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State Guides For

ASSESSING FOREST LAND
AND TIMBER—1966

2 UNITED STATES DEPARTMENT OF AGRICULTURE
FOREST SERVICE

Miscellaneous Publication 1061

Historic, archived document

Do not assume content reflects current
scientific knowledge, policies, or practices.

“’ ” STATE GUIDES

FOR
ASSESSING FOREST LAND AND TIMBER--
1966

i) Sy

Compiled by
| Ellis T. Williams
Division of Forest Economics and Marketing Research

ns 7

- Miscellaneous Publication 1061 )

Any

United States Department. of Agriculture, Forest Service
oY Washington, D.C. 20250
September 1967

For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20240 - Price 50 cents

PREFACE

This compilation of State guides for the as-
sessment of forest land and timber subject to
the general property tax is the third in a series
prepared by the Forest Service. Earlier stim-
maries were published in 1941 and 1956.1

The compilation is intended for State and lo-
cal tax officials, assessing officers in particular,
and for individual forest owners, representa-
tives of forest industry, and others having
an interest in property tax questions. Exchange
of ideas in the assessment field enables States
to benefit from the experience of others and
leads to improved assessment administration.

Instructions contained in State assessors’
manuals and similar publications, made avail-
able through the cooperation of State Tax Com-
missions, have been the chief source of infor-

1 Nelson, Alf. Z. Status of official instructions for
assessing forest land. Forest Taxation Inquiry.
USDA Forest Service, 28 pp. 1941. (Out of print.)

Williams, Ellis T. State guides for assessing forest
land and timber—1955. USDA Forest Service, 52 pp.
1956. (Out of print.) ,»; na f

mation. Assessment guides or excerpts. there-
from are included for each of the States having
such material relating to forest lands. Statutory
provisions and administrative rulings have also
been included where appropriate. These guides
have been published current as of December 31,
1966.

The present compilation, like earlier ones,
does not include timber exemptions, yield taxes,
or other special forest tax laws that remove
forest land and timber in whole or in part from
the operation of the property tax. Such pro-
visions are contained in the State Forest Tax
Law Digest issued periodically by the Forest
Service.

An analysis and interpretation of forest as-
sessment developments since publication of the
1956 compilation is scheduled to appear in the
Assessors Journal. Reprints of the article,
“Progress in the Assessment of Forest Land
and Timber 1956-1966,” may be obtained from
the Forest Service upon request.

CONTENTS

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ARKANSAS?

COMMERCIAL FOREST LAND
1. Definitions:

a. Commercial forest land is defined as all
land, not classed as agriculture, urban or rur-
ban, bearing or capable of bearing forest
growths of potential commercial use.

b. Non-commercial forest land is defined as
the land from which the original forest has been
removed, partially or totally, and not used for
agriculture, urban or rurban purposes.

(1) The types of land in this classifica-
tion include those variously known as wild
land, swamp land, etc.

(2) Uses for this type land are for pur-
poses varying from limited grazing in
fringe farming areas, natural and planned
reforestation, hunting and allied recrea-
tional activities, to no use whatever for
certain barren or isolated areas. Some
areas are used for run off and erosion con-
trol in developed water sheds and some of
it is a mere over-burden on known mineral
deposits.

2. Forest Regions:

a. Arkansas is divided into four distinct for-
est regions, based on dominant forest species
and physiography. Each of these regions has a
predominant forest type, land class and related
soils. By comparing the Regional Map (Annex
#1) and Forest Type Map (Annex #2) it can
be seen that there is a definite relationship of
forest type to region.

b. Though the four forest regions of Arkansas
are defined both by related soils and forest types,
boundaries defining these areas are drawn along
county lines, to maintain county integrity, in
computing total land acreage, production, etc.
Because of county line boundaries two or more
regional timber types may fall in one county,
such as Pulaski County, which is placed in the
Ouachita Mountain Region but timber of all

1The material included is from the forestry section
(revised 1966) of the 1960 Assessors’ Manual—Real
Estate, Arkansas Public Service Commission.

regions grows there. The four regions are as
follows:
(1) Coastal Plain
(2) Ouachita
(3) Ozark
(4) Delta
(5) See Annex +3, Arkansas Forest Re-
gions drawn along County Lines.
(6) See Annex +4, Characteristics of the
Different Forest Regions.

3. Classification of Land:

a. As a basis for valuing base soil, four land
classes will be recognized that will be applied to
the State as a whole.

(1) Coastal plain pine land: All the up-
land soils of the Coastal Plains Region are
potential pine growing soils, despite the
presence of hardwood growth, and capabil-
ity of the soil is based on potential pine
yields.

(2) Mountain pine land: Most of the
Ouachita Region and the pine sites in the
Ozark Region are included. The upland
hardwood types of the Ouachita Region are
potential pine sites. In the Ozark Region
the presence of pine is an indication of the
capability of the site for pine and, as a gen-
eral rule, the South and West slopes of the
Ozarks are best adapted for pine.

(3) Bottomland hardwood lands: The
most extensive land class which includes
the six forest types of the Delta Region
and bottomlands of the other regions.

(4) Mountain hardwood lands: Primarily
the Ozark Region and includes the upland
hardwood type.

4. Timber Stand Conditions: Stand timber will
be classified into stand size and types as follows:

a. Pine
(1) Saw-timber: Stands with the domi-
nant trees ten inches DBH and over,
merchantable heights tallied in 14 log
lengths. The merchantable top will be that
point on the stem at which merchantability
for saw-timber is limited by large

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branches, deformity, etc., but will be in no
instance less than eight inches in diameter.
(2) Pulpwood: Stands with the dominant
trees ranging from five through nine inches
DBH. Field pine, poor grade, very low,
thick branches, will be classified as pulp
regardless of DBH. Height, straightness
and grade in the pulpwood sizes will point
out piling and post types.
(3) Reproduction: Reproduction will be
considered as pine growth from seedlings
to stems up to four inches in diameter.
(4) Seed trees: Cut over timber lands that
have three to five trees per acre left for
reseeding.

b. Mixed pine and hardwood: Mixed pines

and hardwoods will be classified as follows:

(1) Heavy stand of mixed pine and hard-
wood on bottomland, growing on a pine
site.
(2) Average stand of mixed pine and
hardwood on upland, growing on a pine
site.
(3) Average stand mixed hardwood on
upland or mountains, growing on a hard-
wood site.

ce. Hardwood:
(1) Saw-timber: Stands with the domi-
nant trees ranging from twelve inches
DBH and up. Top merchantability will be
determined by large branches, deformity,
etc., but will never be less than ten inches
in diameter.
(2) Pole stands: Only well-stocked, high
grade, pole stands free of fire damage,
spacing of desirable tree species, at least
twelve by twelve feet.

d. Cut over or bare lands: This is a minimum

valuation class for each class timber.

5. Evaluation:

a. Cut over land: The cut over area of
Arkansas embraces most of the Ozark Region
and portions of the other three regions. The
value of this property varies greatly from one
region to another and few parcels within a
given area are of the same value.

b. Cut over land has value deriving from con-
siderations other than forest reproduction. The
natural cover is usually a direct indication of
basic land capability and possible use, the cover
must be considered at all times. The reproduc-
tion, therefore, always is an integral part of the
consideration in determining value.

c. There are many factors involved in estab-
lishing the value of any given parcel. Sales of

cut over land in any area are comparatively
limited. Some sales do not fairly reflect market
value.

d. The evaluation of cut over and forest land
for assessing purposes is accomplished in the
following manner:

(1) Determine the type or class of land.
(2) Determine the type and class of cover.
(3) Determine the present utilization.

(4) Establish land value by comparison
with similar properties of known value.
(5) If timber is present in commercial
quantities they should be considered sepa-
rately and appropriate values should be
added to the parcel.

e. Forest lands are appraised by the same
method as used for cut over land. The value of
the forest product is added to the basic value of
the land. The basic value of land will vary from
$2.50 per acre on the poorer soils to $20.00 per
acre on the more productive soils. This, of
course, is assuming that no other utilization
possibilities exist other than tree growth. The
most important step is the determination of the
amount of merchantable forest products on the
land.

f. See Annex 5 for description of timber class
with basic valuation prices by region.

6. Timber Cruising:

a. Timber cruising is the art of estimating
the volume of stands of timber. It is essentially
a sampling process, either mechanical or ran-
dom.

(1) By mechanical, it is meant that a sys-
tematic and orderly method will be used on
each parcel of land.

(2) By random, it is meant that plots may
be taken through a stand entirely chosen
by some random process.

b. It is recommended that a 10% line plot
cruise be made on each tract, using 1/5-acre
circular plots (52.66-foot radius for saw-tim-
ber). For pulpwood, it is recommended that a
5% line plot cruise be made using 1/10-acre
circular plots (87.24-foot radius) using the
same plot centers as used for saw-timber.

ce. Annex 6 shows a line plot cruise plan of a
40-acre tract for 10% cruise using 1/5-acre
plots.

d. Annex 7 is a method of random cruising.

7. Photo Interpretation:

a. Photo interpreting is the art of recogniz-
ing features on aerial photographs. In forestry
the interpreter must be able to distinguish pine

from hardwood, saw-timber size trees from
pulpwood and recognize density.

b. A good interpreter should have a high de-
gree of stereoscopic perception, which is the
ability to see in the third dimension. The lack
of this ability will be a serious handicap.

c. Extensive experience in timber work is an
essential requisite for interpreting aerial photo-
graphs. Timber cruising and estimating is prob-
ably the best type of experience. Before an ob-
ject can be identified on a picture, the observer
must know how it looks on the ground. Con-
stant field checking will be required for the
interpreter until he gains such experience and
confidence that he is positive of his ability.

d. Objects can be identified on aerial photo-
graphs because of certain pictorial character-
istics such as size, shape, shadow, tone, texture
and dimension.

e. Pine can be readily distinguished by tone.
Pine appears darker than hardwood. In general,
the older and denser the pine stand the darker
it appears. Contrast in tone is more easily recog-
nized on infrared pictures.

f. Texture, described in terms of smoothness,
roughness and coarseness, is a very important
recognition feature. Young pine of sapling size
appears very fine and, depending upon age,
grades from fine to coarse. Open-grown rough
pine appears rough on photos regardless of age.

g. Size and height will serve to distinguish
the stand size. The older the timber, the taller
it is. By this feature, saw-timber, pulpwood,
saplings and reproduction can be identified.

h. Site will serve to identify some features.
Most important is to recognize upland from
overflow bottomlands.

i. The classification of hardwood stands must
be done by an on-the-ground inspection of the
stand. Because it is impossible to recognize cull
species, cull trees and poor quality on aerial
photographs, their use must be restricted to
area measurement, stand delineation and an aid
for location.

j. Density is discussed in Annex #8.

8. Corner Locations in Timber Areas:
Annex #9)

(See

9. Estimating Standing Timber:
#10)

10. General:

(See Annex

a. Aerial photos should be used in all phases
of valuing timber. They can be used in cruising
to locate stands down to 214 acres. With photos
the cruiser can go into the stand and measure

several plots or enough to satisfy himself that
he has a fairly representative sample. In this
manner homogeneous stands may be cruised
with a low-intensity cruise (5% or less, depend-
ing upon the variation in blocking.)

ANNEXES

1. ARKANSAS FOREST REGIONS BY
LAND CLASS
2. ARKANSAS FOREST TYPES—MAP
3. ARKANSAS FOREST REGIONS—
DRAWN ALONG COUNTY LINES
4. CHARACTERISTICS OF THE FOUR
FOREST REGIONS
5. DESCRIPTION OF TIMBER CLASSES
WITH BASIC VALUATION PRICES BY
REGION
. LINE-PLOT CRUISE PLAN
. A METHOD OF RANDOM CRUISING
. PHOTO DENSITY
. CORNER LOCATIONS IN TIMBER
AREAS
10. ESTIMATING STANDING TIMBER

Annex 4. Characteristics of the Different Forest
Regions

1. The Coastal Plain Region is the most im-
portant of the four regions. It is characterized
by low rolling hills, sandy soil, commercially
important stands of pine and hardwood. The
associated forest-type is loblolly—shortleaf—
hardwood mixture. Growing seasons in this
area are from 205 to 220 days. The climate is
hot humid summers and mild winters with
average temperature of 64 degrees. Average
rainfall is from 50 to 55 inches. This region is
the center of Arkansas lumbering industry.
Markets are readily available. Transportation
is good. Extensive tree farming is practiced,
with selective cuttings, for sustained growth.

2. The Ouachita Region is characterized by
long distinct East-West ridges, shallow rocky
soils, and has a high potential for pine produc-
tion. The associated forest-type is the shortleaf
pine—hardwood type. Growing seasons in this
area are from 200 to 210 days. The climate is
hot summers and mild winters with average
temperature of 62 degrees. Average rainfall is
from 45 to 50 inches. This region falls second in
the Arkansas timber industry. Markets are not
always readily available for pulp and chips.
Post and piling must be shipped distantly.
Transportation is good but confined mostly to
trucking. Tree farming is not practiced on a
large scale, only small individual parcels of
timber. Jack pine grows on the poorer soils.

Much of the land is in Federal Forest.

3. The Ozark Region is composed predomi-
nantly of hardwood stands. The region is char-
acterized by rugged mountains, rocky soils, de-
pleted timber stands and relatively low produc-
tive potential. While the predominant forest
type is the upland hardwood type, many of the
South and West slopes could support productive
pine stands. The climate is hot summers and
mild winters with average temperature of 60
degrees. The growing season is from 190 to 210
days. Average rainfall is from 40 to 50 inches.
Markets are not readily available, or too dis-
tant. Transportation fair. Very little tree farm-
ing. Only small individual parcels of timber.
Much of the land is in Federal Forest.

4. The Delta Region is an area of almost pure
hardwood. Local pine stands are the exception.
Much of timber has been badly managed and
cut-over, with a high component of cull, defect,
and valueless species. There are six forest types
associated with this region. Soils are Bottom-
land, Loessial Terrace and Loessial Hills. Be-
cause of these soils and this being the principal
row-crop region of Arkansas, timber is being
cleared at a very rapid pace without marketing
it. Land use for row-crops far outweighs any
for timber value at this time. The climate is
hot humid summers with mild winters. The
average temperature is 64 degrees. The average
growing season is from 205 to 220 days. The
average rainfall is 50 to 55 inches.

Annex 5. Description of Timber Classes with Basic Valuation Prices by Region
Region value
Classification Stand size
Coastal | Ouachita Ozark Delta
Plain
Saw Timber
Pine
7 eee ree eee ara! Pine land ‘with 6-10 M. per acre. .2.--.22.3:242-sss5 100 80 70 100
7 A ee bet ae ei ee oe Pine.land: with 3=6 M. per acre_=...---2--2-=-.5<--s 80 | 65 55 80
AG es 2 Pee oe Pine Jand with: 1-3: M. pér acress 22) 222 ae eee ee 60 | 50 40 60
St Do Some ens dr Mee Clear cut pine land except 3-5 seed trees per acre___-- 40 35 30 40
Pulpwood—Pine
Pile. tee 242 Oe Pulpwood with 6-10 cords per acre______---_-------- 80 65 50 80
| ae ee ere Pulpwood with 3-6 cords per acre_________---__----- 60 50 40 60
22 eel aoe ae Pulpwood with 1-8 cords per acre________----------- 40 35 30 40
Reproduction—Pine
Rtas) Se ee Good stand, 1,000 stems and up per acre 1-6 feet be- 35 30 25 35
tween stems.
RB ese esos Average stand, 500—1,000 stems per acre 6-9 feet be- 30 25 20 30
tween stems.
RBS eine Se Poor stand, up to 500 stems per acre, spaced more 25 20 15 25
than 9 feet apart.
Mixed Timber
PE So Set Stee 2S Mixed pine and bottomland hardwood on a pine site_-_ 60 | 50 40 | 60
PH2. 252-225-565 Mixed pine and upland hardwood on a pine site__-_-__- 40 35 30 | 40
Ps ee ee et Mixed hardwood and pine on upland or mountain 30 25 20 | 30
hardwood site.
Hardwood
N's 1 eae oe Good hardwood saw timber 3M and up per acre__---- 50 40 40 50
E22. Se eee eee Operable hardwood saw timber, 800-3M per acre_---- 40 30 | 30 | 40
13 Bee ee hae ee Polestandsss.3. 2 2 see 2 en Sees ee ee 30 20 | 20 | 30
|: Se 2 SR rea a Cutover-reproduced brush land or burned land_- - ---- 20 15 10 20

Note: 1. All criteria are approached from a “minimum”’ base of value only and may vary upward.
2. All volumes based on Doyle Rule.

The cruise begins at a known corner, then
pacing 5 chains, the first cruise line is located,
then the first plot is located 1 chain from the
point of beginning on the cruise line and every
2 chains thereafter. When the plots are taken

the cruiser proceeds 10 chains on the same
“40” to his next cruise line and takes 10 more
plots. In this manner 20 plots are sampled con-
stituting 4 acres (2001/5 acres) which is 10%
of the ‘‘40.”

Annex 6. Line Sample Plot Cruise Plan of a 40-
Acre Tract for 10% Cruise Using 1/5-Acre
Plots

=—10 Chains <~—

Plot No. II Plot No. 10 | Ch.
2 Ch.

Plot No. 20 i é
s —~—Begin
End corer

Annex 8. Photo Density

1. The recognition of photo density classes is
based upon the use of a’crown density scale.
2. Crown density scale:

CROWN DENSITY SCALE

rae

PERCENT CROWN COVER
11584

1
FOREST SURVEY- CENTRAL STATES FOREST EXPERIMENT STATION

3. By comparing crown cover on the aerial
photograph with a similar crown cover on the
crown density scale the relative density of the
stand can be measured. While the measure of
density is not a measure of volume, it can be as-
sumed that the more dense a stand the more
value it has. Three density classes will be recog-
nized as follows:

a. Crown Class A: 70-100% of the stand
area covered with crowns of pine trees.
b. Crown Class B: 40-70% of the stand
area covered with crowns of pine trees.
ec. Crown Class C: 10-40% of the stand
area covered with crowns of pine trees.

4. For all practical purposes, only the density
of the dominant merchantable portion of the
stand need be considered. If the dominant stand
is saw timber then the understory can be ig-
nored.

5. Density of the pine component only will be
considered. The classification of the hardwood
stands must be done by an on-the-ground in-
spection of the stand.

6. Description of Pine Timber Classes

Photo density
Classes Stand size

Class %
Al saw Dimber 22222522 seec2 A 70-100
A2 Saw limber. 22.5. vse ce! B 40-70
A3 Saw Timber. 2-2 -..222 C 10-40
Pl Bulpwoodsos 2-283. 4.2 S53 A 70-100
P2 Pulpwood. 2.252 2cteto2555 B 40-70
P3 Pulpwood_...s.2..c-c23s cc C 10-40
Rie Reproduction_____________- A 70-100
R2* Reproduction__________-_-- B 40-70
R3* Reproductionwcs2c-s223s25 C 10-40

*Make a close look for Seed Trees in this area.

7. Before attempting to employ the above
procedures in timber volume estimating by use
of aerial photos, the following general outline
of work is necessary to insure a high degree of
accuracy.

a. Make an intensive field reconnaissance
of the forest survey area. Record on
photos the various forest types and for-
est sites observed and other information
that might facilitate photo interpreta-
tion.

b. Obtain accuracy information on a suf-
ficient number of randomly selected for-
est plots within each forest type and
site to yield data not determinable from
photos.

c. Simultaneously with paragraph ‘“‘b”
above obtain data to prepare local tree
volume tables and measurements for es-
tablishment of conversion factors to be
used in photo interpretation.

d. Summarize data collected.

e. Interpret photos to classify every acre
of land.

8. All forest land in the survey unit should
be classified according to forest type and site
and gross timber volume estimated for each. In
order to accomplish this the obvious land use
classifications should be delineated first. The
following items are considered in order.

a. Outline nonforest areas such as water,
farm land, and residential areas. These
categories are obvious and require little
or no use of a stereoscope.

b. Delineate nonproductive forest areas.
These are forested rocky areas, grassy
swamp land, brush land or forested
areas badly depleted by repeated fires.

ce. Sketch forest plantation boundaries. Old
plantings are readily recognized. New
ones less than 5 years old when the aerial
photographs were taken, can be deter-
mined only by field reconnaissance cod-
ings or from ownership records.

d. The remaining areas are productive for-
est lands.

9. See Appendix A for a chronological proc-
ess of classifying land on aerial photographs.

10. See Appendix B for type site, stand-size
class and volume per acre class definitions.

11. Stereograms:

a. A set of aerial stereograms are attached
as Appendix C.

b. A set of ground stereograms are at-
tached as Appendix D.

c. By using a stereoscope it can be magni-
fied and viewed in three dimensions. By
comparing the stereo pairs with photo-
graphs the interpreter will be guided in
recognizing various stand conditions.

12. Aerial photos general:

a. The quality of aerial photographs will
vary somewhat from county to county,
because of film, photography, time of
day, atmospheric conditions and seasons
of photography.

b. Summer panchromatic film may be use-
less for forestry because of lack of con-
trast between pine and hardwood.

13. Once again, constant field checking is re-
quired of a good photo interpreter.

APPENDIX B. DEFINITION OF TERMS
1. Forest Sites:

a. Site is determined by number of 16-foot
logs contained in each mature dominant or co-
dominant tree. Mature trees to be recognized
in the survey should be pine with diameters
of at least 20 inches DBH and hardwood 16
inches DBH.

b. Number of 16 foot logs by site and type.

Forest site Pine Hardwood
I at least 5 at least 3

iu 38 to 414 2 or 214
III less than 3 less than 2

c. For areas where mature trees are not pres-
ent, site is determined by comparing the heights
and forms of the immature trees with heights
and forms of immature trees found in mature
stands of known site quality in similar loca-
tions.

2. Merchantable Tree Dimensions:
a. Minimum saw timber size trees:
(1) Pine—10 inches DBH
(2) Hardwood—12 inches DBH
b. Minimum pulp or pole size trees:
(1) Pine—5d inches DBH
(2) Hardwood—5 inches DBH
c. Minimum top diameters:
(1) Pine—8 inches
(2) Hardwood—12 inches
3. Stand Size Class:

a. Saw timber minimum stands:

(1) Pine—1,000 board feet per acre
(2) Hardwood—800 board feet per acre

b. Pulpwood minimum stands:

(1) Pine—-2 cords but less than 1,000
board feet per acre

(2) Hardwood—2 cords or pole timber
with at least 12 « 12 feet spacing, and
less than 800 board feet of saw timber

c. Reproduction:

(1) Seedlings and sapling stands less than
5 inches DBH
4. Gross volume per acre classes:

a. Reproduction, seedlings and saplings:

(1) Poor stand, less than 500 stems per
acre

(2) Average stand, 560-1,000 stems per
acre

(3) Good stand, 1,000 or more stems per
acre

b. Pulpwood:

(1) Light, 1-8 cords per acre
(2) Medium, 3-6 cords per acre
(8) Heavy, 6-10 cords per acre
c. Saw-timber :

(1) Light, 1-8 M per acre
(2) Medium, 3-6 M per acre
{3) Heavy, 6-10 M per acre

5. Cull:

a. Cull volume: Amount of wood unmer-

chantable because of decay or defects. Includes
top sections of trees to merchantable limits
usually left in woods because of many limbs or
excessive crook.

AERIAL STEREOGRAMS OF TYPICAL
STAND CLASSIFICATIONS

Stereo 1 Ala
Coastal Plain Pine Sawtimber
5,000 F.B.M. per acre Doyle
55 Sawlog trees per acre

Stereo 2 Bla
Ouachita Pine Sawtimber
4,360 F.B.M. per acre Doyle
56 Sawlog trees per acre

Stereo 3 Alb
Coastal Plain Pine Sawtimber
2,410 F.B.M. per acre Doyle
24 trees per acre

Stereo 4 Alc
Coastal Plain Pine Sawtimber
1,020 F.B.M. per acre Doyle
12 trees per acre

Stereo 5 B2a
Ouachita Pine Pulpwood
15.8 standard cords per acre
460 trees per acre

Stereo 6 A2b
Coastal Plain Pine Pulpwood
7 cords per acre
177 trees per acre

Stereo 7 B2c
Ouachita Pine Pulpwood
3.5 cords per acre
A7 trees per acre

Stereo 8 B3a
Ouachita Pine Saplings
Height: 8 feet
Spacing: 1-3 feet

Appendix C

GROUND STEREOGRAMS OF
FOREST STANDS

1. Ala Coastal Plain
Pine sawtimber
a density

2. Bla Ouachita
Pine sawtimber
a density

3. Alb Coastal Plain
Pine sawtimber
b density

4, Ale Coastal Plain
Pine sawtimber
ce density

5. A2a Coastal Plain
Pine pulpwood
a density

6. A2b Coastal Plain
Pine pulpwood
b density

Appendix D

7. A2e Coastal Plain
Pine pulpwood
c density

8. B38a Ouachita
Pine reproduction
a density

9. A38b Coastal Plain
A38a Pine saplings
Foreground b density
Background a density

10. A8b Coastal Plain
A38a Pine
Ala Foreground
b density saplings
Center
a density saplings
Background
a density sawtimber

11. C3 Bottomland
Hardwood
Pole stand
Recently cut selectively

12. D4 Ouachita
Serub hardwood
Minimum valuation

Appendix D—Continued

CALIFORNIA’

CONTENTS

CHAPTERI The value of timber properties
CHAPTER II The appraisal process
CHAPTERIII Timber property appraisal procedure
CHAPTERIV Determination of basic appraisal

factors
CHAPTER V Operations
CHAPTER VI Forms

Timber and land value schedules
Timber inventory methods
Appendix

CHAPTER VII
CHAPTER VIII

THE VALUE OF TIMBER PROPERTIES
[Chapter I]

The value of a timber property probably is
dependent upon a greater number of variables
than the value of any other class of real prop-
erty. Standing timber may be converted to lum-
ber, plywood, hardboards, and various types of
pulp products. The ability of forest lands to pro-
duce Christmas trees, split products, poles, pil-
ing, and fuel wood affect the price these prop-
erties will bring in the market. In addition to
the consideration of the highest and best use of
the timber, multiple land use for homesites,
commercial sites, recreation, grazing, water-
shed management, mineral production, and
many other uses must be weighed carefully to
arrive at a reasonable estimate of the present
worth of future benefits to be derived from the
property. Many physical factors have a direct
bearing on how much people in general are will-
ing to pay for any particular property. Stand
density, species, timber quality, distribution of
diameter classes, topography, and accessibility
are instrumental in determining the net return.

A diminishing supply of available standing
timber has brought about extreme competition
between timber buyers. High unit prices for
stumpage may be paid to gain access because of
a favorable depreciation position, to eliminate
competition, to block in timber management
units, and for other reasons peculiar to a par-
ticular operation.

In the harvest of timber stands, the quantity
of timber involved often requires a period of
years for the completion of an operation. Dur-
ing this operating period the operator is con-
fronted with costs which are not present in an

1 The material included is from Assessors’ Handbook—
The Appraisal of Timber Property, California State
Board of Equalization, 1965. Chapters II and VII are

not included. For chapters IV—VI and appendix, only the
contents pages are included.

operation for immediate liquidation. These addi-
tional costs and the less desirable nature of
income to be received at some future date should
be reflected in the estimate of present worth.

In giving the proper weight to all the variable
physical and economic factors, the timber ap-
praiser should bear in mind that the product of
his labors is an estimate of market value as it
pertains to a willing buyer and a willing seller.
The end for which his estimate may be used
probably will dictate the amount of time and
details which may be employed, but the result
sought is market value.

TIMBER PROPERTY APPRAISAL
PROCEDURE

[Chapter IIT]

METHODS OF DETERMINING PRESENT
MARKET VALUE FOR VARIOUS
CLASSES OF TIMBER PROPERTIES

While timber is considered to be land for
assessment purposes, a separate value must be
determined for both land and timber in the ap-
praisal process. For a given parcel, the sum of
land and timber values, converted to an assessed
value, will appear in the “land” column on the
assessment roll.

Land

General Considerations

Land is permanent. The amount of it is fixed.
It is indestructible even though its productivity
may be altered or even destroyed. Therefore, it
is basic. Almost all forest land is capable of
more than one use. Some forest lands are ideally
suited to residential or commercial use. At the
present time some areas of this type are being
held speculatively in anticipation of residential
and industrial expansion.

Demand for recreational use of forest land is
growing. Many times, if recreational use is not
intensive, such use is compatible with commer-
cial timber growing. Intensive uses are not. It
is lhkely that those areas of forest land best
suited to intensive use are also the most pro-
ductive timber lands, but valuation should be
based upon highest and best use of the land.
Consideration should be given by the appraiser
to all uses to which forest lands being appraised
are subjected. For purposes of this manual,

however, forest lands will be considered from
the standpoint of timber production being their
highest and best use.

Effect of Timber Exemption Upon Land

The exemption of timber as provided in the
State Constitution, Section 12 34, Article XIII,
indicates that, in the appraisal of forest land,
the value of timber of any ages ranging from
seedlings to trees of merchantable size, should
be excluded. As a result of the exemption, the
land should be considered as being devoid of
any timber stocking. The land is often referred
to as “bare land” in the attempt to ignore the
existence upon it of any stocking of coniferous
reproduction, saplings, or small poles, which are
considered to be exempt if Section 12 34 is
applicable.

Indicators of Land Value

Courts of law favor evidences of market value
based upon current sales and compatability—
the market data approach to value. Of the total
number of sales of forest land that occur, only
a relatively few of them consist of bare land.
Some sales of “bare land’, however, may be
found. As in any transaction, these sales should
be confirmed. A determination must be made
that the conditions of a market sale have been
met. If the appraiser determines that both buyer
and seller were willing to negotiate, that both
were aware of all uses to which the property
was adaptable, that neither took advantage of
the hardships of the other, the confirmed sale
may be used as an indication of market value.

All forest land is not of the same quality.
Variations exist in the physical characteristics
of forest lands. Therefore, confirmed sales must
be analyzed from the standpoint of many fac-
tors. In making comparisons between tracts,
considerations must be given to site quality,
topography, access and location. Confirmed
bare-land sales classified according to site qual-
ity, topography, access and location form an ex-
cellent base upon which to develop a range of
values.

Generally, however, prices paid are evidences
of the vaue of forest growth in addition to the
worth of the land itself. To derive a value for
sub-merchantable timber from sales of forest
land is difficult because reproduction and tim-
ber of less than merchantable size is seldom sold
except together with land. When forest lands
supporting no presently-merchantable stands of
timber are bought and sold, the degree, age,
and species composition of stocking of sub-

merchantable timber is of importance to the
informed principals. It is the value of this
stocking that must be estimated if a residual
land value is to be derived from a total property
value.

As has been suggested, by using a base value
derived from sales of bare land of given site
qualities, factored for other physical character-
istics, timber and land allocations may be made
from a total sale price.

Soil rent theories have been advanced as a
means of deriving bare land value. Values de-
rived from solving these formulae are a pres-
ent worth of the sum of all costs incurred in
planting a forest crop and carrying that crop
to a given harvest age. These theories presume
that each acre of harvestable timber has been
started from bare soil, and has been nurtured
through the rotation to time of cutting. In Cali-
fornia, limited areas of forest land have been
developed in this manner; i.e., burned areas
have been planted, or clear-cut areas have been
burned and reseeded. This replacement cost
approach has been referred to earlier, and it
serves as another means of developing an indi-
cator of value.

The third value indicator may be estimated
from capitalizing the net income expected to
be derived from the land. Net income for capi-
talization attributable to timber would be that
based upon the average net annual growth per
acre. This capitalized value is attributable to
land and timber, and a timber value must be
extracted to derive a bare land value.

Timber
The Inventory

The first step towards arriving at fair market
value is the determination of an inventory of
standing timber. The various ways of arriving
at inventory figures are discussed in Chapter
V TE.

Stumpage Value

The second step is the determination of a
present value per thousand board feet by species
and area. In most cases, stumpage values will be
derived through use of value schedules prepared
by the county. Preparation of value schedules
will be discussed in a later section. Retail stump-
age values, used at this point in the appraisal,
process, disregard the time factor but reflect
differences in quality, location, log and lumber
haul, and other local factors affecting value.

Consideration of Time

The third step considers the factor of time.
A market approach to value certainly must con-
sider the time element. In analyzing sales of
timber properties, consideration must be given
to the amount and quality of timber involved.
These elements, combined with a method of op-
eration, determine the timber stand’s length of
life. It is part of the appraiser’s function to
learn whether or to what degree, the purchase
price reflects allowances made for the uncer-
tainties attached to holding or operating timber
over a period of time. Sales of blocks of com-
parable timber may give an indication of the
present worth of a particular property. Such
sales may indicate the amount of discount that
occurs because of the time element involved.

