2007 Oregon Code - Chapter 321 :: Chapter 321 - Timber and Forestland Taxation
Chapter 321 —
Timber and Forestland Taxation
2007 EDITION
TIMBER AND FORESTLAND TAXATION
REVENUE AND TAXATION
321.005Â Â Â Â Definitions
for ORS 321.005 to 321.185, 321.560 to 321.600 and 477.440 to 477.460
321.011Â Â Â Â Policy
321.012Â Â Â Â Public
to share cost of suppressing fires caused by public
321.015Â Â Â Â Levy
of privilege tax upon harvest of timber for forest research, fire suppression
and administering Oregon Forest Practices Act; exclusion
321.017Â Â Â Â Levy
of additional privilege tax; distribution to Oregon Forest Resources Institute
Fund
321.035Â Â Â Â Determination
of moneys available in Oregon Forest Land Protection Fund
321.045Â Â Â Â Payment
of tax; returns; estimated tax; payment
321.145Â Â Â Â Tax
revenue credited to suspense account; refunds
321.152Â Â Â Â Distribution
of tax revenue to Forest Research and Experiment Account, State Forestry
Department Account and Oregon Forest Land Protection Fund
321.185Â Â Â Â Forest
Research and Experiment Account; appropriation
FORESTLAND VALUATION
321.201Â Â Â Â Definition
of “forestland” for ORS 321.201 to 321.222
321.204Â Â Â Â Legislative
findings and declarations
321.207Â Â Â Â Valuation
models; rules
321.210Â Â Â Â Proposed
specially assessed values; notice; comments; hearing
321.213Â Â Â Â Forestland
value advisory committee
321.216Â Â Â Â Certified
specially assessed values
321.219Â Â Â Â Appeal
of certified specially assessed values; notice; effect of decision modifying
values
321.222Â Â Â Â Jurisdiction
of board of property tax appeals
SPECIAL ASSESSMENT OF
321.257Â Â Â Â Definitions
for ORS 321.257 to 321.390
321.259Â Â Â Â Legislative
findings
321.262Â Â Â Â Purposes
321.267Â Â Â Â Lands
not eligible for special assessment
321.272Â Â Â Â Exemption
of timber from property taxation
321.347Â Â Â Â Land
designations; classifications; certain election by landowners
321.348Â Â Â Â Assignment
of forestland to land classes; change in class
321.349Â Â Â Â Valuation
of certain forestland at farm use value
321.354Â Â Â Â Common
ownership minimum acreage requirements; specially assessed value and maximum
assessed value of forestland of large landowners
321.358Â Â Â Â Application
for designation as forestland; special filing date for change in highest and
best use; contents; approval
321.359Â Â Â Â Removal
of designation; appeal from reassessment or denial; requalification
321.362Â Â Â Â Notation
of forestland on tax roll for potential additional tax liability
321.366Â Â Â Â Date
on which removal of forestland designation is effective; notice of removal
321.367Â Â Â Â Forestland
management; effect of failure to manage forestland in accordance with
management plan; rules
321.390Â Â Â Â Land
used to grow certain hardwood to be assessed as farm use land; application
required for unzoned land
GENERALLY
321.550Â Â Â Â Notice
of intent to harvest; rules; effect of failure to file notice
321.560Â Â Â Â Audit
of returns; interest and penalties upon failure to file return or pay tax
321.570Â Â Â Â Warrant
for collection of delinquent taxes
321.580Â Â Â Â Effect
of failure or refusal to make return
321.600Â Â Â Â Tax
as debt; collection; limitation
321.609Â Â Â Â Enforcement
of certain statutes by department; rules
321.682Â Â Â Â Confidentiality
of reports, returns and appraisal data
321.684Â Â Â Â Authority
of department to make certain disclosures
321.686Â Â Â Â Penalty
for violation of ORS 321.682
SMALL TRACT FORESTLAND PROGRAM
321.700Â Â Â Â Definitions
for ORS 321.700 to 321.754
321.703Â Â Â Â Legislative
findings and declarations
321.706Â Â Â Â Application
for small tract forestland qualification; contents; filing deadlines; review;
appeal
321.709Â Â Â Â Small
tract forestland qualification requirements
321.712Â Â Â Â Circumstances
under which notification is required; disqualification for failure to notify
321.716Â Â Â Â Disqualification;
requalification under certain circumstances; notice; automatic qualification as
forestland
321.719Â Â Â Â Continued
qualification as small tract forestland following sale or transfer;
requirements; late filing procedure and fee
321.722Â Â Â Â Valuation
321.726Â Â Â Â Severance
tax upon harvest from small tract forestland
321.733Â Â Â Â Severance
tax returns
321.741Â Â Â Â Due
dates for severance tax return and payment
321.746Â Â Â Â Severance
tax revenues
321.751Â Â Â Â Western
Oregon Timber Severance Tax Fund; revenue distribution
321.754Â Â Â Â Eastern
Oregon Timber Severance Tax Fund; revenue distribution
SPECIAL ASSESSMENT OF
321.805Â Â Â Â Definitions
for ORS 321.805 to 321.855
321.808Â Â Â Â Purposes
321.817Â Â Â Â Legislative
findings
321.824Â Â Â Â Lands
not eligible for special assessment
321.829Â Â Â Â Exemption
of timber from property taxation
321.833Â Â Â Â Common
ownership minimum acreage requirements; specially assessed value and maximum
assessed value of forestland of large landowners
321.839Â Â Â Â Application
for forestland designation; special filing date for change in highest and best
use; contents; approval
321.842Â Â Â Â Removal
of forestland designation; appeal; requalification
321.845Â Â Â Â Disqualification
of land no longer forestland to occur only if assessor mails notice before
August 15
321.848Â Â Â Â Disqualification
321.855Â Â Â Â Land
used to grow certain hardwood to be assessed as farm use land; application
required for unzoned land
PENALTY
321.991Â Â Â Â Penalty
     321.005
Definitions for ORS 321.005 to 321.185, 321.560 to 321.600 and 477.440 to
477.460. As used in ORS
321.005 to 321.185, 321.560 to 321.600 and 477.440 to 477.460, unless the
context requires otherwise:
     (1) “Board” means the State Board of
Forestry.
     (2) “Protected forestlands” means those
lands which are protected from the starting or spread of fire thereon or
therefrom by:
     (a) The State Forester, with the approval
of the board;
     (b) The
     (c) Any forest protective agency under
contract with the State Forester or the board pursuant to ORS 477.406; or
     (d) Any forest protective agency,
described in paragraph (c) of this subsection, under an agreement with the
     (3) “Department” means the Department of
Revenue.
     (4) “Committee” means the Emergency Fire
Cost Committee.
     (5) “Forestland” means any land producing
forest products.
     (6) “
     (7) “Harvest” means the point at which
timber that has been cut, severed, or removed for purposes of sale or use is
first measured in the ordinary course of business as determined by reference to
common practice in the timber industry.
     (8) “Merchantable stand of timber” means
any stand on forestlands containing living or dead timber which is being or can
be harvested.
     (9) “Taxpayer” means the owner of timber
at time of harvest.
     (10) “Taxes” means the taxes provided for
in ORS 321.015.
     (11) “Owner of timber” means any
individual or combination of individuals, partnership, firm, corporation or
association of whatever nature holding title to harvested timber by virtue of:
     (a) An instrument of conveyance;
     (b) The harvesting of the timber; or
     (c) The harvesting of the timber and
payment therefor.
