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- Info
Timber severance taxes: current status and changing role
| Author: |
Hickman, C.A. |
| Date: |
1989 |
| Periodical: |
Forest Products Journal |
| Abstract: |
At present, 12 states have a total of 13 timber severance tax programs. These programs differ greatly regarding entities subject to taxation, methods and rates of taxation, reporting and payment intervals, authorized exemptions, and guidelines for revenue usage. The historical rationale for imposing taxes of this type was that they would discourage undue or wasteful cutting and provide a mechanism whereby society could be compensated by those who benefited from the exploitation of an essentially free gift of nature - i.e., virgin, old-growth timber. More recently, however, as cutting has become increasingly concentrated in second and third growth stands, this rationale has tended to change. Today, most timber severance taxes are justified on the grounds that they will encourage better forest management. Consistent with this goal, most modern programs earmark some proportion of their revenues for various state forestry initiatives. |
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