The income approach to value also must con-
sider time. In this approach, the appraiser esti-
mates the present worth of the income stream
that he expects will flow from the property be-
ing appraised. To derive this value, the ap-
praiser must estimate the length of the operat-
ing period. Operations may be classed into the
following categories: (1) Liquidation opera-
tion, (2) Deferred income operation, (3) Oper-
ating unit, and (4) A combination operation.

1. Liquidation Operation

Short term liquidation

Timber in the process of being liquidated
over a relatively short period (1 to 3 years)
generally is appraised on the basis of present
market value without discount.

(a) Long term liquidation

The income from a timber stand which is
in the process of being liquidated over a period
of years should be discounted for the operating
period as a terminating series of equal annual
payments at an adequate discount rate.

2. Deferred Income Operation

In some instances for reasons beyond his
control, a timber property owner is unable to
produce an income from the harvest of standing
timber for a period of several years. In this
event, the appraiser may make an estimate of
the value of the total future benefits which will
be realized during a future operating period.
The value of the future benefits at the beginning
of the operation then will be considered as de-
ferred income and discounted as a single sum
to the present.

3. Operating Unit

(a) Long term operation

In effect, the discounting of income from
properties under long term management is iden-
tical to the method of discounting income from

timber stands which are being systematically
liquidated over a long period of time. However,
a property under good management practices
will substantiate to a greater degree the selec-
tion of a longer discount period than a liquida-
tion operation. This type of operation is one
which is acquiring additional lands and carry-
ing on forest regeneration practices to sustain
the operation through a longer period of time.
To repeat for emphasis, the future benefits of a
managed property are discounted as a series of
equal annual payments based on the expected
average annual cut and discounted for the oper-
ating period at an adequate discount rate.

To meet the requirement of recording val-
ues by legal subdivision, unit values will be
prorated by volume to the subdivisions.

(b) Sustained yield unit

As an operation attains a status of cutting
on a sustained yield basis, which means the
average annual cut equals the annual growth,
the value of the property is determined by capi-
talizing the net annual income at an accepted
rate of return.

Since production is in perpetuity, the land
is always in production and the property value
is based entirely upon its ability to produce tim-
ber. No value for land will be computed directly.

4. A Combination Operation

It is entirely possible to have a timber prop-
erty which may not fall into one of the above
classifications but may require two or more
separate discount periods. By discounting the
income from each of these periods to present
worth, a total over-all value may be determined.

CHAPTER IV
Determination of Basic Appraisal Factors

[Contents only]

Determination of basic appraisal factors
Taxability
Government-owned lands
Constitutional exemption
Assessee
Description
Situs or location
Classification
Security
Value
Collection of physical data
Timber inventory
Land area
Timber quality
Topography
Log and lumber haul
Multiple use

Unit stumpage values
General

Definition

Timber value schedule
Land value schedule
Time factor data
General

Management plan
Time estimate

CHAPTER V
Operations
[Contents only]

Operations
Advance preparation
Supplies and equipment
Maps and photographs
Parcel maps
Planimetric and topographic maps
Aerial photographs
Office operations
Preparation of forms
Timber property appraisal record
Standing timber record
Timber supplementary property statement
Vegetation-type maps
Collection of data
Field collection of information
Identification of parcel
Physical sampling
General area data
Specific data relating to sales
Buyer and seller
Description of property
Date of sale
Type of sale
Inventory used as sale basis
Contract provisions
Physical features of the sale area
Type of payment
Office analysis
Physical inventory
General factors
Time factor
Comparable sales
Correlation of values

CHAPTER VI
Forms
[Contents only]

Forms

Basic forms

Supplemental forms
The supplementary report on timber and timberlands
Timber property cruise record

Appraisal worksheets

Instructions for use of forms
The timber property appraisal record

The standing timber record

Supplementary report and claim for timber exemption
Timber property cruise record

Timber property inventory worksheet

Conversion return appraisal summary

Timber property appraisal worksheet

TIMBER INVENTORY METHODS
[Chapter VIII]

Timber inventories for assessment purposes
may be obtained in various ways. The responsi-
bility of the property owner to report all taxable
property is clearly set forth in the statutes.
Estimates of timber volumes are still necessary
for spot-checking submitted cruises, for field
checking areas reported as cut-over and for ob-
taining information on unreported areas. Satis-
factory cruises may be obtained (1) from a
county cruise, (2) from the property owner,
(3) by field sampling, and (4) through the use
of photogrammetric methods and field sampling.

COUNTY CRUISE

A county cruise is a survey made by qualified
county personnel or completed under contract,
which tabulates the physical factors on each
timber parcel to a certain set of standards. If a
county cruise has been made to acceptable
standards and has been kept current, it is prob-
ably the best source of inventory information
to produce equitable assessments.

Because of the complex nature of the pro-
cedures and equipment generally used to com-
plete a cruise of a large area at a reasonable
cost, a county cruise in most instances will be
done under contractual arrangements.

INVENTORY SUBMITTED BY
PROPERTY OWNER

Under increasingly intensive management
practices within the timber industry, owners
have found it necessary to develop better inven-
tory data. In the absence of a county cruise,
property owners should be requested to submit
the best available information as required by
the statutes of California. Information submit-
ted should include:

1. Timber volumes by species, preferably by
40-acre legal subdivisions.

2. The date the cruise was made, by whom
it was made, and the standards used. (Sampling
method, minimum top and breast high diam-
eters, deductions for cull and breakage, etc.)

3. Existing physical factors which deviate
from the normal and have an influence on value.

4. An annual report showing logged areas by
legal subdivision or mapped topographic unit,
the volume removed from each assessor’s parcel,
the type of logging (clear-cut, selective), and
an estimate of the relationship of the value to
the volume of timber removed.

FIELD SAMPLING

Inventory procedures will normally be con-
fined to spot-checking submitted information
and examining areas reported as logged each
year. Some inventory estimates undoubtedly
will be made on properties for which no report
is obtained.

To estimate timber volumes on large areas,
requires a statistical sample of a representative
portion of the property. This may be accom-
plished by ‘‘running”’ strips, which are spaced
equal distance apart in the parcel to be cruised,
making a complete count in the sample area,
and then relating the sample data to the whole.
Circular plots spaced at intervals may be used
in a similar way, and the number of plots or the
amount of strip sample may be determined
from prepared tables.

A chart in the Appendix indicates the num-
ber of one-fifth acre plots to be used. The Tim-
ber property Cruise Record form in Chapter
VI, paragraph 604.25, presents a means of re-
cording the data. Appraisers generally work
alone in the field. Circular plot cruising is more
adaptable to use by one man than strip cruis-
ing. For this reason, cruising by means of cir-
cular plots is recommended.

SAMPLING BY PHOTOGRAMMETRIC
METHODS PLUS FIELD CHECKING

In using mass appraisal techniques, com-
parison between comparable properties plays
an important part in arriving at value esti-
mates. To facilitate the comparison of similar
timbered areas, procedures using aerial photo-

graphs and timber-type maps derived from
these photographs have been developed. Tim-
ber-type maps delineate timbered areas of
similar vegetative density and cover.

The maximum use of available field and
office time will probably be realized by deter-
mining the existing timber types on an area
to be cruised and field checking the area by
types. This will result in the accumulation of
data which can be used to construct a sched-
ule of average volumes per acre by types which
is valuable in comparing similar properties. A
typical type map is shown in the Appendix.

APPENDIX

[Contents only]

Examples of the application of the timber property
appraisal methods

Short-term liquidation Example A
Long-term liquidation Example B
Deferred income Example C
Long-term operation Example D

Sustained yield operation Example E

Combination operation Example F
Valuation factor tables

Present worth valuation factors—Table I

Present value of $1 Table II
Mapping

Planimetric maps

Timber map legends

Timber map example

Timber type maps

Type map legend

Type map example
Timber inventory data

Sample plots required

Site tables

Mixed selection forests of Sierra Nevada

Douglas-fir

Young-growth coastal redwood

Truck transportation
Policies

Policies and procedures for declaration of timber

maturity

Laws and opinions

California Attorney General opinion 61/104
References

Bibliography

Directory

COLORADO

The Rural Land Manual recommends classi-
fication of land by productivity classes. Among
these are the following:

“Class V. Highest grazing land carrying
capacity classification. Not suitable for cultiva-
tion, but suited for permanent vegetation that
may be used for grazing. May be level and sub-
ject only to limited erosion. Usually consists
of land too wet or stony for cultivation, but
produces forage or woodland products. No
special restrictions are required. Slope 0-30%.

“Class VI. Good grazing land carrying ca-
pacity classification. Suitable for permanent
vegetation for use as grazing or woodland and
not suitable for cultivation. Moderately sloping
and subject to wind and water erosion. Graz-
ing is limited to the carrying capacity, de-
ferred grazing to permit spring growth of
grass, and rotation of grazing. May require se-
vere restrictions to permit recovery of vegeta-
tion. Slope 0-85%.

“Class VII. Fair grazing land carrying
capacity classification. Not suitable for cultiva-
tion; requires severe restrictions if used for
pasture or woodland, and is steep, rough,
eroded, or highly susceptible to erosion. All

this land must have capacity capability for
production of useful vegetation that furnishes
woodland products or forage. Slope 17-35%.

“Class VIII. Waste land is the usual iden-
tification. Not suitable for cultivation or for
the production of useful, permanent vegetation
that may be harvested by grazing or woodland
use. Chiefly rough, extremely stony, barren
land or permanent swamps and marshes, use-
ful for wildlife, recreation, or watershed pro-
tection. Slope 0-35%.”

“. . each land class should be designated
according to use such as:

D—Dryland (Farm)
G—Grassland
Id—Irrigated by Ditch
Ip—lIrrigated by Pump
T—Timberland
O—Orchards”
Assessors’ Handbook, Rural Land Man-
ual, Sec. 2, pp. 6-8, Colorado Tax
Comm., 1965.

Detailed discussion of timberland valuation
methods, included in an earlier manual, was
omitted from the 1965 revision because most
timberlands in the State are in Federal owner-
ship and thus not subject to ad valorem taxes.

CONNECTICUT

“The valuation of timber calls for a special
technical knowledge. Where there is consider-
able timber or woodland in a town, it is rec-
ommended that the assessor contact the county
agricultural agent, state extension forester, or
some other qualified specialist for assistance.
The laws of the State are particularly explicit
in their directions on how certain types of
woodland are to be valued, assessed, and
taxed.” (p. 77)

Handbook for Connecticut Assessors,
Institute of Public Service,
University of Connecticut.

Storrs. 1963.

In 1968, legislation was adopted relating to
the taxation and preservation of farm, forest,
and open space land (Public Act 490 Laws
of 1963). Under this provision “forest land”’
is defined as ‘“‘any tract or tracts of land aggre-
gating twenty-five acres or more in area bear-
ing tree growth in such quantity and so spaced
as to constitute in the opinion of the State
Forester a forest area and maintained in the

opinion of the State Forester in a state of
proper forest conservation”’.

An owner of land designated as forest land
by the State Forester may apply for its classi-
fication as such by filing application with the
assessor. The “present true and actual value”
of forest land thus classified shall be based
upon “its current use without regard to neigh-
borhood land use of a more intensive na-
GUYE, oe u< a’

Proposed values for major land-use cate-

gories have been formulated as follows:
Land Classification Value per acre

Tillable A (shade tobaceo and

nursery ) $500.00
Tillable B (binder tobacco, vege-

tables, and potatoes) 250.00
Tillable C (cornland, forage

crops, tillable pasture) 125.00
Orchard 200.00
Untillable pasture (permanent

pasture 50.00
Woodland, brushland, sproutland 25.00
Waste, swamp and ledge 10.00

“These values should be considered as aver-
age for the state as a whole and local assessors
may use higher or lower values depending
upon local circumstances.

“If assessors do deviate from these values,
it is stressed that the relationship among the
various categories be maintained.

“This schedule was prepared cooperatively
by the University of Connecticut, Connecticut
Association of Assessors, Connecticut Farm
Bureau Association, and many other groups
and individuals.”

Issued by Agricultural Center, Haddam,
Conn. Sept. 18, 1963.

FLORIDA

In 1963 legislation was adopted (Chap. 63—
245 Laws of 1963) that included forestry opera-
tions within the definition of “agricultural pur-
poses” for lands qualifying for assessment as
agricultural lands. Under earlier legislation
(Chap. 57-195 Laws of 1957) agricultural
lands are to be assessed upon an acreage basis
regardless of location within a plat, subdivi-
sion, or other real estate development. Florida
thus falls within the group of States providing
for assessment of forest lands at their “‘present
use” value.

To facilitate the assessment of forest lands
at values that reflect their earning capacity,
a timber section has been added to the Real
Estate Guide for assessing officers. The mate-
rial that follows is taken from the Guide.!

SECTION 3.7—WOODLAND

3.7-1 Valuation Basis.

(A) This section describes a procedure for
the appraisal of woodland on the basis of aver-
age annual growth from seedling to mature
timber. Actually, this is a modified “‘sustained
yield’ method in that the annual increment
of value represented by growth is recognized,
rather than a “liquidation” value. The growth
increment is converted into a dollar value.
All expenditures including but not limited to
management and protection are deducted and
the resulting annual net income is capitalized
in the same manner as that described for other
agricultural lands.

(B) The pine tree is treated as the primary
woodland crop because the trend in timber cut
from 1935 to 1960 shows pine to be rising,
while cuttings of hardwoods and cypress are
declining. A pertinent factor in this trend ap-

1 Real Estate Guide for Assessors, Office of Comptrol-
ler, Jacksonville (in course of publication).

pears to be the suitability of pine for pulp-
wood. During the past 25 years a shift from
a lumber to a pulpwood economy has taken
place. Pulpwood represented 6% of timber
used in 1935, but by 1958 it had risen to 62% ;
however in areas where hardwood trees of com-
mercial value predominate, values per acre as
indicated in Section 3.7—7 may be used.

Land which is stocked with trees of com-
mercial or non-commercial species and is (1)
producing or physically capable of producing
usable crops of wood, (2) economically acces-
sible now or in the foreseeable future, and (3)
not withdrawn from wood products utilization
for use as parks, orchards, pastures or other
purposes.

This definition includes land from which the
timber has been removed, but which has not
been developed for other purposes. It excludes
homesites or building aeras which are occu-
pied by trees for ornamental purposes.

(D) In addition to the value of the wood,
the values of naval stores and range pasture
usage are to be considered. These values are to
be added where applicable.

(E) Because of marked differences in drain-
age, soils, and ground cover, the state of
Florida has been divided into four (4) areas.
The boundaries of these areas are the same
as those recognized by the United States For-
est Service in conducting official forest inven-
tories, Exhibit No. 31 and No. 38la.

3.7-2 Indicated Value Per Acre.

(A) Exhibit No. 32 shows the indicated
value per acre of slash and longleaf pine wood-
land on the basis of capitalization of net annual
income represented by growth. Values per acre
where loblolly and sand pine species predomi-
nate are values related to slash pine. The as-
sessor’s only task in the use of this table of

FLORIDA FOREST SURVEY UNITS
UNITED STATES FOREST SERVICE
SOUTHEASTERN FOREST EXPERIMENT STATION

‘ : ae”
: OK «))

Exhibit 31

Indicated Value Per Acre of Pine Woodland on the Basis of Capitalization of Net Income Derived From Growth

Florida Forest Survey Units
Tree Site index Stocking
class
Northwest | Northeast Central South
80 A $81 $78 $56 (2)
Slash Pine 70 A 58 56 38
60 A 38 36 23
50 A 22 21 11
80 A 65 63 45
Loblolly Pine 70 A 45 43 30
60 A 30 28 18
50 A 15 14 9
80 A 67 64 45
Longleaf Pine 70 A 45 44 29
60 A 28 26 15
50 A 12 11 a
70 A 16 16 11
Sand Pine 60 A 9 ) 6

Derivation: Net annual income Exhibit 33 capitalized at 7%. Loblolly and Sand Pine by ratio to slash pine.
1 See Section 3.7—2 (B).

Exhibit 32

Calculation of Net Annual Income From Slash and Longleaf Pine Woodland on the Basis of Growth Per Acre

Per Year
Net income per acre allowing $1.50 per acre expense (3)
(1) (2) Average stumpage price per cord
Stocking Average
Tree Site index density growth per
acre per $7.80 $7.59 $5.87 $4.22
year (cords) !
!
Northwest Northeast Central South
Florida Florida Florida Florida |
80 A 92 $5.68 $5.48 $3.90 (4) |
Slash Pine 70 A ae All 4.04 3.89 2.67 |
60 A .53 2.63 2.52 1.61
50 A 39 1.54 1.46 79
80 A 19 4.66 4.50 3.14
Longleaf Pine 70 A .60 3.18 3.05 2.02
60 A .44 1.93 1.84 1.08
50 A 30 84 18 . 26
1 Column 8, Exhibits 35 and 35a.

2 Exhibit 34.
3 Section 3.7-4 (C).
4 See Section 3.7-2 (B).

values is determining species and site index, 3.7-3 Formula for Determining Assessed

a one-time procedure. Value.

(B) In that the South Florida area has little ‘ F
or no commercial producing pine or hardwood- The valuation of properties based on cap-
land, other criteria should be used to deter- italization of the average net annual income
mine value, such as pasture land, cropland, is derived by dividing the average net annual
or other. income by a capitalization rate which properly

reflects risk and profit. The assessed value of
woodland or forest land can be determined by
the following formula:

Average net annual income divided by cap-
italization rate equals assessed value where
average net annual income equals growth in-
crement multiplied by stumpage value, less ap-
plicable expenditures.

3.7-4. Source of Data for Formula.

(A) The average annual growth increment
can be determined for each of the four areas
or U. S. Forest Service Survey Units from
yield tables for well stocked stands published
in “Growth and Yields of Natural Stands of
the Southern Pine’, by F. Schumacher and
T. S. Coile, Exhibits 35 and 35a. These yield
tables predict the yield of well-stocked stands
of different site indexes for various rotations.
The predicted yield divided by the years of
the rotation will give the average growth in-
crement.

(B) Pine stumpage prices can be determined
from information available from numerous
sources, among which are:

(1) Florida Forest Service.
(2) Local forest industries.
(3) Local Consulting Foresters.

Pine stumpage prices per cord as compiled
by the Florida Forest Service are shown in
Exhibit No. 34.

(C) The growth and yield information used
in this presentation are predicted yields, and
are not based on present actual growth. To

realize the growth indicated for pine land for ©

the different site classes will require an in-
tensive forestry program, including annual ex-
penditures for stand conversion, planting, tim-
ber stand improvement, thinning and other
land development expenditures, such as water
control, access facilities, ete.

The annual expenditure of $1.50 per acre is
used in this presentation to cover cost of es-
tablishment and maintenance of firebreaks,
basic fire protection, thinning, pruning, disease
control, ranger labor, etc. Property ‘tax ex-
pense is provided for in the capitalization rate.

(D) The minimum capitalization rate recom-
mended for forest land or woodland is 7%,
which provides adequately for hazard.

3.7-5 Adjustments.

(A) Consideration has been given the mat-

ter of possible adjustments for accessibility
with the conclusion that no adjustment is indi-
cated. It is to be noted that the factors of ac-
cessibility of transport are reflected in the
standard price for the particular Forest Sur-
vey Units. The prices are average and they
represent market value which has been estab-
lished by bidders taking into consideration the
matter of accessibility, etc.

(B) Deferment of income would not be a
valid adjustment since average annual growth
on a sustained yield basis is converted to mone-
tary income from which expense applicable to
produce such growth are deducted. The net in-
come is capitalized annually, thus the process
is not cumulative. This spreads property tax
expense over the life of the tree. Woodland
thus bears its share of the property tax base
through the use of an accepted method of valu-
ation consistent with statutory requirements.

Exhibit 33

Computation of Net Annual Income
Per Acre, Exhibit 33

Formula—Stumpage price average annual
growth per acre minus expense allowance
equals net annual income per acre.

Example 1: Slash pine, site index 80, North-
west Florida
Stumpage price per

cord $7.80
Average annual growth

per acre (cords) x .92
Gross annual income

per acre $7.18
Expense allowance — 1.50
Net annual income per

acre $5.68

Example 2: Longleaf pine, site index 60, Cen-
tral Florida
Stumpage price per

cord $5.87
Average annual growth
per acre (cords) x .44
Gross annual income an
per acre $2.58
Expense allowance — 1.50
Net annual income per —
acre $1.08

Pine Stumpage Prices (a!l products), 1963

Exhibit 34

N.W. Florida unit N.E. Florida unit Central Florida unit South Florida unit
Product
(71.6 cu. ft. ;
per cord) All Av. |Weighted| All \ Weighted| All Av. |Weighted| All Av. |Weighted
prod- | price/ | price/ | prod- | price/ | price/ prod- | price/ | price/ prod- | price/ | price/
ucts | cu.ft. | cu. ft. ucts”? Gul ft; I cuit; ucts)? cul tte |/ seu tt: ucts | cu. ft. | cu. ft.
Percent Percent Percent Percent
Pulpwood____-_} 58.17 | 0.095 0.055 | 73.25 | 0 098 0.072 | 58.88 | 0.071 0.042 | 64.29 | 0.051 0.033
Saw logs,
veneer logs,
and bolts____| 22.28 | 0.123 0.027 | 20.13 | 0.121 0.024 | 29.14 | 0.110 0.032 | 22.47 | 0.095 0.021
Other indus-
trial wood___} 19.55 | 0.140 0.027 | 6.62 | 0.156 0.010 | 11.98 | 0.067 0.008 | 13.24 | 0.037 0.005
| oye) Paeneutne xe eet eee ene e Wrandlb A. 0.109 Ocala SS Maes 0.106 Total. 2s 35 0.082 Totals 2 aes 0.059
Weighted price per cord____-__-_- $7.20 | Weighted price per Weighted price per Weighted price per
Corda2. Sees $7.59 cords eis. Pee $5.87 COPdE GAR aes $4.22
Exhibit 34. Compiled by Florida Forest Service.
Slash Pine: Yields of Well-Stocked Stands }
By F. X. Schumacher and I. S. Coile
Average Volume Annual Average
Height of Basal area trees Average per acre yield/ac. yleld/ac.
Age (years) dominant per acre per acre d.b.h. over 4.5” per by all
stand (ft.) (sq. ft.) (number) (inches) d.b.h rotation rotation
(eds.) use (eds.) (eds.)
Site index 50 feet
ZN e752 ae Goes oe Se Eee 28 30 91 1,308 3.6 8.2 -41
SOL Sere se ee eee ee 40 97 702 5.0 13.5 45
A022 a cee oe eee 46 101 518 6.0 17.3 -43 .39
D0 eS See ae 50 104 432 62% 20.5 -41
GO WS o. Seo eee 53 107 384 Tail 21.8 .36
108 Aes ae ee ee 55 108 352 7.5 23.5 .33
SOS 22 te a Pees ee 57 110 330 7.8 24.7 .ol
Site index 60 feet
71 ee i ee ee ee er 38 96 875 4.5 123 61
APR oa A rs Neier se ees 49 104 499 6.2 19.3 .64
AQE 2b == ee ee eee 56 109 379 7.3 23.9 . 60
DU Sere vee SAM eS 60 113 318 8.0 26.4 .53 53
GOs tee EOE bile eee 63 115 290 8.6 30.0 50
0 eee ey SI ae ear cis ee eee 65 118 268 9.0 31.4 45
SOEs ae car aeae eee eo 67 119 254 9.3 3c .41
Site index 70 feet
QE ta ae ee ee 46 102 628 5:5 17.4 .87
SOE seer ae oe Oe 58 11] 377 7.4 25.9 86
A() ee yn ee aan nh ee a 65 117 294 8.6 31.5 .79
OOS: ts eee path es ae 70 122 254 9.4 35.5 ae/ pl 71
G0 22.3. 2.2222 eee ee eee 73 126 231 10.0 38.3 . 64
(W222 28 sae ae ee eee 76 128 215 10.5 40.6 .58
SO ae See ace se ae 78 131 205 10.8 42.7 53
Site index 80 feet
Qe soe sen eee ae eee eee 55 108 474 6.5 23.5 eat
os ape 2 eee ee 68 120 298 8.6 33.8 1.13
A(t Soe a oe ee 75 128 238 9.9 40.5 1.01
H(ineoce so. SEAT ee aoe 80 134 209 10.8 45.6 91 .92
OL Se eee ees eee oe 83 138 191 11.5 49.0 .82
1) Pee a ee es 86 141 176 12.0 50.9 S03
SORR eee See seen Ce eee 88 144 172 12.4 54.1 .68
1Data from—‘‘Growth and Yields of Natural Stands of the Southern Pines” By F. X. Schumacher and T. 8S. Coile. Copy-

right 1960 by T. S. Coile, Inc., Durham, North Carolina.

Longleaf Pine Yields of Well-Stocked Stands }
By F. X. Schumacher and T. 8S. Coile

Exhibit 35

Volume per Annual Average
Height of Basal area | Average trees Average acre over yield/ac. yield/ac.
Age (years) dominant per acre per acre d.b.h. 4.5” d.b-h. per by all rotation
stand (ft.) (sq. ft.) (number) (inches) (cds. ) rotation (cds. )
use (cds. )
Site Index 50 Feet
20 26 37 588 3.4 2.9 15
30 38 57 343 5.5 8.9 30
40 46 69 263 6.9 13.9 34
50 50 We 224 7.9 17:5 35 80
60 53 82 202 8.7 20.1 33
70 55 86 187 9.2 22.3 .32
80 57 90 177 9.6 23.8 30
Site Index 60 Feet
20 31 45 578 3.8 4.4 22
30 46 70 337 6.2 13.1 43
40 55 85 259 7.8 20.3 51
50 60 95 220 8.9 25.3 51 44
60 64 101 198 9.7 29\.2 49
70 67 106 184 10.3 32.4 .46
80 69 110 174 10.8 34.6 43
Site Index 70 Feet
20 36 54 570 4.2 6.3 .32
30 54 83 332 6.8 18.2 61
40 64 101 255 8.5 Ql eb .70
50 70 113 217 9.8 34.7 .69 .60
60 74 121 196 10.6 40.0 .67
70 78 127 181 1123 44.4 .63
80 80 131 171 11.9 47.4 59
Site Index 80 Feet
20 42 62 563 4.5 8.4 42
30 61 97 328 7.4 23 .9 80
40 73 118 252 9.3 36.7 .92
50 80 131 214 10.6 45.7 91 .79
60 85 141 193 10.6 52.7 .88
70 89 148 179 12.3 58.0 83
80 91 153 169 12.9 61.9 slits
1 Data from—‘‘Growth and Yields of Natural Stands of the Southern Pines.’’
By F. X. Schumacher and T. 8. Coile.
Copyright 1960 by T. 8. Coile, Inc., Durham, North Carolina. Exhibit 35a

Section 3.7—7 Hardwood Land.

Primary or best hardwood producing land
normally consists of river bottoms, creek or
branch bottoms and hammocks. Such land is
usually characterized by a clay or silt soil,

which is relatively well drained but subject

Indicated Value Per Acre Hardwood Land !

to periodic flooding. Species which occur nat-
urally are gums, oaks, bays, magnolia, ash, and
bald cypress. The following table indicates land
values where hardwood trees are predominant:

Florida Forest Survey Unit

Northwest Florida

INortheastsMloridas 20 fo
Centralebloridae aes ees os Deen eaten aie
Southehloridamcs 3.20 ees gs Py

Average

annual Value Gross Annual Net Value

growth per cord annual expense income per acre

(cords) income

a5 50 oe 43 $4.59 $1.97 $.25 $1.72 $24 .00
39 4.30 1.68 .25 1.43 20.00
47 4.45 2.09 .25 1.84 26.00
See Section 3.7-2 (B).

1 Source: Florida Forestry Association.

3.7-9 Site Quality Index of Pine Woodland.

(A) Site quality index refers to the domi-
nant tree heights at 50 years of age. The rela-
tive higher tree indicates more productive soil
with consequent greater earning value of the
land under appraisal. Reasonably accurate de-
termination of site index is the most important
appraisal step. It is a one-time task—site index
does not change.

Methods available in the order of preference
include:

Method 1—Sample borings to determine
age and measurement of tree height. Ref-
erence to site index curves, Exhibits 42
a-c, will give the index for the specific
parcel. An increment borer and hypsom-
eter are the tools to be used. This is the
preferred method for sites having suffi-
cient trees of adequate diameter.

Method 2—For use in the absence of a re-
cent soil survey. Gain familiarity with the
area’s terrain, representative soils, and
pasture sites, as described in Exhibit 40.
Site index may then be determined by
reference to Exhibit 41. This method is
used for sites recently clear-cut and those
having seedlings and small saplings.

Method 8—If a recent Soil Survey Report
exists, reference to it will reveal site in-
dices for the entire county, identifiable by
detailed maps.

3.7-10 Density of Stocking.

(A) Stocking is a measure of the degree to
which growing space is effectively utilized by
trees. It is defined as follows:

A—Well stocked—areas 70%
stocked with growing stock.

B—Medium stocked—areas 40 to 70%
stocked with growing stock.
C—Poorly stocked—areas
stocked with growing stock.

(B) Density of stocking is best estimated by
aerial photo interpretation in conjunction with
ground observation. Crown closure percent,
also referred to as crown cover or crown den-
sity, is the proportion of the forest canopy
occupied by tree crowns. Measurements of
crown closure percent are made by viewing
aerial photos under stereoscope, using a crown
density scale similar to the examples shown
here. Exercise care not to overestimate crown
closure by overlooking small stand openings
or including portions of crown shadows.

or better

10 to 40%

24.

CROWN DENSITY SCALE

PERCENT CROWN COVER
1:1584
FOREST SURVEY- CENTRAL STATES FOREST EXPERIMENT STATION

TIMBER SURVEY AID NOS
GUIDE FOR ESTIMATING DEGREE OF STOCKING ON AERIAL PHOTOS
BASED ON CROWN DENSITY OF DOMINANT AND CODGMINANT TREES

55% 85%
aay ‘

WELL
STOCKED

MEDIUM
STOCKED

POORLY
STOCKED

May BE ORDERED FROM:
Director, PaciHic NORTHWEST ForREST & RANGE ExPERIMENT STATION
OR FRON.. RECIONAL ForeSTER, U.S Forest Service PORTLAND, OREGON

area by the use of a prism calibrated to a
factor of 10. Step by step procedure is as fol-
lows:

Step 1—Select an observation point in the
stand that is representative of average stand
density as estimated by general observation.

Step 2—Observe all surrounding trees
through the prism, regardless of distance, and
tally them according to the following schedule:

1.0—Any tree where the image is with-
in the balance of the tree:

f) NI
(at?
fal tows

Wr, WU
AS
waa

0.5—Any tree where the image is dis-
placed exactly the width of the
tree:

0.0—Any tree where the displacement
(Total to is greater than the width of the

Step 3—Total the tally and add “0”. If
8 trees showing an image within balance have
been counted, the basal area is 80.

Step 4—Repeat Steps 1-3 as necessary if
it appears that density and stem diameter
varies greatly within the stand, and calculate
basal area by the following formula:

Number of trees tallied
10 x

Number of sampling points

(Total & *\y :
average) io)” tree: Step 5—Refer to the following table for
nT percent of stocking.
a oe TET
year tl ; 3.7-11 Personnel undertaking to determine site
ny iyi index and density of stocking should be thor-
Yo ms oughly trained in the field, particularly as to
ANG sampling error, selection of plots, avoidance of
Hs bias, etc.
rs ft jim
Cumulative Stocking Percent
Basal Area Factor = 10
*Number of sound commercial trees tallied
Dbh class
1 2 3 4 5 6 ‘4 8 9 10 11 12 13
Tally on hundredth of an acre
Seedlings-2e2. suai ease. ok 10 20 30 40 50 60 70 80 90 100
ya ES NR AA a NE 12 25 38 50 62 75 88 100
Prism count
BS ae ear Mee a A a ee 17% 34 51 68 85 102
Etch mea ee a ea Ler 30. 45. 60... “75 90 105
Gee Enis Bel eZ 138% 26° 39 52 65 78 91 104
(eras merle tke ee ZS 129” 224. 1,360 48) 460 72 84 96 108
cE aie A, Reap et eek ae 12% 24 36 48 60 72 84 96 108
OSS Ree URN ae 2 2 a PEG 12D) 880) Kaa 55 66 77 88 99 110
pA eR aN psa 2) ES i eed ae 10% 20 30 40 50 60 70 80 90 100
POSS Deets Wena eee othe 9% 18 27 36 45 54 63 72 81 90 99 108
CS ts Xo sa aes me ar 8% 16 24 32 40 48 56 64 72 80 88 96 104

*The sum of tally under (C) above.

Note: A plot may have both a prism count and tally.

GEORGIA

Although no forest assessment guides have
been adopted by the State, a proposed guide
was prepared in 1965 as a cooperative proj-
ect of the University of Georgia School of
Forestry, Georgia Forest Research Council,
Georgia Forestry Commission, and College of
Agriculture Experiment Station. The material
that follows is taken from this publication.