     (12) “Timber” means all logs which can be
measured in board feet and other forest products as determined by department
rule. [1953 c.375 §1; 1957 c.309 §3; 1961 c.726 §412; 1965 c.253 §139; 1967
c.429 §38; 1981 c.321 §9; 1983 c.539 §1; 1985 c.759 §5; 1993 c.653 §1; 1995
c.132 §1; 1999 c.631 §2; 2003 c.454 §125; 2003 c.621 §100a]
     321.010 [Repealed by 1953 c.375 §38]
     321.011
Policy. The prevention and
suppression of forest fires on forestlands for the preservation of forest
resources and the continuous growth of timber on lands suitable therefor are
declared to be the public policy of the State of
     (1) The forested areas situated within
eastern
     (2) Because of this difference in species,
different forest fire protection problems exist in eastern and western Oregon,
and different logging conditions and circumstances in each necessitate varied
forest practices in the disposal of forest slashings and debris; and
     (3) Therefore, in order to give
recognition to such differences and their effect on the accomplishment of the
public policy stated in this section, certain classifications of forestlands
within the State of
     321.012
Public to share cost of suppressing fires caused by public. The Legislative Assembly finds that it is in
the interest of the State of Oregon that the public as a whole share
responsibility for protecting the forests of this state, by making funds
available from time to time for suppression of fires caused by the public. [1967
c.429 §60]
     321.015
Levy of privilege tax upon harvest of timber for forest research, fire
suppression and administering Oregon Forest Practices Act; exclusion. (1) For the calendar years beginning January
1, 2008, and January 1, 2009, there is levied a privilege tax of 92 cents per
thousand feet, board measure, upon taxpayers for the privilege of harvesting of
all merchantable forest products harvested on forestlands. Subject to ORS
321.145, the proceeds of the tax shall be transferred as provided in ORS
321.152 (2) to the Forest Research and Experiment Account for use for the
forest resource research, experimentation and studies described in ORS 526.215
and for the Forest Research Laboratory established under ORS 526.225.
     (2) Except as provided in ORS 477.760, in
addition to the tax levied by subsection (1) of this section, there hereby is
levied a forest products harvest tax upon taxpayers of 62.5 cents per thousand
feet, board measure, for the privilege of harvesting all merchantable forest
products harvested on forestlands for the payment of benefits related to fire
suppression as provided in ORS 321.005 to 321.185, 321.560 to 321.600 and 477.440
to 477.460.
     (3) For the calendar years beginning
January 1, 2008, and January 1, 2009, in addition to the taxes levied under
subsections (1) and (2) of this section, there hereby is levied a privilege tax
upon taxpayers for the privilege of harvesting all merchantable forest products
harvested on forestlands in the amount of $1.1456 per thousand feet, board
measure, for the purpose of administering the Oregon Forest Practices Act in an
amount not to exceed 40 percent of the total expenditures approved by the
Legislative Assembly for this purpose, including salary adjustments approved by
the Legislative Assembly for fiscal years 2008 and 2009.
     (4) Subject to subsection (5) of this
section, the taxes shall be measured by and be applicable to each per thousand
feet, board measure, on the total quantity of forest products harvested in this
state measured by use of any log scale which is or may be in general use in the
logging industry and which is designed to measure total volume of merchantable
forest products in board feet. However, if the Department of Revenue finds that
the scale used by any taxpayer in computing the taxes due under ORS 321.005 to
321.185 and 321.560 to 321.600 does not accurately reflect the total quantity
of merchantable forest products harvested by the taxpayer, it may require the
taxpayer to adopt another log scale in general use in the industry which in the
departmentÂ’s opinion will accurately reflect merchantable harvest in board
feet.
     (5) The first 25,000 feet, board measure,
of forest products harvested annually by any taxpayer during each calendar year
shall be excluded from the total quantity of harvested forest products that
constitutes the measure of the taxes under ORS 321.005 to 321.185 and 321.560
to 321.600. [1953 c.375 §2; 1957 c.309 §14; 1981 c.321 §10; 1985 c.759 §6; 1989
c.769 §1; 1991 c.459 §273; 1991 c.639 §1; 1993 c.653 §2; 1995 c.507 §1; 1997
c.519 §1; 1999 c.968 §§1,1a; 1999 c.1061 §1; 2001 c.872 §1; 2003 c.769 §1; 2005
c.796 §1; 2007 c.779 §1; 2007 c.852 §1]
     Note: Section 2, chapter 852, Oregon Laws 2007,
provides:
     Sec.
2. The amendments to ORS
321.015 by section 1 of this 2007 Act apply to forest products harvest tax
reporting periods beginning on or after January 1, 2008. [2007 c.852 §2]
     321.016 [1991 c.919 §28; repealed by 1993 c.657 §6]
     321.017
Levy of additional privilege tax; distribution to Oregon Forest Resources
Institute Fund. (1) In
addition to the taxes levied under ORS 321.015 (1) to (3), there hereby is
levied a privilege tax upon taxpayers on the harvesting of all merchantable
forest products harvested on forestlands in the amount provided in subsection
(2) of this section.
     (2) The rate of tax levied in subsection
(1) of this section shall be established annually at the beginning of each
calendar year by the board of directors of the institute, at a rate not to
exceed 75 cents per thousand feet, board measure, on all merchantable forest
products harvested on forestlands. The maximum tax rate prescribed by this
subsection may be increased by the board of directors in an amount equal to the
previous yearÂ’s increase in the Consumer Price Index (
     (3) The tax shall be measured by and be
applicable to each per thousand feet, board measure, and such shall be subject
to and determined by the procedures and provisions of ORS 321.015 (4) and (5).
     (4) The tax levied by subsection (1) of
this section shall be due and payable to the Department of Revenue in the
manner and procedure, including penalties and interest, as set forth for the
collection of the privilege tax in ORS 321.005 to 321.185.
     (5) The revenue from the tax levied by
subsection (1) of this section shall be remitted to the State Treasurer who
shall deposit it in a suspense account established under ORS 321.145 (1). After
payment of refunds, which shall be paid in the same manner as other forest
products harvest tax refunds are paid in ORS 321.145 (2), the balance of the
additional tax imposed under subsection (1) of this section shall be deposited
in the Oregon Forest Resources Institute Fund. [1991 c.949 §22; 1993 c.653 §4;
1999 c.968 §§2,2a; 2001 c.872 §2; 2003 c.769 §2]
     321.020 [Repealed by 1953 c.375 §38]
     321.025 [1953 c.375 §3; 1959 c.537 §1; 1961 c.242 §1;
1967 c.429 §11; 1977 c.182 §1; 1981 c.321 §1; repealed by 1985 c.759 §40]
     321.027 [1977 c.172 §2; 1979 c.375 §1; 1981 c.348 §1;
1983 c.682 §1; repealed by 1985 c.746 §3 and 1985 c.759 §40]
     321.028 [1977 c.172 §3; 1979 c.375 §2; 1981 c.348 §2;
1983 c.682 §2; 1985 c.759 §7; 1987 c.551 §3; 1989 c.766 §3; 1991 c.881 §3; 1993
c.657 §4; repealed by 1995 c.507 §6]
     321.030 [Repealed by 1953 c.375 §38]
     321.035
Determination of moneys available in
     (a) The unexpended balance as of February
16 of the amount budgeted to be expended from the account for the fiscal year
in which the determination is made; and
     (b) The amount budgeted to be expended
from the account for the following fiscal year.
