had 1.0 percent or more of their area in this class, the greatest default being in Mobile County, with 54,030 acres, or 6.9 percent of its area. Most of this default has occurred since 1930, but exact figures on a yearly basis are not available. The reasons for this low degree of chronic delinquency are very probably found in the following factors: First, relatively fair taxes, ranging on rural land not in actual use for crops from 3i to 12 cents per acre per year, and proportionately low on crop and other improved land; and second, but perhaps most important, strict enforce- ■ 2 - ment of tax laws with intact nr, rlnlimmot. taxe.s. iRoercentl. olus Penalty. NOW. Cfo hobi. PAYNE WAGON. LOGAN MUSNO. L/MCO. \OHFUL \M9 /NT. PONTO GARVIN 'ONNSi BRYAN lamar\ FANNH \MOPKtt PONT KAUPA \JONNS. £iuS NAVARRO NHL N/LAM LTAfAJ WASH. NANA) LAVACA WHARTON *NT IN ONLA '/SB \o£NTON r COLL/N. ALB y GONZA. i tZCES PERCEN COMPILED E - 3 ■ area, while its neighbor state, Georgia, which is very similar in soil, resources, taxes and in social characteristics, failed to collect taxes on 12.0 percent of its area. Similarly eastern Texas had much better collections than eastern Oklahoma, the two regions again being very similar. Florida failed to collect taxes on 34.7 percent of its gross area; that is, on less than one acre out of every three. Why do these striking differences occur between states comparable in so many other respects? An attempt to answer this question will be made in the sections of this paper dealing with the individual states. Table 1. -- A rea in tax default for three or more years , 1934 State Area in 3 -year tax default Percent of gross area of state in tax default Alabama Thousands of acres 181 0.6 Arkansas 2,843 8.5 Florida 12,192 34.7 Georgia 4,502 12.0 Louisiana 3, 442 1 11.9 Mississippi 1,331 4.5 Eastern Oklahoma 3,518 34.0 2 Eastern Texas 3,493 17.6 3 Total 31,502 13.8 4 1 As of November 15, 1934. 2 Based on gross area of 17 counties in eastern part of state (10,356,480 acres) 3 Based on gross area of 40 counties in eastern part of state (19,813,120 acres) 4 Based on gross area of 228,033,000 acres. Alabama The situation in Alabama in respect to tax default is the best of any of the Gulf States. On only 180,653 acres were the taxes unpaid for three or more years as of August, 1934, or on less than 0.6 percent of the area of the state. Fourteen of the 67 counties had no land at all that had reached this stage of delinquency, and 12 others had less than 0.05 percent of their area chronically delinquent. Only 10 counties had 1.0 percent or more of their area in this class, the greatest default being in Mobile County, with 54,030 acres, or 6.9 percent of its area. Most of this default has occurred since 1930, but exact figures on a yearly basis are not available. The reasons for this low degree of chronic delinquency are very probably found in the following factors: First, relatively fair taxes, ranging on rural land not in actual use for crops from 3| to 12 cents per acre per year, and proportionately low on crop and other improved land; and second, but perhaps most important, strict enforce- ■ 2 - i Amt. | DOUGLAS 'qREEN\ AO*. C#A/ &TTA \oRESO. \*urL \sTEW\wONT OZARK \pOTH* 'K*0* \FULTON , A A/tO y*oA«j \a4APJ. I BLOU ■ W1* \mirn I PArnf (maukA WAGON. \i06*H 0 lLl*'S*/cOl ** BU\ MUSKV. I L/NCO. li/oKi \FfiAN.\auUllO)*: OKFUi \M*NA WOEAO- jackso*. mO*9-[mAA3\ \fontc FRANK. \(JHiQN\ .GARVIN *ONTGO \CARL \lafay\ \CULL ; |>?A>4/V.S-i [NOT SPA \lKt-N OAK A6£i /ay/w; FALX) .CLARK 'sTXLL^N ;i ^BRYAN \CLEY. 6 RENA. }bolH rjH£MR LAMAR DREW. \OKTf. TUSCAL JASSNEi-' ;< CALM . FAJfM/N COOKE RICK CARf^yfx '^IFf • nor kin aim nokud HARR | ASNLEr \COLUM.\ fATTAL. UK ION WINS COLLIN- DENTON MONT \ne3n\nemr \MOREN.j \CLA/3. MAR TUN DALLAS IK TARRA \ DALLAS) &ULLO- \ooacn0nlKma^ \MARL. J RINDS ( RANX\ I JOHNS. WILCOX CALD. AN LENA LEON 7AR/DL 106ERT\ sonJ MILAM \HARRt-. WASH. JBER ■yERMIL \JEFF£A HARR/S (COL ORA GONZA. uayaca WHARTON 40.0 - 49.9% 50.0 - 59.9% 60.0 % AND OVER WM 5.0- 9.9% | ill|l 0.0 — I 9. 9 % ■ 20.0-29.9% boundary of area surveyed shown BY HEAVY LINE. 6 QUAD] VCfS DEFAULT for three or MORE YE, AREA in tax PERCENTAGE OF COUNTY COMPILED BY: ^SjEEE V-rr [stP^Af \y?.-:\':j\L/NC. -$CiADAM\FRA IfK-Y- • •• * Um/N ^ WILKIN . \aMT£ J 7: FCL Jt WASH. L MR rtf W/“> 5 Him# , If 5 — 4 ami-- aL/S tmm. 1L fr/RT. i .— 1 — r**t --C- ment of tax laws with high interest rates on deliquent taxes, (8 percent), plus penalty, and actual forfeiture to state title of delinquent land following two years of unpaid taxes, without recourse to further legal action. While the present depression un- doubtedly affected the property owners of Alabama, the conditions listed above pre- vented excessive tax default. TABLE 2. -- Areas in tax default for three or more years as of August, 1934 ALABAMA County Gross land area Area in tax default 1 County Gross land area Area in tax default 1 Acres Acres Percent Acres Acres Percent Antauga 373, 760 391 0.1 Jackson 729, 600 2, 720 0.4 Baldwin 1,020,800 17,219 1.7 Jefferson 716,800 2,724 0.4 Barbour 583,680 0.0 Lamar 384, 640 40 * Bibb 405,760 1,612 0.4 Lauderdale 444,160 1,107 0.2 Blount 415,360 6,077 1.5 Lawrence 448,000 758 0.2 Bullock ' - 390, 400 0.0 Lee 389,120 0.0 Butler 488, 320 0.0 Limestone 381,440 1,396 0.4 Calhoun 393,600 2,165 0.6 Lowndes 472, 960 20 Chambers 391,680 0.0 Macon 392, 960 0.0 Cherokee 369, 280 160 * Madison 519,040 1,075 0.2 Chilton 456, 320 142 *!» Marengo 618,240 455 0.1 Choctaw 596,480 353 0.1 Marion 475, 580 2,570 0.5 Clarke 778, 240 3,492 0.4 Marshal 1 385, 280 2,389 0.6 Clay 392, 960 45 * Mobile 784,640 54,030 6.9 Cleburne 364,160 2,405 0.7 Monroe 647, 680 353 0.1 Coffee 433, 920 5,755 1.3 Montgomery 515,200 1,395 0.3 Colbert 395, 520 3,816 1.0 Morgan 375,680 349 0.1 Conecuh 543, 360 43 * Perry 471,680 442 0.1 Coosa 419,200 40 % Pickens 560, 000 2,666 0.5 Covington 666, 880 3,589 0.5 Pike 429, 440 0.0 Crenshaw 395,520 0.0 Randolph 377,600 0.0 Cullman 488, 320 360 0.1 Russell 419,200 11,581 2.8 Dale 360, 320 100 *■ St. Clair 414,720 3,778 0.9 Dallas 612,480 2,555 0.4 Shelby 524, 160 13,213 2.5 DeKalb 503, 040 1,611 0.3 Sumter 581,120 82 * Elmore 405, 760 0.0 Talladega 483,200 6,272 1.3 Escambia 612,480 13 Tallapoosa 488, 320 583 0.1 Etowah 345, 600 90 * Tuscaloosa 861,440 52 * Fayette 411,520 339 0.1 Walker 506,880 3,210 0.6 Frankl in 414,080 0.0 Washington 695,680 72 * Geneva 369, 920 3, 306 0.9 Wilcox 573, 440 0.0 Greene 406, 400 0.0 Winston 403,200 4,198 1.0 Hale 413,440 0.0 Henry 358,400 4,045 1.1 State 32,818,560 180,653 0.6 Houston 370, 560 3,400 0.9 * Less than 0.05 percent. 