INTRODUCTION

F. R. Fairchild in his thorough study, Forest
Taxation in The United States, stated: ‘The
ideal tax system is that which accomplishes, in
a workable and not too expensive fashion, an
equitable distribution of the cost of govern-
ment among all persons having an interest in
the government. To be ideal the tax system
must first of all be workable. A tax system
which is incapable of effective administration,
which is uncertain as to the amount of the
taxpayer’s liability or which encourages eva-
sion and fraud must be rejected, whatever
other virtues it may claim. Secondly, the oper-
ation of the system must not be too expensive
in comparison with the revenue received.
Thirdly, the system must accomplish an equi-
table distribution of the cost of government.

“The ideal method of taxing forests is that
which will require a just contribution from
forest owners, while being of such form as
will not place a special obstacle (beyond what
any just tax may impose) in the way of the
best use of the forests and forest lands from
the viewpoint of the public interest. In pur-
suance of this ideal, a balance must be struck
between the needs of the forest owners and
the needs of the forest communities. The forest
owner should have the opportunity to pursue
his forest business without the obstacle of
unreasonable taxation; the forest community,
on the other hand, should supply money to
finance necessary government expenses.

“It is not to be presumed that an ideal tax
system would require that large areas of forest
or other land be placed on the delinquent-tax
rolls year after year. To confiscate forest prop-
erty by taxation is as much against public
policy as to exempt it from carrying its fair
share of governmental burdens.” ?

1 Proposed Assessment Guide for Forest Lands in
Georgia. Georgia Forest Research Council, Rep. 11, 24
pp. 1965.

2 Fairchild, Fred R., et al. 1935. Forest Taxation in
the United States. U.S.D.A. Misc. Publ. 218. Introduc-
tion.

JUSTIFICATION OF PROPOSAL

Georgia’s basic land tax is the ad valorem
tax. There is at present no yield, severance, or
modified forest land tax. Investigations of the
history of these types of taxes in other states
lead the authors to believe that they offer no
basis for improving the forest land tax situa-
tion in Georgia. The yield tax presents serious
problems because of fluctuations in income
from year to year, which would not be ac-
ceptable to many local governments. The sever-
ance tax has no relationship to the property
tax. It is a tax levied in addition to the prop-
erty tax. Modified taxes on forest lands create
many problems and complexities which seem
undesirable.

Currently the Georgia Code specifies that
““All property shall be returned for taxation at
its fair market value.” ? An assessment ratio
is usually applied to the fair market value to
arrive at the assessed or taxable value. Georgia
courts have consistently held that standing
timber in realty.*

As soon as timber is severed from the stump
it becomes personalty.® Under these holdings
the trees must be considered as part of the
land and, as such, considered in setting the as-
sessed value of the land. However, agricultural
products are expressly exempt from ad valorem
taxation by statutory provisions.®

The assessment of standing timber in the
same manner as the land which supports it is
fundamentally wrong. When land and timber
are assessed together or when the value of the
existing timber stand is added to the value of
the land for purposes of determining annual
taxation, the annual growth of each year in
the life of the stand is taxed during every
subsequent yvear until harvest.

In other words, the growth which occurs the
year a stand is established is taxed not only
during that year, but in all other years of the
rotation. With a 30-year rotation, the first
year’s growth is taxed 28 times, and so on.
The difference between an annual crop, like
cotton, and a crop harvested only once in a
period of years, like timber, is obvious. The
fact that the annual growth of a timber stand
is not harvested each year should not make

3 Ga. Code Ann. §92-5701 (1961).

+ Moore V. Vickers, §126 Ga. 42, 54 S.E. 814 (1906).
5 Graham V. West, 126 Ga. 624, 55 S.E. 931 (1906).
6 Ga. Code Ann. §5-606 (1962).

that growth subject to taxation for more than
the one year in which it occurred.

The tax on a merchantable stand of timber,
just before cutting, will have been collected
during each year of the life of the stand if
annual growth (productivity) is the basis for
evaluation; there should be no tax liability
against the accumulated growth at the time
of harvest. This protection for the timber
grower encourages him to practice good forest
management by realizing the maximum yield
from the site and by carrying the timber crop
through to economic maturity.

On the contrary, assessing (and taxing)
timber land or land plus timber based on a
current market value, year after year, can lead
only to premature cutting and liquidation of
the timber-growing enterprise. This taxing
procedure is entirely inconsistent with the
principles of sound forest management. Those
who manage their lands, and thus have better
stands of timber, are taxed at a higher rate
than those who do not manage or who mis-
manage their stands and have poor quality and
a small quantity of timber. A stagnated stand
of timber with little or no growth may be
taxed at a high rate because the timber stand-
ing is old growth timber, whereas a good
highly productive site may be taxed at a low
rate because of poor stands resulting from
uncontrolled fire, poor cutting practices, or
other acts of poor management.

The current classification of timber as realty
creates assessment problems that are difficult
to resolve if the law is strictly followed. The
very nature of a constantly changing biological
entity, such as a stand of timber means that
each year there is a change in value created
by growth, mortality, or harvesting operations.
Thus the requirement that the timber be as-
sessed places heavy burdens on this system
to meet the ideals of effective administration
and cost of assessment compared to revenue
received.

The answer to this is to have valuation based
on productivity. This is not a new concept ex-
cept as applied to woodlands. Agricultural
land is classed as excellent, good, fair, poor,
etc., and this classification is based on nothing
more than the productive capacity of the land.
An acre of good cotton land is one that will
produce one and one-half or more bales of cot-
ton per year. A poor acre will produce less
and is taxed accordingly. Urban property has
long been taxed relative to its ability to earn
income. Location and improvements are fac-
tors affecting urban real estate valuations, and

these are direct measurements of income pro-
ducing capacity. It is not unreasonable or il-
logical that timberlands should be valued and
taxed on the same basis—their productive ca-
pacity.

The use of productive capacity as the basis
for assessment of forest land would encourage
good management. The person with the best
class land would have to pay the top tax rate
and would thus be encouraged to manage his
land in order to get the greatest income from
it, if for no other reason than to pay the taxes.

An assessment on productive capacity would
greatly simplify and increase effectiveness of
administration of the property tax. All forest
land in the state would be classified into one
of a number of productive capability classes
based on factors such as site index and quality.
Once the classification is made, frequent re-
visions would not be necessary because the pro-
ductive capacity changes very little in the
absence of drastic external factors, such as
severe erosion, water inundation, or mechan-
ical changes.

There are a number of ways to measure the
productive capacity of forest land. The most
accurate method is actual measurement of the
growth of a stand of trees under ideal condi-
tions, i.e., good stocking and stand composition.
But this also is the most time consuming and
difficult method.

One of the most reliable and widely used
means of measuring productive capacity of
forest land is by the use of site index. Site
index is defined as an expression of forest site
quality based on the height of the dominant
stand at an arbitrarily chosen age. The age of
50 years is commonly used in the South. From
established curves, site index may be estimated
for a stand of trees of any age.

The reason site index is so widely accepted
as a measurement of productive capacity is
that the height of a tree is, except in very
rare circumstances, determined primarily by
the characteristics of the site. It is not affected
by environmental factors other than site qual-
ity, whereas diameter is affected by factors
such as stand composition, density, silvicul-
tural practices, ete.

Extensive research in the field of soil-site
index relationships has indicated that there is
a close relationship between kind of soil and
site index. Site index varies for a given soil
mapping unit by species because some species
are better adapted to certain soils than to other
soils.

The U. 8. Department of Agriculture Soil

Conservation Service has published tables
showing the average site index for major soil
mapping units and major tree species. These
tables are available for use in classfying soils
by productive capacity.

IMPLEMENTATION OF GUIDELINES

Considerable effort will be required initially
to implement this assessment guide on the part
of tax assessors and the State Revenue Depart-
ment. However, the proposed guidelines offer
long-range economies in the administration of
the property tax on forest land. This system of
assessment is based on the productive capacity
of the land as related to site index.

The first step in its implementation is the
classification of all forest land ownerships by
site index. There are two feasible methods of
accomplishing this requirement. One method
is to make necessary field measurements on
each forest property sufficient to determine
reasonably accurate site indices for the prop-
erty. The measurements required are relatively
simple and instruments required for the job
are inexpensive. It is possible that assessors
may obtain help from Georgia Forestry Com-
mission personnel in performing this work.
Assessors themselves could be given special
training in the procedures for determining the
site indices of a property, but since the job
will only have to be performed once in the
foreseeable future on most forest land they
may prefer to seek assistance from other public
agencies and concentrate their efforts on pro-
viding up-to-date ownership maps for use in
this project.

However the job is accomplished, the objec-
tive is to obtain site indices by ownerships.

Another method of obtaining site indices is
by the use of soil maps. As previously men-
tioned, the Soil Conservation Service has
mapped much of the land in Georgia by map-
ping units. These soil mapping units have been
grouped into woodland suitability by three
major resource areas. These areas are:

(1) The Limestone Valley and Mountain re-

source area

(2) The Piedmont resource area

(3) The Coastal Plain resource area

This information has been published by the
U.S.D.A. Soil Conservation Service.?

These woodland suitability groups are cor-
related by species of trees with site index. With

7 United States Department of Agriculture, Soil Con-
servation Service, Soil Survey Interpretation for Wood-
land Conservation, Georgia, Progress Report, 1961.

PE eS REMI Sn ae wT PTECLEE Sm Su AEN SI GIESSEN TG NA meh cm Ca

proper ownership maps it would be possible to
determine site index on a given property with
these soil maps, with very little field checking.
If aerial photographs are available, species
groupings could be determined and the land
classified by site index with reasonable ac-
curacy in the office.

The fact that the site index, which is a meas-
ure of productive capacity, seldom changes in
the absence of external factors means that this
job would only have to be done one time except
in rare instances. Examples of soil survey
maps and procedures for calculating the aver-
age site index of an individual property are
outlined in the appendix.

TABLES OF VALUES BY
SITE INDEX CLASSES

Once the land is classified by site index, the
assessor needs to know the value of the class.
It is impractical to expect each individual
property using the market, cost, or income ap-
proaches ordinarily used in forest valuation.

To simplify the job on the local level the
State Revenue Department should periodically
calculate a range of assessed values to be as-
signed to each site index class for each of the
three resource areas of Georgia. These tables
should be published by the Revenue Depart-
ment and recommended to local assessors for
their use.

The State Revenue Department, perhaps as-
sisted by a committee of assessors, appraisers,
foresters, and soil scientists, would consider
the productive capacity of site index classes
and determine a range of values for each class
in each resource area. General market condi-
tions and area locations would be considered in
setting these values. However, specific loca-
tional factors within the county which would
influence the basic land value would be de-
termined by the local tax assessor within the
published range of values for a specific site
index class.

For purposes of illustration the following
tables are offered:

TaBLE 1.—Assessed values of forest land by site
index classes for the Coastal-Plain Resource Area

(ASSESSMENT RATIOS 10-100)

Site index Ratio =10 Ratio = 20
Less than 56 $ 0.12— 0.50 $ 0.25— 1.00
56 to 65 $ 0.50— 1.20 $ 1.00— 2.40
66 to 75 $ 1.20— 2.00 $ 2.40— 4.00
76 to 85 $ 2.00— 3.00 $ 4.00— 6.00
86 to 95 $ 3.00— 4.00 $ 6.00— 8.00
96 to 105 $ 4.00— 6.00 $ 8.00— 12.00
106 to 115 $ 6.00— 8.00 $12.00— 16.00
116 and over $ 8.00—10.00 $16.00— 20.00

TaBLe 1.—Continued

Ratio =30 Ratio =4
Less than 56 $ 0.37— 1.50 $ 0.50— 2.00
56 to 65 $ 1.50— 3.60 $ 2.00— 4.80
66 to 75 $ 3.60— 6.00 $ 4.80— 8.00
76 to 85 $ 6.00— 9.00 $ 8.00— 12.00
86 to 95 $ 9.00—12.00 $12.00— 16.00
96 to 105 $12.00—18.00 $16.00— 24.00
106 to 115 $18 .00—24.00 $24.00— 32.00
116 and over $24 .00—30.00 $32.00— 40.00
Ratio =50 Ratio =60
Less than 56 0.65— 2.50 $ 0.75— 3.00
56 to 65 $ 2.50— 6.00 $ 3.00— 7.20
66 to 75 $ 6.00—10.00 $ 7.20— 12.00
76 to 85 $10.00—15.00 $12.00— 18.00
86 to 95 $15.00—20.00 $18.00— 24.00
96 to 105 $20.00—30.00 $24.00— 36.00
106 to 115 $30.00—40.00 $36.00— 48.00
116 and over $40.00—50.00 $48 .00— 60.00
Ratio =70 Ratio =80
Less than 56 $ 0.87— 3.50 $1.00— 4.00
56 to 65 $ 3.50— 8.40 $ 4.00— 9.60
66 to 75 $ 8.40—14.00 $ 9.60— 16.00
76 to 85 $14.00—21.00 $16.00— 24.00
86 to 95 $21.00—28.00 $24.00— 32.00
96 to 105 $28 .00—42.00 $32.00— 48.00
106 to 115 $42 .00—56.00 $48.00— 64.00
116 and over $56. 00—70.00 $64.00— 80.00
Ratio =90 Ratio = 100
Less than 56 $ 1.12— 4.50 $1.25— 5.00
56 to 65 $ 4.50—10.80 $ 5.00— 12.00
66 to 75 $10.80—18.00 $12.00— 20.00
76 to 85 $18 .00—27.00 $20.00— 30.00
86 to 95 $27 .00—36.00 $30.00— 40.00
96 to 105 $36 .00—54.00 $40.00— 60.00
106 to 115 $54. 00—72.00 $60.00— 80.00
116 and over $72.00—90.00 $80.00—100.00

The approximate average site index for for-
est land in Georgia is 70 feet. Using the 70
foot class as a base figure, projections of costs
and returns and average sales prices indicate
that the fair market value of the land should
be from $12.00 to $20.00.8 Using the 40% as-
sessment ratio recommended by the State
Revenue Department for revaluation studies,
the range of assesed values would be from
$4.80 to $8.00. Growth and yield studies fur-
nish a guide for variations from the base fig-
ure of 70 feet. On this basis a millage rate of
50 times the assessed values gives a range of
$0.25 to $0.40 as the tax to be levied for site
index 70 in the Coastal Plains Resource Area.
In 1963 the average median range of taxes
was $0.26 to $0.45.

Tables 1 through 3 indicate the assessment
values based upon the values supplied by Size-
more. They represent the assessment ratios
from 10 to 100 percent by 10 percent incre-
ments for the three major geographical areas.
These, of course could vary with the base
value assigned to the various site index classes

8 Sizemore, William R., unpublished dissertation, Uni-
versity of Georgia, 1964.

of land and can easily be re-evaluated using
computers when deemed necessary.

To be objective the local assessor could de-
termine the base level within the range of
assessed values at which the average owner-
ship from the standpoint of location of the
property will be placed. If he determines this
to be $6.50 (mid-point of range) for site in-
dex class 66-75 he then must determine if this
particular property should be assessed either
below or above the base value for the class by
the use of locational factors such as nearness
to roads, accessibility, etc.

In some instances questions will arise on
a particular property as to whether it should
be properly classed as forest land or for some
higher use. These questions of necessity must
be left to the local assessor, and to the arbitra-
tion procedure when disagreements between
the assessor and landowner arise.

This proposed assessment guide fulfills to a
degree the requirements of the ideal tax sys-
tem. It can be administered effectively and at
low cost compared to returns expected. It
should help to standardize assessments be-
tween and within counties. It allows land-
owners to predict with reasonable accuracy
their tax liability. It eliminates the necessity
of trying to determine annually the constantly
changing amount, quality, and value of the
standing timber by the local assessor. Local
governments are assured of a stable tax base
which is not possible with the yield tax, be-
cause of fluctuating volumes of timber cut
from year to year. It places the taxation of
forest land on the same basis as agricultural
land, i.e., productive capacity. Further, it is
a system which will allow forest owners to
manage their lands for the production of goods
and services for the public on a businesslike
basis. There would be in effect a penalty on
the owner who did not properly manage his
lands in that he would have to pay taxes as
great as those who do with the same class of
land.

While there are many refinements which
could be introduced into this system, one of its
greatest assets is its simplicity. It represents a
reasonable and equitable approach to the as-
sessment of forest land and would do much for
the progress of Georgia.

APPENDIX
INSTRUCTIONS FOR DETERMINATION

OF AVERAGE SITE INDEX OF A
FOREST PROPERTY

Site index is an expression of forest site qual-
ity based on the height of the dominant stand
at an arbitrarily chosen age. Site is further de-
fined as an area, considered as to its ecological
factors with reference to capacity to produce
forest or other vegetation; the combination of
biotic, climatic, and soil conditions of an area.?

For our purposes we will consider site index
as the total height attainable by the average
dominant and codominant trees in stands at the
age of fifty years.°

9 Society of American Foresters. Forestry Terminol-
ogy. Third Edition. 1958.

10 Gevorkiantz, S. R. 1957. Site Index Curves for
White Pine in Lake States. Technical note 483, Lake
States Forest Experiment Station, St. Paul, Minn.

FIGURE 1.—Determination of site index

Property ownership

Date

Person performing work

The measurements required for the determi-
nation of site index can be made by one man, but
better results are usually achieved by two to
four man crews.

Equipment required for the job includes an
increment borer for determination of age of the
tree, a hypsometer for measuring tree height,
a one-chain tape, and site index curves for the
desired tree species. The tape will not be neces-
sary if a range finder is on the hypsometer.

PROCEDURE "

11 Avery, T. E. and Herrick, A. M. Field Projects and
Classroom Exercises in Basic Forest Measurements. Uni-
versity of Georgia Press-Athens. 1963.

Form 1

Species County

Tree no. Crown class !

Total height

Age at dbh Total age

Totals

Means

1. Dominant or
codominant

Site index (from curves):

FIGURE 6. SITE INDEX CURVES
FOR SLASH PINE

120

zy
110 ZF LY
'
Pi 100 w
yi he
Z :
100 7 ra ~
A a, Ss
a 90
/ oe i.
90 FA) ; - a
e A pate oe Ss
co) [Hee 7 oO
© 80 ds < <
' 7 4 - !
15) 0 Vis Bie, x
® 7} Ne - 70%
C 4V 7 / od S
HL 7 {0} 7 < ©
anu / : (es war 7
& TD Fe / ae 60
S Wr f\/ Z, Z
“= 60 a
S ! / / 7 BS
S hia od Le -
0 4 =
' ttf, 7 ma
at 7 / Pia
50 + 7
aS 7
ao) WIN, a
v 'L Z
< ifs TV ap ke
SS Wl / 74
40-4
~ Bi / / lps
R Yl, Gis |
7,
30 ave
1 Wf)
t 4
{VAL
/ i,
20}!
ae
77 LAA t t t
! Ww Basis, 124 sample plots
10 i} +
‘7
/

0 10 20 30 60

Age years
Site Index Curves on pages !7-20 from
Avery and Herrick.
Original Source: U.S.D.A. Miscellaneous
Publication No. 50.

40 50

1. Locate a stand of the desired tree species. A
minimum of 6 to 10 dominant and codomi-
nant trees should be measured for total height
and age. The required number of samples may
also be determined by this rule-of-thumb
formula:
R2
Number of sample trees = 5 + 30
Where “R” is the estimated range
of total heights of dominant and
codominant trees in the stand. For
example, if the range in_ total
heights of dominant and _ codomi-
nant trees is 20 feet, the number of
(20)?

sample trees would be 5+ 30

or 18.

AVAILABLE SOIL SURVEYS

Figure 2 shows the status of Soil Surveys as
of 1964 within Georgia.

Information furnished in the soil survey of
each county includes:

1. Soil mapping unit index. (See Figure 3).

2. Detailed soil maps prepared from aerial

photographs. (See Figure 4).

A theoretical ownership is plotted on Figure
4. Because maps on the scale used in Figure 4
are difficult to work with, larger scale maps
should be obtained, if possible, from the SCS
by County officials. Perhaps the State Revenue
Department could make arrangements to obtain
the larger scale maps where available.

The acreage in different soil series of the
ownership must first be determined. This can
be done by use of a polar planimeter or dot grid.
Then the woodland suitability group of each
soil series represented must be determined by
use of either the County Soil Survey (now avail-
able in ten counties) or the tables and informa-
tion found in the appendix (taken from Soil
Survey Interpretations For Woodland Conser-
vation) 12 The site index of each soil series
should be determined; this information is re-
corded on Form 2 (Figure 5), and calculations

12 United States Department of Agriculture, Soil Con-
servation Service, op. cit.

FIGURE 5.

are made to determine the average site index
for the entire ownership.

As a matter of policy and for further sim-
plicity, the County assessor may wish to classify
all pine lands regardless of species at the aver-
age site index for all pines of the resource area.

For areas not growing pine the Site Index
curves shown in Figures 10 through 13 should
be used to determine the index for the species.

Some swamps and certain deep sand ridges
should be classified at below site index 50, as
their productivity is negligible.

HAWAII

Legislation adopted in 1961 and amended in
1963 provides that, in order to encourage the
development of lands for uses to which they are
best suited, the power to zone shall be exer-
cised by the State. Methods of real property
assessment should encourage rather than pe-
nalize those who would develop these uses.! Pro-
vision is made for four major land use districts
into which all lands in the State will be classi-
fied: Urban, rural, agricultural, and conserva-
tion. Conservation districts include watersheds,
scenic areas, parks and wilderness, and for-
estry and related activities.

1 Chapter 98 H, Revised Laws of Hawaii 1955 (1961
Supplement as amended).

In assessing property within a district, its
potential as well as present use or uses would
be considered. The landowner within an agri-
cultural or conservation district may, for a
minimum period of 10 years, dedicate his land
for a specific agricultural use and have the land
assessed at its value in this use.

The Department of Taxation advises that, in
assessing forested lands, sales data are used to
the extent available. Because of infrequent
sales, adopting a modified cost method of ap-
praisal is planned, on the assumption that the
cost of growing timber is equal to its value at
any particular time. To this the raw land value
is added. Forest land and timber assessment
guides are being prepared.

IDAHO

Under legislation adopted in 1965 (Chapter
321 Laws of 1965), only the bare land of all
forest type lands is to be classified as real prop-
erty; its cash value is that of the annual pro-
ductive capacity to grow a forest crop. Such
land is to be assessed at the same percentage of
cash value as other real property. Forest crops
growing on forest type lands are classified as
personal property and are exempt from prop-
erty tax except at time of severance.

Regulations for the assessment of forest land
and of forest crops under the 1965 Act are as
follows.*

ART. 325. ASSESSED VALUE
OF FOREST LANDS

“Forest Type Lands” are defined as those
lands which produce wood fiber and have this
wood fiber production as their highest and best

1 Although the tax on forest crops is referred to as a
“severance tax,” it represents a personal property tax
levied in the year of harvest.

2 Ad Valorem Property Tax Regulations, Idaho State
Tax Commission, 1965.

use. Lands not having a productivity of West-
ern white pine site class IV or Ponderosa pine
site class V based on 100-year rotation and 75%
normal stocking (U.S. Dept. of Agriculture
Technical Bulletins +630 and #323 generally
known as the “Meyer & Haig Tables) shall not
be considered as forest type land. The valuation
of this type land shall be assessed according to
Sec. 63-202, I.C.

There are three separate productivity classes
of forest type lands, poor, medium and good.
These broad classes are related in the following
manner by definition to the ‘‘“Meyer and Haig
Tables.”

A. Poor productivity class is defined as
forest type land having a median mean annual
increment (MAI) of 106 board feet per acre,
based on a 100-year rotation and 75% of nor-
mal stocking. This productivity class includes
Western white pine site classes III and IV, and
Ponderosa pine site classes IV and V. One hun-
dred six (106) board feet per acre MAI shall be
used in the evaluation formula.

B. Medium productivity class is defined as
forest type land having a median mean annual
increment (MAI) of 278 board feet per acre,

based on a 100-year rotation and 75% of normal
stocking. This productivity class includes West-
ern white pine site class II and Ponderosa pine
site classes II and III. Two hundred seventy-
eight (278) board feet per acre MAI shall be
used in the evaluation formula.

C. Good productivity class is defined as
forest type land having a median mean annual
increment (MAI) of 451 board feet per acre,
based on a 100-year rotation and 75% of normal
stocking. This productivity class includes West-
ern white pine site class I and Ponderosa pine
site class I. Four hundred fifty-one (451) board
feet (MAI) shall be used in the evaluation
formula.

EVALUATION OF PRODUCTIVITY
CLASSES

To determine the full cash value of forest
type land, a minimum base of $5.00 per acre
will be used. This value takes into consideration
the inherent rights and uses of ownership (Sec.
63-329 I.C.)

A. The poor productivity class shall have
a full cash value equal to the minimum base full
cash value.

B. The formula for determining the full
cash value of the medium productivity class is:

Med. Prod. Class MAI/acre

Poor Prod. Class MAI/acre
Full cash value of the medium productivity class

< Base Value =

278
Example: 106 x $5.00 = $18.10 per acre

C. The formula for determining the full
cash value of the good productivity class is:
Good Prod. Class MAI/acre
Poor Prod. Class MAI/acre
Full cash value of the good productivity class
451
106

The same assessment ratio will apply to the
full cash values established for forest type lands
as is applied to other rural real property full
cash values within the county wherein the land
is located.

< Base Value =

Example: x $5.00 = $21.25 per acre

ART. 326. ASSESSED VALUE
OF FOREST CROPS

“Forest Crops” are defined as any forest
growth having market value, whether standing
or down, alive or dead, and irrespective of age
or size.

“Severance” is defined as any act or acts by
which saleable forest crops are cut or removed
from the stump, or down material is removed
from the land.

Forest Crops will be considered separately,
under this law, from the land on which they are
situated, and as such will be classified as ‘‘Per-
sonal Property” and exempt from taxation until
the year of harvest. In the year of harvest all
forest crops severed from privately owned land
will be subject to a full year’s ‘‘severance tax.”
This is not to be confused with the personal
property tax on log inventories which have come
from publicly owned lands.

Timber harvested or severed from any pri-
vately owned land, regardless of its classifica-
tion, will be subject to the one year’s ‘‘severance
tax.’ That is, the land from which forest prod-
ucts are harvested does not have to be classified
as forest type land in order to make these prod-
ucts subject to the “severance tax.”

In computing this one year’s severance tax
on all forest crops harvested from privately
owned lands, the same assessment ratio used on
all other personal property will be applied to
the full cash value of the forest crop immedi-
ately prior to severance, in other words, its
stumpage value.

Factors to be considered when determining
stumpage values:

1. Average Timber Quality by Species
The market selling price of lumber and
logs, and in turn the value of standing
timber from which those products are
derived, varies greatly between species
and between individual trees of the same
species. For this reason every effort
should be made to determine as accu-
rately as possible the average grade or
quality, by species, of the material har-
vested from the tract.

2. Logging Costs
The cost of converting standing timber
into marketable logs varies primarily
with distance from market, the amount
of road development necessary, topog-
raphy, and to a lesser degree with the
volume per acre harvested and the
method of logging.

For example, good timber may cost very little
to log, and as a result, will bring premium
prices for stumpage; whereas timber of the
same species and identical quality a few miles
away may present a set of logging costs so high
as to bring the stumpage value down to a mini-
mum.

All of the above mentioned logging cost fac-

tors have a definite bearing on stumpage value,
however, normally the single most important
item is distance from market. The importance
of this factor will be reflected in the hauling
costs. While adequate allowance must be made
for hauling, it should not be over-allowed for.
That is, transportation costs should be figured
to the nearest permanent market, which nor-
mally purchases for further manufacture and/
or distribution the particular type of forest
products being produced from the tract under
consideration. The election of an owner to trans-
port his forest crop to a more distant market,
is not justification for allowing, in the appraisal
of his stumpage value, the additional hauling
cost experienced.

One of the major cost factors to consider
in an appraisal is road development. However,
Section 63-326 states ... ‘‘shall be assessed on
the cash value of the crop immediately prior
to severance ...’’, and this eliminates the neces-
sity of deducting road development costs. The
phrase “immediately prior to severance” indi-
cates a point in time at which the necessary
road development would already be completed.

Below are two formulas, either one of which
can be used to determine the value of the forest
crop immediately prior to severance.

Formula No. 1

Adj. Stumpage Val. = Ave. log selling price —
(LC + HC + SD+SC+ P&R-+ ST)

Adjusted stumpage value is: The value of the
forest crop, in place in the woods, after all nec-
essary road development has been completed.

Average log selling price is: The average
price per unit that forest crops of the same
species and quality could be expected to bring at
the nearest permanent market which normally
purchases the particular forest products being
considered.

NoTE: As used in this formula, the term
“log selling price” should be interpreted to mean
the market value per unit of any forest product

being produced of whatever nature—to include,
but not limited to the following: sawlogs, ex-
pressed in dollars per 1,000 bd. ft.; pulpwood,
expressed in dollars per cord; poles and piling,
expressed in dollars per piece or dollars per
foot of length; fence posts, expressed in dollars
per piece; Christmas trees, expressed in dollars
per bundle.

LC: Logging cost. This factor is to include
direct logging costs only. In the case of sawlogs,
this would be the dollars per 1,000 bd. ft. that
it takes to convert standing trees into logs on
the truck at the landing. (Does not include road
development costs.)

HC: Hauling cost. In the case of sawlogs, this
would be the dollors per 1,000 bd. ft. that it
costs to transport the logs from the landing to
the nearest permanent market which normally
purchases the particular species and grades be-
ing produced.

SD: Slash disposal. The amount withheld for
slash disposal purposes under Sec. 38-108 I.C.,
is to be expressed in dollars per unit of measure.

SC: Scaling cost. The cost of scaling and/or
grading the forest crop being appraised to be
expressed in dollars per unit of measure.

P&R: Profit & risk. Factor as used in ac-
cepted stumpage appraisal practices.

ST: Severance tax. This is the estimated tax
to be paid on the forest crop in the year of
harvest.

Formula No. 2
Adj. stumpage val = Stumpage value + RD

Adjusted stumpage value: The value of the
forest crop, in place in the woods, after all
necessary road development has been completed.

Stumpage value: The price that a prudent
operator would pay for a comparable forest
crop, all conditions being equal. To be expressed
in dollars per unit of measure.

RD: Road development cost. This would be
the cost of developing roads necessary to har-
vest the particular forest crop being appraised.
To be expressed in dollars per unit of measure.

ILLINOIS

Procedure for Appraisal of Merchantable
Timber

“The following outlines the procedure for
valuing merchantable timber. The base land
value of merchantable timberland on any tract
is determined by adding the value of merchant-
able timber to the base land capability value as

described in the preceding paragraphs on rural
land valuation.

“The general practice provides that mer-
chantable timber is not valued separately unless
such tracts have pole size and saw log size
stands and are used exclusively for the growing
of timber. Thus, young timberland or small
windbreaks and cattle shelter timber tracts are

not considered in valuing merchantable tim-
ber.

“The value of merchantable timber depends
on the kind and size of trees and the number
of acres of such trees. While young timberland
containing small growing trees has some value
separable from the land, such value cannot be
realized without reducing the productive value
of the timberland. Therefore, the smaller trees
should be included in the valuation of the land,
and a separate value should be added only for
pole size and saw log stands of merchantable
timber.

“Following are the main steps for the ap-
praisal of such merchantable timber:

(1) Determine the approximate number of
acres which are covered with merchant-
able timber. Aerial photographs, in addi-
tion to field checks, furnish this infor-
mation and the use of a planimeter or
grid gives the number of acres.

(2) Determine the estimated number of pole
size and saw log stands of trees in each

acre of the tract. Again the aerial photo-
graphs and the field inspection assist in
furnishing information on the number
of acres of such mature trees.

(3) Multiply the total number of acres hav-
ing such merchantable timber on the
tract by the average value per acre. The
average value per acre is estimated ac-
cording to the quality and average num-
ber of pole size and saw log stands per
acre.

(4) Add the total value of the merchantable
timber on the tract to the base land
capability value to obtain the total land
value of the tract.

“The Department will give necessary tech-
nical assistance on the valuation of merchant-
able timber, when requested by the assessing
official.”

Real Property Assessment Manual, p. 53
Department of Revenue
Property Tax Division. 1952.

INDIANA

“... properties ...classified into sub-classes
as follows:

B-1 Farms without improvements
B—2 Farms with improvements
Value of land plus improvements

B-5 All other nonfarm land
This class shall include strip mine spoil
banks, waste lands, abandoned and un-
occupied farms, forest lands, etc., and
should be assessed comparable to adja-
cent farmland.” (p. 62.)

Methods of appraising farm acreage, includ-
ing woodland, by means of productivity ratings
are explained and use of average assessed values
per acre shown in the following table is sug-
gested. (pp. 288-244.)

Real Estate Assessment Guide, No. 2,
2nd ed. State Board of Tax
Commissioners. 1961.