     (2) The insurance principle is recognized
in providing funds for emergency forest fire control. [1953 c.375 §4; 1961
c.297 §4; 1963 c.88 §1; 1967 c.429 §7; 1985 c.759 §8]
     321.037 [1967 c.429 §9; repealed by 1985 c.759 §40]
     321.040 [Repealed by 1953 c.375 §38]
     321.042 [1967 c.429 §10; repealed by 1969 c.524 §15]
     321.045
Payment of tax; returns; estimated tax; payment. (1) The taxes levied under ORS 321.015 shall
be due and payable annually, on or before the last day of January, for the
preceding year. The tax shall be delinquent if not paid by the due date, which
shall be determined without regard to any extension of time for filing the
return.
     (2) Subject to the provisions relating to
estimated tax payments provided in subsections (4) and (5) of this section, on
or before the last day of January, each taxpayer shall make out a return on the
form prescribed by the Department of Revenue showing the amount of the tax for
which the taxpayer is liable for the preceding year and the other information
the department considers necessary to correctly determine the tax due and shall
mail or deliver the return, together with a remittance for the amount of the
tax, to the office of the department. The return shall be signed and verified
by the taxpayer or a duly authorized agent of the taxpayer. Whenever in its
judgment good cause exists, the department may allow upon written application
made on or before the due date further time not exceeding 30 days for filing a
return.
     (3) All payments received under ORS
321.005 to 321.185 and 321.560 to 321.600 shall be credited, first, to penalty
and interest accrued, and then to tax due.
     (4) Each taxpayer expecting to incur a
liability pursuant to this section in excess of $1,500 for any calendar year
shall, on forms prescribed by the Department of Revenue, make and file with the
department on or before the last day of the month following the end of each
calendar quarter an estimate of the taxpayerÂ’s tax liability for the year. At
least one-quarter of the estimated tax shall be remitted to the department with
each estimated tax report and the balance shall be remitted to the department
on or before the due date of the tax return required by subsection (2) of this
section, without regard for any extension of the due date thereof.
     (5) If the amount remitted with an
estimated tax report filed on or before the due date thereof is at least 25
percent of the tax of the taxpayer as due for the calendar year preceding the
year for which the report is made or at least 20 percent of the taxpayerÂ’s tax
liability as due for the year for which the report is made, or 100 percent of
the tax liability on the actual merchantable forest products harvested for the
calendar quarter preceding the due date of the estimated tax report, no penalty
or interest shall be charged. Otherwise a penalty in the form of interest at
the rate established under ORS 305.220 for each month or fraction thereof shall
be assessed for the period of delinquency calculated on the difference between
the payment made and the payment that would have been due had the taxpayer
estimated the liability for the quarter in an amount equal to the liability as
due for such quarter. The provisions of ORS chapters 305 and 314 relating to
penalties and interest shall not apply to the estimated tax payments described
in this section. [1953 c.375 §§5,6; 1965 c.331 §1; 1981 c.363 §1; 1982 s.s.1
c.16 §12; 1989 c.588 §1; 1991 c.459 §274; 1993 c.653 §5; 2005 c.94 §101]
     321.050 [Repealed by 1953 c.375 §38]
     321.055 [1953 c.375 §7; 1975 c.593 §19; 1977 c.870 §45;
1981 c.706 §8; 1982 s.s.1 c.16 §13; 1985 c.759 §10; renumbered 321.560]
     321.060 [Repealed by 1953 c.375 §38]
     321.065 [1953 c.375 §8; repealed by 1977 c.870 §24
(321.126 enacted in lieu of 321.065)]
     321.070 [Repealed by 1953 c.375 §38]
     321.075 [1953 c.375 §9; 1981 c.706 §9; 1983 c.696 §14;
1985 c.759 §11; 1985 c.761 §17; renumbered 321.570]
     321.080 [Repealed by 1953 c.375 §38]
     321.085 [1953 c.375 §10; repealed by 1961 c.573 §2
(305.140 enacted in lieu of 314.435, 315.635 and 321.085)]
     321.090 [Repealed by 1953 c.375 §38]
     321.092 [1981 c.706 §2; 1985 c.759 §12; renumbered
321.580]
     321.095 [1953 c.375 §11; 1983 c.740 §92; 1985 c.759 §13;
renumbered 321.590]
     321.100 [Repealed by 1953 c.375 §38]
     321.105 [1953 c.375 §12; 1985 c.759 §14; renumbered
321.600]
     321.110 [Repealed by 1953 c.375 §38]
     321.115 [1953 c.375 §13; 1961 c.533 §55; repealed by
1977 c.870 §24 (321.126 enacted in lieu of 321.115)]
     321.120 [Repealed by 1953 c.375 §38]
     321.125 [1953 c.375 §14; repealed by 1977 c.870 §24
(321.126 enacted in lieu of 321.125)]
     321.126 [1977 c.870 §25 (enacted in lieu of 321.065,
321.115 and 321.125); repealed by 1981 c.706 §16]
     321.130 [Repealed by 1953 c.375 §38]
     321.135 [1953 c.375 §15; 1985 c.759 §15; renumbered
321.609]
     321.140 [Repealed by 1953 c.375 §38]
     321.145
Tax revenue credited to suspense account; refunds. (1) The revenue from the taxes levied by ORS
321.005 to 321.185 and 321.560 to 321.600 shall be remitted to the State
Treasurer who shall deposit it in a suspense account established under the
provisions of ORS 293.445.
     (2) Notwithstanding the provisions of ORS
291.238, the amount of moneys necessary to pay refunds of the taxes levied
under ORS 321.015 (1) to (3) hereby is appropriated continuously to the Department
of Revenue from the suspense account referred to in subsection (1) of this
section, and shall be used by the department for the payment of all refunds of
taxes levied under ORS 321.015 (1) to (3) that have been audited and approved
by the department. Any penalties, interest and taxes then due from the taxpayer
shall be applied in that order in computing any refund, and only the balance
due the taxpayer, if any, shall be refunded. The department shall on its
records charge each refund against the revenue from the tax with respect to
which the refund is made. [1953 c.375 §16; 1957 c.309 §4; 1957 c.528 §6; 1961
c.270 §1; 1985 c.759 §16; 1999 c.968 §3; 2003 c.769 §3]
     321.150 [Repealed by 1953 c.375 §38]
     321.152
Distribution of tax revenue to Forest Research and Experiment Account, State
Forestry Department Account and
     (2) That part of the moneys derived from
taxes levied by ORS 321.015 (1) shall be transferred to the Forest Research and
Experiment Account described in ORS 321.185.
     (3) That part of the moneys derived from
taxes levied by ORS 321.015 (3) shall be transferred to the State Forestry
Department Account referred to in ORS 526.060. Notwithstanding ORS 291.238, the
moneys transferred to the State Forestry Department Account under this section
are appropriated continuously for and shall be used by the State Forester,
under the supervision and direction of the State Board of Forestry, for the
purposes of administering the Oregon Forest Practices Act and the forest
practices monitoring program.
     (4) That part of the moneys derived from
taxes levied by ORS 321.015 (2) shall be transferred to the Oregon Forest Land
Protection Fund described in ORS 477.750. [1985 c.759 §3; 1995 c.507 §2; 1999
c.968 §4; 2003 c.769 §4]
     Note: 321.152 was added to and made a part of ORS
chapter 321 by legislative action but was not added to any smaller series
therein. See Preface to Oregon Revised Statutes for further explanation.