1 From data supplied by Regional Office, U. S. Forest Service, in connection with National Resources Board Report. - 3 - There are, of course, many areas in the State which are delinquent for one or two years’ taxes but these rarely reach the permanently delinquent stage, being re- deemed prior to forfeiture. An estimate made by the U. S. Bureau of the Census 3 showed that 11.5 percent of the real estate taxes due in 1933 were delinquent as of December, 1933 in Alabama. This state ranked next to lowest in percent of current delinquency among the eight Gulf States. The distribution by counties of land in tax default for three or more years is shown in Table 2. Arkansas This state had 2,842,809 acres in tax default for three or more years as of January 1, 1934, equivalent to 8.5 percent of its gross area. Of this total, 1,448,003 acres, or 50.9 percent had actually been certified to state title, and 1,394,806 acres were due to be certified but had not been, owing to the failure of county clerks to comply with the law. 4 No county in Arkansas failed to have at least 0.5 percent of its area in tax default for three or more years. The greatest percentage of area in this class in any one county was 26.3 percent in Poinsett County. It is evident that the greatest concentration of chronic delinquency is in the Delta counties, with a secondary con- centration in the north-central and northwestern mountain counties. Default is least in the south-central counties in the shortleaf-loblolly pine-hardwood type. (See Fig- ure 1 and Table 3.) The report previously referred to shows that 20 percent of the taxes due in 1933 in Arkansas were delinquent as of December of that year. Arkansas ranked fifth among the eight states in ascending the percentage of currently delin- quent taxes. The causes of tax default, other than those attributable to legal and fiscal maladministration, vary, of course, in the several sections of this state. In the 18 Delta counties, the chief cause is the confiscatory taxes levied by the special im- provement districts for drainage and levee maintenance and for debt service on the tremendous indebtedness outstanding in these districts. These special taxes occasion- ally run as high as $3.80 per acre per year, over and above the state, county, school, and road ad valorem taxes. In the north-central and northwestern mountain counties one of the chief causes of tax forfeiture is the overcutting and denudation of the forests. The low productivityr of the mountain soils; the lack of adequate protection from lire in the past, and in certain areas, even today; and a complete exploitation oi many stands amounting to clear-cutting, has reduced the forests to a point where private ownership is no longer economically feasible. The depression, of course, greatly aggravated these conditions and resulted in greatly increased default since 1930. The reverse of the forest condition cited for the mountain counties accounts in large measure for the low percentage of delinquency in the south-central counties. Here, a large share of the forest area is federally or corporately owned, soil produc- ts ity for the forest growth is high, and the fundamentals of forestry are practiced in both protection and cutting on much of the area. L. S. Bureau of the Census - Division of Real Estate Taxation. Current tax delinquency - Part I: All states, tabulated on County basis - Levies of 1932- 33: pp. 6-7, Washington, D. C. 1934. Brannen, C. O. Tax Delinquent Rural Lands in Arkansas. 63 pp. Fayetteville, Ark. 1934. (Arkansas Agricultural Experiment Station Bulletin 3 1 1 ) . 4 TABLE 3 -- Areas certified, or subject to certification, to state title as of January 1, 1934 ARKANSAS County Gross land area Forfeited and cer- tified 1 Forfeited but uncer- tified2 Total forfeited area 3 County area 4 Percent V o Arkansas 640,000 14,462 53,616 68,078 10.6 Ashley 601,600 11,602 184 11,786 2.0 Baxter 375, 040 6,903 8,955 15,858 4.2 Benton 560,640 48,171 31,305 79,476 14.2 Boone 389,120 6,954 1,089 8,043 2.1 Bradley 421,760 793 1,257 2,050 0.5 Calhoun 402, 560 414 2,023 2,437 0.6 Carroll 410,240 2,812 3,436 6,248 1.5 Chicot 388,480 36,485 24,295 60,780 15.6 Clark 564, 480 5,894 14,600 20,494 3.6 Clay 418,560 14,443 18,135 32, 578 7.8 Cleburne 381,440 21,900 3,585 25,485 6.7 Cleveland 385, 920 2,861 833 3,694 1.0 Columbia 502,400 3,186 17,233 20,419 4.1 Conway 360, 320 22, 346 29, 242 51,588 14.3 Craighead 439,680 66, 603 44, 262 110,865 25.1 Crawford 379,520 12,369 14,046 26,415 7.0 Crittenden 372,480 20,789 23,867 44, 656 12.0 Cross 396, 160 15,338 41,498 56, 836 14.3 Dallas 434, 560 13, 221 184 13,405 3.1 Desha 478,080 53,627 55,060 108,687 22.7 Drew 542,080 3,412 — 3,412 0.6 Faulkner 416,640 6,698 14,786 21,484 5.2 Franklin 387, 840 19,125 3,990 23,115 6.0 Fulton 400,000 15,654 731 16,385 4.1 Garland 472, 320 11,515 3,157 14,672 3.1 Grant 407, 680 4,693 2,794 7,487 1.8 Greene 359, 040 25,991 21,544 47, 535 13.2 Hempstead 465,280 10,680 10,680 2.3 Hot Springs 392, 320 5,384 2,348 7, 732 2.0 Howard 385,280 11,829 — 11,82* 93.1* Independence 487,680 18,665 1,198 19,863 4.1 Izard 373, 120 18,297 3,117 21,414 5.7 Jackson 405,760 9,317 30,084 39,401 9.7 Jefferson 577, 920 24,409 56,888 81,297 14.1 Johnson 432,000 26,788 7,116 33,904 7.8 Lafayette 336, 000 5,819 723 6,542 1.9 Lawrence 378, 880 9,143 48,641 57,784 15.3 Lee 384,640 23, 103 56, 333 79,436 20.7 Lincoln 365, 440 15,646 26,483 42,129 11.5 Little River 349, 440 12, 934 19,413 32, 347 9.3 Logan 464,640 21,391 22,911 44, 302 9.5 Lonoke 516,480 9,110 41,884 50,994 9.9 These figures should be 11,829 acres, and 3.1 percent. (Continued on following page) • 5 - TABLE 3 -- Ai'eas certified, or subject to certification, to state title as of January 1, 1934- -Cont ’ d. ARKANSAS County Gross land area Forfeited and cer- tified 1 Forfeited but uncer- tified 2 Total forfeited area 3 County area 4 A t'3 Percent Madison 535,040 90,271 5,455 95, 726 17.9 Marion 