TasLe VII.—Grades and suggested values per acre
of farm land alone (from Indiana Real Estate
Assessment Guide)

Produc-
Kind of tivity Estimated
land and| Capable of producing rating cash
grade average = value ?
100 1
Woods:
A____| Large sawtimber- --_-__-- 13 | $150 and up
B____| Medium sawtimber_-____~ 10 | $100—$150
C____| Medium to small saw- 7 | $ 50—$100
timber.
D____| Small second growth__-_- | 5 | $ 20—$ 50
}..._| Badly eroded and cut- 21 $ 10—$% 20
over land.

1 Productivity factor of 100 represents a national standard
for agricultural productivity of an average year and under
average farm management practice of 50 bu. of corn per
acre, 25 bu. of wheat per acre, 25 bu. of soybean per acre,
2 tons of mixed hay per acre, or their equivalents.

2 Estimated cash value and average cash values are at
100%. Assessed values will be at 33144% of above.

KENTUCKY

TIMBER

“General practice provides that merchantable
timber is not valued separately unless the tracts
have pole size and saw log size stands and are
used principally for growing timber.

“The value of merchantable timber depends
on the kind and size of trees and the number
of acres of such trees. While young timberland
containing small growing trees has some value,
separable from the land, such value cannot be
realized without reducing the productive value
of the timberland. Therefore, the smaller trees
should be included in the value of the land, and
a separate value should be added only for pole
size and saw log stands. The main steps for the
appraisal of such merchantable timber are:

a. Determine the approximate number of
acres which are covered with merchantable
timber. Aerial photographs, in addition to
field checks, furnish this information and
the use of a planimeter or grid gives the
number of acres.

. Estimate the number of pole size and saw
log stands of trees in every 1/5 acre (93
ft.) square or a circle with 52.7 foot ra-
dius) of the tract. The aerial photos and
the field inspection will assist in furnish-
ing information as to the number of acres
of mature trees. Multiply the 1/5 acre
counts by 5 to make estimate per acre.

. Multiply the total number of acres having
merchantable timber on the tract by the
average value per acre. The average value
per acre is estimated according to the qual-
ity and quantity of the stand. Accessibility
is of prime importance and deductions
should be made to reflect the added cost of
removing timber from inaccessible places.
Presence of public roads, rail or water
transportation considerably improves mar-
ketability.”

Kentucky Property Assessment
Administration Manual

Department of Revenue

1958, rev. 1963, pp. 4.22—4.23

PROCEDURE FOR APPRAISAL
OF MARKETABLE TIMBER!

The following pages outline the general pro-
cedure used by professional timber appraisers
1 The following material is taken from the Real Prop-

erty Appraisal Manual, Dep. of Revenue, pp. 93-97.
1962.

for valuing marketable timber. This procedure
should not be used by the inexperienced ap-
praiser without the assistance of a qualified
appraiser. It is included in this manual to point
up the complexity of timberland appraising and
for educational purposes.

The base land value of any tract containing
timberland is determined by adding the value
of such timber to the base land capability value,
as described in the preceding section on rural
land valuation.

The general practice in the valuation of tim-
berland for assessment purposes provides that
timber is not valued separately unless such
tracts have pole size and saw log size stands and
are used exclusively for the growing of timber.
Thus, young timberland or small windbreaks
and cattle shelter timber tracts are not con-
sidered in valuing timber.

The value of timber depends on the kind and
size of trees and the number of acres of such
trees. While young timberland containing small
growing trees has some value separable from
the land, such value cannot be realized without
reducing the productive value of the timber-
land. Therefore, the smaller trees are included
in the valuation of the land, and a separate
value is added only for pole size and saw log
stands of timber.

To be classified as saw timber, soft woods
(pines, cedar, hemlock, spruce) must be at least
nine inches in diameter at breast height (DBH,
41% feet above ground) and hardwoods eleven
inches DBH. To be classified as pole timber,
softwood should be five to nine inches DBH and
hardwood five to eleven DBH. The term pole
timber is simply a measuring term and does not
refer to the use which will be made of the tim-
ber. Pulpwood, for example, falls in the “pole
timber”’ classification. Unlike saw timber, which
is measured in board feet, pole timber is meas-
ured by the cord. Also, oak used for cooperage
purposes is measured in “bolt feet’’. Cooperage
timber is cut to approximately thirty-nine
inches in length. A stave bolt cut to this length
and measuring twelve inches from outer cor-
ners of the sapwood would contain one bolt foot.
Heading bolts are cut in twenty-four inch
lengths and it is not recommended that trees
less than twelve inches in diameter be cut for
this purpose. To convert board feet to bolt feet
or vice versa, a thousand board-foot log is as-
sumed to be the equivalent of one hundred bolt
feet, or sufficient quantity to make ten barrels.

Accurate appraisal of standing timber in-

volves a careful inspection of the trees and esti-
mation of the board footage or cordage, as the
case may be, of lumber which it will produce. In
the valuation of small timber tracts, all trees of
marketable size are measured if possible. How-
ever, for mass appraisal purposes of even the
smallest tracts this is often impractical. For this
reason some simpler method which will still
give a reasonable estimate must be followed.
The recommended procedure is to establish an
acreage value based on a typical acre in the
tract. To do this, a general review of a large
portion of the tract must first be made for de-
termination of species and average size of the
marketable trees. Sample areas of normal
growth and density can be selected, either small
measured plots (1/5 acre—circle with radius of
52.7 feet) or strips, and an accurate measure-
ment of the trees within these areas made as a
guide to valuation of the entire tract. Board
footage estimates may be made through meas-
urement of the diameter and usable height. The
diameter is measured at breast height DBH and
usable height from approximately one foot
above the ground (stump height) to about
where the trunk is broken by large branches or
where the minimum diameter is approximately
nine inches.

The simplest method of measuring diameter
is by measuring around the tree and dividing
the circumference by three. (The exact division
is 3.1416; however, three gives an answer
within standards of accuracy.)

There are several methods which can be em-
ployed in measuring the point at which the
maximum usable height of a tree occurs. One,
the point where the trunk either forks or is
broken by large branches has already been men-
tioned. Another method used by some estimators
is the formula (circumference in inches at BH
x .28)—2” which will give the diameter inside
the bark at the top of the first sixteen foot log.
Deduction of two inches for each additional six-
teen feet of length will give the diameter at
the top of each additional log. For example, a
tree eighteen inches DBH (circumference 18
< 3.1416 = 56.5) is calculated as follows:

(56.5 X .28) 15.8 — 2 = 18.8” diam-
eter inside bark at top of the first 16-foot
log. At the top of the second log or 32 feet,
the diameter would be 13.8” — 2” or 11.8”

One of the simplest methods of measuring the
usable height is based on similar isosceles tri-
angles. In measuring the height, a stick, slightly
longer than the arm (with arm fully extended,
end of stick should just touch eye) is held at

arm’s length in a vertical position. When at a
distance where the stump height of the tree may
be seen over the top of the hand, and the top
of the usable length of the tree can be seen over
the top of the stick, the distance from the tree
will equal the height of the tree. (NOTE: The
head should not be moved when sighting the
upper and lower limits of the tree.)

The following sketch illustrates the use of
this method:

NSS SETS
cate CM a oe

AB and BC are equal, therefore, AY’ and XY’
are equal.

After the diameter and height are deter-
mined, the board content of the included trees
can be estimated by use of the following volume
table. This table is based on the average volume
in a large number of trees. The height is indi-
cated in half-logs or eight foot units. It is also
based on a minimum inside bark diameter of
eight inches top diameter.

The following table may be used in estimating
the cordage obtainable from one acre of pole
timber.

Diameter Number of trees to make one cord
5 42
6 22
7 14
8 10
9 7
10 6

In using the sample plot (1/5 acre) method, a
tally sheet which provides for recording the
diameters, heights and species of the trees in
the plot is necessary. Upon completion of the
measurements, the total number of trees in each
species of similar size are combined for easier

“se

Volume Table

Board Feet International 144” Log Rule
O.B. - Form Class 85

Number of 16.3-foot logs

Dbh
4 1 : | 24 | 3 | 344 | 4
Inches Gross volume in board feet

AR ee SANS Dar ed yA Re OD 21 34 46 57 67 77

ee ee eee 26 43 58 val 84 96 107

ge ae en ae ee OP Sy 32 52 70 87 102 7, 131 144
pea ee ete Soe ers 38 63 85 104 123 140 157 173
in RS Pe eee eee 45 75 100 124 146 167 186 206
laa eee esos 53 88 118 145 171 195 219 241
EF Sn ich de coe OY Os 61 102 137 169 199 226 254 279
REDE tne 7 SR AnD ee ee nee 70 al by 157 194 228 261 292 321
AS tren eae. - eee 81 133 180 221 261 297 333 366
Se ce ee ee On ale 91 151 203 251 295 337 377 416
Ne | Ree Ee Se eee ae ee oe 103 170 229 282 332 379 425 468
Se ee nea ae 115 190 256 316 372 425 474 524
SAE EE A 2S APE Ra eye ay ee) 128 212 285 352 413 472 528 582
Fe ey REN eg et bee ye ees 142 234 316 389 458 524 586 646
en eR a eee eae Rae eee 156 259 348 430 506 GY iF 646 711
SY SEL SRS eee be 171 284 383 472 555 634 710 782
aS ie Ae ae 188 311 419 516 608 695 776 857
Bo Pe Se eae 205 340 457 564 665 759 847 935
ee hee 223 370 497 612 721 824 923 1016
Be er ee a ed eon ae oe 401 538 664 782 893 1000 1102
ERIS ey URC U ER rey Sec! Sgeeeee!| (eee ses 434 582 718 845 966 1081 1191
EE ee Wa ee ge ey | Pg 2 ae ee 468 628 774 912 1042 1167 1285
eee ir pt Aa Get ae ak RL, Ae) | ree 502 676 834 9&2 1119 1253 1384
Ere ee pce ae NR ee eee BE 540 726 895 1052 1202 1346 1483
ef SL | a ete Cae | | nT eee re 578 778 959 1130 1288 1442 | 1589
eR a a ry ee ets, Sere ew ee |e ee 618 832 1026 1208 1377 1542 1698
I PE eee NOME ee eee! ETE es See ee 659 887 1094 1288 1472 1644 1816
EDEN (on Pe py OM CANS IDOLE Oe Lee GS maT 703 994 1164 1371 1567 1754 1932
RO pg ee ae SU ee ewe Pm ee EN | Wed Sy ee 1005 1239 1459 1667 1862 2056
ee nein Seance beans, |S Gere eh rg cehe | Dey Snemea a 1067 1315 1549 1770 1982 2183
FOR NEE eee rte Noe, SAM ast Beinn 8 (P| Rs wh oes 1130 1396 1641 1875 2099 2312

calculation of total per acre and the board con-
tent.

For example:
5 trees 18 inches in diameter * 5 = 25

trees

10 trees 12 inches in diameter * 5 = 50
trees

15 trees 8 inches in diameter *5 = 75
trees

The board footage would be calculated as fol-
lows: (All trees of the same diameter are as-
sumed to be of equal height in this example.)

25 trees 18 inches in diameter 32 feet
high X:221 = 5,525 bd. ft.

50 trees 12 inches in diameter 24 feet
high xX370 = 8:500: bd. ft.

75 trees 8 inches in diameter (pole)
75 + 10 = 714 cords

If the tract being appraised contained 20
acres of timber, the total volume would be:

Saw timber:
20 acres X 9,025 = 180,500 board feet

Pole timber:
20 acres X 714 cord = 150 cord

The valuation of the timber tract is completed
by applying average acre values developed from
market data on the going rate or rates for tim-
ber of the species and general log size contained
in the subject to the total timber acreage.

Content of stand:

180,500 bd. ft. saw timber, one-half good
quality, one-half medium or below, white oak,
pine and hemlock mixed. 150 cords of mixed
pulpwood.

Saw logs
90,250 bd. ft. @ $50 per
thousand $4,512.50
90,250 bd. ft. @ $30. per
thousand 2,707.50
Pulpwood
150 cord @ $15. cord 2,250.00
Total $9,470.00

Prices used in this example are average zone
market prices for the Northeast Kentucky For-

est Utilization region as of June, 1961. There
are seven utilization regions in the state and
the stumpage prices vary by regions. Informa-
tion on the latest market quotations by regions
may be obtained from the Department of
Revenue.

Timber stands can also be valued by compari-
son with similar tracts which have been sold.
However, it must be established that the timber
is comparable in species, age or size of trees and
all other factors including location and access.
Generally this method is followed in the valua-
tion of timber for property tax purposes.

LOUISIANA!

“Forest lands are hereby classified for assess-

ment purposes as follows:

1. TIDEWATER CYPRESS LAND—Forest
land that is adjacent to tidewater and that
is supporting a growth of trees which are
predominantly cypress or that at some time
in the past supported a growth of trees
which were predominantly cypress, and
which has not been captured or occupied
predominantly by commercial species other
than cypress.

. HARDWOOD LAND—Forest land that is
supporting a growth of trees or shrubs,
which are predominantly broadleaf species
and that in the past supported a growth
of predominantly broadleaf species, and
which has not been captured or occupied by
tidewater cypress or pine. Tidewater Cy-
press Land, Longleaf Pine Land, and Other
Pine Land on which broadleaf species of
commercial importance have become estab-
lished as predominant species is Hardwood
Land.

. LONGLEAF PINE LAND—Forest land
that is supporting a growth of pine pre-
dominantly of the longleaf pine species
(Pinus Palustris) or that at some time in

1 Standing timber, other than virgin timber, is exempt
from the general property tax under Constitutional
Amendment, effective Jan. 1, 1955. However, forest land
remains subject to the property tax.

the past supported a growth of longleaf
pine and on which other pine species or
broadleaf species of commercial impor-
tance have not become established as the
predominant species.

.OTHER PINE LAND—Forest land that
is supporting a growth of pine predomi-
nantly of a species other than longleaf pine
or that at some time in the past supported
a growth of pine predominantly of a species
other than longleaf pine and on which long-
leaf pine or broadleaf species of commercial
importance have not become established as
predominant species.

“For the purpose of taxation, the assessed
values of the above classifications of forest lands
shall be determined and the assessment of such
lands shall be made in the manner provided by
law. After the effective date of this amendment,
no additional value shall be added to the assess-
ment of land by reason of the presence of timber
thereon in excess of such value as was included
in the assessment of said lands and timber
thereon at the time of the adoption of this
amendment; provided that standing timber
shall be and remain liable equally with the land
on which it stands, for ad valorem taxes levied
on said land.”

Constitution of Louisiana, Art. X, Sec. 1,
as amended pursuant to Act 759, Laws of
1954, eff. Jan. 1, 1955.

MAINE

“Standing Wood, Bark, and Timber

Whenever the owner of real estate notifies the
assessors that any part of the wood, bark, and
timber standing thereon has been sold by con-
tract in writing, and exhibits to them proper
evidence, they shall assess such wood, bark, and
timber to the purchaser.”

“Woodlands

The valuation and assessment of woodlands is
one of the most important yet difficult duties of
the assessor. The well-being of his town and the
state depends on how he treats this problem.
As with other kinds of property, the assessor
should assess all taxable woodlands in accord-
ance with their value, which value is compli-
cated by the fact that the income arising from
the woodlands may be deferred for many years,
during which time taxes and other annual car-
rying costs accrue.

“Although no values are here suggested, since
the quantity, type, character and species of
wood, and the operability and nearness to mar-
ket of the land affect value so that it is difficult
to generalize, it is believed that assessors know
the relative value of their woodlands with other
kinds of land. But it must be kept in mind that
it usually takes from 40 to 60 years to pro-
duce a timber crop. Undoubtedly, timber cruis-
ing, or the use of aerial photographs, is desir-
able as a tool in establishing such values.

“An aerial survey has been made of Hancock
County which together with ground control
was used as the basis of a report on forest taxa-
tion, which disclosed that for the most part
woodlands can be successfully subjected to an
annual property tax without confiscation, pro-
vided that the tax is administered such that all
taxable property is assessed fairly and without
discrimination. The exceptions are those mu-
nicipalities which demand or need services
greater than the available tax resources.

“Tn general, the assessor has two major prob-
lems, namely, finding the property, and giving
it a value. In the case of woodlands neither prob-
lem can be easily solved or lightly treated. A
good map of the town is essential in order to
know who owns what, and exactly what it is,
that is owned. Aerial photographs have been
made of a good part of the State, although in
some instances they are not available to the as-
sessor. These photos are not maps but are useful
in determining acreages, ownerships, and char-
acter of the land and the growth.

“As in the case of valuing farms, we believe
in land classification; i.e., the number of acres

of each class of land with the kind of growth
thereon. It is only in this way that the poorer
lands can be profitably held in private owner-
ship, since then the better lands will pay their
way and in so doing relieve the poorer lands.
The acreages are important, for it is well known
that in many towns the assessed acreage is con-
siderably under that indicated by a map, giving
due allowance for lakes and streams. Improve-
ments, such as buildings and all taxable per-
sonal property, must of course be assessed on
the same basis as land.

“Uniformity in woodland assessments has
created gross inequities and consequent reper-
cussions which have often embarrassed many
assessors. For example: When all woodland
parcels are valued uniformly as though the
growth were immature or removed, the tax-
payer cannot understand why his assessment
is not reduced after he has removed a mature
stand. It is only common sense that a parcel
having marketable mature growth is worth
more and should be assessed more per acre
than another which is immature or not oper-
able. This means not that the growth be valued
on the basis of being presently stripped but
rather as an enlightened woodland owner prac-
ticing good forestry believes it adds value to
the land. Thus, woodland values should be re-
viewed from time to time so that changes in
value can be properly recognized.

“Although no unit values are here given, it
is believed that they should be such that the
tax will not confiscate the property, will yield
an annual income to the town and at the same
time encourage good forestry practice to de-
velop and maintain forest resources, and not
induce wanton cutting and waste.”

Guide for Use of Assessors, Bureau of
Taxation, pp. 79-80. 1962.

Under legislation adopted in 1954 as
amended (Revised Statutes Title 36 Sections
563-4), it is declared the policy of the State
to encourage sustained yield operation of for-
est lands. Uniformity of assessment is to be
sought, taking into consideration the pro-
ductivity of the land. Forest assessments are
to be held in excess of just value by the Courts
upon a showing by the owner that he is un-
able by efficient operation to obtain an ade-
quate return commensurate with the risk in-
volved. For purposes of this provision, forest
land includes any single tract exceeding 25
acres under one ownership devoted to com-
mercial timber production.

MARYLAND

In 1956 legislation was adopted providing
that lands actively devoted to farm or agri-
cultural use were to be assessed on the basis
of such use and not as if subdivided or on any
other basis. As reenacted in 1957 criteria were
provided for determining agricultural use;
among such criteria was “productivity of the
land including timberlands and lands used for
reforestation”. This Act was held unconstitu-
tional by the State Supreme Court and was
reenacted in 1960 without reference to timber-
lands and lands used for reforestation. The
1960 Act (Article 81 Section 19(b) Maryland
Code) was validated by amendment of the
State Constitution.

The Department of Assessments and Taxa-
tion advises that forest lands forming part of
a farm unit can generally be classified as agri-

cultural lands subject to “present use’ assess-
ment. When not part of a farm unit, use value
practice is not followed and such land is sub-
ject to assessment on the basis of market
value.

No State assessment guides for forest land
have been adopted. Soil capability is being intro-
duced as a basis for agricultural assessments
through use of soil classification maps. Two
classes of woodland, according to capability,
have so far been established. These do not now
consider the size of timber, but it is thought
that this aspect may need to be considered at a
future date.

1 Woodlands under forest management agreement ap-
proved by the State Department of Forests and Parks
may be subject to frozen assessments; little use has been
made of this optional provision (Article 81 Section
19(d) Maryland Code).

MICHIGAN '

CUT OVER AND FOREST LAND

DEFINITIONS
Cut Over Land

The land from which the original forest has
been removed, partially or totally, and not used
for agricultural, suburban, or urban purposes.

The types of land in this classification in-
clude those variously known as wild land,
swamp land, plains land.

It is usually used for purposes varying from
limited grazing in fringe farming areas, nat-
ural and planned reforestation, hunting and
allied recreational activities to no use what-
ever of certain barren and isolated areas.
Power companies retain it for run-off and
erosion control in developed water sheds and
some of it is mere over-burden on known
mineral deposits.

Forest Land

The same type land as cut over except that
the commercial forest products on the land
exceed the residual value of the land itself.

Evaluation

The cut over area of Michigan embraces
most of the upper half of the lower peninsula

1 Assessor’s Manual, Michigan State Tax Commission,
pp. 212-219, 228-32. 1955.

and a large portion of the upper peninsula, as
shown by the map on page 216. The value of
this property varies greatly from one area of
the state to another and few parcels within a
given area are of the same value.

Cut over land has value deriving from con-
siderations other than forest reproduction. The
subjects of land value and forest product value
will be discussed separately. However, because
the natural cover is usually a direct indication
of basic land capability and possible use, the
cover must be considered at all times. The re-
production, therefore, always is an integral
part of the considerations in determining
value.

There are many factors involved in estab-
lishing the value of any given parcel. Sales of
cut over land in any area are comparatively
limited. Some sales do not fairly reflect market
value. The appraiser must avail himself of all
available reliable information before the true
cash value of any parcels sold can be deter-
mined. Once this analysis of certain key par-
cels has been made, assessing becomes a matter
of making fair and equitable comparisons.

The evaluation of cut over and forest land
for assessing purposes is accomplished in the
following manner:

1. Determine the type or class of land.

2. Determine the type and extent of cover.

3. Determine the present utilization.

4. Establish land value by comparison with
similar properties of known value.

5, If timber products are present in com-
mercial quantities, they should be considered
separately, and appropriate values should be
added to the parcel.

The information in the following pages is
necessarily of a general nature but it is gen-
erally true. In many instances factors will vary
from the typical examples provided. For ex-
ample, the cover listed as typical of the general
soil types is that which the soil generally is
best capable of reproducing. Local conditions,
such as severe burns, lack of seed trees, floods,
etc., may cause variations. However, the as-
sessor will find that the examples provided are
typical of thousands of parcels throughout the
cut over area.

Principal Soil Groupings

The cut over lands include many of the forty
catalogued Michigan soil types, which vary
greatly in capability and thus in use and value.

These soil classifications might be the foun-
dation for scientific assessment of land, but
for the cut over areas, it would be impractical.

Nevertheless, the basic soil can not be ig-
nored. It is the primary factor determining the
capabilities of the land. Together with location
and climate, this determines the use and value
of the land.

Soils of the cut over area fall naturally into
six, almost self-evident groups. These groups
are easily recognized by their general charac-
teristics.

1. Loams and sand loams
Sand loams and better sands
Heavy sand plains
Dry sand plains
Poorly drained organic soils
Non-productive areas

T34W

oF SU oe

T33W

5 a

On the following page is a table summar-
izing these brand general groups and their
general features. This table is followed by
more detailed descriptions of each group.

MAP OF GENERAL LAND GROUPS
(Small areas)

The majority of the lands in the cut over
area can be included in the six major land
groups outlined in the Summary of Major
Classes of land. Most of it is either Pine Land,
Hardwood Land or Swamp Land.

The state map on the preceding page shows
rough outlines of the Major Land Groups.
However, each major area includes smaller
areas of the other classes within their boun-
daries.

The map below shows four townships in the
general hardwood land group of soils in
Baraga County. While the greater part of the
area is hardwood lands, there are, within it
smalier areas of Pine and Swamp land to be
considered.

The cross hatched sections on the map to
the right show some of the wooded areas of
the state. It will be noted that the Northern
Hardwood area follows quite closely to the
rolling hilly loamy soils shown as hardwood
land in the preceding map. The swamp timber
is, of course, found in the lowland area and
the Aspen, Pine, Oak and brush plains follow
the outlines of the undulating to rolling plains
area.

These maps of course are of a very general
nature. Many exceptions exist in every in-
stance. Comparisons with actual spot condi-
tions will serve to emphasize the necessity of
examining every parcel of property to make a
fair assessment.

Hardwood Lands
Rolling to extremely hilly

Pine Lands
Level to rolling (Jack Pine)

Pine Lands
Rolling to hilly (Aspen)

Swamp Lands (Spruce & Balsam)
Low areas and along streams

Non Forest

Summary of major classes

Soil Topography Cover Location Characteristics
LOAMS Rolling Plains ORIGINAL West part of U.P. Usually a good stand of
SAND LOAMS Broad Ridge Hardwood N. & W. Sec. of L.P. 2nd growth started. Some

Tops
Hardwood Land Hills, Slopes

Occasional White Pine
Hemlock

PRESENT
Largely Aspen
Northern Hardwood
White Spruce

Typical areas in
Tron Co.
Marquette Co.
Antrim Co.
Osceola Co.

of this land now in agri-
culture. Land generally of
higher basic value than
other classes. Luxuriant
ground cover.

SANDY LOAMS
BETTER SAND

White Pine Land

Undulating to
rolling

ORIGINAL
Some Hardwood
White Pine
Red Pine
Mixed Pine and Hard-
wood

Large areas in central
and east part of L. P.
Scattered in U. P.

Typical areas in
Marquette Co.
Alger Co.

Much of this covered with
good grade Aspen. Pro-
duces fast growing Jack
Pine. Good site for Red
and White Pine. Good
wild pasture.

Badly burned areas may

PRESENT Montmorency Co. be exceedingly poor.
Aspen Lake Co.
White Birch
Scrub Oak
Soft maple
HEAVY SAND PLAINS | Level to ORIGINAL Chiefly in North-Cen- Produces fair Jack Pine.

BETTER SAND rolling Largely Norway tral part of U. P. and Black Oak, Pin Oak,
Some White Pine North-Central part of Course Grasses and Brush.
Poor Hardwoods Pz
Much of this badly burned
PRESENT Typical areas in and exceedingly poor.
Norway Land Largely Scrub Oak Schoolcraft Co.
Slow growing Jack Alger Co.
Kalkaska Co.
Roscommon Co.
DRY SAND PLAINS Level ORIGINAL Large areas in northern Non-Productive

Jack Pine Land

Poor Norway
Mixed Brush
Coarse Grass

PRESENT
Scattered Jack Pine
Scattered Brush
Coarse Grass

half of L. P.

Typical areas in
Alger Co.
Crawford Co.
Roscommon Co.

Usually lowest value.

Generally producing
Sparse grasses, Scrub
Aspen, Blueberries, Sweet
Fern.

Badly burned white pine
and Norway lands re-
verted to this class of land.

Flat to Un-
dulating

POORLY DRAINED
ORGANIC AND
LOWLAND SOIL
PEAT-MUCK

Swamps

ORIGINAL
Tamarack, Spruce,
Balsam, Cedar, Ash,
Elm, Balm of Gilead,
and other swamp species.

PRESENT
Growing back to original
species.

Large areas in eastern
part of U. P. and north-
ern L. P.

Typical areas in
Chippewa Co.
Schoolcraft Co.
Alpena Co.
Cheboygan Co.

Smaller parcels in many

counties.

Generally growing back to
similar swamp specie.
Sometimes valuable as
wild Christmas tree pro-
ducing areas.

NON-PRODUCTIVE Variable
Sand Dunes

Rock

Muskeg

Marsh Land

Boulder Strewn

VALUE

The value of cut over land of every class
varies from area to area because of the in-
numerable local conditions and physical char-

Practically None

Scattered

Little Value.
Generally very low value.

Occasional Scenic or Bldg.
Site Value.

acteristics. The foregoing sections describe and
illustrate the classification of the cut over areas

by similar broad general characteristics, easily
recognized by an assesssor. The following in-
formation and examples are a guide for the

MAP OF GENERAL LAND GROUPS

GAN

C=e8O
CRAATORD
FOSCONM ON

!
ale
=

pest

@aaa

es eds ae ow
-CGan

°o

= -S
ao —
c ne) wo Oo
= SC Bw
> Oo 52 Qe
ac? ~ Oo ee 3 n Oo

q@=% 395 Ga0

° rat = =
oe ze ==
Es = 6 @ 8 8 355
== o (Co oE <
oa Oz a Ln =
3 Co le o °
oP =e 5 2 —- £ o
«.c oo 2s ==
2 a er uw rete

4 -=

a
awacoc |

vars GOREN

FOREST COVER TYPE MAP

Ontanagon

ee ti Oe Z
eee ee,

Northern Hardwood Area

Hardwoods

=
i=]
ao]
0
Wiss
(5)
= 8
o
SE
aes
Papa =
a
pies
oa
ag
Eo
Qe
aR

Aspen, Pine, Oak, Brush

application of that information in making as-
sessments.

In general, it may be said that the Non-
Productive class is the least valuable while the
Hardwood class is the most valuable. Local and
physical factors are so variable that countless
exceptions are to be found. The basic rule will
apply, however, in most cases.

Locational and Physical Characteristics

A partial list of local and physical conditions
that affect value includes:

LOCATIONAL PHYSICAL
1. Location or 1. Topography: General,
accessibility: Level, Rolling Hilly

No road. Trail road Erosion, Drainage

Improved dirt road

Gravel or paved road

Availability of
electricity

Proximity of telephone

. Water:
Lakes and streams
Cost of wells

.Demand or Salability::
Close to town—Building 3. Forest Products:

sites Seedlings, Saplings
Close to farms—Pasture Poles, Pulp, Logs
Hunting area Christmas Trees
Resort area Misc. other products
Tree Farms

The examples on the following pages illus-
trate methods of arriving at the value of par-
cels when influenced by some of the above
noted factors.

The basic method is to determine the value
of specific parcels in the area using sales and
other available information. Then by compari-
son and consideration of various factors listed
above, determine comparative equitable assess-
ments for all parcels in the same class.

The value of this class of real estate can be
established only in the assessing area. Nu-
merous sales generally are a good guide to
value. Occasional sales must be carefully ana-
lyzed before too much reliance is placed on
them in establishing value.

Specific Price Information

Appraisers for the Lands Division of the
Department of Conservation have learned that
they seldom need to ask less than $2.50 per
acre in order to dispose of even the least de-
sirable land. There are instances, however,
when descriptions offered for as little as $1.50
per acre have not been sold. This indicates that
any value of less than $2.50 per acre would
be questionable.

A large number of forty acre tracts were
sold in the vicinity of T 29 N, R 3 W, during
the years 1953 and 1954. These were rolling

to hilly medium sand White Pine land. The
cover varied from scattered Aspen to good
stands of Aspen and Soft Maple with some
scattered pine. Some of the parcels adjoined
an improved dirt road and some did not. Sale
prices varied from $10.00 to $15.00 per acre.

The average for this area was well established

at $13.00 per acre.

Recent sales of Jack Pine plains and Nor-
way land with medium stands of Jack Pine
or Scrub Oak in Crawford and Roscommon
Counties have varied from $15.00 to $20.00 per
acre.

Many parcels in the upper peninsula have
sold for $5.00 per acre. Many have sold for
more and a few for less depending on location
and other factors.

It is therefore necessary that the local as-
sessor determine the value of the various
classes of cut over land in his area. Once the
true cash value of specific parcels have been
determined for the assessment district, it
should be relatively simple, by use of the in-
formation and examples assembled in this
manual, to determine comparative values for
final assessment use.

Location: Considerable areas throughout most
of the Lower Peninsula and the west end
of the Upper Peninsula. Typical large areas
in Iron, Dickinson, Menominee, Antrim,
Otsego and Osceola Counties. Many small
areas in other counties.

Soil: Varies from Clay to Sandy Loam. Usu-
ally well drained.

Topography: Rolling to hilly relief. Area of
slopes exceeds that of flat land.

Cover: Typical species are Sugar Maple, Yel-
low Birch, Beech, Basswood, White Ash,
Elm, Aspen, White Birch, Hemlock and
White Pine frequently intermixed.

Utilization: When suitably located much of

this area has been developed for farming.
Hilly and isolated areas not cleared are de-
veloping natural reproduction or are being
reforested by the owners.
Broad leaf species ranging from Aspen to
Maple are the usual natural cover. Much of
the open area has been planted to pine.
Due to the prevalance of small lakes and
streams and the variety of natural cover,
this type of land, in the wild state, produces
and supports a variety of game animals and
birds which creates a demand for it as hunt-
ing and recreational land.

Location: Scattered throughout the state.