     321.155 [1953 c.375 §17; repealed by 1957 c.309 §15]
     321.160 [Repealed by 1953 c.375 §38]
     321.165 [1953 c.375 §19; 1957 c.309 §5; 1961 c.297 §5;
1965 c.253 §140; 1967 c.429 §12; 1981 c.321 §11; repealed by 1985 c.759 §40]
     321.170 [Repealed by 1953 c.375 §38]
     321.175 [1953 c.375 §20; 1965 c.253 §141; repealed
by 1967 c.429 §61]
     321.180 [Repealed by 1953 c.375 §38]
     321.185
Forest Research and Experiment Account; appropriation. (1) There hereby is established in the State
Treasury in the General Fund an account to be known as the Forest Research and
Experiment Account, which account hereby is appropriated continuously to the
State Board of Higher Education for the purposes of ORS 526.215 and 526.225.
     (2) The Forest Research and Experiment
Account shall consist of allocations from harvest taxes as provided in ORS
321.015 (1). [1953 c.375 §21; 1957 c.309 §6; 1961 c.297 §6; 1985 c.759 §17;
2003 c.46 §46]
     321.190 [Repealed by 1953 c.375 §38]
     321.195 [1953 c.375 §22; repealed by 1957 c.309 §15]
     321.200 [Repealed by 1953 c.375 §38]
FORESTLAND
VALUATION
     321.201
Definition of “forestland” for ORS 321.201 to 321.222. As used in ORS 321.201 to 321.222, “forestland”
means either forestland, as defined in ORS 321.257, that is located in western
Oregon or forestland, as defined in ORS 321.805, that is located in eastern
Oregon. [2001 c.860 §13]
     321.204
Legislative findings and declarations. The Legislative Assembly finds that an accurate system of annually
determining forestland values in this state is vital to achieving a fair and
equitable system of taxing the forest resources of this state. The Legislative
Assembly declares that an annual determination of forestland values is the
process that best achieves an accurate assessment of forestland in this state. [2001
c.860 §14]
     321.205 [1953 c.375 §23; repealed by 1961 c.297 §12]
     321.207
Valuation models; rules. (1)
The Department of Revenue by rule shall develop valuation models to be used to
value forestland in western
     (2) The valuation models may consider
forestland sales, stumpage values, immediate harvest values, log prices or
other commercially reasonable factors or data that promote real market value
analysis of forestland. [2001 c.860 §15]
     321.210
Proposed specially assessed values; notice; comments; hearing. (1) Pursuant to the valuation models adopted
by the Department of Revenue under ORS 321.207 and for the purpose of
certifying specially assessed values of forestland under ORS 321.354 and
321.833, for each tax year the Department of Revenue shall give notice of
proposed specially assessed values of forestland. The values shall be proposed
by the department on or before April 1 of the assessment year.
     (2) The specially assessed values proposed
under this section and certified under ORS 321.216 for forestland in western
     (3) The department shall give notice of
the proposed specially assessed values to:
     (a) County assessors and associations,
trade organizations and other persons that the department, in its discretion,
finds represent forestland owners; and
     (b) Any other person that has made a
written request to the department to be given notice of proposed specially
assessed values.
     (4) The notice required under subsection
(3) of this section must contain:
     (a) The proposed specially assessed
values;
     (b) A description of the valuation model
employed in determining the proposed specially assessed values;
     (c) A summary of the market data used to
determine the proposed specially assessed values; and
     (d) The date, time and location of the
public hearing described in subsection (6) of this section.
     (5) Following the giving of notice
required under this section, members of the public may submit written comments
on the proposed specially assessed values to the department. Written comments
received by the department on or before May 1 of the assessment year for which
the specially assessed values are proposed shall be considered by the
department prior to the department certifying specially assessed values to the
county assessors under ORS 321.216.
     (6) Prior to adopting specially assessed
values of forestland for a tax year, the department shall conduct a public
hearing on the proposed specially assessed values. Any person interested in
providing testimony on the proposed specially assessed values shall be given
the opportunity to do so at the hearing. [2001 c.860 §16]
     321.213
Forestland value advisory committee. (1) At any time, the Department of Revenue may convene a forestland
value advisory committee to assist the department in developing a valuation
model under ORS 321.207 or in determining specially assessed values of
forestland. If the department convenes a committee, it shall be composed of
members appointed by the Director of the Department of Revenue. In appointing
members, the director shall strive to include representation of counties, the
State Forestry Department and large and small forestland owners from western
     (2) The Department of Revenue shall
provide staff and administrative support to facilitate the work of a committee
convened by the department. [2001 c.860 §17]
     321.215 [1953 c.375 §18; 1957 c.309 §7; 1961 c.297 §7;
repealed by 1985 c.759 §40]
     321.216
Certified specially assessed values. (1) On or before June 1 of each assessment year, the Department of
Revenue shall adopt specially assessed values of forestland, as of the
assessment date for that year. The department shall certify the specially
assessed values of forestland in eastern
     (2) The certified specially assessed
values constitute:
     (a) The department’s determination of the
real market value, as of the assessment date for the tax year, of highest and
best use forestland in the land class for which the certification is being
made; and
     (b) The specially assessed values, as of
the assessment date for the tax year, of designated forestland that is assessed
under ORS 321.354 and 321.833 in the land class for which the certification is
being made.
     (3) Upon receipt of the certified values,
the county assessors shall develop tables for each assessment year that
reflect, for each class and area, the values determined under this section and
that express the values as values per acre. [2001 c.860 §18]
     321.219
Appeal of certified specially assessed values; notice; effect of decision
modifying values. (1) At any
time following certification of the specially assessed values under ORS 321.216
and before July 1 of the tax year, five or more taxpayers owning in the
aggregate not less than five percent of the total forestland in a single land
market area may appeal any or all of the specially assessed values so
certified.
     (2) Appeals under this section shall be
made to the Oregon Tax Court by filing a joint petition with the tax court in
the manner provided for appeals from orders of the county boards of property
tax appeals. The petition shall designate one of the taxpayers as the
representative of all of the taxpayers, and all proceedings before the tax
court and any appeal from its determination shall be conducted procedurally as
though the designated representative was the only petitioner.
     (3) Notice of the appeal shall be made in
each county having specially assessed values affected by the appeal in the
manner of personal service, certified mail on each taxpayer affected, or
publication made once a week for two consecutive weeks in a newspaper of
general circulation in the county. The notice shall designate the specially
assessed values appealed and include a statement of the provisions of
subsections (4) and (5) of this section.
     (4) Unless an appeal is resolved prior to
September 15 of the tax year and results in a change in a specially assessed
value that was certified under ORS 321.216, then notwithstanding the appeal of
a certified specially assessed value, the certified specially assessed values
shall be entered on the assessment and tax roll for the year and the property
taxes for the tax year shall be imposed on those values.
     (5) If a decision by the tax court, or by
the Oregon Supreme Court following an appeal of a tax court decision:
     (a) Results in a decrease in a specially
assessed value certified under ORS 321.216, any refund of tax arising as a
result of the decision shall be made by reducing the tax imposed on forestland
affected by the decision in the first tax year following the decision.