413,440 9,365 6,587 15,952 3.9 Miller 398,720 4,877 34,905 39, 782 10.0 Mississippi 506, 880 106,648 7,511 114,159 22.5 Monroe 385, 920 14,611 27, 325 41,936 10.9 Montgomery 501,760 8,210 11,701 19,911 4.0 Nevada 396,800 3,241 13,196 16,437 4.1 Newton 541,440 45,161 2,750 47,911 8.8 Ouachita 469,120 12,146 9,490 21,636 4.6 Perry 353,280 10,548 11,629 22, 177 6.3 Phi 1 1 ips 442, 880 55,528 51,984 107,512 24.3 Pike 384,640 3, 924 7,316 11,240 2.9 Poinsett 461,440 12,627 108,852 121,479 26.3 Polk 541,440 14,049 66 14,115 2.6 Pope 529, 920 8,050 39,729 47,779 9.0 Prairie 423,680 17,839 5,555 23, 394 5.5 Pulaski 498,560 5,521 35,214 40,735 8.2 Randolph 418,560 19,440 115 19, 555 4.7 Sal ine 475,520 15,967 15,967 3.4 Scott 620, 800 17,704 320 18,024 2.9 Searcy 430,720 17,228 13,974 31,202 7.2 Sebastian 339,840 17,652 3,587 21,239 6.2 Sevier 366,080 8,626 16,195 24,821 6.8 Sharp 389,760 17,028 10,332 27, 360 7.0 St. Francis 401,920 15,770 42,627 58, 397 14.5 Stone 391,040 28,143 3,440 31,583 8.1 Union 670, 720 7,808 377 8,185 1.2 Van Buren 467, 200 11,454 44,831 56,285 12.0 Washington 611,200 105,790 39,941 145,731 23.8 White 663,680 7,805 41,620 49,425 7.4 Woodruff 369,280 10,894 33,363 44,257 12.0 Yell 611,200 33, 302 11,973 45, 275 7.4 State 33,616,000 1,448,003 1,394,806 2, 842, 809 8.5 ’From data supplied in part by Professor Orville J. Hall, Department of Rural Economics and Sociology, Arkansas Agricultural Experiment Station, Fayette- ville, Arkansas. 2 Computed from data supplied in part by Dr. C. 0. Brannen, Acting Dean and Director, Arkansas Agricultural Experiment Station. 3 Sum of two preceding columns. 4 Ratio of area forfeited to gross land area (in percent). - 6 - 4 Florida The situation in respect to tax default in Florida is more serious than in any other southern state. As of August, 1934 there was in tax default for three or more years the huge total of approximately 12,192,000 acres or 34.7 percent of the gross land area of the state. (See Table 4.) No county in Florida has less than 1.9 per- cent of its area in this class, and one county, St. Lucie, had 83.6 percent. As shown in Figure 1, the greatest concentrations of chronic delinquency were along the East Coast, and in Taylor County on the West Coast and Sumter County in Central Florida. Fifty-four of the 67 counties in the state had at least 20 perent of their areas in tax default beyond the redemption period. The current delinquency as of December, 1933, for taxes of 1932, was 36 percent, largest in the South, and fourth from largest in the entire nation, being exceeded only by Illinois (37 percent), North Dakota (37.5 percent), and Michigan (40.5 percent). The causes of this serious condition are primarily related to fiscal maladminis- tration, coupled with the aftermath of the 1924-1926 real-estate "boom," during which heavy bond issues were floated, based on "watered" valuations. When the boom crashed, the counties, cities, and other taxing districts were left with an enormous outstanding bonded debt, requiring heavy taxes for debt service. The extent of this indebtedness can best be illustrated by comparison of the gross debt less sinking fund assets of the state and its political subdivisions with their total assessed valuation. As of 1931, the gross debt of all units of government (state, counties, cities and towns, special school districts, and other civil divisions) less sinking fund assets was $513,022,000 or $337.74 per capita. The total assessed valuation of all property (real, personal, utility, and miscellaneous); that is, the total assessable tax-base of the state in 1931, was $520,454,000, or $342.63 per capita. 5 Obviously if the gross debt less sinking fund assets is 98.5 percent of the total valuation, debt service alone is going to require confiscatory taxes. This is an actual and seemingly unavoidable condition in Florida today and has resulted in a virtual refusal to pay taxes in many sections. Since 1926, the area sold annually for non-payment of taxes increased steadily until 1933 when it decreased slightly with a reduction in tax rates. The land in tax default is being used in many cases by its record owners in defiance of any attempt of the state to foreclose its tax title. Indeed, it is obvious that the State cannot proceed in foreclosure without disrupting, if not destroying, local government. The state administration is endeavoring to find a way out of the dilemma, but the difficulties are very great. Georgia The extent of tax default in Georgia varies greatly among the 159 counties with which this state is afflicted. As of August, 1934, there was in tax default for three or more years, a total of 4,501,922 acres, or 12.0 percent of the gross land area of the state. Thirty-five counties had no land in this class, whereas two counties had 74.2 percent and 75.2 percent respectively of their area in tax default beyond the redemption period. Twenty-six counties had 20 percent or more of their area in tax default. (See table 5.) 5 U. S. Bureau of the Census: Financial Statistics of State and Local Government - 1931 - Florida. 34 pp. Washington D.C, 1934. - 7 ■ TABLE 4. -- Areas in tax default for three or more years as of August , 1934 1 FLORIDA County Gross land area Area in tax default Acres Acres Percent Alachua 579, 840 175,000 30,2 Baker 379, 520 20,000 5.3 Bay 499,840 250,805 50.2 Bradford 186,240 34,000 18.3 Brevard 656, 000 259,000 39.5 Broward 775,680 198,994 25.6 Calhoun 339,840 108,700 32.0 Charlotte 446,080 190,000 42.6 Citrus 396, 800 196,872 49.6 Clay 393,600 172,000 43.7 Coll ier 1,306,880 25,070 1.9 Columbia 506, 880 61,150 12.1 Dade 1,292,160 484,166 37.5 DeSoto 409, 600 64,000 15.6 Dixie 454, 400 110,051 24.2 Duval 500,480 298, 357 59.6 Escambia 420,480 139,000 33.0 Flagler 314,240 237, 232 75.5 Franklin 346, 240 68,500 19.8 Gadsden 345,600 9,655 2.8 Gilchrist 224,640 76,000 33.8 Glades 488,960 189,592 38.8 Gulf 357, 120 42, 850 12.0 Hamilton 337, 920 137,839 40.8 Hardee 404, 480 213,818 52.9 Hendry 749, 440 73,643 9.8 Hernando 318,080 146,500 46.0 Highlands 653, 440 294, 385 45.0 Hi llsborough 663, 040 245, 430 37.0 Holmes 302, 720 85,000 28.1 Indian River 318,080 76,500 24.0 Jackson 600,960 77,221 12.8 Jefferson 339, 200 116,800 34.4 Lafayette 353, 920 193, 000 54.5 Lake 670,080 391,000 