Soil and

Topography: The dunes bordering the Great

aonsseesenenmmnentensdeaole

T31N R6W Average prevailing value

Sec. 1 for this area $10.00 Per A,
SW of SWI,
Rolling to hilly Add for good stand second
Sandy Loam growth $5.00 per A.
Mxd. Hwd. 0”-6”
| 40 Acres @ $10.00 $ 400.00
Good 2nd. Growth 200.00
Dict Gravel Road 50.09
icTure Original Forest @ 650.00
No.1 Hardwood $ 650.0
| > T29N R4W Average prevailing value
| i al. sec. 22 for this area $10.00 Per A.
| Rolling el NWy, of NWK
| ttil{crest 4s Rolling Hill Crest ’ Excellent Stand Second Growth
] S| Med. Loam — Approx. 500 Cord Cordwood
Q| Mxd. Hwd. 07-6”
~! Some 67-9” Maple
¥, Scattered Basswood 40 Acres @ $10.00 $ 400.00
2 *500 Cd. Wood $1.00 500.00
Picture 5 Original Forest Improved dirt road 50.00
No.2 i Mxd. Hardwood 3 950.00
T31N R6W Average prevailing value
Sec. 4 for this area $12.00
SW!l4, of SW14,
: Very Hilly 40 Acres @ $12.00 $ 480.00
Very Hilly Heavy Loam *200 M bd. ft. Maple $30. 6,000.00
*100 M bd. ft. Beech $15. 1,500.00
Original stand of * 35 M bd. ft. Hem. $20. 700.00
Mxd. Hwd. & Hemlock Gravel Road Tan
° Mi ave 100.00
Picture If cut, would leave Fenced 7 0
excellent stand of $ 8.880.00
No.3 second growth. a aka
| Gravel Road
' . .
T31N R6W Average prevailing value
" Sec. 12 for this area $10.00
\ Uf | NW14 of NW14
\ Hi y Level to Hilly Land cleared & worked for short
\ Heavy Sand period, then abandoned.
Level S Grass & Moss 15 Acres good tree farm area
gme Scattered Trees
1 Erosion | 15 Acres @ $20.00 $ 300.00
: Original Forest 25 Acres @ 5.00 125.00
. Hardwood Gravel Road 50.00
Picture —
No.4. $ 475.00
x ' *Forest product values shown are 1954 stumpage rates.
AT

No. 3—Very Hilly. Original Hardwood Cover.

Lakes, Rock Strewn areas in Chippewa
County, Rock Knobs in Gogebic County and
undrained Muskegs of Marshes bordering

‘shallow lakes in many sections of the state

are typical of this type of land.

Cover: Little or none of any value to either
wild life or man.

Utilization: Little or none. Not suited to any
type of forest reproduction.

Recreational use very limited and confined to

small areas.

Greatest value generally found where this

land is adjacent to lakes. If there are ac-

cessible building sites small areas are some-
times used for cottages.

Production cost is the major factor to be
considered by the assessor when using stump-
age prices to determine the value of forest
products.

Production of ‘‘Logging Costs” include such
items as:

1. Accessibility of the tract to roads

No. 2—Rolling Hillcrest. Mixed Hardwood Cover.

No. 4—Level to Hilly. No Timber Reproduction.

Terrain or Topography

Amount of “underbrush”

Drainage or quality of the soil

. Quality of the timber

. Density of growth

. Uniformity of size

. Uniformity of species

. Availability of right of way to the tract
Considerable quantities of commercial size

timber have existed in areas where the cost

of harvesting the product would have exceeded

the F.O.B. price and so has not been cut. In

instances of this kind it might be successfully

argued that the timber, as such, had no value

for the present.

OWAIAMRMNAWH

EXAMPLES OF APPRAISALS
Swamp and Non-Productive Land

No attempt will be made to provide any ex-
amples of appraisals of swamp lands. Any
sample provided would not be representative

oi ks Lo eS GMa
ea at N Ng Mead aa NE i” Mo oh

No. 21—Rock Knobs & Outcrop. Shrubs in Cracks.

No. 23—Muskegs & Marshes. Grasses & Rushes.

of enough general area in the state to be of
any value because of the variability of this
type.

As a General Rule swamp land has very
Little Value As Such. If it is the type of
swamp that will reproduce timber the value of
the product may be high. Well drained low-
lands in some areas may be stocked with Aspen
or White Spruce that will cut out at twenty
cords of pulp per acre.

Based on a stumpage value of $2.00 per
cord, an acre of this type of swamp land could
be said to be worth $40.00 for the timber prod-
ucts alone. Also the land will have a certain
value because it will reproduce timber.

However, if a similar parcel was stocked
with second growth that would not be mer-
chantable for ten or fifteen years, it obviously
would be worth much less. Assuming that such
land had no value except for reforestation, and

No. 22—Boulder Strewn. Grass & Stunted Trees.

No. 24—Sand Dunes. Blow Outs. Stunted Vegetation.

the owner was willing to accept only a 3%
return on his investment, the maximum capi-
talized value would not exceed $22.81.

A similar parcel might be stocked with 1,000
saleable Christmas Trees per acre. Based on
a stumpage value of 25¢ per tree, such a Swamp
could be said to be worth $250.00 per acre plus
something for the land itself.

The other extreme is the Tamarack and Tag
Alder swamps. Usually poorly drained, fre-
quently inaccessible and producing very little
game food, they have practically no use value
and are on a par with the moving sand dunes
and muskegs for valuation for assessment pur-
poses.

The Unrealistic Practice of too many Asses-
sors is to assess all swamp land and all wild
land at some predetermined figure throughout
the unit. This system of assessing is No More
Justifiable than if All Farms or All Homes

were assessed at the same figure. Only by Care-
ful Analysis and Fair Comparison Can Honest
Values and Equitable Assessments be estab-
lished.

FOREST LAND

This section contains information of value
to the assessor in estimating the amount of for-
est products under various conditions when
more accurate cruises are not available.

Forest lands are appraised by the same
method as is used for cut over land. The value
of the forest products is added to the basic
value of the land. The basic land will vary in
value from $2.50 to $10.00 per acre depending
on the productive quality of the soil, $2.50 per
acre on the poorer sandy soils to $10.00 per
acre on the more productive clays and the
better sand loams. This, of course, is assuming
no other utilization possibilities other than tree
growth. The most important step is the deter-
mination of merchantable forest products on
the land. It is recommended that timber
cruiser’s reports be used to determine the
amount of merchantable forest products. If no
cruise reports are available, then volume tables
may be used to estimate the board feet of logs
or the cords of pulp, box bolts, etc., per acre.
The stumpage prices for the most common for-
est products are given in table 2 below.

The stumpage price multiplied by the
amount of logs, pulp, ete. will give the value of
the forest products. Some computations are
made for the assessor in table 3 below.

The essential information needed and the
sources are listed below:

1. Basie Soil Value
A. See cutover section.

2. Amount of Merchantable
Products

A. Timber cruise reports

B. Volume tables 1 and 2

3. Stumpage Value of Forest Products
A. Table 2, see notes
B. Computations, Table 3

When it is necessary to use volume tables,
the following procedure is recommended:

First—Determine the diameter range of the
trees: seedlings, saplings, pole timber, etc. The
diameter range should be for the majority of
the trees present.

Second—Determine the volume range. The
trees may run heavy to the large size and the
high volume range used or, if the stand runs
heavy to the smaller size, the low volume range

Forest

should be used. This is to select the proper
volume range.

Third—Determine the stocking class of the
land. The tables are based on the percent of
growing space effectively utilized by trees with
10-39% rated as poor, 40-69% rated as
medium, and over 69% rates as good stocking.
The stand will fall into one of these groups.

This will give the board feet per acre or the
cords of pulpwood per acre, depending on the
species. Interpolation can also be done.

It is obvious that a uniform stand of pulp
size Aspen of good quality that might produce
20 cords per acre can be harvested more
cheaply than, and thus be worth more than,
if it would produce only 4 cords per acre. Like-
wise, any timber stand is worth more on a
fairly level area where trucks can be driven to
the product than a stand on hilly, rocky ter-
rain where the product has to be skidded by
tractor or team to a loading site. Furthermore,
producing Aspen pulp from a mixed timber
stand is usually more expensive, due chiefly
to the extra cost of collecting the product from
scattered locations.

It will be noted most of the variables are
cost factors that must be deducted from the
“going Price’? when determining the value of
the timber “in place.” Similar factors must be
considered when determining the value of
every other forest product. The assessor in
districts where this type of property is found
will usually be familiar with these conditions.

Addition of Forest Product Value

Forest products of commercial size and qual-
ity, growing on cut over or forest land, must
be evaluated together with the basic land value
when assessing this class of property.

Forest products include:

1. Christmas Trees
2. Fence Posts
3. Poles

4. Railroad ties

5. Mine Props

6. Excelsior Wood

7. Pulp Wood

8. Chemical Wood

9. Cabin Logs
10. Saw Logs
11. Veneer Logs
12. Fire Place and Stove Wood (usually

by-products)

The “stumpage value” (value of the uncut
timber in the woods) varies from year to year.
It also varies from one area of the state to

APPRAISAL ILLUSTRATIONS
10 Acres 40 Acres of Hardwood land. Timber is easily accessible. Part of 40
Mixed Hardwood

is lighter sand loam.

OFzi28 10 Acres Mixed Hardwood @ 1.5 M bd. ft.
y Per ;Acre. = 15 M bd. ft.
Poor Stocking 30 Acres Mixed Hardwood @ 5 Mbd. ft.
Per Acre = 150 M bd. ft.
Mixed Hardwood TOTAL 165 M bd. ft.
I2- 18" Land — 10 Acres @ $5.00 = $ &0
Medium Stocking 30 Acres @ $10.00 = 300
30 Acres LAND $ 350
| 165 Mbd.ft. @ $20 Per M = — 3,300
| TOTAL LAND & TIMBER $3,650
4O Acres
Jack Pine
6" 9" 40 Acres of level sandy land. The productivity of land is poor. When
cut reproduction will be poor. Stand is old and at its maximum
Medium Poor stocking now. Large number of trees per acre but are short.
Stocking ;
Pulpwood on this tract will average 5 cords per acre.
Uniform old 40 Acres x 5 cord = 200 cords
stand 200 cords @ $4.00 = $800
Land — 40 Acres @ $2.50 = 100
TOTAL VALUE LAND & PULP $900

40 Acres of uniform Hemlock. Land is rough. Difficult terrain to log.

40 Acres Stumpage price adjusted to compensate for rugged terrain. Timber
Hilly Hemlock runs about 5 M bd. ft. per acre.
15-20" 40 Acres @ 5 Mbd. ft. per Acre = 200 Mba. ft.
di § Stumpage price adjusted for abnormal conditions — $8.00 per M
Me ea oe TIMBER VALUE $1,600
Range 40 Acres @ $4.00 per Acre = 160
TOTAL LAND AND TIMBER $1,760

40 Acres of loam (30-50% silt & clay). Good growth of Aspen. Good

40 Acres stocking of tall trees. Readily accessible and close to market. Good
roads.
12-15" 40 Acres @ 26 cords per acre = 1,040 cords
Good Stocking Price adjustment for location and quality — $4.00 per cord
Uniform
| BG: Chrds per Acre PULP VALUE _—$4,160
| 40 Acres @ $7.50 per acre = 300
TOTAL LAND & PRODUCTS $4,460

another depending on availability of markets,
use of materials, etc. There is a further varia-
tion from current area stumpage value be-
tween localities within the area. These varia-
tions are usually attributable to distance from
market, type of transportation available and
labor costs.

The assessor will easily determine the going
stumpage value of all forest products in his

district. However, there are several other im-
portant factors to be considered in adjusting
these rates to determine the actual market
value of the products. The stumpage rates of-
fered by local timber buyers are usually ad-
justed to compensate for variations because of
transportation costs so this factor need not be
considered by the assessor.

TABLE 1.—Volume per acre by stand size and stocking class

Stocking
Size class Diameter Volume
range range
Good Medium Poor
Inches Bad. ft. Cords Bd. ft. Cords Bd. ft. Cords
seedlings: 2-=.225-2522 Q=f |sos22-3 2-32 0 0 0 0 0 (0)
ow Nee ese 2 0 0 0 0 0 0
Saplings-= -2-2.2-2.252 1-5 | Average------ 0 2.5 0 2.2 0 15
High ees ees 0 2.9 0 |. 2.8 0 2.0
Mo Wet ae 700 13.0 500 7.0 200 3.0
Pole timber_-___------- 5-9 | Average______ 1,400 20.0 1,000 121 990 Bed
High: 22 22752 1,500 24.0 1,500 12.9 1,200 7.0
OW Mee ese 6,000 18.0 3,000 13.0 1,500 5.0
Small saw timber-_-__--_- 9-15 | Average______ 7,700 22.9 4,950 17.6 2,800 10.9
High. 222 2 10,000 26.0 6,000 20.0 3,000 13.0
Ow so .2 eee 10,000 24.0 5,000 17.0 1,500 6.0
Large saw timber _____ 15- | Average_____- 14,850 33.5 8,100 2122, 4,140 12.1
nighe See eee 18,000 40.0 10,000 26.0 5,000 16.0
Table compiled by Paul C. Guilkey, Research Forester, U.S. F.S.
TABLE 2.—1954 stumpage prices
Mixed Hardwoods: Swamp Hardwoods:

Hard Maple, Oak, Birch, Basswood - --_-- $18-$25 per M Elm, Ash, Softmaple___________________- $10-$20 per M
Yellow=Birche 22222222 8Us eos $40 and up, Per M White:and RediPitte: . 22 0 owe eet $30-$40 Per M
Bass wo0de a2 22= 2. Sea a scans rec ae $25-$35 Per M Jack pine: selec 6 ao, i Ss eer ae $18-$25 Per M
Hardmaples <5) ote Saees see se $25-$30 Per M Hemlock = 2 322 2222 25.) 2 ee $15-$25 Per M
ButternuGes = sso eee eee $30-$35 Per M Elm: eae SiR be eS 2 ES SIOES20 Persil
Red. and White Oak. .2.222..55 222-42 $20-$30 Per M

CHEMICAL WOOD
TIE CUTS $7 Per Ton
Red aud White Oale Hard Maple. orc. $.35-$.50 each Wild Christmas Trees, 10c—50c per saleable tree
Soft Maples ss .=. 2 2 ee ae ee $.30-$.45 each
Other:Softwoods-222s22-22-—-) 22-2 $.25-$.30 each
PULP WOOD
Per 4’ x 4’ x 100” cord
ASD OT eared Maa A Se Nebnt ar es AEN eo $2. 00-$3 .50 Bal sarn firte: ere oe tie 7 ge pe arene $4. 00-36 .00
lem lOCk = hae a ee ee oe $3 .00-$5.00 Pine! =) 0S. k ee eee eee eee $4.50-$6.00
White Birch, Oak and Hard Maple__________- $3 . 00-$5. 00 SPIUCO la oS he eR eee ee eee nee ee $5. 00-$8 . 00
BOX BOLTS
Per 4’ x 8’ x 55” cord
IAS POMS ape oem Seen ta ee ee eee eas $2.00-$3 .00 White Birches feo ae es ee eee $1.50-$2.00
Basswood s=.. 5 se 5. eA a a $5 .00-$7 .00 Jackpines ee eet eee ee ee ee $3 . 00-$4. 50
CEDAR POSTS
C100b P0st=226 22 oe ee eae ee $.03-$.05 each 7-and:8 foot, cedar post-se== = ee $3.00 per cord
LOtoOOtpost=.22.5.esce ees ee ee $.06 each (Note: 4’ x 8’ x 8’ is considered 2 cords.)

TABLE 2.—Continued
POLES

Prices per lineal foot

Ged arent am onc De ee tia oe 6c per foot up to 30 feet PINGS 2 a bates to ees 6c per foot up to 30 feet
CBFe io Fah pearl a EA aN MRE i 8c per foot if over 30 feet
PILING
Prices per lineal foot
Pint eso ifi 20 3e streets 10c—15c per foot up to 30 feet Hardwoods s-en 2222 Sac 15c per foot up to 35 feet
Pines 3 Sos oe ee 15c—20¢ per foot over 30 feet

NOTE: These prices may vary in different areas. They may be adjusted to fit area and other unusual conditions which de-
crease or increase the cost of logging, or quality of timber. Average cost of logging as of July 15, 1954 was $25 per M.

TaBLE 3.—Per acre values with various stumpage prices and board feet

NOTE: A basic land value addition is required.

Stumpage price $10 $15 $20 $25 $ 30 $35 $40 $45 $50
per 1000 bd. ft.
Board feet
per acre

b00) (Ben svie ee $ 5.00 $ 7.50 $ 10.00 $ 12.50 $ 15.00 $ 17.50 $ 20.00 $ 22.50 $ 25.00
fOO0WB UR eee 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 50.00
15 00eB sh seas 15.00 22.50 30.00 37.50 45.00 52.50 60.00 67.50 75.00
20000B Hs Soa see 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00
2500:B UB 5. a253 25.00 37.50 50.00 62.50 75.00 87.50 100.00 112.50 125.00
3000 Bul 22 30.00 45.00 60.00 75.00 90.00 105.00 120.00 135.00 150.00
3500: BB ee es 35.00 52.50 70.00 87.50 105.00 122.50 140.00 157.50 175.00
4000 Bik 2 eater 40.00 60.00 80.00 100.00 120.00 140.00 160.00 180.00 200.00
£500: BH eee 4. 45.00 67.50 90.00 112.50 135.00 157.50 180.00 202.50 225.00
SOOOIB Re see 50.00 75.00 100.00 125.00 150.00 175.00 200.00 225.00 250.00
HoOOMBshs sae wees 55.00 82.50 110.00 137.50 165.00 192.50 220.00 247 .50 275.00
6000:B) Benes eae 60.00 90.00 120.00 150.00 180.00 210.00 240.00 270.00 300.00
6500); Behe sss 65.00 97.50 130.00 162.50 195.00 227.50 260.00 292.50 325.00
(000) Bake 222222" 70.00 105.00 140.00 175.00 210.00 245.00 280.00 315.00 350.00
CO oy ee 75.00 112.50 150.00 187.50 225.00 262.50 300.00 337.50 375.00
8000: BAS S28 So 80.00 120.00 160.00 200.00 240.00 280.00 320.00 360.00 400.00
SOUOUB RH Sea. ee 85.00 127.50 170.00 212.50 255.00 297.50 340.00 382.50 425.00
9000 Bik. a2 2ae 90.00 135.00 180.00 225.00 270.00 315.00 360.00 405.00 450.00

MINNESOTA

“For the purposes of taxation, ‘real prop-
erty’ includes the land itself ...and all...
trees on... it.” Sec. 201

“When lands are conveyed or transferred to
the United States, to the State of Minnesota,
or to any governmental subdivisicn of either,
for any purpose and the owner reserves any
right or interest in the timber upon... such
land, such timber interest and any structure
which the owner of such timber . . . interest
may erect on such land shall be assessed and
taxed as real estate, .. .’’ Sec. 203

Maps In the County Assessor’s or
Supervisor of Assessments’ Office

“The county topographical map required for
all county assessment offices is developed from

aerial photographs. Each office should have at
least one set with the boundaries outlined of
all parcels identified by parcel or code num-
bers. Aerial photographs at a 1g mile to one
inch ave available and are convenient to use.
An exi-a set of aerial photographs can be cut
into se n maps for insertion with the asses-
sor’s ap, *aisal cards, each section map pre-
ceding the “praisal cards for the section. Such
maps are *»vaiuable in measuring acreages of
crop land, swamp, timber and other types of
land, in pinpointing building locations and
making comparisons.” Sec. 218

Land Classification

“The land in each farm should be placed in
the following categories:

Timber or Woodlot—variable slope.

Land with a high percentage of trees,
either natural or planted. Land that is too
rough, stony, or wet to support any vegetation
other than trees.”’ Sec 221.

Rural Land Used Exclusively for
Growing Timber 20%

“Land on which approved tree growing prac-
tices have been established and are carried
out is entitled to this classification provided the
land is not adaptable to non-rural use and is
not being used for any other purpose. Use for
homestead, residential, farming, commercial,

seasonal recreational, or any other purpose is
not use exclusively for growing timber and
therefore precludes this classification. Land
devoted exclusively to growing Christmas trees
qualifies for this classification; land growing
nursery stock does not.” Sec. 256.

Minnesota Assessors’ Manual, Depart-

ment of Taxation.

“Real estate, rural in character, and used ex-
clusively for the purpose of growing trees for
timber, lumber, wood and wood products shall
constitute class three ‘e’, and shall be valued
and assessed at 20 percent of the full and true
value thereof.” Laws of 1955, Chapter 751.

MISSISSIPPI’

“..1. ‘cultivatable lands’ and 2. ‘uncultivat-
able lands’ .. . are the classifications fixed by
law. . . . ‘Uncultivatable lands’ consist of the
following types of land:

(f) Gullies, sand beds and hills which
cannot be used for agricultural pur-
poses; low lands, which are so often
overflowed, that they cannot be used
for agriculture—growing of crops.

(g) Lands so thickly with stumps,

1 Standing timber is exempt from the property tax
under provisions of the mandatory yield (severance)
tax law adopted in 1940. Forest land remains subject to
the property tax.

bushes or trees as not to be usable
for agriculture.
Lands so lacking in fertility that the
soil is not capable of producing
crops by the use of ordinary meth-
ods of preparation and the ordinary
use of fertilizer.” (pp. 30-31)

‘“.. reservations and other interests, having
a value, when owned by another than the owner
of the fee, or surface owner, are to be assessed

(h)

separately. ... Long term timber reservations
are to be assessed. Standing timber is exempt.”
(p. 30)

Handbook for Property Tax Assessments.
State Tax Commission. 1962.

MISSOURI

Procedure for Land Valuation—Rural Land

“In appraising rural properties the assessor
is more concerned with the productiveness of
land than with location. As indicated on the
real estate record card, rural land is divided
into three main categories: crop land, pasture
land, and timber land. In each of these cate-
gories it is suggested that a quality grade of
“average,” “below average,” or “above average”’
be assigned. Under this system this means that
for equalization the assessor must assign unit
values for the various classes and qualities of
farm land.

“In each county the assessor has at his dis-
posal several ways of arriving at these unit land
values. In a few of the counties there are soil
surveys which have been published showing the
various soil types which can be used as a basis
for his classification. Of course, the most reli-

able method of establishing the various unit
values is through the use of market sales data.
By collecting information concerning the farms
for which he has recent sales prices, the assessor
can relate the average per acre sales price to
the various quantities of crop land, pasture
land, and timber land on each farm. Naturally,
these sales prices include the improvements,
which must be deducted from the total sales
price in order to arrive at an indicated value
of the farm land. Also, the assessor can make
use of the data contained in the Census of Agri-
culture of 1954. The fourth source of assistance
is through the use of a land value committee
similar to the one recommended for urban land
values.”

Assessors’ Manual
State Tax Commission
n.d., p. 54.

MONTANA

Under legislation adopted in 1957 (Revised
Statutes Section 84—-429.12), the Board of
Equalization was called upon to provide a “‘gen-
eral and uniform” method of classifying lands
for assessment. Timberlands were specifically
included in this requirement.

The timberland aspects of the project were
divided into four phases:

I Area determination
II Timber stand volume table prepara-
tion
III Valuation table preparation
IV Tax assessment

Phases I and II were accomplished in the

main by the State Forester assisted for timber

stand volume table determination by representa-
tives of the timber industry and Federal For-
esters. An Operational Manual for Inven-
tory of Private Forest Land—Phase I Area
Determination was published in 1958. This
manual of about 40 pages outlines the general
plan for forest land and timber assessments.
With specific reference to area determination,
the manual covers forest land area determina-
tion and classification, field checking proce-
dures, preparation of base maps, and area cal-
culation. Land use, forest type, stand-size,
stocking, access, and topography classes are de-
fined. The access and topography classification
is shown in the table reproduced below.

Access and Topography Classification Table

Access and Road development Topography on tract Distance from man-| Total grade
topography characteristic to tract ufacturing point** in class*

Grade R-1 Grade T-1
Tract within 1 mile of usable | Flat to gentle Slopes generally | Grade D-1

FAVORABLE road. Easy Road construction. | under 40%. No rock outcrops | Less than 25 miles 3 and 4
No rock outcrops or swamp | or swamps. Good tractor logging
barriers. grd.
Grade R-2 Grade T-2

AVERAGE Tract 1 to 3 miles from usable | Variable slopes under 60%.Some | Grade D-2 5, 6 and 7
road. No difficult road prob- | rock outcrop or swampy ground. | 25 to 50 miles
lems. Average construction. Average logging conditions.
Grade R-3 Grade T-3
Tract 3 to 6 miles from usable | Rough, broken ground. Steep

DIFFICULT road. Also includes tracts closer, | slopes. Numerous rock outcrops | Grade D-3 8 and 9
but with difficult construction | and bluffs or other features | 50 to 90 miles
problems such as rock or water | which make logging difficult.
barriers and rough terrain.
Grade R-4 Grade T-3 Grade D-4

IMPRACTICAL Tract over 6 miles from usable | (Same as above) 90-120 miles 10 and Over
road.
Any one of the following factors will place the tract into this class:
Extreme physical barriers preventing accessibility. Extreme low grade of land and timber.

UNPRODUCTIVE (See specifications for unproductive noncommercial forest land)
If legal barriers, (Rights of way, etc.) or reservations for recreation, watershed or other use which will
prevent logging for an indefinite period do exist, determination will be made by the County Assessors.

* Class of Accessibility and Topography is determined by the sum of the numerical values of the grade average to tract in
each of the divisions of this classification. ,
**A manufacturing point is defined as: alocation with planer facilities to produced finished (S 4 8) lumber (or equivalent)
which has been, or appears will be, in continuous seasonal operation for five (5) years and has an annual output of at least one

million board feet (1,000 Mbf).

Valuation was dealt with under Phase III.
The following excerpts are taken from a 1963
report of the State Forester’s Evaluation Com-
mittee ‘“‘Proposed Valuation of the Reclassified
Private Forest Lands.”’ The system developed
in the report has since been adopted by the
Board.

Guiding Principles and Facts:

This valuation has been based on the follow-

ing principles, facts, and assumptions:

A. The valuation system will be utilized in
Ad Valorum Taxation under existing
laws. Proposed changes in taxation meth-
ods requiring legislation were not consid-
ered as assigned to this committee.

B. The system will make maximum utiliza-
tion of the information collected under
the Operation Manual for Reclassification
of Private Forest Land as Adopted and
Revised by the Board of Equalization.

C. The system is designed to be practical
from the assessor’s standpoint.

D. The valuation system was designed from
the standpoint of a prudent man in the
business of growing trees.

E. This valuation system must be re-exam-
ined periodically and revised to meet eco-
nomic changes that may occur.

F. Lands will be valued as timber lands only
when the value of the timber exceeds other
values of the land.

G. All forest lands must carry some value. A
minimum assessed value of $1.00/acre is
assigned to all forest lands. Care must be
taken that this minimum value is NOT
added to any value placed by the grazing
or other values that may be present.

H. This valuation does not consider any
watershed or recreational values that may
be present.

I. The marketing of miscellaneous forest
products including poles, piling, posts,
pulpwood and other minor items is of
such sporadic and incidental nature that
separate valuation, thereof, would prove
extremely difficult and impractical for ap-
plication by county assessors. In view of
the difficulties involved, separate valua-
tion of these products are not included
herein, only the discounted potential value
of future merchantable sawtimber stands
has been calculated. Such valuation may
be considered to include the miscellaneous
forest products produced.

Christmas trees present a separate prob-
lem. Due to the extremely variable factors
affecting the value of this product, diffi-
culty of making an inventory thereof, and
the localized character of commercial
Christmas tree operations, this product is
not considered in this valuation.

. Experience indicates variables within in-

dividual tracts eliminate any calculable
advantage that a favorable classification
(accessibility and topography) may have
over an average classification. Therefore
favorable and average classifications (ac-
cessibility and topography) have similar
values.

Calculated values per Mbf assume a cer-
tain minimum volume available to har-
vest. Favorable or average rate per Mbf
will apply only to stands with at least 5
Mbf/Acre. Difficult rate when between 2
and 5 Mbf/Acre. Impractical rate will ap-
ply to the remainder.

. No differential over and above minimum

land value (G above) should be applied
to non-stocked forest lands for any poten-
tial use they may have as timber lands.
Costs of ownership normally exceeds this
value. For example, fire protection is a
cost of ownership required by law which
absorbs in some cases all the value that
may be applied to the bare forest land. In
addition, the application of a bare land
value to some forest types creates an ob-
viously unrealistic valuation of that land,
especially in Eastern Montana.

Forest stands of Seedling-Sapling Stand
Size are subject to so many variables for
such a long period of time that no account
value may be applied. The same factors
listed above (under M) eliminate, in many
cases, what little value may be present in
these stands.

Calculated Valuation Factors:

Land Value Per Acre: None
(Non-commercial, “Map Symbol—NC”
and all non-stocked, ‘‘“Map Symbol—6”
assigned Timber Grade U, minimum as-
sessed value of $1.00/Acre assigned.)

. Seedling-Sapling Stands Value Per Acre:

None

(All seedling-sapling size stands “Map
Symbol—7” assigned Timber Grade U,
minimum assessed value of $1.00/Acre
assigned.)

Board foot Value/Mbf. (Table 1) (Table
2a) (Table 2b)

Details of the Appraisal—TABLE I TABLE 2b

(Areas East of Continental Divide— Includes all of Deer
| Group I | Group IT | Group IIT ey Silver Bow Counties—Lewis and Clark Co. is
Peer es Tae os Se ee ee ivide
; Applicable to Board foot volume in trees 11” dbh and over
Douglas | White fir
Ponderosa fir Hemlock ; Pe
pine Larch- | Lodgepole Species Accessibility & Topography Class Value/
| Spruce pine Group Mbf
Lumber Selling Price I&II | None None None
(Western Pine average :
1OSt—Gl)es eee $87 .22 $68.3 $61.38 Ponderosa pine
_ Profit Allowance (12%)-| 10.47 8.20 eae Douglas Fir Favorable -80
| Manufacturing Cost III Spruce : Average .80
(Industry Average) __- 34.79 27.07 23.13 Lodgepole pine Difficult None
| Overrun Percentage Cedar, White bark Impractical None
(Industry Average) -_- 4.9% 9.1% 5.9% pine, true firs
Value, log scale, at mill_ 44.02 36.09 32.70 oa
Stumpage Value after No value unless
i Logging Costs: Cottonwoods, other | a market exists
| Favorable & IV hardwoods & other | locally and then
Average @ $29.47_ 14.55 6.62 S323 species same as Group
Difficult @ 35.36__- 8.66 hoe emia eee Ill
Impractical @ 40.00_ ATs Ogle <= ere! eae es
| Wholesale Value @ 25%:
Favorable & Average- 3.65 1.65 .80
| Difficult---_------- 2.15 -20 None D. Present value (Table 3a and 8b) cubic
Impractical_-___-_-- 1.00 None None : 3
foot volume of pole size trees (5 to 11
dbh) is based on the following assump-
tions:
1. An average of thirty years or more
TABLE 2a may be required before growth will
Ge casawiest/oh Continental Divide) convert the cubic foot volume to a mer-
Applicable to Board foot Volume in trees 11” dbh & over chantable board foot volume. To com-
pensate the present value was dis-
Species Accessibility & Topography Class Value/ counted 80%.
Group Mbt 2. Board feet per cubic foot ratio = 4.5
= to 5.0
Favorable $3.65
I White pine Average 3.65
Ponderosa pine Difficult 2.15 TABLE 3a
Impractical 1.00
oar (Areas West of Continental Divide)
Larch 1 Favorable 1.65 Applicable to cubic foot volume in trees 5 to 11” dbh
II Douglas Fir Average 1.65
Spruce Difficult .20
Impractical None Species Accessibility & Topography Class Value/M
Group cu. ft.
Lodgepole pine Favorable .80 =
Ill Cedar, White bark Average .80
Pine, true firs Difficult None Favorable $3.30
Western hemlock Impractical None I White pine Average 3.30
Ponderosa pine Difficult 2.00
Cottonwoods No value unless Impractical .90
IV Other Hardwoods a market exists
& other species locally and then Larch Favorable 1.50
same as Group II Douglas fir Average 1.50
Ill Spruce Difficult .20
Impractical None
Lodgepole pine Favorable <td
Ill Cedar, White bark Average ~15
Pine, true firs Difficult None
Western hemlock Impractical None
No value unless
Cottonwoods a market exists
IV Other hardwoods, locally and then
& other species same as Group
| Ill
BY¢

TABLE 3b

(Areas East of Continental Divide—Includes all of Deer
Lodge & Silver Bow Counties—Lewis & Clarke Co. is divided)
Applicable to cubic foot volume in trees 5 to 11” dbh

|
|Value/M

Species | Accessibility & Topography Class
Group cu. ft.
I&II | None None None
Ponderosa pine
Douglas Fir Favorable 15
Iil Spruce Average 15
Lodgepole pine Difficult None
Cedar, White bark Impractical None
pine, true firs
No value unless
Cottonwoods a market exists
IV Other hardwoods locally and then
& other species sane as Group
Ill

E. Revised Stand Volume Tables for various
counties or groups of counties prepared by
the committee show the average board
foot volume per acre in trees 11” dbh and
over and the percent by species group.
Similar information is shown for the
cubic foot volume in trees 5 to 11” dbh.
These Tables are an annex to this pro-
posal.

NEW HAMPSHIRE’

Land Value; How Determined

“22. How is the value of the land on which
non-taxable standing timber is growing to be
determined ?