     (b) Results in an increase in a specially
assessed value certified under ORS 321.216, any additional taxes becoming due
shall be payable without interest if paid prior to the 16th day of the month
following the month in which the final order of the court is issued. If the
additional taxes are not paid within this period, the additional taxes shall
thereafter be considered delinquent and shall bear interest at the rate
provided in ORS 311.505. [2001 c.860 §19]
     321.222
Jurisdiction of board of property tax appeals. Any appeal of forestland value that does not
involve an appeal of a specially assessed value certified under ORS 321.216
shall be made to the board of property tax appeals in the manner prescribed in
ORS 309.100. [2001 c.860 §20]
     321.225 [1953 c.375 §33; repealed by 1985 c.759 §40]
     321.255 [Formerly 528.010; 1973 c.348 §1; repealed
by 1977 c.892 §51]
SPECIAL
ASSESSMENT OF
     321.257
Definitions for ORS 321.257 to 321.390. As used in ORS 321.257 to 321.390, unless the context requires
otherwise:
     (1) “Department” means the Department of
Revenue.
     (2) “Forestland” means land in western
Oregon that is being held or used for the predominant purpose of growing and
harvesting trees of a marketable species and has been designated as forestland
or land in western Oregon, the highest and best use of which is the growing and
harvesting of such trees. Trees of a marketable species may vary in different
areas in western
     (3) “Land class” or “land classes” means
one of the eight classifications of forestland, used for assessment purposes by
the department, based upon State Tax Commission Valuation Division Supplements
published in 1967, and identified in ORS 321.210.
     (4) “State Forester” means the State
Forester or the authorized representative of the State Forester.
     (5) “Sustained yield management” means the
growing and harvesting of timber crops on a continuous basis on land that is
primarily dedicated to timber production.
     (6) “Taxing district” or “district” means
each county, city, school district and other corporation vested with the power
to levy property taxes in western
     (7) “Timber” means all logs which can be
measured in board feet and other forest products as determined by department
rule.
     (8) “Western Oregon” means that portion of
the state lying west of a line beginning at the intersection of the northern
boundary of the State of Oregon and the western boundary of Wasco County,
thence southerly along the western boundaries of the counties of Wasco,
Jefferson, Deschutes and Klamath to the southern boundary of the State of
Oregon. [1977 c.892 §1; 1983 c.539 §2; 1985 c.759 §18; 1989 c.1083 §1; 1993
c.653 §6; 1993 c.801 §1; 1999 c.1078 §12; 2003 c.621 §1]
     321.259
Legislative findings. The
Legislative Assembly finds that:
     (1) Multiple taxation through a yearly ad
valorem levy on both trees and forestland managed in sustained yield timber
operations discourages conservation, private ownership and investment of
capital.
     (2) The interests of the state, its
citizens and future citizens are best served by sustained yield practices and
taxing policies that encourage production of forest resources for commerce,
recreation and watersheds, stabilize employment levels, prevent large
population shifts and encourage millage of timber products within
     (3) Timber on private lands managed on a
sustained yield basis should be treated as a crop and not taxed as real
property.
     (4) Forestland should be taxed based on
the value of the forestland in timber production. [1993 c.801 §3; 2003 c.621 §2]
     321.260 [Formerly 528.020; repealed by 1977 c.892 §51]
     321.262
Purposes. The purposes of
ORS 321.257 to 321.390 are:
     (1) To impose with respect to forestlands
in western
     (2) To establish a special assessment
program as a means of:
     (a) Recognizing the long-term nature of
the forest crop and fostering the public policy of
     (b) Protecting the public welfare by
assuring that the citizens of the state and future generations shall have the
benefits to be derived from the continuous production of forest products from
private forestlands.
     (c) Promoting the state’s policy of
encouraging forestry and the restocking of forestlands to provide present and
future benefits by enhancing the water supply, preventing erosion, providing
habitat for wildlife, providing scenic and recreational opportunities and
providing for needed products. [1977 c.892 §2; 1993 c.801 §4; 2003 c.621 §3]
     321.265 [Formerly 528.025; repealed by 1977 c.892 §51]
     321.267
Lands not eligible for special assessment. The following forestland may not be assessed under ORS 321.257 to
321.390:
     (1) Forestland assessed by the Department
of Revenue pursuant to ORS 308.505 to 308.665, 308.805 to 308.820 and 308.990.
     (2) Except as provided in ORS 321.347,
land that is prepared using intensive cultivation and tilling and on which all
unwanted plant growth is controlled continuously for the exclusive purpose of
growing Christmas trees.
     (3) Land used for the purpose of growing
hardwood timber, including but not limited to hybrid cottonwood, if:
     (a) The land is prepared using intensive
cultivation methods and is cleared of competing vegetation for at least three
years after tree planting;
     (b) The timber is of a species marketable
as fiber for inclusion in the furnish for manufacturing paper products;
     (c) The timber is harvested on a rotation
cycle within 12 years after planting; and
     (d) The land and timber are subject to
intensive agricultural practices such as fertilization, insect and disease
control, cultivation and irrigation.
     (4) Small tract forestland qualified under
ORS 321.700 to 321.754 and timber harvested from small tract forestland
qualified under ORS 321.700 to 321.754. [1977 c.892 §3; 1989 c.887 §5; 1991
c.459 §278; 1991 c.714 §10; 1993 c.801 §5; 1997 c.154 §51; 1999 c.19 §1; 1999
c.1078 §17; 2001 c.46 §1; 2001 c.114 §44; 2003 c.454 §§108,110; 2003 c.621 §4a]
     321.270 [Formerly 528.030; 1973 c.348 §2; repealed
by 1977 c.892 §51]
     321.272
Exemption of timber from property taxation. All timber in western
     321.273 [1993 c.801 §8; 1999 c.1078 §§21,23;
repealed by 2003 c.621 §22b]
     321.274 [1989 c.887 §7b; 1991 c.459 §279; 1993 c.801
§38; 2003 c.454 §114; repealed by 2003 c.621 §§22b,22c]
     321.275 [Formerly 528.040; repealed by 1973 c.348 §12]
     321.277 [1977 c.892 §5; repealed by 1993 c.801 §43]
     321.279 [1977 c.892 §50a; repealed by 1983 c.740 §92a]
     321.280 [Formerly 528.050; 1973 c.348 §3; repealed
by 1977 c.892 §51]
     321.282 [1977 c.892 §6; 1979 c.454 §1; 1983 c.563 §1;
1985 c.759 §19; 1989 c.1083 §2; 1991 c.459 §280; 1993 c.653 §§8,8a; 1999 c.1078
§25; 2003 c.454 §62a; repealed by 2003 c.621 §§22b,22c]
     321.284 [1989 c.1083 §4; 1991 c.459 §281; 1993 c.653
§9; 1995 c.650 §92; 1999 c.1078 §26a; repealed by 2003 c.621 §22]
     321.285 [Formerly 528.060; 1973 c.348 §4; repealed
by 1977 c.892 §51]
     321.287 [1977 c.892 §7; 1979 c.454 §2; 1993 c.653 §§10,10a;
repealed by 2003 c.621 §22b]