58.4 Lee 523, 520 113,200 21.6 Leon 457,600 145,586 31.8 Levy 734, 720 141,110 19.2 Liberty 526, 720 33, 294 6.3 Madison 495,360 252,000 50.9 Manatee 526, 720 284,001 53.9 Marion 1,054,080 433,715 41.1 Martin 382, 720 62,300 16.3 Monroe 704,000 188,026 26.7 Nassau 403, 200 102,074 25.3 (Continued on following page) ■ 8 - TABLE 4. -- Areas in tax default for three or more years as of August, 1934'-- Cont’d. FLORIDA County Gross land area Area in tax default Acres Acres Percent Okaloosa 611,840 313,715 51.3 Okeechobee 478,080 33,783 7.1 Orange 594, 560 252, 904 42.5 Osceola 867, 840 255,288 29.4 Palm Beach 1,241,600 407, 389 32.8 Pasco 490,880 213,672 43.5 Pinellas 187,520 84,000 44.8 Polk 1,220,480 268,821 22.0 Putnam 481,280 275,175 57.2 St. Johns 389,120 288,211 74.1 St. Lucie 371,200 310,400 83.6 Santa Rosa 656,000 272,213 41.5 Sarasota 328,960 60,858 18.5 Seminole 205,440 66,000 32.1 Sumter 373, 120 237,875 63.8 Suwannee 442, 880 178,229 40.2 Taylor 688, 800 405,078 60.6 Union 158,720 40,851 25.7 Volusia 718,720 415,666 57.8 Wakulla 385,280 103,000 26.7 Walton 700,800 274,436 39.2 Washington 396, 800 217,000 54.7 State 35,111,040 12,192,000 34.7 ’Compiled from data obtained by Regional Office, U.S. Forest Service, Atlanta, Ga. , in connection with National Resources Board Report, and from Reports of Comptroller-General of Florida. The areas of greatest chronic delinquency comprise the two following groups of south Georgia counties extending in a generally northeast and southwest direction; namely; (1), Dodge, Wilcox, Crisp, Turner, Worth, Lee, Dougherty, Calhoun, and Baker; and (2), Long, Wayne, Pierce, Atkinson, Berrien, Cook, Lanier, and Echols. (See Figure 1.) The northernmost of these groups corresponds with an area of deep sands covered with sparse growth of longleaf pine and scrub oak. Most of the good timber has been removed, and subsequent fires have so reduced soil productivity that private ownership of the remaining forest land is not profitable, even under the low taxes levied upon it. Agricultural crop production has also declined owning to the poor soils, increased competition from better sections, and the ravages of the cotton boll weevil . ■ 9 - TABLE 5. -- Area in tax default for three or more years as of August, 1934 GEORGIA County Gross land area Area in tax default 1 County Gross land area Area in tax default 1 Acres Acres Percent Acres Acres Percent Appling 290, 560 28,856 9.9 DeKalb 174,080 — 0.0 Atkinson 211,200 156,782 74.2 Dodge 275, 840 135,984 49.3 Bacon 173,440 34, 432 19.9 Dooly 254,080 19,413 7.6 Baker 228, 480 103, 040 45.1 Dougherty 218,880 63,513 29.0 Baldwin 196,480 5,817 3.0 Douglas 133,120 6,565 4.9 Banks 142,080 — 0.0 Early 335, 360 26,602 7.9 Barrow 107,520 10,755 10.0 Echols 231,680 161,269 69.6 Bartow 301,440 14,904 4.9 Effingham 286,720 142,190 49.6 Ben Hill 163, 840 24,141 14.7 Elbert 231,040 4, 548 2.0 Berrien 291,200 105,000 36.1 Emanuel 488,960 24,141 4.9 Bibb 177,280 16,968 9.6 Evans 183,680 45,587 24.8 Bleckley 131,200 25, 899 19.7 Fannin 256, 040 0.0 Brantley 277, 760 32, 394 11.7 Fayette 149,760 14,810 9.9 Brooks 328,960 24, 724 7.5 Floyd 321,280 31,639 9.8 Bryan 275, 840 52,093 18.9 Forsyth 158,080 — 0,0 Bulloch 427, 520 0.0 Franklin 178,560 8,683 4.9 Burke 611,840 60,788 9.9 Fulton 123,520 10,085 8.2 Butts 129,920 17,428 13.4 Gilmer 281,600 — 0.0 Calhoun 181,760 71,605 39.4 Glascock 108,800 5, 395 5.0 Camden 455,040 17,959 3.9 Glynn 280, 960 27,095 9.6 Campbell 135,040 6, 638 4.9 Gordon 240,000 20, 470 8.5 Candler 145,920 14,467 9.9 Grady 284, 160 28, 194 9.9 Carroll 314,880 0.0 Greene 266, 240 5,148 1.9 Catoosa 108,160 9,146 8.5 Gwinnett 281,600 13,830 4.9 Charlton 506, 880 33,418 6.6 Habersham 185,600 — 0.0 Chatham 236, 800 44, 550 18.8 Hall 279,680 — 0.0 Chattahoochee 139,520 0.0 Hancock 339,200 16,848 5.0 Chattooga 209, 920 20, 737 9.9 Haralson 181,760 — 0.0 Cherokee 274, 560 27, 177 9.9 Harris 320, 640 — 0.0 Clarke 72,960 3,396 4.7 Hart 167,040 8,228 4.9 Clay 129, 920 — 0.0 Heard 182,400 64, 358 35.3 Clayton 90, 880 4,448 4.9 Henry 207, 360 10,206 4.9 Clinch 478,080 72,759 15.2 Houston 283, 520 14,048 5.0 Cobb 225, 920 11,015 4.9 Irwin 241,920 11,990 5.0 Coffee 404,480 40, 103 9.9 Jackson 227,200 11,130 4.9 Colquitt 338, 560 33,395 9.9 Jasper 205,440 20, 276 9.9 Columbia 224, 000 4,445 2.0 Jeff Davis 192,000 19, 052 9.9 Cook 154,240 53, 048 34.4 Jefferson 413,440 40,891 9.9 Coweta 283, 520 — 0.0 Jenkins 218,880 10,823 4.9 Crawford 204, 160 — 0.0 Johnson 186,880 17,799 9.5 Crisp 177,280 65, 996 37.2 Jones 241,280 47, 869 19.8 Dade 119,040 5,902 5.0 Lamar 117,760 13,007 11.0 Dawson 138,240 ... 0.0 Lanier 122,240 24,358 19.9 Decatur (Continued on 373,120 36,838 following page) 9.9 Laurens 515,840 0.0 - 10 - TABLE 5. -- Area in tax default for three or more years as of August, 1934- -Con t T d . GEORGIA County Gross land area Area in tax default 1 Acres Acres Percent Lee 208,640 62,074 29.8 Liberty 347, 520 34, 585 10.0 Lincoln 186,240 18,547 10.0 Long 251,520 100,312 39.9 Lowndes 309, 120 6,081 2.0 Lumpkin 179, 200 — 0.0 McDuffee 183,680 0.0 McIntosh 300,800 0.0 Macon 212,480 0.0 Madison 181,760 17,966 9.9 Marion 230,400 45, 807 19.9 Meriweather 317,440 0.0 Miller 161,920 40,153 24.8 Milton 87,680 4,370 5.0 Mitchell 350,720 34,654 9.9 Monroe 300,800 0.0 Montgomery 121,600 29, 961 24.6 Morgan 249, 600 13,699 5.5 Murray 218,880 9,385 4.3 Muscogee 150,400 --- 0.0 Newton 167,680 8,228 4.9 Oconee 110,080 23, 874 21.7 Oglethorpe 322, 560 16,054 5.0 Paulding 207, 360 10,265 5.0 Peach 114,560 — 0.0 Pickens 147, 840 0.0 Pierce 220, 800 165,968 75.2 Pike 151,680 5,465 3.6 Polk 202, 880 9,947 4,9 Pulaski 165,120 32,815 19.9 Putnam 231,040 22,941 9.9 Quitman 92, 160 0,0 Rabun 241,280 34,093 14.1 Randolph 263,680 52,262 19.8 R i chmond 204, 160 9,872 4.8 Rockdale 76, 160 — 0.0 Schley 98,560 9,772 9.9 Screven 508, 160 50, 495 9.9 County Gross land area Area in tax default1 Acres Acres Percent Seminole 153,600 7, 334 4.8 Spalding 133, 760 ... 