A. In the same manner as the value of other
taxable property; namely, on a fair sale
basis. The question is, what would the land
without the timber sell for at a fair sale
under normal conditions?

“23. Is there a standard value for land cov-

ered with timber, or for cut-over land?

A. Absolutely none. Each piece of land,
whether covered with trees or cut over,
must be judged separately.

“24. In determining the value of cutover

land, what must be considered?

A. (a) Its location;

1The mandatory yield tax enacted in 1949 as
amended, exempts from the property tax standing tim-
ber, other than mature timber which an owner fails to
cut with the result that the tax district is unreasonably
deprived of revenue. Such timber and also forest land
remains subject to the property tax.

(b) Its adaptability to grow timber ;

(d) The possible use for other purposes:
for example, house lots, pasture, etc.
Its proximity to farms or villages;
Its location with reference to high-
ways and the kind of highway—
whether dirt road or hard surface;
Its location with relation to possible
markets.

“25. If after investigation the selectmen de-
cide that Jones is unreasonably depriving the
town of tax revenue by failure to cut mature
timber, what can they do?

A. Beginning April 1st of any year after
such decision has been reached, they can
assess this timber as other property in the
town is assessed, on its full value at the
local rate.” (pp. 8-10)

Questions and Answers prepared by the
Tax Commission (in pamphlet describ-
ing Forest Yield Tax, 1949.)

(e)
(f)

(g)

NEW JERSEY

Legislation adopted in 1964 (Chapter 48
Laws of 1964) provided that land actively de-
voted to agriculture might, upon application of
the owner, be valued in such use. Agricultural
use was defined to include the production for
sale of trees and forest products. New Jersey
falls within the group of States providing for
assessment of forest lands at their “‘present use”
value.

To implement “present use’? assessment, the
1964 Act created a State Farmland Evaluation
Advisory Committee charged with determining
a range of values for each of the several classi-
fications of agricultural land in the various
areas of the State. Excerpts from the 1966 re-
port of the Committee! are reproduced below.

FARMLAND ASSESSMENT—
STATUTORY LIMITATION

The Farmland Assessment Act authorizes
and mandates assessment of qualified farmland
on the basis of its productivity value in agri-
culture or horticulture rather than on the basis
of its market value.

PRODUCTIVITY VALUE

Assessment of farmland on the basis of its
productivity value presents a number of diffi-
culties. The principal difficulties arise for two
important reasons:

1. Exact measures of the innate produc-
tivity of the 215 soil types in New Jer-
sey are not available although there is
a scientific base for making reasonable
estimates of productivity.

The productivity of farmland varies
with its particular use.

A method of overcoming the principal diffi-
culties lies in combining the scientific knowl-
edge available on the characteristics of New
Jersey soils and their economic potential ac-
cording to current uses in agriculture. The pro-
cedure is simplified by grouping the 215 soil
types into five rated soil groups and four of the
most common uses of land by farmers. Net in-
come from the land is capitalized and allocated
on the basis of the above rated capabilities.

1 Report of the State Farmland Evaluation Advisory
Committee 1966. 12 pp. Local Property Tax Bureau,
Trenton, N.J.

AGRICULTURAL SOIL GROUPING

New Jersey is fortunate in having a complete
set of maps and a description of all of its soils.
To aid in the assessing process, the agricultural
soils have been categorized 2 into five * groups:

Group A—Very productive farmland,
suitable for permanent culti-
vation. With proper manage-
ment, yields tend to be high.
Usually the most desirable
soil in the area.

Group B—Good farmland, suitable for
permanent cultivation. Yields
are generally fairly high.

Group C—Fair farmland, suitable for
permanent cultivation. Yields
tend to be lower than those in
Groups A and B. The limiting
factors are usually shallow-
ness, droughtiness, or exces-
Sive moisture.

Group D—Rather poor farmland, usual-
ly wet, stony, droughty, or
otherwise unsuitable for per-
manent cultivation.

Group E—Land unsuitable for tillage,
usually because of excessive
water, shallowness, stoniness,
or droughtiness.

In arriving at a realistic classification (plac-
ing each soil into one of five groups), the fol-
lowing factors were primarily used: general
suitability of the soil for farming, mechanical
composition, depth of the soil, drainage, stoni-
ness, and other related properties. This group-
ing, however, does not take into consideration
improved roads, highways, power lines, water
supply and related conditions, nearness to mar-
kets, topography, soil erosion, and the degree
of slope.

LAND USE CLASSES

Land use on the typical New Jersey farm dif-
fers for various reasons but the primary uses

2 Productive Capability of New Jersey Soils; Dr. J. C.
F. Tedrow, Department of Soils and Crops, Rutgers—
the State University. A Soils Guide for Use in Connec-
tion with the Valuation, Assessment and Taxation of
Land Under the “Farmland Assessment Act of 1964”
Chapter 48, Laws of 1964. (N.J.S.A. 54:4-23.1 et seq.)

3 There is a sixth group, Group F, which is land of
no agricultural value, consisting of rock outcrop, rough
stony land, coastal beaches and clay pits. Such land is
not deemed eligible for assessment under the Farmland
Assessment Act of 1964.

of land can be combined into four distinct
classes: cropland harvested, cropland pastured,
permanent pasture, and woodland. These classes
are described below:

1. Cropland harvested—This is the heart of
the farm and represents the highest use of
land in agriculture. All land from which
a crop was harvested in the current year
falls into this category.

2. Cropland pastured—This land can be and
sometimes is used for cropland. However,
because of the organization of certain
types of farming, it is often found in pas-
ture from which the maximum potential
income may not be realized in any par-
ticular year. All cropland pastured falls
into this category.

3. Permanent pasture—This land is not
cropped because its economic potential is
greater in pasture. It is meadow land, the
rough and stony land, the land with a
high degree of slope. It is usually unim-
proved land which farmers have found to
be non-productive except for pasturing
and haying.

4. Woodland—Many farms have woodlots—
not always because wood is needed on the
farm but because this particular land has
a marginal value in agriculture.

DERIVING FARMLAND
ASSESSMENT VALUES

Determining average values for the classes of
land that exist in each county was accomplished
by capitalizing the net income from farming.
These average values are shown in Table I.

The average values in Table I were adjusted
on the basis of the potential productivity of the
soil groups. These adjusted values, shown in
Table II, are the final estimates of the fair value
of farmland based upon its productive capabili-
ties when devoted to agricultural or horticul-
tural uses.

The general methods of calculation employed
in the derivation of farmland assessment val-
ues are shown in Appendix A.

Important note to assessors—The values in
Table II are suggested values which may be
modified in individual instances by special con-
ditions such as topography of the land, erosion,
degree of slope, and location on improved roads.
These values are designed as guidelines for the
assessors, but it remains his ultimate responsi-
bility to determine the assessed valuation of
qualified farmland in accordance with the

standards prescribed in the Farmland Assess-
ment Act of 1964.

TaBLe I.—Average value per acre of New Jersey
classes of farmland, based on capitalized net
farm income—by county as of October 1966 (pub-
lished annually)

County Cropland | Cropland |Permanent) Woodland
harvested | pastured | pasture

($ per acre)|($ per acre)|($ per acre)/($ per acre)
Atlantie.-_ 340 170 68 17
Bergen______ 540 270 108 27
Burlington__ 240 120 48 12
Camden_____ 340 170 68 17
Cape May--- 220 110 44 ll
Cumberland_ 340 170 68 17
HISS@Xeer oes 540 270 108 27
Gloucester___ 340 170 68 17
Hudsons2222 580 290 116 29
Hunterdon__ 200 100 40 10
Mercer_____-_ 220 110 44 11
Middlesex___ 360 180 72 18
Monmouth__ 320 160 64 16
Morris-_--__-_ 300 150 60 15
Oceans.-— == 220 110 44 11
Passai¢=s=2— 560 280 112 28
palem=-s=3 220 110 44 11
Somerset____ 240 120 48 12
Sussex-______ 220 | 110 44 11
Union sce 380 190 76 19
Wearrena's 2's 200 100 40 10

APPENDIX A

DERIVATION OF THE FARMLAND
ASSESSMENT VALUES

a. “Estimates of the acreage of land in 1966
for the land use classes in each county were
projected on the basis of Census data from 1949
to 1964.

b. “Census categories were combined into
exclusive and easily identifiable land use classes
of Cropland Harvested, Cropland Pastured,
Permanent Pasture and Woodland. Estimates
of the acreage in each class for 1966 were de-
termined by the method shown in Step a. above.

c. “The percentage of State farm income
arising from agriculture in each county in
1966 was projected on the basis of Census data
from 1949 to 1964.

d. ‘State net farm income for 1966 was pro-
jected on the basis of annual U.S.D.A. farm
income data from 1949 to 1964.

e. “State net farm income was allocated to
the counties in the ratio calculated under
Step c.

f. ‘“‘Net income per county was then capital-
ized according to a return of 8 percent, estab-
lishing total value of land in farms in each
county.

g. “A basic formula was established to de-
termine the value of the four classes of land

TaBLeE II.—Estimates of ranges in fair value of farmland based upon its productive capabilities when devoted
to agricultural or horticultural use—by county as of October 1966 (published annually)

Cropland harvested Cropland pastured Permanent pasture Woodland
Soil
group
Value Soil Value Soil Value Soil Value
per acre rating per acre per acre rating per acre
A $408
B
Atlantic C
D
E
A
B
C
D
E
A
B
Burlington C
D
E
A 120 408 120 204 110 75 110 19
B 100 340 100 170 100 68 100 17
Camden C 70 238 70 119 80 54 90 15
D 40 136 40 68 70 48 SO 14
E 10 34 10 Ai 60 41 70 12
A 120 264 120 132 110 48 110 12
B 100 220 100 110 100 44 100 11
Cape May C 70 154 70 re) 80 35 90 10
D 40 88 40 44 70 31 80 9
E 10 22 10 aa 60 26 70 8
A 120 408 120 204 110 75 110 19
B 100 340 100 170 100 68 100 17
Cumberland C 70 238 70 119 80 54 90 15
D 40 136 40 68 70 48 80 14
E 10 34 10 17 60 41 70 12
A 120 648 120 324 110 119 110 30
B 100 540 100 270 100 108 100 27
Essex C 70 378 70 189 80 86 90 24
D 40 216 40 108 70 76 80 22
E 10 54 10 oT 60 65 70 19
A 120 408 120 204 110 75 110 19
B 100 340 100 170 100 68 100 17
Gloucester C 70 238 70 119 80 54 90 15
D 40 136 40 68 70 48 80 14
E 10 34 10 17 60 41 70 12
A 120 696 120 348 110 128 110 32
B 100 580 100 290 100 116 100 29
Hudson C 70 406 70 203 80 93 90 26
D 40 232 40 116 70 81 80 23
E 10 58 10 29 60 70 70 20
A 120 240 120 120 110 44 110 11
B 100 200 100 100 100 40 100 10
Hunterdon Cc 70 140 70 70 80 32 90 9
D 40 80 40 40 al 28 80 8
E 10 20 10 10 60 24 7 7
[Balance of table omitted]
according to its use. NoTE: Values among the four land classes
h. “Value per acre for the classes of land was were apportioned to give cropland pastured a
calculated for each county. (See Table I) value of one-half that of cropland, permanent

i. “Class values in each county were adjusted pasture a value of one-fifth that of cropland, and
in accordance with the ratings of the soil | woodland a value of one-twentieth that of crop-
groups. (See Table II)” land.

NEW YORK

FOREST LAND

“For assessment purposes there are two
fundamental types of forest land, each of which
requires a different approach in estimating cur-
rent full value. The first, which includes the
majority of the forested acreage in the state, is
land whose value is based solely on the timber
which it bears and the ability of the land to
produce wood products. The second is wooded
land whose value is influenced by certain non-
timber considerations. When value determina-
tions are made for either type of forest land,
recognition must be given to all factors that in-
fluence the total value.

“‘Non-timber values can be appraised by em-
ploying appropriate conventional methods pre-
sented in other sections of this manual. Occa-
sionally the non-timber values will be minor,
such as the rental of forest land for hunting
privileges, in which case they become supple-
ments to the timber values. More frequently, as
in the case of building sites and recreational
areas, these values may be considerably larger
than the timber values. In fact, the timber val-
ues become an integral part of the over-all
value; not because of their wood-products con-
tribution but because of their aesthetic contribu-
tion. In a few restricted areas where valuable
minerals are the dominant items of value, the
timber values may become almost negligible by
comparison.

“When determining full value for forest land
possessing only timber values the following fac-
tors must be considered.

1. Location:

This refers to proximity to markets for
wood products, proximity to good transporta-
tion facilities, and topographic conditions. All
three of these influence the cost of harvesting
wood products and delivering them to markets.

2. The Timber:

Kind, quality and amount of timber are
the important considerations here. The value of
standing timber varies greatly between species
and between individual trees of the same spe-
cies. For example, the stumpage price for
“woods-run”’ yellow birch logs may be $45. per
thousand board feet (MBF), while for beech
logs in the same area the price may be only $6.
per MBF; and in some regions of the state
beech may not even have a market.

“Similarly, the stumpage price for
“woods-run” logs of yellow birch may be $45.
per MBF, but the price on logs, because of in-
ferior or superior quality, may range from as
low as $20. to as high as $75. per MBF.

“Amount of timber per acre, or per for-
est tract, affects timber value for two reasons.
The obvious one is; the more timber the more
value, assuming a constant price per unit of
volume. The other relates to the different prices
that are paid for unit of timber volume, de-
pending on the amount that is available. Lower
prices are usually paid per unit for smaller
amounts. This is especially true for timber that
is being harvested in a relogging operation.

3. Bare Land Value:

Productive capacity of land to grow tim-
ber, commonly known as “site quality”, and
proximity to good transportation facilities are
important factors in the determination of this
value. For example, protected, well-drained
cove areas will produce much more timber vol-
ume in a given length of time than will ex-
posed, dry, shallow-soil mountain tops; and for-
est land that is located near improved highways
is worth more on the market than remote lands.

4. Sale Value:

The sale value, or market value, of forest
land is not necessarily the same as the combined
value of timber and bare land. For appraising
forest land, it therefore becomes necessary to
develop factors that can be used to convert the
combined timber and bare land values to forest
land market values. There are several methods
of developing these factors. The most promising
one is to collect information on bona fide sales
of forest land parcels and compute the actual
ratios of sales prices to the combined timber and
bare land values. An analysis of many such
sales should provide the required conversion
factors.

“The State Board is endeavoring to develop
a simplified procedure of forest valuation that
can be used by assessors without forestry train-
ing or equivalent forestry experience. Many
studies have been conducted and others are now
in progress to that end. It is hoped that in the
near future a simplified valuation guide which
is adaptable to use by individuals having a lim-
ited knowledge of a few readily recognizable
forest characteristics, can be issued as a supple-
ment to this manual.”

Assessors Manual, State of New York
Vol. IV Handbook for Rural Assessors
State Board of Equalization and Assess-
ment 1957 (rev. 1959), p. 203.
“The following State lands shall be subject

to taxation for all purposes:

(a) All wild or forest lands owned by the
State within the forest preserve...” Par. 530

“Assessment of State lands; approval thereof

1. State lands subject to taxation shall be
valued as if privately owned and assessed at the
same percentage of full valuation as other tax-
able real property in the assessing unit...

3. No such assessment shall be valid for
any purpose without the approval of the State
Board...” Par. 542 Real Property Tax Law.

NORTH CAROLINA

“It is hereby declared to be the policy of
this State so to use its system of real estate
taxation as to encourage the conservation of
natural resources .. . and all tax assessors are
hereby instructed that in assessing real estate
... they shall make no increase in the tax valua-
tion of real estate as a result of the owner’s
enterprise in adopting any one or more of the
following progressive policies: ...

“4. Protection of forest against fire.

“5. Planting of forest trees on vacant land
for reforestation purposes (for ten years after
such planting).” Gen. Stat. 105-294.

“In determining the value of land the as-
sessors shall consider as to each tract, parcel or
lot separately listed at least its advantages as
to location, quality of soil, quantity and quality
of timber, water power, water privileges, min-
eral or quarry or other valuable deposits, fertil-
ity, adaptability for agricultural, commercial or
industrial uses, the past income therefrom, its
probable future income, the present assessed
valuation, and any other factors which may
affect its value.” Gen. Stat. 105-295.

THE ASSESSMENT OF TIMBER
AND FOREST LAND!

“The kind of real property most nearly com-
parable to forest land itself is ordinary rural
agricultural and pasture land. The principles in-
volved there can, with slight modification, be

1 This material is taken from the “Assessment of Real
Property for Taxation in North Carolina.” Institute of
Government, Chapel Hill. pp. 147-163. 1948.

The instructions, suggestions, and systems contained
in this publication are tentative or experimental in char-
acter and have not been officially adopted by the State.

applied to forest land. In both cases value can
best be determined by analyzing the productive
capacity of the soil and its location.

“Timber, apart from the forest land on which
it stands, is more nearly comparable to mineral
rights, since in both cases the thing appraised is
distinguished from the surface rights in the
land.

“From these general observations, it is evi-
dent that the timber and the forest land must
be appraised separately for ad valorem tax pur-
poses, except in one particular situation to be
dealt with in a later section of this chapter.

DEFINITION OF FOREST LAND

“Forest land is defined as land bearing forest
growth, or land from which the forest has been
removed and which shows no evidence of any
other recent land use... . The test of whether
abandoned agricultural land should be consid-
ered forest land is whether it is at least 5%
stocked with trees. Assessors can determine
whether 5% stocking exists on an acre of land
by reference to the following table:

The number of trees per

acre indicated below is

If the tree diameter is: required to make a 5%

stocking:
Seedlings 40
4 inches 30
6 inches 22
8 inches 15

“The term ‘Waste land’ as used in the general
section dealing with rural land has significance
in this discussion of forest land. As defined
earlier in this manual ‘waste land’ includes what
is generally called ‘non-productive forest land.’
Such land is defined as forest land of such low

fertility that it never has and probably never
will grow sound commercial saw timber. Brush
covered sand dunes, and dry, rocky ridge tops
in the mountains are examples of this class of
land. Since non-productive forest land meets the
definition of waste land, county assessing au-
thorities should apply to it the same classifica-
tion and assessment standards.”

APPRAISAL OF FOREST LAND
APART FROM STANDING TIMBER

“... for general assessment purposes, the two
primary factors in setting base per acre values
on forest land as such are producing power and
accessibility to timber market. ... it is suggested
that the Advisory Board set base per acre values
for such land (including cutover land), using a
table substantially as follows for recording
their decisions:

Accessibility to timber market
Good (A) Average (B) Poor (C)
IA IB IC

IIA IIB TIC
TTA IIIB ITIC

Productivity

I Above average
II Average
III Below average

.. . In setting these base values the Advisory
Board must always keep in mind that their fig-
ures should represent average market values for
each grade, not unusually high or unusually low
prices for the particular kind of forest land
property considered.

“.,. there is an exception to the rule that for-
est land and timber should be assessed sepa-
rately. . . . forest land on which there is no
merchantable timber, but on which there is
either a growth of ‘seedlings and saplings’ or a
growth classified as ‘poorly stocked.’ Seedlings
and saplings have no market value if severed
from the land, and poorly stocked timber, re-
gardless of the possible value of individual
trees, has no market value simply because there
is not enough of it to the acre to warrant the
costs of severing it. Yet, in both cases, the
presence of this timber enhances the value of
the land on which it lies above its bare or cut-
over value. The difference in value caused by
this growth must be taken into account in the
tax assessment of the forest land itself, and not
in a separate timber value.

“.. . Two possible ways of making this ad-
justment present themselves.

“The simplest procedure would be for ...a
flat sum addition per acre...”

“A better procedure would be for the Ad-
visory Board to set up flat sums per acre to
be added in these cases in the following manner:

Class Stand-size class
Seedlings & Poorly
Forest type Quality saplings stocked

(per acre) (per acre)
A. Above IAS&S I A PS

average
I Softwood B. Average IBS&S IB PS
C. Below ICS&S IC PS

average
A. Above TITAS &S}|} II A PS

IL Softwood- average
hardwood B. Average IBS &Sj| II B PS
C. Below IICS&S8Sj} II C Ps

average
A. Above WIAS&S| III A PS

III Upland average
hardwood B. Average IIBS &S8S/} III B PS
C. Below IICS &S8S| III C Ps

average
A. Above IVAS&S/} IVA PS

IV Cove average
hardwood B. Average IVBS&S|]} IV B PS
C. Below IVCS&S/|I1VC PS

average
A. Above VAS&S V A PS

V Bottomland average
hardwood B. Average VBS &S VB UPS
C. Below VCS&S WV. CaRS

average

“Having settled upon flat additions for the
presence of such growths, the Advisory Board
should insert them in the table shown above.
This table will make it easy for the list taker
and assessor to compute the additions to base
value for any individual tract of forest land he
is called on to appraise.

APPRAISAL OF TIMBER APART FROM
THE LAND ON WHICH IT STANDS

“... merchantable timber in North Carolina
is classed as timber 5 inches or larger in diam-
eter measured 414 feet from the ground, usually
expressed as ‘diameter breast high.’ Trees un-
der 5 inches in diameter would normally not
command a market price if they were cut... .”

‘“.. . For tax assessment purposes there are
five readily recognizable broad forest types in
North Carolina:

(1) Softwood...

(2) Mixed softwood and hardwood...
(3) Upland hardwoods...

(4) Cove hardwoods...

(5) Bottomland hardwoods...

“The County Valuation Committee and its
Advisory Board on Timber and Forest Land

will be able to identify the forest types existing
in their county and can disregard the others in
their setting of base values.

“For tax assessment purposes five stand-size
classes have been established .. .

(1) Sawtimber...

(2) Pole timber...

(3) Seedlings and saplings...
(4) Poorly stocked...

(5) Plantations...

“The County Valuation Committee through
its Advisory Board on Timber and Forest Land
will be faced with a problem different from that
it faced with forest land valuation when it
comes to setting base values on timber itself.

“Timber, like oil or mineral ore, has value
only because of the products that can be made
from it after it has been removed from the
ground, transported to a manufacturing plant,
and made into finished or semi-finished prod-
ucts. The value of timber can be said to be a
residual value—that is, the value of the finished
product less the cost of harvesting, transporta-
tion, manufacture, and a sum for profit and
risk. This value is commonly called ‘stumpage
value.’ ”

“The most important factors that assessing
authorities have to consider in setting base tim-
ber values are:

. Volume per acre

. Size of trees

. Species in the stand

. Quality of the timber
. Logging conditions

. Roads

. Distance from market

AAQTIEWNH eH

“It is suggested that the Advisory Board tab-
ulate the base values in the following manner:

Table of base timber values for

county
Class Stand-size Class
Saw timber Pole
Forest type Quality (per 1,000 timber
board feet) | (per cord)
A. Above IA
average
I Softwood B. Average LL.B
C. Below IC
average
A. Above IIA
II Softwood- average
hardwood B. Average IIB
C. Below ILC
average

Class Stand-size Class
: Saw timber Pole
Forest type Quality (per 1,000 timber
board feet) | (per cord)
A. Above Ill A
III Upland average
hardwood B. Average HIB
C. Below III C
average
A. Above IVA
IV Cove average
hardwood B. Average IVB
C. Below IVC
average
A. Above VA
V Bottomland average
hardwood B. Average VB
C. Below VC
average

Note: Since stands of seedlings and saplings and poorly
stock stands are to be valued at a base figure per acre, they
are not included in this table.

“In setting an assessed valuation on stands
of timber, the discussion so far has been con-
fined to stands in what can be called ‘‘average”
locations, that is, locations representing the
normal logging conditions, distance from roads
and distance from markets in the particular
county. It is immediately obvious, however, that
few tracts of timber can be estimated solely on
the basis of “average” location, because when
the assessor is faced with a particular taxpay-
er’s tract of timber, he must modify this aver-
age value that he first places on it to account for
its ‘accessibility’.

“By the term ‘accessibility’ is meant the loca-
tion of the timber with regard to distance from
market, logging conditions, and the kind of
roads available...

“It is suggested that ‘accessibility’ be rated
‘Good,’ ‘Average’ and ‘Poor,’ and that percent-
age adjustments be established in substantially
the following manner :

If accessibility rated:

Good ____ Allow up to 30% increase
in base timber value.

If accessibility rated:

Average — Allow no adjustments to
base value.

If accessibility rated:
Poor Allow up to 30% deduction
to base timber value.”

OHIO

BTA-—5-04 (Rule 03) Adoption and use of
property records

Each county auditor shall adopt a system of
currently maintained property records for each
lot, tract or parcel of real property in the county
of his jurisdiction as provided in Revised Code
5713.03. Such property records shall be in
either sheet or card form as determined by the
county auditor. The information contained on
this record, in conjunction with the actual view-
ing of the property by the appraisor and other
pertinent information available, shall be used in
estimating the true value in money of each par-
cel of real property in the county. Each such
card or sheet shall provide, insofar as possible,
the following information: ...

as follows:
(a) Homesite
(b) Tillable land
(c) Orchard
(d) Permanent pasture
(e) Woodland
(f) Waste
6. The computation of agricultural land
value shall include the following, inso-
far as applicable:
(a) Price per acre for each grade and
use of land
(b) Total land value for each tract of
land of different grade and use
(c) Total land value for entire parcel.
BTA-5-05 (Rule 104) Valuation of land
(A) General
All land shall be appraised at its true value in

OoRWNF

money as of tax lien date of the year in which
the appraisal is made. In arriving at the true
value in money the county auditor shall con-
sider, along with other factors, not only the
present use of the land but also its highest and
best probable use during the next ensuing 6-
year period. A tract of land shall be valued in
the same manner as land similarly used and
located unless it has a greater value due to
probable use for plant expansion, creation of
shopping centers, residential allotments, or any
other higher and better probable use.

All relevant facts tending to influence the
market value of land shall be considered, in-
cluding, but not limited to, size, shape, topog-
raphy, soil and subsoil, drainage, utility connec-
tions, street or road, land pattern, neighborhood
type and trend, zoning, restrictions, easements,
hazards and actual arm length sales of land in
the immediate vicinity.

The county auditor shall deduct from the
value of each separate parcel of real property
the amount of land occupied and used by a canal
or used as a public highway as provided in
Revised Code 5713.04.

(B) Agricultural. Agricultural lands shall
be classified according to their characteristics
and capabilities for use, based primarily on
what they will produce under average condi-
tions and typical management in the locality.
Assessors shall obtain all information available
relating to soil classification, land capabilities,
land use and soil maps, production records, price
records and other information from the Ohio
State University, Ohio Agricultural Research
and Development Center, County A.S.C., Soil
Conservation Service, Soil and Water Conserva-
tion Districts, and other sources.

—Ohio Real Property Valuation Rules, eff. for
tax year 1966 and thereafter.

Board of Tax Appeals, Dep. of Taxation.

OREGON

A somewhat complex pattern of special for-
est tax legislation in part modifies, and in part
replaces, the property tax as it applies to forest
land and timber. The Western Oregon Ad Va-
lorem Tax adopted in 1961 (Oregon Revised
Statutes 321.605) is applicable to lands lying
west of the Cascade Mountains.! The Act modi-

1 Amendments and regulations thereunder applicable
to the tax year 1968-69 are not reflected in the follow-
ing material. See Chapter 543 Laws 1967, approved
June 30, 1967.

fies the application of the property tax for both
land and timber. The true cash value of forest
land continues to be determined under the gen-
eral statutes relating to the property tax except
that so long as the primary use of the area re-
mains forest land, it is to be valued as such.
The true cash value of timber is to be deter-
mined according to the provisions of the Act.
The Eastern Oregon Severance Tax also
adopted in 1961 (ORS 321.405) is applicable

to that part of the State situated east of the
Cascade Mountains. Forest land remains sub-
ject to the general property tax; a yield (sever-
ance) tax is substituted for the property tax on
timber. In addition to the Acts just mentioned,
two optional provisions are available to forest
owners of the State.?

The State Tax Commission has responsibility
for inventorying and appraising timber and
timberland subject to the property tax in west-
ern Oregon. In this connection the Valuation
Division of the Commission has developed tech-
niques in using electronic computers. Leader-
ship by the State in the administration of the
property tax as it relates to forest land and
timber, together with detailed requirements of
special forest tax laws, have lessened the need
for State guides to local assessors. Excerpts
from the “Ad Valorem Property Tax Regula-
tions’ issued periodically by the State Tax Com-
mission follow.

Article 21605. (Relates to Western Oregon
Ad Valorem Tax).

A. “Forest Land Definitions:

1. “Forest land” is defined as land which
either bears forest growth or is being
held or used for forest production, and
is the land alone. Such land is rural land
which by the nature of its topography,
soil quality, productivity, cover, and
current and recent use is suited for for-
est growth.

For purposes of this definition “rural

land’ is defined as land in the country

as differing from urban lands in cities,
towns, or communities.

2. “Forest land is the land alone” is de-
fined as the sail and the total natural
and cultural environment within which
forest production takes place, but ex-
cluding the forest growth.

3. “Forest land is the land alone” excludes
the following:

a. All woody plants or trees occupying
the soil.

b. All improvements except the contri-
bution to value of the land by roads,
and all buildings, structures, ma-
chinery, equipment or fixtures erected
upon, under, above or affixed thereto.”

Article 21620. (Relates to the Western Ore-
zon Ad Valorem Tax).

2The Forest Fee and Yield Tax adopted in 1929
(ORS 321.255). The Western Oregon Small Tract Op-
tional Tax adopted in 1961 (ORS 321.705). For pro-
visions of special forest tax legislation see State For-
est Tax Law Digest mentioned in preface of this
compilation.

A. Definitions:

1. “Area involved” is defined as the area
of forest land within one ownership
where the ownership is the contiguous
land owned by the same person or per-
sons.

2. “Primary use” as forest land is defined
as that use which is a dominant and
bona fide engagement in the produc-
tion of commercial forest products from
the area, or that use which is a prin-
cipal activity in the commercial produc-
tion of forest growth.

Examples of exclusions:

a. A forested area occupied by a trailer
court would not have its primary use
as forest land.

b. A forested area which provides un-
restricted grazing for domestic ani-
mals and where such grazing is obvi-
ously being conducted at the expense
of forest production would not have
its primary use as forest land. |

c. A forested area along or bordering
streams, lakes, roads, or recreation
areas which has been subdivided or
platted presently is being used for
other than the production of commer-
cial forest crops.

B. Criteria:

1. In making a determination of whether
the ‘‘area involved” is being “primarily
used” as “forest land,’ consideration
should be given but not limited to the
following criteria:

a. Whether the land has been subdivided
or a plat has been filed under ORS
92.100.

b. Whether the land would be subject to
the requirements of the Oregon For-
est Conservation Act (ORS Chapter
527).

c. Whether it is classified as “timber-
land’ under subsection (17) ORS
477.001.

d. The present uses of the land.

.The acres of forest growth in the
ownership.

The other uses of the ownership.

. Whether there is a forest manage-
ment plan for the area involved and
whether it is being implemented.

h. Whether the area involved is being

used for grazing.

i. Date of acquisition and purchase

price.

j. Business activity of owner on and

off the subject property.

oq fh

k. Forest management activities includ-
ing reforestation, timber harvesting,
and protection on the land.

ORS 321.955. Timber Severance Reports *

If merchantable timber subject to assessment
by any county in this State is severed during
any calendar year from real property, the owner
or his agent shall, before March 3 of the year
following the severance, make and file a report
with the county assessor of each county in which
the real property is situated. The report shall
contain a legal description of the property from
which the merchantable timber has been sev-
ered, a statement of the area from which the
timber has been severed, the best estimate of
the acres logged and of the percentage of total
volume of timber, by species, severed from such
acreage, and the best estimate of the acres of
merchantable timber remaining uncut. The re-
port shall include a map or sketch showing the
area logged and be signed by the owner or his
agent.

Article 21955. (Relates to Timber Severance
Reports under Western Oregon Ad Valorem
Tax).

A. Definitions:

1. “Merchantable Timber.” The statutory
definition is designed to follow current
utilization practices in the county or in
the area logged. Owners are required
to report the merchantable timber
which currently is considered by the
Commission as subject to inventory and
assessment. Owners should check an-
nually with the county assessor to de-
termine types and classes of timber
which were assessable for ad valorem
tax purposes as of January 1 of the
year of severance.

2. “Owner.” The statute provides that the
owner at the time of severance file the
report. Where the owner on the assess-
ment date is not the owner at the time
of severance, the report should still be
filed by the owner at the time of sever-
ance; however, he may make the owner
on the assessment date his agent for
reporting purposes if, for any reason,

3 Applicable to Western Oregon ad valorem tax only.

it is more convenient to have that per-
son make the report.

3. “Severance.” The statutory definition
is designed to cover all situations where
conversion of the stumpage to logs is
begun. Merchantable timber may be re-
moved from the stump but not removed
from the land; nevertheless, the sever-
ance must be reported. On the other
hand, wind-fallen timber need not be
reported as severed until it is removed
from the place of blowdown to another
location, whether that be a cold deck,
pond or mill.