     321.290 [Formerly 528.070; repealed by 1973 c.348 §5
(321.291 enacted in lieu of 321.290)]
     321.291 [1973 c.348 §6 (enacted in lieu of 321.290);
repealed by 1977 c.892 §51]
     321.292 [1977 c.892 §7a; repealed by 1985 c.759 §40]
     321.295 [Formerly 528.080; 1963 c.109 §1; 1967 c.59 §1;
1973 c.348 §7; repealed by 1977 c.892 §51]
     321.297 [1977 c.892 §8; 1979 c.438 §1; 1981 c.623 §7;
repealed by 1985 c.759 §40]
     321.299 [1985 c.759 §21b; 1989 c.966 §23; 1991 c.459
§282; 1993 c.801 §11; repealed by 1999 c.1078 §86]
     321.300 [Formerly 528.090; 1967 c.105 §7; repealed
by 1977 c.892 §51]
     321.302 [1977 c.892 §9; 1981 s.s. c.3 §144; 1983
c.763 §25; 1985 c.759 §21; repealed by 1991 c.459 §321]
     321.305 [Formerly 528.095; repealed by 1977 c.892 §51]
     321.307 [1977 c.892 §10; 1979 c.438 §7; 1981 c.623 §9;
1985 c.759 §22; 1989 c.966 §24; 1989 c.1083 §16; 1991 c.854 §6; 1993 c.653 §1a;
1993 c.801 §12; 1995 c.143 §1; 1997 c.586 §1; 1999 c.968 §6; 1999 c.1078 §29;
2001 c.816 §1; 2001 c.860 §11a; 2003 c.454 §63; 2003 c.621 §6a; repealed by
2003 c.621 §26]
     321.308 [1989 c.1083 §14; repealed by 1993 c.801 §43]
     321.309 [1989 c.1083 §13; 1991 c.162 §10; 1991 c.780
§33; repealed by 1993 c.801 §43]
     321.310 [Formerly 528.100; repealed by 1977 c.892 §51]
     321.311 [1989 c.1083 §15; 1991 c.459 §285; repealed
by 1999 c.1078 §85]
     321.312 [1977 c.892 §11; 1979 c.438 §2; 1985 c.759 §23;
1991 c.459 §286; 1993 c.801 §13; 1999 c.1078 §30; 2001 c.509 §4; repealed by
2003 c.621 §26]
     321.315 [Formerly 528.110; 1967 c.105 §8; repealed
by 1977 c.892 §51]
     321.317 [1977 c.892 §12; 1979 c.438 §3; 1981 c.677 §1;
1981 c.804 §90; 1983 s.s. c.5 §23; 1985 c.613 §15; 1985 c.759 §24; 1991 c.459 §287;
1991 c.780 §19; 1993 c.801 §14; repealed by 1999 c.1078 §85]
     321.320 [Formerly 528.115; repealed by 1977 c.892 §51]
     321.322 [1977 c.892 §13; 1979 c.454 §3; 1981 c.706 §10;
1989 c.588 §3; 1991 c.459 §288; 1993 c.653 §11; 1993 c.801 §15; repealed by
2003 c.621 §22b]
     321.325 [Formerly 528.120; repealed by 1977 c.892 §51]
     321.327 [1977 c.892 §14; 1981 c.706 §11; 1982 s.s.1
c.16 §14; repealed by 1985 c.759 §40]
     321.330 [Formerly 528.140; repealed by 1969 c.595 §17]
     321.332 [1977 c.892 §18; repealed by 1985 c.759 §40]
     321.335 [Formerly 528.150; repealed by 1977 c.892 §51]
     321.337 [1977 c.892 §19; repealed by 1985 c.759 §40]
     321.340 [Formerly 528.160; 1973 c.348 §8; repealed
by 1977 c.892 §51]
     321.342 [1977 c.892 §22; repealed by 1985 c.759 §40]
     321.344 [1981 c.706 §4; 1983 c.740 §93; repealed by
1985 c.759 §40]
     321.345 [Formerly 528.170; 1973 c.348 §9; repealed
by 1977 c.892 §51]
     321.346 [1981 c.706 §5; 1983 c.696 §15; 1983 c.740 §94;
repealed by 1985 c.759 §40]
     321.347
Land designations; classifications; certain election by landowners. For the purposes of ORS 321.257 to 321.390:
     (1) All land in western Oregon valued as
forestland for ad valorem property tax purposes on January 1, 1977, shall
retain that classification for the purposes of ORS 321.257 to 321.390 unless it
is specifically excluded from the provisions thereof or unless it is removed
from that classification as provided in ORS 321.359 or is no longer land the
highest and best use of which is forestland.
     (2) Land designated as forestland pursuant
to ORS 321.605 to 321.680 (1975 Replacement Part) shall retain the original
date of such designation.
     (3) Lands classified as reforestation
lands as of July 1, 1977, pursuant to ORS 321.255 to 321.360 (1975 Replacement
Part) shall be considered to have been designated as forestland from the date
of original classification as reforestation lands. Any lands so classified
prior to February 1, 1972, shall be presumed to have been designated not
earlier than February 1, 1972.
     (4) Pursuant to the election of the owner,
as provided in section 45, chapter 892, Oregon Laws 1977, land which, as of
January 1, 1977, was designated under the provisions of ORS 321.705 to 321.765
(2001 Edition) shall be considered to have been designated as forestland for
the purposes of ORS 321.257 to 321.390 from the date of the original
designation under those provisions. Any lands so designated prior to January 1,
1972, shall be presumed to have been designated not earlier than January 1,
1972, for the purposes of additional taxes imposed by ORS 308A.700 to 308A.733.
[1977 c.892 §23; 1979 c.553 §10; 1981 c.419 §7; 1991 c.459 §289; 1999 c.19 §5;
1999 c.314 §§68,68a; 2003 c.454 §115; 2003 c.621 §7a]
     321.348
Assignment of forestland to land classes; change in class. (1) For each tax year, forestland shall be
assigned by the Department of Revenue to land classes as defined in ORS
321.257.
     (2) Land classes assigned under subsection
(1) of this section may be changed thereafter by the department upon the
initiative of the department, or upon the request of an owner, if further
investigation reveals that the basis for the land class determination was
inaccurate. Any such redetermination of land class shall be certified
immediately to the county assessor. [1993 c.801 §17; 2003 c.621 §8]
     321.349
Valuation of certain forestland at farm use value. (1) Subject to subsection (2) of this
section, land that is changed from farm use special assessment under ORS
308A.050 to 308A.128 to special assessment as forestland under ORS 321.257 to
321.390, at the election of the owner made under rules adopted by the
Department of Revenue, shall not be valued under ORS 308.205, 308.232 and
321.257 to 321.390 for the tax year of the change and years thereafter in which
such special forestland assessment is in effect for the land, but shall be
valued under ORS 308A.050 to 308A.128, if:
     (a) The land has been assessed under ORS
308A.050 to 308A.128 for at least the 10 consecutive years immediately prior to
the year for which the change is first effective;
     (b) The planting of the timber takes place
after October 15, 1983, and qualifies for the current tax year for special
assessment as forestland under ORS 321.257 to 321.390;
     (c) The timber on the land is of an
average age of less than 40 years; and
     (d) The land is held by an owner having a
total ownership of forestland in western
     (2) If timber on land valued under
subsection (1) of this section reaches, for any tax year, an average age of 40
years or more, this section shall cease to apply. However, without application
and without any additional tax, interest or penalty, the land shall for that
tax year and for each year thereafter for which the land is qualified, be
valued under ORS 308.205, 308.232 and 321.257 to 321.390.
     (3) In computing a forestland owner’s
acreage for purposes of subsection (1) of this section, total ownership of the
ownerÂ’s forestland, as defined in ORS 321.257, in western
     (4)(a) An owner may not have forestland
valued under subsection (1) of this section if the owner, or any individual
having a share in the owner, has a spouse, brother, sister, ancestor or lineal
descendant who is an owner, or who holds a share in an owner having forestland
valued under subsection (1) of this section.