0.0 Stephens 106,240 0.0 Stewart 263,040 30,988 11.8 Sumter 291,840 41,999 14.4 Talbot 199,680 0.0 Tal iaferro 135,680 33,660 24.8 Tattnall 298,240 57,833 19.4 Taylor 217,600 21,574 9.9 Telfair 238, 720 47,108 19.7 Terrell 206,080 4,065 2.0 Thomas 339, 200 26,617 7.8 Tift 155, 520 15,175 9.8 Toombs 251,520 19,880 7.9 Towns 115,840 1,434 1.2 Treutlen 167,680 0.0 Troup 278,400 0.0 Turner 147, 840 58,112 39.3 Twiggs 200, 960 69,738 34.7 Union 207, 360 — 0.0 Upson 202, 880 0.0 Walker 276,480 13,507 4.9 Walton 211,840 10,409 4.9 Ware 493, 440 133,490 27.1 Warren 258,560 6,524 2.5 Washington 428,160 61,628 14.4 Wayne 393,600 194,949 49.5 Webster 193,280 48,107 24.9 Wheeler 168,960 33,537 19.8 White 156,800 8,422 5.4 Whitfield 181,120 8,928 4,9 Wilcox 257,920 62,319 24.2 Wilkes 293, 120 28,992 9.9 Wilkinson 302,080 44,794 14.8 Worth 416,640 124,047 29.8 State 37,584,000 4,501,922 12.0 1 From data supplied by Regional Office, U. S. Forest Service, in connection with National Resources Board Report. ■ 11 ■ The southern group of counties referred to above, however, lies in the richest area of timber in the state, if not in the entire South. From these counties and those surrounding them comes a large share of the nation’s production of naval stores. Much of the forest area is corporately owned in large holdings of from 20,000 to over 100,000 acres each. Delinquency here is caused primarily by two factors. While de- tailed annual records are not readily available, the majority of this default has arisen since 1930. Since that date the price of naval stores has fallen steadily, reaching in 1933 the lowest point in more than a quarter of a century. Inasmuch as naval stores are the chief source of income for the landowners of this region, the low price for these products provided a good argument for non-payment of taxes if opera- tions were to be sustained. As a result, taxes went unpaid. The second reason, al- most a corollary of the first, is that the owners realized that non-payment of taxes did not mean loss of their property. It is obvious that this condition could not ob- tain if the counties, to which tax title goes on default of payment, exercised their right of foreclosure of their tax liens. That they do not do so anywhere in Georgia is well known. The total area in this state actually in county title through foreclosure of tax liens is probably less than 100, OOOacres, according to estimates made to the writer in 1933 by several state officials. There are two major reasons for this condition. First, under Georgia law the county is liable, immediately on foreclosure of its tax lien, for all the state taxes levied on the foreclosed property. Obviously those counties which are seriously involved in delinquency cannot afford, with their limited liquid capital, to refund the state taxes on any extensive area of tax-forfeited land. They cannot foreclose on one property without foreclosing on all in default; hence, they do not foreclose on any. Second, the counties realize that in the long run these delinquent taxes will probably be paid or compromised. Hence they considered it better business to let the delinquencies run for several years than to foreclose and be the holder of a large acreage of unworked land. 6 In percent of current 1933 delinquency, Georgia, with 13.5 percent, ranked fourth among the eight states. Louisiana The data on Louisiana are on a slightly different basis from those in the states previously discussed. As stated in Table 6, these data represent the net area adjudi- cated to state title for non-payment of taxes as of November 15, 1934, and are based on data collected by the State Land Planning Consultant of the National Resources Board, from an audit of the records of the State Land Office. They do not represent exactly the area in tax default for three or more years, since rural land in Louisiana has a one-year redemption period if the tax-certificate is held by a private party, but an unlimited redemption period if it is held by the State. As of November 15, 1934 there were 3,441,860 acres tax forfeited, or 11.9 per- cent of the gross area of the state. Data on Orleans Parish, which is contiguous with the City of New Orleans, are not included since this parish technically contains no rural land. No parish had less than 0.1 percent of its area forfeited, and only four 6Fullilove, W.T. Tax delinquency of rural farm lauds in fifty-two Georgia counties. 5 pp. Experiment, Ga., - 1935. (Georgia Agricultural Experi- ment Station Press Pvelease No. 406.) - 12 - had less than 1.0 percent. Eleven of the 63 parishes had 20.0 percent or more of their area adjudicated. The greatest percentage of adjudicated land was in Tangi- pahoa Parish, of which 57.7 percent was in state title. The greatest concentrations of forfeiture, other than those in Tangipahoa and St. Martin Parishes, were in the cut-over longleaf pine region of west -central Louis- iana, and in the lower Mississippi River Delta. In the former section, forreiture is primarily due to the removal of the original timber in clear-cutting operations, coupled with high taxes on the bare land, occasioned by heavy bonded indebtedness for roads and schools. In one ward of Vernon parish in 1932 the total tax millage (staie, parish, road, school, and bond taxes) reached the astounding sum of 312 mills per dollar of valuation. At the average valuation of $3.00 per acre for cut-over land, this meant that the land, which could return no income, was taxed at a rate of 94 cents per acre per year. The forfeiture in the Delta was very spotted, some parishes such as West Carroll and Madison showing almost no delinquency to the point of forfeiture while others such as Avoyelles, Plaquemines, and Concordia showed forfeiture of from 16 to 25 percent of their area. In the absence of definite knowledge of the reasons for this condition, it can only be assumed that forfeiture in the Delta is due to levying of high special improvement district taxes, and to difficulty of, or indifference to, collection. In respect to current 1933 delinquency, Louisiana, with only 7 percent, ranked first in the South, and second in the nation. Massachusetts, with but 6 percent, ranked first in the nation. Table 6. -- Rural areas adjudicated to State for non-payment of taxes, as of November 15, 1934 1 LOUISIANA Parish Gross land area Area adjudicated to State Acres Acres Percent Acadia 414,080 38, 357 9,3 Allen 424, 320 37, 680 8.9 Ascension 186,240 11,170 6.0 Assumption 309,760 15,975 5.2 Avoyelles 542,080 135,435 24.6 Beauregard 750,080 168,487 22.5 Bienville 542, 720 163,646 30.2 Bossier 