ORS 308.236. Land and timber values to re-
flect presence of roads; roads
themselves not assessed; excep-
tion for certain timber roads.

1. The availability, usefulness and cost of
using roads, including all roads of the
owner of land or timber, and all roads
which such owner has the right to use,
shall be taken into consideration in de-
termining the true cash value of land,
the unit value of timber on reforesta-
tion lands, and the immediate harvest
value of other timber as defined... .

2. Roads themselves, except principal ex-
terior timber access roads, shall not be
appraised, valued or assessed .... The
underlying land upon which roads are
constructed shall be assessed if it is
otherwise subject to assessment.

38. (a) As used in this section, ‘‘road’’ in-
cludes fills, ballast, bridges, culverts,
drains, surfacing and other appurte-
nances of a like kind commonly associ-
ated with roads, but excludes railroads.
(b) “Principal exterior timber access
roads” means those portions of high
standard main-line private roads that
provide access from a conversion cen-
ter or public way to the exterior bound-
ary of the principal forest area served
by the road. A high standard main-line
private road is a permanent road of
two lanes or more which is paved, ma-
cadamized, or with fine-gravel surface
which is permanently and continuously
maintained.

PENNSYLVANIA

“It shall be the duty of the several elected and
appointed assessors, in their return of real es-
tate to the commissioners of the proper county
at each triennial assessment, to make returns
of all the timberland in their proper district by

specifying in separate columns how many acres
each tract contains of cleared land and how
many in timber.”
The General County Assessment Law
(Act of May 22, 1933), Sec. 418.

SOUTH CAROLINA

“65-1621. RETURNS OF TIMBER, ETC.;
CONSIDERED REALTY.

Any person owning any deed, lease or con-
tract whereby timber or timber rights are con-
veyed to him on lands in the State shall, at the
time fixed by law for making annual returns
of personal property for the purpose of taxa-
tion, return for taxation the value of such deed,
lease or contract in the county in which the
timber covered by such deed, lease or contract
stands or is situated and not in the county of
the domicile or principal place of business of
such person, and for the purpose of §65—1621 to
65-1623 such deed, lease or contract covering
timber or timber rights shall have the character
of and be considered real and not personal prop-
erty, except that returns thereof shall be made
annually, instead of once in four years.
“65-1622. ENTRY OF SUCH TIMBER
RIGHTS ON TAX BOOKS.

The value of any such deed, lease or contract
so required to be returned shall be entered upon
the tax books of such county and shall be sub-

SOUTH

“. . It shall be the duty of the assessor to
determine and report each year the acreage of
timber within his district. Such report shall
indicate separately the acreage of natural and
cultivated or planted forests averaging four
feet over in height, and shall also specify the
kind of trees. Such data shall be taken and re-
ported by the assessor without extra compensa-
GOW Saree

South Dakota Code, Sec. 57.0308

“Real property for the purpose of taxation
shall be construed to include the land itself...
trees or other fixtures of whatsoever kind
thereon. . . . Trees planted under the Timber
Culture Act of Congress shall not be considered
as improvement on land for the purpose of
taxation.”

ject to all statutory and other provisions relat-
ing to the return, assessment, equalization and
taxation of real property and the collection of
taxes thereon in this State, except that returns
thereof shall be made annually instead of once
in four years.
“65-1623. SEPARATE RETURNS OF EACH
DEED, ETC.; OF TIMBER NOT REQUIRED.

Sections 65-1621 to 65-1623 shall not be con-
strued as to require any such person owning
more than one such deed, lease or contract to
return the value of each separately, but it shall
be a sufficient compliance with the requirements
of said sections for the value of all such deeds,
leases or contracts to be returned collectively,
in the proper county, or counties, as designated
by said sections. But if any such deed, lease or
contract covers timber or timber rights in more
that one county, the value of such deed, lease or
contract shall be prorated between or among
such counties, with relation to the value thereof,
in each county.”

Code of Laws for 1962 as amended.

DAKOTA

South Dakota Code, Sec. 57.0312
“Forest land from which the usable timber
has been removed is ‘agricultural land’ within
the statute, although only a small portion of it
could be cultivated.”
Attorney General’s Opinion
May 27, 1940.

Lands from which trees are harvested for
pulpwood or posts are assessed on the basis of
market value with the timber value added to
that of the land. Factors considered by assessors
are terrain, grazing value of the land itself,
distance to market and size of timber.

Letter from Division of Taxation

Dept. of Revenue
Jan. 4, 1966.

TENNESSEE

“All mineral and timber interests and all
other interests of whatsoever character, whether
for life or a term of years, in real estate, .. .
which said interest or interests is or are owned
separate from the general freehold, shall be as-
sessed to the owner thereof, separately from

the other interests in such real estate, which
other interest shall be assessed to the owner
thereof, all of which shall be assessed as real
estate.

“Tt shall be the duty of the... State Forester,
when called upon to do so by the Commissioner

8 a

of Finance and Taxation, or the State Board of
Equalization, to render assistance to said Com-
missioner or State Board in ascertaining the
value of any or all... timberlands in the State,
to the end that such property may be accurately
assessed at its actual cash value.”

Sec. 67-606 and 607,
Tennessee Code Annotated.
A State Assessors’ Manual, including infor-
mation on the assessment of timber and forest
lands, is being prepared.

TEXAS

“.. the Land Commissioner shall furnish...
to the various... tax assessors ... a full and
complete list of all timber sold by the State be-
longing to the school funds, giving the number
of acres, price and to whom sold, in the respec-
tive counties where the timber so sold is situ-
ALE: 1yis"’

Revised Civil Statutes, Art. 7178.

“Where timber has been sold separately and
apart from land, though standing, it is taxable
separately and apart from the land and to the
owner. This rule applies whether the timber

stands on land owned by the State or indi-
viduals...” (p. 35)

“Timber held by persons or corporations
heretofore or hereafter purchased from the
State under the various laws for that purpose,
shall likewise be subject to assessments for
taxes and the value thereof for taxation shall
be ascertained as the value of other property is
ascertained. .. .”’(p. 35)

County Tax Assessor—Collector Instruc-
tion Manual

Comptroller of Public Accounts.

(n.d.)

UTAH

“Real estate includes:
(a) The possession of, claim to, ownership
of or right to the possession of land.
(b) ... all timber belonging to individuals
or corporations growing or being on

the lands of this state or the United
States, and all rights and privileges
appertaining thereto.” (p. 6)
Property Tax Manual,
State Tax Commission, 1950.

VERMONT’

INTRODUCTION

The appraisal of timberland in Vermont var-
ies considerably from town to town. No doubt
it varies even within the towns. It is a tre-
mendous problem, not only in Vermont, but
throughout the entire United States. Consider-
able study has been devoted to the subject in
the various states with some of them using a
“severance tax’ in lieu of the property tax. In
Vermont you listers are supposed to appraise all
property at its “fair market value.” Realizing
the difficulties under which you labor in regard
to your remuneration and the limited amount of
time in which to complete your work, we hope
the following information and recommendations

1 Timberland Appraisal Guide, Vermont Tax Dep. 13
pp. 1960. Due to current trends in land values, the
Guide was recently withdrawn. It is included in this
compilation to illustrate a simplified approach to forest
assessment suited to use by assessing officers lacking
specialized training or experience in estimating timber
volumes and values.

wil serve as a guide to help you achieve
EQUITY when appraising timberland.

The appraisal of property differs from state
to state, depending on the amount of money
available by the taxing district, whether it is a
town, city, county or state. Our recommenda-
tions will take into consideration the conditions
that exist here in Vermont. We must remember
it takes a long time to grow trees. Whoever has
his money invested in timberland is entitled to
a fair return on his investment. Often it will not
be a yearly return, and in some cases there will
not be any return during the lifetime of the
taxpayer. Another peculiarity of timberland is
that the trees have to be assessed for taxes and
the owner cannot realize any income from the
property, other than from maple sugar or-
chards, without cutting the trees. We must be
fair with the taxpayer and the town for which
we work. Therefore, we want to be sure the
various types of timberland are NOT appraised
so high the taxpayer will be forced to cut his
timber off completely in order to pay the taxes.

When that happens, the taxpayer, the town and
the state lose tremendously.

According to Title 32, Vermont Statutes An-
notated, Section 4152 (7) (A), you listers are
supposed to record in the grand list book the
approximate acreages of woodland, cropland
and pasture land owned by the different indi-
viduals in your town. In the Handbook for Ver-
mont Listers and TAX AIDS, we have recom-
mended that rural land be appraised according
to these three different types of land. We have
noted that land for cultivation, as well as land
used for pasture, is very apt to be of more than
one grade on nearly every farm and should be
appraised accordingly. This also holds true for
land that is devoted to raising timber.

Land that is used for cultivation raises a crop
each year, whereas land used for growing trees
will take from 50 years to 125 years to raise a
single crop of pulpwood or merchantable saw
timber, depending on whether or not the trees
are hardwood or softwood and the capability of
the soil. The same is true for the growing of
trees as for the growing of yearly crops, the
better the soil, the better the crop. Some soils
will grow trees much faster than will others.
Also, some species of trees will grow better in
a given location than will other kinds.

There are many problems connected with the
appraising of timberland. In some sections of
the state, the bulk of the timber is being used
for pulp in the paper industry, while in other
sections the timber is used for veneer, furniture
manufacturing, construction material, etc.
There are other sections that are being opened
up for recreation—hunting, fishing, skiing. A
few areas are seeing plantings of seedlings for
Christmas trees, which will be ready for the
market in eight to fifteen years, depending on
the type of tree planted. There are the active
maple sugar orchards, some of which are quite
extensive. Also, there are stands of various
kinds of hardwood timber, such as beech, yel-
low birch, white birch, maple, ash, black cherry,
etc., while other stands will be of softwood only.
Occasionally, there will be combinations of both.
You will find a considerable variation in a given
tract of land. As an example, we found an 800
acre tract when making the study for the recom-
mendations contained herein, that consisted of
200 acres of maple and ash, 560 acres of cutover
land and 40 acres that had been planted to pine.

We have repeatedly advised you listers that
real estate cannot be appraised from the back
seat of an automobile or sitting in the town
clerk’s office. The same holds true for timber-
land as for buildings, pasture land and culti-

vated land, you must examine the timberland if
you expect to make an equitable appraisal. Also,
you should look it over once every ten years, at
least. It will take just about that much time for
a change in the size of timber to be noticed. You
don’t have to worry about depreciation due to
cuttings, the owners will notify you.

While it is true that some species of hard-
woods are more valuable than others, as with
the softwoods, we are not going to suggest you
appraise the timberlands according to the spe-
cles grown. Most of us know some of the various
kinds of trees growing in our Vermont woods,
but very few, other than foresters or trained
timber cruisers, can tell all of the different types
from the bark, or shape, and without leaves.
Therefore, the categories submitted for your
use will be more general in character and are
illustrated with pictures and defined on pages
3 to 8.

TOOLS TO WORK WITH
TAX MAPS

Just as the recommendations herewith are a
tool for the better appraisal of timberland, there
are other tools available. For instance, aerial
photographs of your town would be a big help.
Many taxing jurisdictions have been completely
photographed in other states and provinces,
with tax maps made therefrom showing the
different types of timber and _ soils, rivers,
ponds, roads, etc. Tax maps are just as valuable
for a rural community as they are for the larger
towns and cities. For those rural towns with
hundreds of acres of timberland, aerial photo-
graphs would help the listers immensely. While
many of the aerial photographs are so old that
they have lost some of their value, information
on available photographs may be obtained from
the Soil Conservation Service offices throughout
the state.

While aerial photography is the best method
to use for surveying large tracts of timberland
and making tax maps therefrom, we realize
not all towns can afford the cost of such work.
We firmly believe tax maps, which could be
made from an ordinary map of the town or
from enlarged copies of topographic maps,
should be available to the listers. The topograpic
maps are available in stores in the larger towns
of the state, at least, and are very inexpensive.
With aerial photographs, someone trained in
their interpretation could give you all the infor-
mation you need, including the size and kind of
trees, the acreages of the different tracts and
a lot of information relative to the soils. Where

aerial photographs are not used, then the acre-
ages must be determined by deed, or as near as
possible from the knowledge of the individual
owners. This information should be put onto a
tax map, together with the information secured
by viewing the timberland. Once this is on a
map, it should not be too difficult to maintain it.
Also, with the establishment of tax maps, you
might be surprised at the amount of lost prop-
erty that might come to light and would be
entered on the tax rolls for the first time in a
number of years.

Many farmers, and possibly timberland own-
ers, have had their holdings surveyed by the
Soil Conservation Service. Aerial photographs
have been taken and maps made for the owners.
These maps will show the different types of
soil, the location of the cultivated land, pasture
land and timberland. The information contained
on these maps should be of immense assistance
to you. We feel sure the property owners will
be glad to let you use their maps and photo-
graphs.

RECORD CARD

Another tool is a good record card for each
taxpayer on which should be recorded the num-
ber of acres for each classification of timber-
land, the rate per acre used when appraising the
property and the total appraised value for the
various classifications. This same card could be
used for all the rural land, which would include
the cultivated land and the pasture land along
with the timberland. It is possible you would
want to include on the card an outline, or dia-
gram, of the taxpayer’s holdings and even show
the number of acres for each classification of
land.

In any event, some kind of a permanent rec-
ord card should be kept pertaining to the tim-
berland holdings of each taxpayer so you would
know how you appraised his property. You also
need this information in order to know what to
do when there has been a cutting made and the
taxpayer comes in for a reduction in his
appraisal.

CLASSIFICATIONS

In order to assist you to the greatest extent
possible, we have divided timberland into six
broad or general classifications. That means we
must define each classification in terms that
every lister will readily understand. However,
each general classification may contain trees
that belong to some other classification. You will
determine the classification by the size of the
majority of trees in the area.

WASTE LAND

This is the least valuable land there is—it is
worthless and should be figured as such. It in-
cludes mountain tops that are all rocks or where
only short scrub trees will grow that have no
value whatsoever. There may be areas on moun-
tain sides that are all ledges, which will make
that particular area valueless. Also included in
this category will be swamps where only swale
grass and cattails grow, which will be worth-
less.

BRUSH LAND

This will include cultivated or pasture land
that has been abandoned for farm purposes and
might be covered with clumps of small worth-
less trees such as alder, willow, cherries and
gray birch, that will never grow to a market-
able size. The areas coming under this heading
will be a little better than the waste land be-
cause it could grow merchantable trees with
proper care.

In this category we also include the swamps
and bogs where there might be some cedars for
fence posts, or a few merchantable trees. Due
to the swampy condition of the land, the value
is exceedingly low and the merchantable timber
could only be removed under extremely poor
conditions. This type of timberland is just out
of the worthless classification and should be
appraised at a low value per acre. (See Fig-
ure 1)

SEEDLINGS AND SAPLINGS

This will be land covered with young trees
up to five inches in diameter of varieties which
will produce merchantable timber. It will in-
clude cut-over land, or abandoned farm land, or
reforested areas. (See Figure 2)

POLE SIZE TIMBER

An area of this type will have trees that will
be five to nine inches in diameter. You might,
or might not, find a few trees over nine inches,
or even trees of a merchantable size. These
might be widely scattered and would hardly be
worth cutting. The type of land, whether it is
particularly good for growing merchantable
trees or not, accessibility for future harvesting,
general condition of the area, and the kind of
forest practices being used, will all help to de-
termine the value per acre. (See Figure 3)

Figure 1.—Brush Land

Figure 2.—Seedlings and Saplings

Figure 3.—Pole Size Timber

YOUNG SAW TIMBER

An area that falls in this classification will
contain trees largely between nine inches and
twelve inches in diameter at breast height. You
may find a scattering of smaller trees and a few
trees that will be larger. While there may be a
few trees of a merchantable size, the majority
of them should be left for another ten to twenty
years or more before being cut, depending on
the condition of the trees, and whether they are
hardwood or softwood. You will determine the
value per acre by the same method as that de-
scribed in the latter part of the previous classifi-
cation. (See Figure 4)

MERCHANTABLE SAW TIMBER

An area to come under this classification
should contain mostly trees over twelve inches
in diameter at breast height. Here again, how-
ever, you may find a scattering of trees much
smaller. The trees should be commercially
usable species. The value will be determined by

taking into consideration the condition of the
trees, whether they are alive, sound, of good
quality, and still growing, or showing signs of
decay. While some species of trees are more
in demand than others, and therefore more valu-
able, the number of board feet per acre would
have a bearing on the amount a purchaser would
pay. We cannot stress these items without mak-
ing the appraisal of timberland so hard that you
will find it difficult to follow the instructions.
However, you can readily tell the difference be-
tween a tract that has a great many trees over
twelve inches in diameter and one that does not
have as many, both areas being in this particu-
lar classification. (See Figure 5)

In many areas you will find small acreages
of good merchantable timber that would ordi-
narily bring a fairly good price on the market.
However, there is such a small quantity avail-
able that it will not be worth the cost to harvest.
When you find these conditions, even though the
available timber is of the best, you should not
appraise it at the highest value because it will
not bring this price on the open market.

SRS a —

Figure 4.—Young Saw Timber

RECOMMENDED APPRAISED
VALUE PER ACRE

Title 32, Vermont Statutes Annotated, Sec-
tion 3481, as amended by No. 175 of the Acts of
1959, pertaining to definitions reads as follows:

““Appraisal Value’ shall mean the esti-
mated fair market value of property.

‘Listed Value’ shall mean that proportion-
ate part of the appraisal value agreed upon
by the board of listers, and recorded with
the town clerk. Each town may determine

vis)

the ratio of listed value to appraisal value
to be used in the town, but the ratio shall
be the same for both real and personal
property.”

The values we are recommending are “ap-
prasal value’ and NOT “listed value.” The
range in values given is intended to cover the
variations in quality, accessibility, quantity and
other factors which affect the value within the
category. You will multiply the number of acres
by the rate per acre in the particular classifica-
tion applicable to the area being appraised to
determine “estimated fair market value.”

Figure 5.—Merchantable Saw Timber

Waste land __stone, swamp, ledge or any
other land incapable of
growing usable timber.

$0.

Brush land __clumps of small trees that
will never grow to market-
able timber, growing on
abandoned agricultural
land.

$2.—$6.

Seedlings and lands growing principally
saplings, ex- young trees not over five
cluding Christ- inches in diameter which
mas tree plan- could grow to merchantable

tations. timber; also includes cut-
over land.
$4.-$10.
Pole size lands growing largely
timber. young trees not over nine

inches in diameter.
$6.-$12.

Young saw
timber.

Merchantable
saw timber.

so-called second growth,
largely trees nine inches to
twelve inches in diameter.
$6.—-$16.

land growing largely trees
over twelve inches in diam-
eter which are commer-
cially usable. Includes
maple sugar orchards.
$9.—$30.

As an EXAMPLE ONLY, to illustrate the
use of the suggested values, we will say Joe
Dokes owns 100 acres of timberland divided
into the following classifications:

50 acres of “pole size timber” with an
estimated value of $8.00 per acre

25 acres of “young saw timber” with an
estimated value of $10.00 per acre

25 acres of “merchantable saw timber”
with an estimated value of $15.00 per

acre

In each case we have used a value per acre
that is within the range suggested for each
classification under consideration. The total
“estimated fair market value” of the tract and
the “listed value,” the value that will show in
the grand list book, follows:

50 acres @ $ 8.00 $ 400.00
25 acres @ $10.00 250.00
25 acres @ $15.00 375.00
Total ‘appraised value” $1,025.00
“Agreed Ratio” 25%
Total “listed” value $ 256.00

At this point a word of caution is necessary.
We have suggested values for you to use. Each
classification has a low and a high dollar value
per acre. DO NOT figure every acre of land in
each classification in your town at the highest
value per acre. In actual practice, and to be
absolutely fair with the taxpayer, probably
there will be only a small portion of the timber-
land in any town that will be worth the maxi-
mum amount for any given classification. Be
sure you take into consideration location, ac-
cessibility and quality of the trees. Further-
more, compare one property with another to be
sure you are appraising all timberland on an
absolutely EQUITABLE BASIS.

APPRAISING PROCESS

Appraising timberland, the same as apprais-
ing buildings, is a matter of ascertaining known
facts and using that information together with
good old fashioned common sense, to arrive at
an equitable valuation. There is the matter of
accessibility to be considered, the quantity and
quality of timber available, the prevailing mar-
ket price as established by known sales between
a willing, well informed buyer and a willing
and well informed seller, neither being under
any compulsion to act.

In order to establish the value of timberland
you MUST go over it, or there must be aerial
photographs of fairly recent date available for
examination and evaluation by individuals
trained in that work.

If you are going to “cruise,” or go over, the
timberland of a taxpayer, we believe it would
be good judgment to do so with the owner or his
representative. It should not be necessary for
the entire board of listers to cruise each tract.
Rather, the work should be divided so each
lister who is physically able to do so, would
have his portion of the town to examine. Trying
to go over each tract annually is not necessary
and should not even be attempted. That is alto-
gether too much work and uncalled for. You

”

may be able to ascertain the predominant fea-
tures of some tracts of timberland without go-
ing over every foot of them. However, most lots
will need to be gone over carefully in order to
equitably establish their proper classifications.

When you go into the woods to look it over,
you are quite apt to find more than one classifi-
cation of timberland. This will be especially true
where the tract covers hundreds of acres. As
an illustration only, on a timberland tract of
200 acres, you might have 50 acres of “pole size
timber,” 100 acres of “young saw timber,” and
50 acres of ‘merchantable saw timber.” In each
separate classification in this example, and it
will hold true in actual practice, there will be
some trees that would ordinarily come under a
different classification. For instance, in the
“pole size timber,” you may find trees that will
measure more than nine inches in diameter at
breast height and it is possible a few would be
more than twelve inches in diameter. The dif-
ferent classifications will therefore depend on
the size of the majority of trees in the area.

Most land owners will have a fairly accurate
estimate of the number of acres of timberland
they own and can break it down into the cate-
gories previously described. Even with this in-
formation, you should look over the timberland,
because you cannot tell what value to set per
acre equitably, and be able to substantiate your
appraisal, unless you do. As you have noticed,
each category has a fairly good spread between
the low valuation per acre and the high valua-
tion. You must exercise your good judgment to
decide the exact valuation per acre to use, and
the highest dollar value per acre should only be
used for the best possible timberland that will
be found in a particular category.

Furthermore, the timber must be in an area
that is readily accessible. There are numerous
locations in the state where there are good
stands of merchantable timber, but the areas
are so inaccessible the market value will be
fairly low. The cost to get out the timber, in
some cases, will be so high the lumbermen will
have to purchase the standing timber at a very
low figure in order to make it a paying proposi-
tion. Therefore, be sure you always take into
consideration accessibility, quality and quan-
tity of the trees when appraising timberland.
This was very forcibly brought to our attention
by a lister who owns a good size farm and has
on it a small stand of merchantable softwood.
The area is so inaccessible, the quantity so small,
no timber operator will buy the standing timber,
even though it is good merchantable timber.

If, as has been suggested previously, you go

over the timberland again in ten years, you
may find that the growth in some areas has been
sufficient to raise the area to the next higher
classification. For instance, a “pole size’ tract
may have grown enough to be reclassified as
“voung saw timber.” This could mean increas-
ing the value per acre to some small extent to
reflect the growth of the timber in the ten year
period.

When a cutting has been made, the timber-
land owner will no doubt ask for an adjustment
of the appraised value of his holdings. With the
classifications used as defined, by going over the
tract the owner feels should be adjusted, you
will readily be able to determine to what classi-
fication the tract ought to be changed. As an
illustration ONLY, we will say X Corporation
has cut the merchantable timber on 200 acres

of land which you had classified as such and
appraised at $25.00 per acre. After going over
the land with the owner, you have determined
the classification has changed to ‘‘pole size tim-
ber,” which, in your opinion, should be ap-
praised at $8.00 per acre. In other words, the
majority of the trees that have been left to grow
are between five and nine inches in diameter
at breast height. There would be some trees
smaller than five inches, also there might be
some “seedlings and saplings,” which would not
change the classification from ‘‘pole size tim-
ber” but might have some bearing on the value
per acre.

You can readily see where the classifications
that are suggested will help with an original
appraisal and when adjustments are necessary
due to normal growth or to cuttings.

VIRGINIA

“When the surface of the land is owned by
one person and the standing timber trees
thereon are owned by another, the relative value
of each shall be determined and the several own-
ers assessed with the value of their respective
interests. 58-804 (f)

“When the surface and standing timber trees
are owned by the same person, the value of the
land, inclusive of the standing timber trees,
shall be ascertained and assessed at such ascer-

tained value. 58-804 (g)

“". . When any timberland heretofore as-
sessed, the owner of the timber on which is also
the owner of the land, is reduced in value to the
extent of two hundred dollars and upwards by
the removal of the timber therefrom, the com-
missioner shall assess the land in its then pres-
ent condition and reduce the charge for the
same to the amount so assessed.”’ 58-813

Code of Virginia 1950.

WASHINGTON

The following sections of the Revised Code of
Washington provide a statement of legislative
intent on forest taxation, establish criteria for
timber and timberland valuation, and set forth
requirements for preparation and periodic re-
vision of the Timber Appraisal Manual.

VALUATION OF TIMBER AND
TIMBERLANDS—CRITERIA
ESTABLISHED

RCW 84.40.032

Based upon the study as directed by house
concurrent resolution No. 10 of the thirty-sev-
enth session of the legislature relating to the
taxation of timber and timberlands, the legisla-
ture hereby establishes the criteria set forth in
RCW 84.40.031 through 84.40.035 as standards
for the valuation of timber and timberlands for
tax purposes.

“TIMBERLANDS” DEFINED AND
DECLARED LANDS DEVOTED
TO REFORESTATION

RCW 84.40.032

As used in RCW 84.40.031 through 84.40.035
“timberlands” mean land primarily suitable and
used for growing a continuous supply of forest
products, whether such lands be cut-over, se-
lectively harvested, or contain merchantable or
immature timber, and includes the timber
thereon. Timberlands are lands devoted to re-
forestation within the meaning of Article VII,
section 1 of the state Constitution as amended.

LEGISLATIVE FINDINGS

RCW 84.40.033

It is hereby found and declared that:
(1) Timber constitutes the primary renew-

able resource of this state.

(2) It is the public policy of this state that
timberlands be managed in such a way as to
assure a continuous supply of forest products.

(3) It is in the public interest that forest
valuation and taxation policy encourage and
permit timberland owners to manage their lands
to sustain maximum production of raw ma-
terials for the forest industry, to maintain
other public benefits, and to maintain a stable
and equitable tax base.

(4) Forest management entails continuous
and accumulative burdens of taxes, protection,
management costs, interest on investment, and
risks of loss from fire, insects, disease and the
elements over long periods of time prior to har-
vest and realization of income.

(5) Existing timberland valuation and taxa-
tion procedures under the general property tax
system are consistent with the public interest
and the public policy herein set forth only when
due consideration and recognition is given to all
relevant factors in determining the true and
fair value in money of each tract or lot of tim-
berland.

(6) To assure equality and uniformity of
taxation of timberland, uniform principles
should be applied for determining the true and
fair value in money of such timberlands, taking
into account all pertinent factors such as re-
gional differences in species and growing condi-
tions.

(7) The true and fair value in money of
timberlands must be determined through appli-
cation of sound valuation principles based upon
the highest and best use of such properties. The
highest and best use of timberlands, whether
cut-over, selectively harvested, or containing
merchantable or immature timber, is to man-
age, protect and harvest them in a manner
which will realize the greatest economic value
and assure the maximum continuous supply of
forest products. This requires that merchantable
timber originally on timberlands be harvested
gradually to maintain a continuous supply until
immature timber reaches the optimum age or
size for harvesting, that immature timber on
timberlands be managed and protected for ex-
tensive periods until it reaches such optimum
age or size that such timberlands be continually
restocked as harvested.

(8) Reforestation entails an integrated for-
est management program which includes grad-
ual harvesting of existing merchantable timber,
management and protection of immature tim-
ber during its growth cycle until it reaches the
optimum size or age for harvesting and a con-

tinual preparation and restocking of areas after
harvest. Such management of timberlands is
now generally followed and practiced in this
state and it is in the public interest that such
management be continued and encouraged.

(9) The prices at which merchantable timber
is sold generally reflect values based upon im-
mediate harvesting, and the prices at which
both merchantable and immature timber are
sold frequently reflect circumstances peculiar to
the particular purchaser. Such prices generally
make little or no allowance for the continuous
and accumulative burdens of taxes, protection,
management costs, interest on investment, and
risks of loss from fire, insects, disease, and the
elements which must be borne by the owner of
timberlands over long periods of time prior to
the time timber is harvested and income is
realized. Such prices do not, therefore, provide a
reliable measure of the true and fair value in
money. Accordingly, both the public policy and
the public interest of this state and sound prin-
ciples of timber valuation require that in the
determination of the true and fair value in
money of such properties appropriate and full
allowance be made for such continuous and ac-
cumulative burdens over the period of time be-
tween assessment and harvest.

FACTORS TO BE CONSIDERED IN
VALUATION OF TIMBERLANDS

RCW 84.40.034

In determining the true and fair value in
money of timberlands, sales prices, or values
based upon immediate harvesting, however as-
certained, shall be adjusted to give full consid-
eration and effect to, and make appropriate
allowance for, the following factors:

(1) Forest land quality, which shall be de-
termined by analysis of existing timber stands,
if present, of soil quality and of other generally
accepted indicators.

(2) Age and density of timber stand.

(3) Species of timber.

(4) Quality of timber, which shall be de-
termined by analysis of the percentages of the
various log grades that will be recovered, such
grades to be determined by references to gen-
erally accepted log grade rules.

(5) Harvesting costs which will be incurred
in converting the timber to marketable prod-
ucts, as affected by topography, distance from
roads, distance from markets, harvesting meth-
ods and volume and size of timber.

(6) Accumulative burdens which will be in-

a we

curred during the period of time between the
date of assessment and the probable date of
harvesting. The allowance made for such bur-
dens shall include full and adequate provisions
for each of the following elements:

(a) The current rate of return obtainable on
long-term, risk-free investments.

(b) The risks of loss due to fire, insects, dis-
ease and storms.

(d) Other carrying charges, which shall in-
clude, but not be limited to, costs of protection,
regeneration, administration and management.

The period of time between the date of as-
sessment and the probable date of harvesting
shall be ascertained by the rate ef harvesting
in the area and other relevent factors. For the
purposes hereof, the area considered may be
county-wide and include all the timberlands in
the county but shall not be smaller than the
individual owner’s tract of timberlands in the
county.

TIMBER APPRAISAL MANUAL

RCW 84.40.035

The timber appraisal manual heretofore pre-
pared and published pursuant to chapter 20,
Laws of 1951 second extraordinary session shall
be revised and updated by seven county asses-
sors with the advice of the state tax commission
and shall thereafter be revised and updated at
least once every four years. The seven assessors
shall be selected by the executive board of the
Washington state association of county asses-
sors as follows: Two members shall be from
the western district of the association of county
assessors; two members from the Puget Sound
district; one member from the central district;
one member from the eastern district; and the
duly elected and acting president of the associ-
ation. The districts herein specified shall be
designated in the bylaws of the association
adopted in September, 1961. The department of
natural resources shall aid and assist in the
preparation of the manual. The aforementioned
parties shall meet within thirty days of June 18,
1963 and shall revise and update the timber
appraisal manual. The revised and updated
manual shall be delivered to the tax commission
on or before January 1, 1964. The tax commis-
sion shall reproduce the manual in suitable form
and furnish two copies free of charge to each
county assessor prior to March 15, 1964, and
shall furnish the manual to others upon request
at a price of five dollars per copy. The purposes
of revising and updating this manual shall be

solely in accordance with RCW 84.40.031
through 84.40.035 and no other.

The State Tax Commission in 1964 adopted
and recommended to western Washington as-
sessors specifications for use in their timber
appraisal programs.! The table of contents for
this publication indicates its breadth of cover-
age and is reproduced below.

Section

I Introduction
II Objectives
III Methods
IV Cost and time considerations
V_ Aerial photography
VI Base maps
Base control map sheets
Maps
Forest type maps
Aerial photographs
Section control
Preliminary forest type stratification
Strata groups
Sampling area
Classification procedure
Land quality
Accessibility and topography or log-
ging class
Species
Density of stocking
Age
Timber quality
Volume
Inventory summaries
Inventory maintenance
General
Timber harvest report
Timber removal
Inventory and valuation adjustment
for timber removal
Adjustment for growth
Reinventory or inventory updating

APPENDIX A—Aerial survey bid form and
specifications

APPENDIX B—Photogrammetric specifica-
tions for mapping control

APPENDIX C—Field inventory procedures

APPENDIX D—Statistical procedures for vol-
ume determination

Vil

VIll

The Timber and Timberland Appraisal Man-
ual prepared for the State Tax Commission in

1 Advisory Specifications for County Forest Inven-
tories for Property Tax Purposes, western Washington,
State Tax Commission 23 pp.+, 1964. Appendixes.