     (b) The county assessor may grant
exceptions to paragraph (a) of this subsection if the owner satisfactorily
demonstrates that the combination of ownership with the indicated relatives
arose from bona fide business reasons other than a desire to circumvent the
2,000 acre limitation imposed under subsection (1) of this section.
     (5) As used in this section, “total
ownership” includes:
     (a) Forestland owned by an owner
individually; and
     (b) Forestland owned by any corporate or
other group or entity in which an owner of the corporation, group or entity
owns a 10 percent or greater interest, directly or indirectly, in the
corporation, group or entity. [1983 c.657 §8; 1991 c.459 §290; 1993 c.801 §38a;
1999 c.19 §6; 1999 c.314 §66; 1999 c.1078 §79; 2005 c.94 §102]
     321.350 [Formerly 528.180; 1973 c.348 §10; repealed
by 1977 c.892 §51]
     321.351 [1993 c.801 §21a; 1999 c.21 §51; repealed by
2003 c.621 §22]
     321.352 [1977 c.892 §24; 1979 c.437 §1; 1981 c.428 §1;
1981 c.804 §91; 1985 c.613 §16; 1991 c.459 §291; 1993 c.270 §65; 1993 c.653 §12;
1993 c.801 §18; 1995 c.650 §93; 1999 c.21 §52; repealed by 2003 c.621 §22b]
     321.353 [1993 c.801 §§17a,20; 1995 c.79 §174; 1997
c.541 §391; 1999 c.19 §7; 1999 c.21 §53; 1999 c.1078 §14; 2001 c.816 §3; 2001
c.860 §1; 2003 c.454 §65; repealed by 2003 c.621 §§22b,22c]
     321.354
Common ownership minimum acreage requirements; specially assessed value and
maximum assessed value of forestland of large landowners. (1)(a) The Department of Revenue shall
identify the forestland that is held in common ownership of 5,000 acres or more
as of the assessment date for each tax year.
     (b) Forestland that the department has
identified under paragraph (a) of this subsection that, for the previous tax
year, was subject to small tract forestland assessment shall be disqualified
from small tract forestland assessment and shall be subject to special
assessment as provided in this section as of the first tax year the forestland
is held in common ownership of 5,000 acres or more.
     (c) For purposes of this subsection, “forestland”
includes land that meets the definition of forestland under ORS 321.805.
     (2) Forestland assessed under this section
shall have a specially assessed value per acre equal to the value certified to
the county assessor for the tax year under ORS 321.216 for the applicable land
class of the forestland.
     (3) For each land class described in ORS
321.210, the forestland maximum assessed value per acre shall equal 103 percent
of the forestland assessed value per acre for the preceding tax year or 100
percent of the forestland maximum assessed value per acre for the preceding tax
year, whichever is greater.
     (4)(a) The assessor shall compute the
assessed value of forestland by multiplying the acreage of the forestland in
each land class by the lesser of:
     (A) The specially assessed value per acre;
or
     (B) The maximum assessed value per acre.
     (b) If the forestland being assessed
consists of different land classes, the assessed value of the forestland shall
be the sum of the assessed values computed for each land class under paragraph
(a) of this subsection.
     (5) Notwithstanding subsection (4) of this
section, the forestland shall be assessed as provided in ORS 308.232 if the
real market value of the forestland is less than the value established under
subsection (4) of this section.
     (6) For purposes of this section:
     (a) The department shall certify to the
county assessor of a county in which forestland identified in subsection (1) of
this section is located a list of the property tax accounts containing
forestland so identified.
     (b) Forestland shall be considered to be
in common ownership if the forestland is owned by the person directly or is
owned by a corporation, partnership, association or other entity in which the
person owns a majority interest.
     (c) Additional taxes may not be imposed as
a result of a disqualification under subsection (1) of this section.
     (d) The notification requirements and
other procedures that the county assessor must follow in disqualifying
forestland do not apply to a disqualification occurring under subsection (1) of
this section.
     (e) The department shall notify the county
assessor of forestland identified under subsection (1)(a) of this section that
is located in that county. [1999 c.1078 §§2,7; 2001 c.860 §2; 2003 c.454 §67]
     321.355 [Formerly 528.190; 1973 c.348 §11; repealed
by 1977 c.892 §51]
     321.356 [1999 c.1078 §9; 2001 c.816 §4; 2001 c.860 §5;
2003 c.454 §71; 2003 c.621 §16; repealed by 2003 c.621 §24]
     321.357 [1977 c.892 §24a; 1981 c.804 §92; 1991 c.459
§292; 1993 c.801 §21; 1995 c.79 §175; repealed by 1999 c.19 §12]
     321.358
Application for designation as forestland; special filing date for change in
highest and best use; contents; approval. (1) An owner of land desiring that it be designated as forestland
shall make application to the county assessor on or before April 1 of the
assessment year for which special assessment as forestland is first desired,
and the owner may also do so within 30 days of receipt of notice of its
assessment as omitted property.
     (2) Notwithstanding subsection (1) of this
section, an owner of land may apply to the county assessor by December 15 to
have the land designated as forestland for the assessment year if:
     (a) For the prior assessment year the land
had been forestland by reason of the land being highest and best use
forestland; and
     (b) For the current assessment year the
land is being assessed at a value reflecting a use other than highest and best
use forestland.
     (3) The application shall be made upon
forms prepared by the Department of Revenue and supplied by the county
assessor, and shall include the following:
     (a) A description of all land the
applicant desires to be designated as forestland.
     (b) Date of acquisition.
     (c) Whether the land is being held or used
for the predominant purpose of growing and harvesting trees of marketable
species.
     (d) Whether there is a forest management
plan for it.
     (e) If so, whether the plan is being
implemented, and the nature and extent of implementation.
     (f) Whether the land is used for grazing.
     (g) Whether the land has been platted
under ORS chapter 92.
     (h) Whether the land is timberland subject
to ORS chapter 477, and if it is not, the reasons therefor.
     (i) Whether the land, or any of it, is
subject to a lease or option which permits it to be used for any purpose other
than the growing and harvesting of trees.
     (j) A summary of past experience and
activity of the applicant in growing and harvesting trees.
     (k) A summary of current and continuing
activity of the applicant in growing and harvesting trees.
     (L) A statement that the applicant is
aware of the potential tax liability involved when the land ceases to be
designated as forestland.
     (m) An affirmation that the statements
contained in the application are true.
     (4) The county assessor shall approve an
application for forestland designation if the assessor finds that the land is
properly classifiable as forestland. The county assessor shall not find land
properly classifiable as forestland if:
     (a) The application states the land is not
being held or used for the predominant purpose of growing and harvesting trees
of marketable species; or
     (b) Subject to the provisions of ORS
321.257, the land does not substantially meet minimum stocking or acreage
requirements under rules adopted by the department. Otherwise, the
determination whether the land is properly classifiable as forestland shall be
made with due regard to all relevant evidence and without any one or more items
of evidence necessarily being determinative.
     (5) The application shall be deemed to
have been approved unless, within three months of the date such application was
delivered to the assessor or prior to August 15, whichever is later, the
assessor shall notify the applicant in writing of the extent to which the
application is denied. [Formerly 321.618; 1981 c.804 §93; 1983 c.462 §5; 1983
c.657 §2; 1989 c.1083 §9; 1991 c.459 §293; 1997 c.541 §§392,392a; 1999 c.314 §92;
1999 c.1078 §74; 2003 c.621 §17]
     321.359
Removal of designation; appeal from reassessment or denial; requalification. (1)(a) When land has once been designated as
forestland either as a result of an application being filed therefor or through
the application of ORS 321.347 (3) or (4), it shall be valued as such until the
assessor removes the forestland designation under paragraph (b) of this
subsection.