552, 320 40,509 7.3 Caddo 563,200 35,155 6,2 Calcasieu 695,040 145,588 21.0 Caldwell 339, 840 6,380 1.9 Cameron 960,640 65, 665 6.8 Catahoula 459, 520 39,140 8.5 Claiborne 497, 920 11,559 2.3 Concordia 456, 960 74,501 16.3 De Soto 558,080 20, 563 3.7 East Baton Rouge 291,200 27,115 9.3 East Carroll 268,800 31,125 11.6 East Feliciana 296,960 2,469 0.8 Evangeline 435, 840 43,726 10.0 (Continued on following page) Table 6. Rural areas adjudicated to State for non-payment of taxes, as of November 15, 1934 1 Cont ' d. LOUISIANA Parish Gross land area Area adjudicated to State Acres A cres Percent Frank 1 in 403, 200 12,718 3.2 Grant 437, 120 10,499 2.4 Iberia 376, 960 29,691 7.9 Iberville 373, 760 2,033 0.5 Jackson 369, 920 15,723 4.2 Jefferson 272, 640 32, 653 12.0 Jefferson Davis 466, 560 70,133 15.0 Lafayette 178,560 23,181 13.0 Lafourche 634, 240 5, 599 0.9 La Salle 409, 600 118,701 29.0 Lincoln 302,080 9,855 3.3 Livingston 423,680 63,784 15.0 Madison 416,000 582 0.1 Morehouse 531,840 23, 952 4.5 Natchitoches 824, 960 212,997 25.8 Ouachita 410,880 18,198 4.4 Plaquemines 644,480 128,994 20.0 Pointe Coupee 368, 840 36,101 9.8 Rapides 876,600 128,994 14.7 Red River 256,000 11,315 4.4 Richland 361,500 35,651 9.9 Sabine 652,800 45,723 7.0 St. Bernard 394, 880 107, 389 27.2 St. Charles 188,800 21,807 11.6 St. Helena 268, 800 13,742 5.1 St. James 162,560 13,094 8.0 St. John 147,840 15,724 10.6 St. Landry 616,960 109,170 17.7 St. Martin 336,000 152, 552 45.4 St. Mary 404,480 36, 087 8.9 St. Tammany 579, 840 70,906 12.2 Tangipahoa 505, 600 291,548 57.7 Tensas 404, 480 26,321 6.5 Terrebonne 1,123,840 15,981 1.4 Union 587, 520 66, 066 11.2 Vermillion 776, 320 61,912 8,0 Vernon 874, 880 240, 903 27.5 Washington 419,200 13,048 3.1 Webster 389,760 11,423 2.9 West Baton Rouge 136,960 3,992 2.9 West Carroll 234, 240 265 0.1 West Feliciana 225,280 2,142 1.0 Winn 620, 160 18,463 3.0 State 2 28,936,320 3,441,860 11.9 (See footnotes on folio wing page) - 14 - Mississippi The data shown in Table 7 for Mississippi represent the area listed as in state title for non-payment of taxes on the records of the Commissioner of State Lands, as of January 1, 1934, as compiled by the State Land Planning Consultant, Mr. C, 0, Henderson. They are equivalent to the data for other states (except Louisiana), and show the area in tax default for three or more years. As of this date, there were 1,331,116 acres of land forfeited for taxes, or 4.5 percent of the gross land area of the state. No county had less than 0.05 percent of its area forfeited, while one county, Issaquena, had 35.7 percent, and another, Stone, had 20.5 percent of its area in state title. These two were the only counties with as much as 20 percent of their area tax -forfeited. The greatest concentration of forfeiture was in the southeastern part of the State, in the cut-over long leaf pine belt, and in the Mississippi River (Yazoo) Delta. In the former region, forfeiture is primarily due to the removal of the original tim- ber, the principal tax base, coupled with high taxes on the denuded land. Due to over- lapping of a very large number of taxing units - school districts, road districts, improvement districts, both general and special, in addition to the state and county taxes, the tax per acre on this cut-over land frequently averages 20 to 30 cents per acre per year. One 80-acre farm in Harrison County paid ten separate levies totalling 70 J mills per dollar of valuation. This example is by no means unique. A consider- able area of this land in southeastern Mississippi has recently been acquired by the Federal Government as a National Forest. The forfeiture in the Yazoo Delta, as in other portions of the Delta in other states, is primarily due to drainage and levee acreage taxes piled on top of ad valorem taxes. This condition has been discussed in connection with the Arkansas Delta de- linquency with which the situation in the Yazoo Delta is closely comparable. C: A ... Minor concentrations of forfeiture occur in the Iron Hills (Webster, Choctaw, and Chickasaw Counties) and in the longleaf-loblolly pine belt of southwestern Missis- sippi - (Franklin and Lincoln Counties). In respect to- current 1933 delinquency, Mississippi, among the eight Gulf States. •> t ^ Oklahoma with 12 percent, ranks third The data in Table 8 for Oklahoma relate only to seventeen timbered counties in the eastern part of the state and to the area in tax default for three or more years as of 1934, A very considerable degree of tax default obtains thorughout the prairie counties but with that portion of the state lying west of the "central cross-timbers" this paper is not concerned. The area covered by the survey is indicated by the heavy boundary lines in Figure L Two isolated timbered counties, Creek, in the "Central cross- timbers" and Carter, in the Arbuckle Mountains, are also included (Footnotes for preceding page) 'Data supplied by State Land Planning Consultant, National Resources Board. Excluding Orleans Parish. - 15 - TABLE 7. -- Total state-owned lands as of January 1, 1934 MISSISSIPPI 1 County Gross land area Area of state-owned lands Acres Acres Percent Adams 272, 640 152 .05 Alcorn 247, 040 2,112 .85 Amite 456,960 20,781 4.5 Attala 457, 600 17,332 3.8 Benton 253, 440 2,799 1.1 Bolivar 562, 560 22, 587 4.0 Calhoun 370,560 21,978 5.9 Carroll 399, 360 9,227 2.3 Chickasaw 320, 640 32, 836 10.3 Choctaw 264, 960 26, 543 10.2 Claiborne 312,960 13,490 4.3 Clarke 432,000 13,110 3.1 Clay 261,120 25, 568 9.8 Coahoma 339, 200 12,651 3.8 Copiah 492, 160 9,828 1.9 Covington 262,400 12,986 4.9 DeSoto 304,000 1,966 .65 Forest 295, 680 12,132 4.1 Franklin 350,080 19,010 5.4 George 304, 000 44, 404 14.6 Greene 454,400 41,602 9.1 Grenada 282, 880 8,717 3.1 Hancock 300, 160 10,902 3.6 Harrison 364, 800 25,081 6.9 Hinds 549, 120 3,857 .6 Holmes 480,640 17,791 3.7 Humphreys 261,120 31,449 12.0 Issaquena 259,840 92,561 35.7 Itawamba 338,560 17,422 5.2 Jackson 454, 400 45,633 10.1 Jasper 426, 880 3,667 .9 Jefferson 324, 480 2,644 .8 Jeff Davis 258, 560 5,527 2.1 Jones 445, 440 10,773 2.4 Kemper 481,280 15,791 3.3 Lafayette 424, 960 20,098 4.8 Lamar 316,800 8,162 2.6 Lauderdale 448,000 4,439 1.0 Lawrence 267, 520 6,344 2.4 Leake 368,640 7,655 2.1 Lee 286, 720 2,185 .8 Leflore 366,080 14,172 3.9 