1952 by consulting foresters and revised in
1956 by the Commission was further revised
in 1963 by a committee of the State Association
of County Assessors.? The purpose of the Man-
ual is to provide a simplified guide for deter-
mining fair market value of forest land and
timber taking into consideration such items as

forest land quality, timber quality and species,
logging costs, time of cutting and uninsurable
risks. The Manual contains separate sections for
western and eastern Washington, suggestions
for improvement of inventory procedures in-
cluding volume tables and discussion of log
grades, and attorney general’s opinions. The
following tables from the Manual are repro-

2 Appraisal Manual for Timber and Timberland. State

Tax Commission, 50 pp. 1963.

Table I-W

duced as examples.

FOREST LAND QUALITY
WESTERN WASHINGTON

General description

Usually consists of bottom lands, lower slopes and
coves. Deep, rich soil. Moist condition.

Use this class when 60% or more of the tract area
meets specifications and most of remainder is in
Average Class.

Usually consists of middle and upper slopes. Me-
dium to shallow soil. Moderate moisture condition.

60% or more of area in this class and better.

Average height of dominant and
codominant trees (in feet)
Forest land quality class | Age of trees
im years
All Douglas-fir | Coastal hemlock
types and spruce types
10 10’ and over 10’ and over
20 45’ and over 35’ and over
30 80’ and over 65/ and over
40 100’ and over 90’ and over
GOOD 50 120’ and over | 110’ and over
60 130’ and over | 125’ and over
Site Index 170 and Over 70 145’ and over | 140’ and over
80 155’ and over | 150’ and over
90 165’ and over | 160’ and over
100 170’ and over | 170’ and over
Old Growth |} 225’ and over |} 190’ and over
10 5! to 10’ 5’ to 10’
20 30’ to 45’ 25’ to 35’
30 55’ to 80’ 45’ to 65’
40 70’ to 100’ 65’ to 90’
AVERAGE 50 80’ to 120’ 75’ to 110’
60 90’ to 130’ 90’ to 125’
Site Index 120 to 170 70 100’ to 145’ 100’ to 140’
80 110’ to 155’ 105’ to 150’
90 115’ to 165’ 110’ to 160’
100 120’ to 170’ 120’ to 170’
Old Growth | 150’ to 225’ 125’ to 190’
10 Under 5’ Under 5’
20 Under 30’ Under 25’
30 Under 55’ Under 45’
40 Under 70’ Under 65’
POOR 50 Under 80’ Under 75’
60 Under 90’ Under 90’
Under Site Index 120 70 Under 100’ Under 100’
80 Under 110’ Under 105’
90 Under 115’ Under 110’
100 Under 120’ Under 120’
Old Growth | Under 150’ Under 125’

Revised January, 1956.

Consists of gravel flats, rocky slopes and shallow,
poor soil types with dry moisture condition.

50% or more of area in this class.

Table Il-W

FOREST LAND ACCESS AND TOPOGRAPHY
WESTERN WASHINGTON

Access and

Road development

Topography on tract

Distance from

Total grade

topography characteristics to tract log market in class*
Grade 1 Grade 1 Grade 1
Tract within 1 mile of usable | Flat to gentle slopes generally
FAVORABLE road. Easy road construction. | under 40%. No rock outcrops | Less than 15 miles 3 and 4

No rock outcrops or swamp
barriers

or swamps. Good tractor logging
conditions.

Grade 2
Tract within 3 miles of usable

Grade 2

Variable slopes under 60%.

Grade 2

AVERAGE road. No difficult road prob- | Some rock outcrop or swampy | 15-to 50 miles 5, 6 and 7
lems. Average construction. ground. Average logging condi-
tions.
Grade 3 Grade 3 Grade 3
Tract over 3 miles from usable | Rough, broken ground. Steep
road. Also includes tracts closer | Slopes. Numerous rock outcrops |
DIFFICULT to road but with difficult con- | and bluffs or other features | Over 50 miles 8 and 9

*Total grade in class is arrived at by adding any combination of rating of road development, topography

struction problems such as rock
or water barriers and rough
terrain.

which make logging difficult.

distance from log market.

Table II-W

FOREST LAND APPRAISAL GUIDE
BARE LAND VALUES*—WESTERN

WASHINGTON
Accessibility and | 100% fair market
Forest land quality } topography 2 value of bare land
in dollars per acre
Favorable $25.00
GOOD Average 20.00
Difficult 12.50
Favorable 20.00
AVERAGE Average 15.00
Difficult 7.50
Favorable 12.50
POOR Average 7.50
Difficult 5.00

* Including land with trees generally 1-10 years of age.

1 Based on Table I-W.

2 Based on Table II-W.
Revised December 5, 1963.

on tract, and

Table IV-W

IMMATURE CONIFER TIMBER APPRAISAL GUIDE—WESTERN WASHINGTON
Age 10-40 Years—All Species—Trees Generally Under 12” D.B.H.

Advisory market values in dollars per acre
Access and
Land quality} — |topography 2 Age 31 to 40 years Age 21 to 30 years Age 11 to 20 years
7O%+* 40-70%* 10-40%*|70%+* 40-70%* 10-40%* |70%+* 40-70%* 10-40%*
Favorable |$105.00 $68.00 $29.00 | $62.00 $43.00 $22.00 | $40.00 $32.00 $14.00
GOOD Average 72.00 47.00 18.00 40.00 29.00 14.00 25.00 18.00 9.00
Difficult 40.00 18.00 11.00 22.00 14.00 7.00 14.00 11.00 5.00
Favorable 57.00 32.00 18.00 32.00 25.00 13.00 22.00 18.00 11.00
AVERAGE Average 40.00 22.00 11.00 22.00 18.00 11.00 14.00 11.00 7.00
Difficult 25.00 14.00 7.00 14.00 9.00 5.00 9.00 7.00 5.00
Favorable 14.00 11.00 7.00 11.00 7.00 5.00 7.00 5.00 3.00
POOR Average 11.00 7.00 5.00 7.00 5.00 3.00 5.00 3.00 2.00
Difficult 7.00 5.00 3.00 5.00 3.00 2.00 3.00 2.00 2.00

1 Based on Table I-W.
2 Based on Table II-W.

* Stocking indicated by per cent of tract area covered by trees of commercially

spaced not over 10 feet apart and are generally well formed and healthy.
Revised December 2, 1965.

Table V-W

TIMBER QUALITY—W#HSTERN WASHINGTON
Mature Douglas Fir Timber—Over 100 Years Age—Other Species—Merchantable Timber

valuable coniferous species which are generally

Timber
quality Timber species Log grade specifications Average tree description
class
Douglas Fir, old growth (Includes Over 36” DBH and 60 ft. surface
Yellow Fir, Bastard Fir and | 40% peeler and better clear
large Red Fir)
GOOD Cedar 20% #1 lumber grade and better Over 32” DBH and 50 ft. surface
Spruce and Noble Fir 35% peeler and better clear
White Pine 15% peeler and better
Hemlock, White Fir and miscel- | 25% #1 saw and peeler and better | Over 30” DBH and 50 ft. surface
laneous species clear
Douglas Fir, old growth (Includes Over 30” DBH and 40 ft. surface
Yellow Fir, Bastard Fir and | 15-39% peeler clear
large Red Fir)
AVERAGE | Cedar 10-20% #1 lumber grade Over 26” DBH and 30 ft. surface
Spruce and Noble Fir 15-35% peeler clear
White Pine 5-15% peeler
Hemlock, White Fir and miscel- | 5-25% #1 saw and peeler Over 24” DBH and 30 ft. surface
laneous species clear
Douglas Fir, old growth (Includes
Yellow Fir, Bastard Fir and large | Under 15% peeler Less than average
Red Fir)
POOR Cedar Under 10% #1 lumber grade

Spruce and Noble Fir
White Pine

Under 15% peeler
Under 5% peeler

Less than average

Hemlock, White Fir and miscel-
laneous species

Under 5% #1 saw and peeler

Less than average

DBH—Diameter Breast High

Table VI-W

TIMBER QUALITY—WESTERN WASHINGTON
Immature Douglas Fir Timber—Under 100 Years Age—Over 12” D.B.H.

Timber
quality Tree and stand characteristics
class
Trees well formed, without injuries from fire or other cause, practically free of rot. Natural pruning good for
GOOD age of stand. Stand generally uniform and even-aged and on good to average land class.
Douglas Fir would have good poles and piling with a high proportion of peelable blocks (over 18” diameter) in
the larger trees. Sawlogs would average 50% or more #2 second growth grade.
Trees generally well formed but with normal amount of defect and injury from fire, rot and other causes. pemine
fair to good for age of stand but with tendency to limbiness in younger aged trees. Stand uniform to scattered
AVERAGE | clumps, even and mixed ages. On average to good quality forest land.
Douglas Fir would have scattered poles and piling, a few peelable blocks (over 18” diameter) in the larger trees
and sawlogs would run 25% to 50% #2 grade.
POOR Unusual amount of deformity or injury in stand. Rot common. Trees limby. Mixed ages. Stand scattered. Logs,

poles and piling of low grade.

Revised December 5, 1963.

Table VII-W
LOGGING CLASSIFICATION
Merchantable Timber— Western Washington

Logging cost elements and cost per 1,000 board feet
Logging class
Road development Direct logging Log haul to market Total cost
Under $5.00 Under $15.00 Under $10.00 Under $30.00
FAVORABLE Minimum road development Usually tractor logging. Less than 15 miles
Flat to gentle topography
$5.00 to $7.00 $15.00 to $20.00 $10.00 to $13.00 $30.00 to $40.00
AVERAGE Average road development Cable or tractor logging. 15 to 50 miles
Variable slopes under 50%
Over $7.00 Over $20.00 Over $13.00 $40.00 to $50.00
DIFFICULT Unusual road development Cable logging, steep, broken, | Over 50 miles
rough topography. Over 50%
slopes.

See explanation (to use of stumpage value tables) on Page 4.
Revised December 5, 1963.

84.

1 Table VIII-W
MERCHANTABLE TIMBER APPRAISAL GUIDE—WESTERN WASHINGTON

“Retail Values”
Period of Cutting 0-3 years from Date of Assessment

Stumpage value in dollars per 1,000 board feet (100% fair market value)

; Cedar, Sitka spruce, Hemlock, white

Timber quality 4 Logging Douglas-fir white pine, and fir, and other
class ? noble fir species

Mature timber over | Immature timber Merchantable Merchantable
100 yr. age under 100 yr. age timber timber
| Favorable $48 50 $25.00 $22.50 $24.00
GOOD Average 38.50 15.00 12.50 14.00
Difficult 28.50 5.00 2.50 4.00
Favorable 37.50 20.00 18.50 20.00
} AVERAGE Average 27.50 10.00 8.50 10.00
| Difficult 17.50 3.00 1.00 2.00
Favorable 20-50 16.00 15.50 14.00
POOR Average 17.50 6.00 5.50 4.00
| Difficult 7.50 1.00 1.00 12:00

1 Based on Tables V-W and VI-W.
2 Based on Table VII-W.
Revised December 5, 1963.

Table IX-W
MERCHANTABLE TIMBER APPRAISAL GUIDE—WESTERN WASHINGTON
‘‘Wholesale Values”
Period of cutting 4 to 10 Years from Date of Assessment

Stumpage value in dollars per 1,000 board feet (100% fair market value)

Cedar, Sitka spruce, Hemlock, white

Timber quality } Logging Douglas-fir white pine, and fir, and cther
class ? noble fir species

Mature timber over | Immature timber Merchantable Merchantable
100 yr. age under 100 yr. age timber timber
Favorable $24.00 $15.00 $11.00 $21.00
GOOD Average 19.00 9.00 6.00 7.00
Difficult 14.00 3.00 1.00 2.00
Favorable 19.00 12.00 9.00 10.00
AVERAGE Average 14.00 6.00 4.00 5.00
Difficult 9.00 2.00 1.00 1.00
ete Favorable 14.00 9.50 8.00 7.00
POOR Average 9.00 3.50 3.00 2.00
Difficult 4.00 1.00 1.00 1.00

nnn ee UE gE ess SIE EIS SSSSS SSS aS SS

| 1 Based on Tables V-W and VI-W.
2 Based on Table VII-W.
Revised December 5, 1963.

Table XII-W
MERCHANTABLE TIMBER APPRAISAL GUIDE—WESTERN WASHINGTON

‘‘Wholesale Values”’
Period of Cutting Over 30 Years from Date of Assessment

Stumpage value in dollars per 1,000 board feet (100% fair market value)
Cedar, Sitka spruce, Hemlock, white
Timber quality } Logging Douglas-fir white pine, and fir, and other
class * noble fir species
Mature timber over Immature timber Merchantable Merchantable

100 yr. age under 100 yr. age timber tumber

Favorable $7.50 $6.50 $3.50 $3.50

GOOD Average 6.00 4.00 2.00 2.00
Difficult 4.50 1.50 1.00 1.00

Favorable 5.50 5.00 3.00 3.00

AVERAGE Average 4.00 2.50 1.50 1.50
Difficult 2.50 1.00 1.00 1.00

Favorable 4.00 4.00 2.50 2.00

POOR Average 2.50 1.50 1.00 1.00
Difficult 1.00 1.00 1.00 1.00

1 Based on Tables V-W and VI-W.
2 Based on Table VII-W.
Revised December 5, 1963.

APPRAISAL OF HARDWOODS—
IMMATURE AND MATURE

Note: Attention is directed to the definition of

timberland on page 4 of this Manual.

REMARKS

1. Because of the relatively narrow range of

values indicated for hardwood lands and tim-
ber, it is felt the number of variables ap-
plicable to the table of values should be kept
to a minimum. Broader age grouping has
also been employed. Forty years of age has
been used as the break-off point between
“immature” and “mature” hardwoods. This
age may vary in different Counties and
within each County. In the valuing of a hard-
wood tract, the County Forester will use his
best judgment in determining when to depart
from the “immature” schedule and com-
mence the use of the ‘‘mature’’ schedule.

. Immature forest land, primarily hardwood in
content, so located because of terrain or dis-
tance, as to preclude its profitable holding and
ultimate conversion to logs or cordwood, shall
be treated as poorly stocked or non-stocked
coniferous forestland, with appropriate land
quality and logging classification factors.

4. Hardwoods

3. Sawlog size hardwoods which cannot be eco-

nomically logged by virtue of inaccessible ter-
rain, or distance to market, or very poor qual-
ity timber, has no value, and where this type
of timber occurs, the land only will be valued.
include alder and cottonwood
only. Definition of variables as used in the
Hardwood Appraisal Guides.

LOGGING CLASS AND ACCESSIBILITY

Favorable Located within 25 miles of a hard-
wood processing plant * and gen-
erally 600 feet from usable road.
1965 logging costs average $25/M.
Located within 25 to 50 miles of
a hardwood processing plant *
and generally within 600 to 1,000
feet of usable road. Logging costs
average $30/Mbf.

Generally over 1,000 feet from
usable road. Logging costs aver-
age $35/Mbf.

Average

Poor

* Refers to stationary type plants.

December 2, 1965

TIMBER QUALITY

Hardwoods: Stands average over
45% sawlogs.

Good

Average Hardwoods: Stands average 35%
sawlogs.
Poor Hardwoods: Stands average un-

der 25% sawlogs.

Table XIII-W
IMMATURE HARDWOOD APPRAISAL GUIDE

100% fair market value in
dollars per acre }

1 Refer to Table ILI-W for land values.

Table XIV-W
HARDWOOD APPRAISAL GUIDE

Retail Values

MATURE

100% fair market value in
dollars per M bd. ft.

Logging class

and access Hardwoods timber quality

Good Average Poor
FAVORABLE _-_______- $14.00 $12.00 $ *
AVERAGE oi set ov 9.00 7.00 4.00
POORWH eu. segs ree! 4.00 2.00 1.00

*Not applicable to entirely pulp stands.

For wholesale rates apply the percentages as outlined for
mature timber on page 40 of the State Timber & Timber
Land Appraisal manual.

December 2, 1965.—as revised 4-18-66.

WEST VIRGINIA

“All property must be classified as of the first
day of the taxable year as follows:

Class I shall include all tangible personal
property employed exclusively in agri-
culture...

Class II shall include .. . all farms, includ-
ing land used for horticulture and graz-
ing, occupied and cultivated by their
owners or bona fide tenants;

Class III shall include all real and personal
property situated outside of municipali-
ties, exclusive of Classes I and II prop-
erty;

Class IV shall include all real and personal
property situated outside of municipali-
ties, exclusive of Classes I and II prop-
erty.

“For the purpose of giving effect to the tax
limitation amendment, particularly with re-
spect to the classification of property, the
statute laws ... are to be interpreted in ac-
cordance with the following definitions . .

“Farm” shall mean a tract or contiguous

tracts of land used for agriculture, horti-

culture or grazing.

“Occupied and cultivated” shall mean sub-

jected as a unit to farm purposes, whether

used for habitation or not, and although
parts may be lying fallow, in timber or in
waste lands.”

“Generally, some timber lands used in con-

nection with a farm may be entitled to a pre-
ferred classification, but large tracts of cutover
land and timber lands not used in connection
with a farm, are not entitled to the preferred
classification.” ! (pp. 39, 40)
Guide for West Virginia Assessors,
State Tax Commissioner, 1958.

If timber is in a tract of sufficient size to have
commercial value it is classified as Class III
property. Some timberlands used in connection
with farming are classified as Class II prop-
erty.

Tracts are considered as within the commer-
cial timber classification if they will cut out
3,000 board feet or more per acre with trees
measuring 12 inches or more at a point 12
inches above the ground on the high side. The
assessors have been advised to value standing
timber at its true and actual value per thousand
board feet. Major operators are requested to
submit annual depletion reports to the assessor
in order that the valuation can be accurately
adjusted each assessment year.

Communication from Assessment Equal-
ization Division,

State Tax Commissioner’s Office.

Jan. 5, 1966.

1 Under the Tax Limitation Amendment to the State
Constitution adopted in 1932, maximum rates of levies
per $100 valuation apply as follows: Class I 50 cents,
Class II $1.00, Class HI $1.50, Class IV $2.00.

WISCONSIN

“Real estate, how valued. (1) Real property
shall be valued by the assessor from actual view
or from the best information that the assessor
ean practicably obtain, at the full value which
could ordinarily be obtained therefore at pri-
vate sale. In determining the value the assessor
shall consider, as to each piece, its advantage or
disadvantage of location, quality of soil, quan-
tity of standing timber...

“(b) In towns, he shall segregate into the
following classes on the basis of use and set
down separately in proper columns the acreage
and the value of the parts of land, exclusive of
improvements, and the improvements which
fall within each class:

A. Residential

B. Mercantile

C. Manufacturing

D. Agricultural

E. Swamp, or waste

F.1 Productive forest land
F.2 Nonproductive forest land

‘““(c) For the purpose of this subsection
“swamp or waste’? means bog, marsh, lowland
brush or-other nonproductive lands not other-
wise classified under this subsection; “produc-
tive forest land’? means land which is producing
or is capable of producing commercial forest
products and is not otherwise classified under
this subsection; ‘nonproductive forest land’
means land which because of soil or site condi-
tions is not producing or is not capable of pro-
ducing commercial forest products and which is
not otherwise classified under this subsection.”

Wisconsin Statutes Annotated
Sec. 70.82.

The following material is taken from the
Property Assessment Manual for Wisconsin As-
sessors, v. I, Wisconsin Dep. of Taxation 1965.

RESIDUAL LANDS
DEFINITION

Residual lands are defined as those with use
classifications other than Residential (Class
A), Mercantile (Class B), Manufacturing
(Class C) or Agricultural (Class D) and which
are identified in the assessment roll as Swamp
or Waste (Class E), Productive Forest Land
(Class Fi), and Non-Productive Forest Land
(Class Fe2).

Class E—Swamp or waste land is further de-
fined by statute to include bog, marsh, lowland

brush or other non-productive lands not other-
wise classified.

Productive forest land (F1) is defined as land
which is producing or is capable of producing
commercial forest products and is not otherwise
classified. Non-productive forest land (F2) in-
cludes land which because of soil or site condi-
tions is not producing or is not capable of pro-
ducing commercial forest products and which is
not otherwise classified.

ASSESSMENT OF SWAMP OR WASTE

Swamp lands command a wide range of prices
because of the varied use being made of this
class of property. When such lands serve as a
useful adjunct to a commercial‘ cranberry bog,
for example, they are much more valuable than
similar lands not so located. Other swamp lands
throughout the state harbor wild life and have a
recreational potential which has been recog-
nized by state and federal conservation agen-
cies who have acquired much of this type of
acreage in recent years. Although sales to the
latcer do not necessarily reflect ordinary market
value they should alert the local assessor to
the potential value of similar lands. Certain
swamp lands have a potential value for muck
farming where the muck is of sufficient depth
and the area can be successfully drained. In a
few areas of central Wisconsin certain swamp
lands produce a species of moss which grows
in the wild state, is harvested and has a com-
mercial use. This crop is very slow growing, is
not cultivated and is not regarded as an agricul-
tural pursuit.

Much of Wisconsin’s swamp acreage, particu-
larly in the northern two-thirds of the state,
has little value and is rarely sold as such, so
that the market value of such acreage is diffi-
cult to establish. When sold it is usually in
conjunction with other lands of a productive
nature. This requires careful analysis of such
sales by the assessor so that proper weight can
be given the various component lands in such
sales.

A small amount of the total Class E acreage
of the state is regarded as waste land. Such
lands are barren, inaccessible and totally non-
productive or useful for any present purpose or
need. Such lands should, however, carry a nomi-
nal value.

ASSESSMENT OF FOREST LANDS
Although the greatest portion of Wisconsin

forest acreage falls within the productive classi-
fication (Fi), there are isolated areas, particu-
larly in the far northern counties where dis-
tance from the available market and local topog-
raphy make the harvesting of such forest prod-
ucts unprofitable. Under such circumstances
the assessor should regard such acreage as non-
productive (F2) and adjust his values accord-
ingly.

The assessment of forest lands requires as
much care and knowledge as do the other
classes of property and to cope with this chal-
lenge the assessor should equip himself with a
knowledge of species and kinds of forest prod-
ucts harvested in his taxing jurisdiction. The
amount of forest products on a given descrip-
tion can only be ascertained through inspection
by the assessor or from accurate cruise reports.
Where such cruise reports are not available the
assessor should resort to volume tables to esti-
mate the number of board feet of saw logs or
cords of pulpwood and other products on a given
description. Stumpage values are made avail-
able to assessors each year by the Supervisors
of Assessments based on information obtained
from the Wisconsin Conservation Department
and University Extension Service. Such pricing
guides, with necessary area adjustments for
transportation and other unusual factors, are
reliable guides for establishing the market
value of forest land.

The first step in valuing forest land is to esti-
mate the value of the bare land. To this bare
land value is added the stumpage value of the
trees thereon and this combined value becomes
the net value of the forest land.

Bare land values are best found by analyzing
sales of recently clear cut or cut-over land sold
for forest plantation purposes. Lands purchased
for recreational or scenic purposes introduce an
additional dimension of value which must even-
tually be recognized, but which is best not con-
sidered in estimating bare land value.

The second step is to estimate the stumpage
value of the forest growth as found. The essen-
tial information needed for this purpose is:

1. Kind and amount of merchantable for-
est products found on the land.

2. Respective unit market prices of the for-
est products (From Wisconsin Conserva-
tion Department and University Exten-
sion Service—Published annually).

The kind and amount of merchantable forest
products are most accurately determined from
reports of skilled timber cruisers. Satisfactory
results have also been obtained through the in-
terpretation of special aerial photography by

highly skilled specialists. Lacking this informa-
tion the assessor’s next best alternative is to
establish the kind of forest product by his own
visual inspection and to estimate the amount by
making use of the volume table found on page
46.

USE OF VOLUME TABLE

In order to use the volume table the assessor
must first establish the class of “stocking” or
tree stem density. Since tree growth does not
always uniformly cover the area of land and
since “‘stocking”’ is also dependent upon the size
and diameter of the trees, the following tables
and pictures are provided as guide lines for
the assessor.

TABLE 1

Stocking Class or Density

Good | Medium Poor

Area Covered by

Growing Trees_-______ 69-100% 40-69% 10-89%

TABLE 2

Stocking Class or Density
Size Class

Good Medium Poor

(Number of trees per acre)
Seedling-Sapling | |

0O—5” @ 44’_______- 1400+ | 800-1400 200-800
Pole Timber |

5—-11” @ 44%4’______- 100-330 60-325 25-225
Small Saw Timber

=5" @ 4 222232 50-175 30-170 15-85
Large Saw Timber

15” + @ 444'_-__---_-- 60-80 35-65 10-35

SUGGESTED STUMPAGE VALUES

The following values have been determined
for the purpose of computing severance taxes
on timber cut from forest croplands and are in
effect from September 1, 1964 to August 31,
1965.

LOGS (Stumpage per M feet board measure)

Yellow jbivche = 22 20) sent eee lies 1$44.00
Basswood,. hard; maple ‘22.52.22 26.00
W hike pines ase Stee ae ae 22.00
INOE Way sDIN@ tye oe es ee RI Rc 20.00
Red:or white'oak 2800. wiht 14.00
Spruce, white birch, hemlock,

Soft, maple, 04 32 oe ses oe 13.00
Black. or swhitexashi (22 28an. aw! 12.00
Jack pine, tamarack, soft or rock

elm, cedar, oak, (species other

than ved" or white) or Se 10.00
Aspen, all other species _______-- 6.00

CORD PRODUCTS? (Stumpage per piled
cord; 4’. x4’ x'100” on 4 x8? x4’)

SPUUCCs oC Cubs eng ere 7.50
JACK WING. oe sot ee es 5.80
PR CTUNOG Ke ee es ae 4.00
IBAISOM cee tene ne ee ee eee 3.70
INOFWay pie. 2222 285 oF ee 3.50
WAMOLACK een eke 6 tas 2 ota! 3.20
Whiter pine, Soe si 2.70
Aspen, white-bireh “222 -- 22-2. 1.80
Mixed hardwoods, cedar ___------ 1.60
Oak Giscrub: ss eee 1.20
: per cord 75
Chemical wood) 2icee=.- per ton 39
Fuelwood, green, all species ______ 50
Excelsior bolts (Stumpage per
piledicords4> x87 x55") 2 2.00

PIECE PRODUCTS (Stumpage per piece)

Posts and Poles

TANG Gilbeg eS 03
VOOM 12 Ee tee al .06
VAtand IG tt.) = nok ee 12
PS andea0 tt. set oe ee .25
5 i OR OCU tect LENE ee RT eee 50
SO tt and over lace. bs se eh ay .80

Christmas Trees
IACI SPEUCe pce oe Se 30
All other, species: 2 oe oe A5

It will usually be necessary to view or sample
several areas within a forty acre tract in order
to determine whether the stand is uniform. If
the stand is not uniform, an average estimate
for the entire forty acre tract can be made by
an actual count of trees within several circles

1 These prices are conservative in relation to sales of
record.

° These values based on rough products. When report-
ing peeled cordwood volume, add the following percent-
ages to convert to rough cord equivalent:

12% percent for hand peeled
25 percent for machine peeled

with a radius of 1 rod (1614 feet). A count
within such a circle multiplied by 50 will pro-
vide an estimate of size and stocking per acre.
The average of several counts within test circles
strategically selected will provide an average
estimate for the tract.

A more rapid method for obtaining the in-
formation on volume of growing forest products
on a given description than the method de-
scribed above was devised in 1948 and is known
as the Bitterlich System and is referred to as
the point sampling method of measuring basal
area. This method requires the use of an angle-
gauge or a wedge prism with which the cruiser
counts the number of trees around a sampling
point whose diameters at breast height appear
larger than the crossarm of the angle-gauge.
When using a wedge prism, the cruiser counts
the number of trees whose stem sections at
breast height when viewed through the prism
do not appear to be detached from the main
stem. The tree count is multiplied by a pre-
determined factor and the basal area per acre is
obtained around a given sampling point. Since
there is a definite correlation between tree
basal area and tree volume, timber estimates
may be obtained by counting trees of merchant-
able height classes or by counting and record-
ing the total number of logs or pulpwood bolts.
This procedure must be repeated in a number of
areas for reliable results.

Further information on the use of the above
method for timber cruising may be obtained
from technical bulletins provided by the Wis-
consin Conservation Department.

After the size class (diameter range) and the
stocking class have been established the num-
ber of board feet or cords of the various forest
products can be read from the volume table
below. The column headed ‘‘Volume Range”
provides for the variation of tree height and
tree diameter within each size class. This varia-
tion also accounts for the great degree of over-
lapping in the number of trees per acre in the
pole timber and small saw timber size class in
Table 2. Generally, if the average diameter of
the tree trunks (measured at breast height or
414 ft. from the ground) is at the lower end
of the diameter range, the low volume line
should be used in the volume table. However, the
height of the tree also effects the volume range
and only experience will sharpen the assessor’s
judgment in this respect.

As a further guide to the assessor, it is worth
noting that except for Menomonee County there
is very little large saw timber found in Wis-
consin.

The number of cords or board feet of each
forest product multiplied by the unit stumpage
values yields the additional value that must be
added to the bare land value.

The accompanying appraisal illustrations are

given to suggest a practical way to summarize
the field appraisal of a forty acre description.
All the basic information is shown and may
be set up in such a manner as to provide a
permanent assessment record.

TABLE 3.—Volume per acre by stand size and stocking class

: Stocking
Size class Diameter Volume
range range
Good Medium Poor
: Inches Bad. ft. Cords Bad. ft. Cords Bad. ft. Cords
Seedlings! 22. sus. 2322 Mi ttn ore ie eee 0 0 0 0 0) 0
f WOW. 22 s5c5 20 0 0 0 0 0 0
Saplingg yi. My voh Wee 1-5 | Average------ 0 2.5 0 2.2 0 1.5
Highs 2 8 ooe 0 2.9 0 2.8 0 250
WOweeecss fod 700 13.0 500 (60) 200 3.0
Polevtimbersee ae 5-9 | Average... _.- 1,400 20.0 1,000 (2) 990 da 2
Highiees ose 1,500 24.0 1,500 12.9 1,200 7.0
WowssGessee 6, 000 18.0 3,000 13.0 1,500 5.0
Small saw timber_.._-_-- 9-15 | Average_____- 7,700 22.9 4,950 17.6 2,800 10.9
Highs. 22.20 10,000 26.0 6, 000 20.0 3,000 13.0
WOW. se emeo 10,000 24.0 5,000 L730 1,500 6.0
Large saw timber__-_--- 15- | Average_-____- 14,850 33.5 8,100 Zils? 4,140 12%
High. 2422-252 18, 000 40.0 10,000 26.0 5, 000 16.0
Table compiled by Paul C. Guilkey, Research Forester, U.S.F.S. Volume I 1-65
APPRAISAL ILLUSTRATIONS
AQ Acres Value of Land: 40 Ac @ $3.00 $ 6120
Aspen Value of Forest Products:
5/9” 40 Ac @ 13 Cords/Ac =520 Cords
Medium Stocking 520 Cords @ $2.00= 1,040
High Volume Value of Forest Land (F2)= $1,160
30 Acres Value of Land: 40 Ac @ $5.00= $ 200
Norway Pine Value of Forest Products:
9”-15” Norway Pine: 30 Ac @ 38M Ba. Ft. =90 M Bad. Ft.
Medium Stocking 90M Bad. Ft. @ $20.00 = 1,800
Low Volume White Pine: 10 Ac @1.5M Bd. Ft.=15 M Bad. Ft.
10 Acres { 15 M Bd. Ft. @ $22.00= __ 330
White Pine Value of Forest Land (F2) = $2,330
Q”-15”
Poor Stocking
Low Volume rt
Value of Land: 40 Ac @ $4.00= $ 160
Ashe Value of Forest Products:
1”-5” No Merchantable Products = None
Good Stocking Value of Forest Land = $ 160
Low Volume

Note: The above values and unit prices are for illustra-
tion only and are not meant to be a standard or average
value.

The above examples illustrate the valuation
process for forest lands where the market value
is influenced by the forest products on the land
and the capability of producing such forest
products. Where market value is also influenced
by recreational or scenic factors such influence
must be carefully ascertained and recognized
by the assessor.

If forest lands sought for recreational and

scenic uses brings a higher price than similar
forest land similarly located; and if a recog-
nizable pattern or trend for such uses has been
established, the assessor has no alternative but
to recognize the higher value in making his
assessment. If a problem similar to that en-
countered in the assessment of urban agricul-
tural land is present, the same discounting proc-
ess described there may be applied to forest
lands which are located in a recreational area.

* U.S. GOVERNMENT PRINTING OFFICE: 1967 0265-225

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