Lincoln 369, 920 22, 557 6.1 Lowndes 319,360 1,773 .6 Madison 464,000 1,846 .4 Marion 342, 400 39,318 11.5 (Continued on next page) - 16 - TABLE 7. -- Total state-owned lands as of January 1, 1934 -- Cont'd. MISSISSIPPI 1 County Gross land area Area of state -owned lands Acres Acres Percent Marshall 440,960 8,545 1.9 Monroe 492, 800 6,181 1.3 Montgomery 254, 720 796 .3 Neshoba 359, 040 8,842 2.5 Newton 363, 520 12,743 3.5 Noxubee 436,480 256 .1 Oktibbeha 292,480 9,001 3.1 Panola ^ 445, 440 25, 528 5.7 Pearl River 510,080 5,630 1.1 Perry 412,160 66, 356 16,1 Pike 260, 480 5,581 2.1 Pontotoc 316,160 10,692 3,4 Prentiss 261,760 3,654 1.4 Quitman 252,800 40,769 15.5 Rankin 506,240 19,090 3.8 Scott 282,080 6,595 1.7 Sharkey 270, 080 30,081 11.4 Simpson 268.000 4,882 1.8 Smith 400, 640 23, 222 5.8 Stone 283, 520 58,019 20.5 Sunflower 431,360 9,582 2.2 Tallahatchie 402, 560 30,805 7.7 Tate 252, 000 2,988 1.2 Tippah ^ 285,440 1,016 .35 Tishomingo 273, 920 3,438 1.2 Tunica 267, 520 22,512 8.1 Union 263,680 404 .15 Walthall 248, 960 8,278 3.3 Warren 366,080 12,957 3.5 Washington 462, 720 22, 143 4.8 Wayne 519,680 27,154 5.2 Webster 266, 240 26, 707 10.0 Wilkinson 426, 880 578 .1 Winston 382, 080 8,937 2.3 Yalobusha 313,600 6, 685 2.1 Yazoo 579, 200 17,012 2.9 State 29,671,680 1,331,116 4.5 1 Inventory taken from Land Rolls of Land Commissioner's Office, and compiled by staff of State Land Planning Consultant for Mississippi. As of August, 1934, in these seventeen counties, there were 3,517,602 acres in tax default for three or more years. This represents 34.0 percent of their gross area, and indicates a degree of chronic delinquency comparable to that in Florida. The lowest percentage of area in tax default among these counties was 5.3 percent (Choctaw County) and the highest was 77.6 percent (Sequoyah County). Thirteen of the seventeen counties had 20 percent or more of their area in tax default for three or more years. The cause of such a high degree of tax forfeiture in this region is undoubtedly closely related to the overcutting of the timber resources, coupled with difficulty of collection in the wild mountain country which comprises to a large degree one of America’s last frontiers. Most of the tax default in this section occurs on the small farmer holdings rather than on the large corporate holdings which include much of the better timber and crop land. This may explain, in part, the high degree of long-term delinquency, since, while taxes average only about 10 to 12 cents per acre per year on all land except high-grade improved land, the economic balance of these small farmers is so unstable that any one of a dozen factors of misfortune can upset it for one year, leaving no funds for payment of taxes. The high interest (12 percent) accruing on taxes tends to prevent the subsequent pajunent of back taxes, interest, and costs. The result may well be complete loss of title, unless advantage is taken of the opportunity to repurchase one’s own land, at whatever price one has to pay, at the time the county offers the tax-forfeited lands for resale at public auction. In percentage of taxes currently delinquent for 1933, Oklahoma as a whole (entire state) ranked sixth among the eight states, with 25.5 percent. TABLE 8. -- Areas in tax default for three or more years, as of August, 1934 EASTERN OKLAHOMA County Gross land area Area in tax default 1 Acres Acres Percent Adair 373,760 192,225 51.4 Atoka 638,080 366, 028 57.4 Carter 531,840 290,192 54.6 Choctaw 505,600 27, 000 5.3 Cherokee 493, 440 195,529 39.6 Creek 615,680 159,700 25.9 Delaware 508.160 120,595 23.7 Haskell 393,600 157,276 40.0 Hughes 505,600 170,569 33.7 Latimer 470,400 329,249 70.0 LeFlore 1,032,960 212,062 20.5 Mayes 432,640 64,839 15.0 McCurtain 1,214,080 239,619 19.7 Pittsburg 876,800 391,083 44.6 Pushmataha 915,200 207, 500 22.7 Seminole 405, 120 50,000 12.3 Sequoyah 443, 520 344,136 77,6 Total 10,356,480 3,517,602 34.0 ’From data supplied by Regional Office, U. S. Forest Service, in connection with National Resources Board Report, for timbered counties only. - 18 - Texas The data in Table 9 on Texas relate only to forty counties in the timbered eastern part of the state and to the area in tax default for three or more years. The area included in the survey is shown by the heavy boundary line on Figure 1. As of August, 1934, in these forty counties there were 3,493,220 acres in tax default for three or more years, which is equivalent to 17,6 percent of their gross area. The lowest percentage of area in this condition in any one county was 2.4 per- cent in Jefferson County, and the highest was 41.9 percent in Cherokee County. Nine- teen of the forty counties had 20 percent or more of their area in tax default. TABLE 9, -- Areas in tax default for three or more years as of August , 1934 EASTERN TEXAS County Gross land area Area in tax default 1 County Gross land area Area in tax default1 A ores Acres Percent Acres Acres Percent Anderson 600,320 94, 977 15. 8 Nacogdoches 677,760 259,571 38.3 Angelina 601,600 77,863 12.9 Newton 568, 960 28,123 4.9 Bowie 558,720 148,423 26.6 Orange 232, 320 25,478 11.0 Brazos 382, 080 67,335 17.6 Panola 538, 880 35,836 6.7 Camp 132.480 41,532 31.3 Polk 778, 880 222,000 28.5 Cass 608,640 57,821 9.5 Red River 664. 960 101,074 15.2 Cherokee 671,360 281,428 41 . 9 Rusk 629,120 19,874 3.2 Franklin 184, 960 52,713 28.5 Sabine 376, 960 82,363 21.8 Gregg 199,680 5,910 3.0 San Augustine 398,080 97,508 24.5 Grimes 519,680 98,738 19.0 San Jacinto 38o, 280 109,806 28.5 Hardin 551,680 19,609 3.6 Shelby 533,120 47,715 9.0 Harrison 558,080 74, 000 13.3 Smi th 588, 800 104,549 17.8 Henderson 605, 440 149,543 24.7 Titus 254, 720 69,642 27.3 Houston 787,840 181, 552 23.0 Trinity 458, 240 149,769 32.7 Jasper 525, 920 36,575 5,8 Tyler 581,120 14,749 2.5 Jefferson 588, 800 14,281 2.4 Upshur 384,000 72, 960 19.0 Liberty 742, 400 20,000 2,7 Van Zandt 531,840 121,259 22.8 Madison 313,800 80,093 25,3 Walker 506, 240 105,366 20.8 Marion 250,240 33,194 13,3 Wood 420, 480 95, 869 22.8 Montgomery 650, 880 157,349 24,2 Morris 165,760 36,773 22.2 State 19,813,120 3, 493, 220 17.6 ’From data supplied in part by Regional Office, in connection with National Re- sources Board Report, for timbered counties only. There was no very definite grouping of those counties with high degrees of chronic delinquency. One irregular group lay in Bowie, Titus, Franklin, and Camp counties - in the shortleaf- loblolly pine-bardwood region north of the recently de- veloped East Texas oil field, while a second irregular grouping included Cherokee, Nacogdoches, Trinity, Polk, and San Jacinto counties, which lie partly in the short- leaf-loblolly and partly in the longleaf pine type, southwest of the oil field. - 19 - Cause of tax default in these regions is primarily related, as usual, to removal of the original timber, which constituted the principal tax base, as well as to high taxes on the remaining land (from 15<^ to 25^ per acre on cut-over land and up to $1.00 an acre on land and virgin timber). A reduction in income from agricultural crops during the depression has also contributed to this delinquency. That the chronic tax delinquency; that is, that of three or more years’ duration, is not more widespread is undoubtedly due to the fact that the prospects of subsurface mineral wealth are so great in this area that the owners feel justified in carrying the land for years without income from it in the hope and expectation of ultimately strik- ing oil. In respect to current 1933 delinquency, Texas, (for the entire state) ranked seventh among the eight states, with a current delinquency of 28 percent. Summary and Conclusions Chronic tax delinquency in the Gulf States as of 1934 involved more than thirty- one millions of acres, nearly 14 percent of the gross land area. In percentage of gross land area in tax default for three or more years, as of 1934, the Gulf States rank as follows: Florida, 34.7 percent; Oklahoma, 34.0 percent; Texas, 17.6 percent; Georgia, 12.0 percent; Louisiana, 11.9 percent; Arkansas, 8,5 percent; Mississippi, 4.5 percent; Alabama, 0.6 percent. The causes for this high degree of chronic tax default are many, of course, and vary from state to state. The first cause is the decrease in income of property owners during the four years of depression. This lowering of income affected farmers, timbers owners and operators, naval stores operators, realtors, and other land owners in great- er or less degree, and of course was an important factor in all states. This accounts for the increase in tax default in all states since 1930, but does not account for the variation between states comparable in resources, industry, and population. This variation is primarily due to the differences in the laws governing tax de- linquency and in law enforcement. In Alabama, as has been pointed out, the law itself imposes high interest (8 percent) on delinquent taxes, as well as penalty for non-pay- ment, and provides for actual forfeiture of title in fact after two years from date of original delinquency.7 In Georgia, on the other hand, no serious attempt is made to foreclose the tax liens, the county officials preferring to await payment at a subse- quent date. 6 This difference in law and enforcement is undoubtedly the largest factor in the variation in tax defaulted area between these two states. Similar differences in enforcement and statute, which need not be considered here, account for the vari- ation between Arkansas4 and Mississippi, and between Alabama and Florida. One reason that tax default is not greater in Louisiana and Texas is that land owners there are holding their property for future mineral development. The chief reason for the high degree of chronic delinquency in Florida is the refusal of taxpayers to meet the high taxes imposed for debt service on the outstanding local bonds issued during the ’'boom”. On forest land, one primary cause of tax default, which is more or less common to all states, is the mismanagement and overexploitation of the timber, amounting in many cases to clear-cutting followed by fire, and leaving an area from which no in- come can be obtained for many years and on which the payment of annual taxes imposes an outlay the owners refuse to make. 7 Redemption period changed in 1933 to three years if tax certificate held by pri- vate purchaser, and if held by State, until title passes out of State. - 20 - In percentage of the current delinquency outstanding as of December, 1933, the Southern States (including North and South Carolina and Tennessee in addition to the eight Gulf States) rank as shown in Table 10. This table also shows the respective rank of these states among the 48 states of the nation in respect to the same de- linquency. TABLE 10 -- Ranh of southern states in current tax delinquency for 1933 among all states of nation.'' State Percentage of 1932 levy delinquent as of December, 1933 Rank in nation Louisiana 7.0 2 Alabama 11.5 9 Mississippi 12.0 10 Georgia 13.5 13 Tennessee 18.0 24 Arkansas 20.0 29 North Carolina 23.5 34 Oklahoma 25.5 36 South Carolina 27.0 38 Texas 28.0 40 Florida 36.0 45 ’Data from reference cited in footnote 3 page 5. In conclusion, there is little doubt that the revival in business and the in- crease in prices for farm and forest products which is now in evidence will result in a decrease in annual tax default in future years, and also in the restoration to pri- vate ownership of some lands now involved in three or more years’ delinquency. This return to better conditions, however, will not prevent future serious delinquency in those states where little or no attempt is made to collect delinquent taxes. The so- lution of this problem is to revise the statutes of such states to insure fair and equi- table taxation of all property, prompt foreclosure and loss of title after a reasonable period allowed for payment, and prompt, impartial, and just enforcement of these statutes. It is a problem which can best be solved by the states concerned. The solution of the problem of tax forfeiture of forest lands and of submar- ginal agricultural lands lies first, in better management of such properties, with a view to perpetuating their crops rather than exploiting them once and then abandoning the land, and secondly, in development of sound land-use policies for all rural lands. On both of these solutions-- sustained-yield management and sound land-use policies -- the Southern Forest Experiment Station is now working in cooperation with other federal agencies and with the states. - 21 - ; ■ '