     (b) The county assessor shall remove the
forestland designation upon:
     (A) Notification by the taxpayer to the
assessor to remove the designation;
     (B)
     (C) Discovery by the assessor that the
land is no longer forestland; or
     (D) The act of recording a subdivision
plat under ORS chapter 92.
     (2) A taxpayer whose application filed
under ORS 321.358 has been denied in whole or in part, or a taxpayer whose
forestland has had the designation thereof removed in whole or in part, may
appeal to the tax court within the time and in the manner provided in ORS
305.404 to 305.560.
     (3) If, under subsection (1)(b)(D) of this
section, the county assessor removes the forestland designation upon the act of
recording a subdivision plat, the land, or a part of the land, may be
requalified for forestland designation upon:
     (a) Payment of all additional tax and
applicable interest that remains due and owing on the land;
     (b) Submission by the owner of an
application for designation as forestland;
     (c) Meeting all of the qualifications for
designation as forestland; and
     (d) Meeting the requirements, if any, of
applicable local government zoning ordinances with regard to minimum lot or
parcel acreage for forest use. [Formerly 321.619; 1983 c.462 §6; 1983 c.563 §2;
1985 c.759 §24a; 1987 c.158 §52; 1991 c.459 §294; 1995 c.650 §94; 1999 c.314 §51;
2003 c.621 §18]
     321.360 [1963 c.606 §10; 1969 c.595 §15; 1973 c.305 §13;
repealed by 1977 c.892 §51]
     321.361 [1983 c.462 §8; repealed by 1991 c.459 §321]
     321.362
Notation of forestland on tax roll for potential additional tax liability. The tax roll shall show the notation “Forest
Land-Potential Additional Tax Liability” for each parcel of land designated as
forestland by the assessor upon application of the owner or by the application
of ORS 321.347 (3) or (4). That notation shall not be made with respect to
parcels of undesignated forestland. [1977 c.892 §28]
     321.363 [1991 c.459 §295a; repealed by 1991 c.459 §295a(2)]
     321.364 [1993 c.5 §4; 1997 c.541 §396; 1999 c.314 §84;
repealed by 1999 c.314 §94]
     321.365 [1999 c.1078 §10; 2001 c.860 §11b; repealed
by 2003 c.621 §22b]
     321.366
Date on which removal of forestland designation is effective; notice of
removal. (1) Notwithstanding
ORS 308.210, 311.405 or 311.410, but subject to subsection (2) of this section,
the removal under ORS 321.359 (1)(b)(C) of land from designation as forestland
because the land is no longer forestland shall occur as of the January 1
assessment date for the tax year in which the county assessor discovers that
the land is no longer forestland.
     (2) Subsection (1) of this section applies
only if notice of the removal is mailed by the county assessor prior to August
15 of the tax year for which the removal of the land is asserted. [2003 c.621 §15]
     321.367
Forestland management; effect of failure to manage forestland in accordance with
management plan; rules. (1)
The State Forester shall identify all of the forestlands that fail to meet the
minimum stocking required under ORS 527.610 to 527.770 and that are therefore
underproductive as described under ORS 526.455.
     (2) At any time the State Forester has
reason to believe that forestland is not being managed as forestland, the State
Forester shall review the ownerÂ’s management plan, if any, and inspect the
property. Subject to subsection (5) of this section, the State Forester shall
advise the owner as prescribed in subsection (3) of this section if the State
Forester determines the land is not being managed in accordance with a plan
that provides for:
     (a) Regeneration of all suitable
nonstocked land;
     (b) Maintenance of a free-to-grow
condition;
     (c) Protection from fire, insects,
disease, animal damage, undesirable vegetative competition; and
     (d) Final harvest.
     (3)(a) The State Forester shall advise the
owner that the land is not being managed in accordance with a plan that meets
the criteria set forth in subsection (2) of this section and that a plan for
the land that does meet the criteria must be developed and activated within one
year after the date of the advisement.
     (b) At the request of the owner, the State
Forester shall assign a forester or provide a listing of foresters to assist
the owner in developing and implementing an appropriate management plan for the
land.
     (c) As soon as practicable after the time
indicated in the advisement has expired, the State Forester shall view the land
to determine if the land is being managed in accordance with a plan that meets
the criteria set forth in subsection (2) of this section. If, upon inspection,
the State Forester finds that the land is not being so managed, the State Forester
shall notify the owner and the county assessor.
     (4) The county assessor, upon receipt of
the notice from the State Forester, shall cease to treat that land as
forestland under ORS 321.257 to 321.390 and shall value the land as prescribed
under ORS 308.146 and 308.232.
     (5) If at the time that the State Forester
views the land under subsection (3)(c) of this section, it is determined that a
change in ownership has occurred, the State Forester shall notify the new owner
as required under subsection (3) of this section in the manner of the original
notification.
     (6) When the owner of land disqualified
from forestland assessment provides satisfactory information to the State
Forester of subsequent action taken to correct the deficiency resulting in the
disqualification of land, or provides an acceptable management plan to correct
such deficiency, the State Forester shall so indicate to the county assessor.
The assessor shall then assess the land under ORS 321.257 to 321.390, if the
land is otherwise qualified for such assessment.
     (7) The State Forester shall adopt rules
necessary to carry out the purposes of this section. [1977 c.892 §28a; 1979
c.454 §5; 1983 c.669 §1; 1987 c.158 §53; 1991 c.854 §7; 1993 c.801 §38b; 2003
c.621 §19; 2005 c.94 §103]
     321.372 [1977 c.892 §29; 1979 c.350 §15; 1983 c.462 §16;
1985 c.759 §25; 1991 c.459 §296; repealed by 1999 c.314 §94]
     321.375 [1981 c.428 §3; 1985 c.759 §26; 1991 c.459 §297;
1993 c.270 §72; repealed by 2003 c.621 §22]
     321.377 [1977 c.892 §53; repealed by 1985 c.759 §40]
     321.379 [1989 c.1083 §5; 1993 c.653 §14; 1995 c.350 §3;
1999 c.1078 §27; repealed by 2003 c.621 §22]
     321.381 [1989 c.1083 §6; 1999 c.1078 §72; repealed
by 2003 c.621 §22]
     321.390
Land used to grow certain hardwood to be assessed as farm use land; application
required for unzoned land.
(1) Land described in ORS 321.267 (3) (relating to hardwood timberland,
including hybrid cottonwood timberland) shall be assessed as farm use land
under ORS 308A.050 to 308A.128.
     (2)(a) If land is or becomes land
described under ORS 321.267 (3) and the land is not located within an exclusive
farm use zone, the owner shall make application for special valuation as farm
use land in the manner provided under ORS 308A.077, as follows:
     (A) If the change in use takes place on or
after July 1, the owner shall file the application on or before April 1 of the
following year.
     (B) If the change in use takes place prior
to July 1, the owner shall file the application on or before August 1 of the
same year.
     (b) If an application is filed as provided
under this subsection, the owner shall have seven years beginning with the
first year of classification to meet the income requirements of ORS 308A.071
and need not meet the two-year farm use requirements of ORS 308A.068. [1989
c.887 §8; 1991 c.459 §298; 1999 c.314 §52; 2003 c.454 §126; 2003 c.621 §20a]
     321.405 [1961 c.627 §1; 1971 c.654 §7; 1983 c.539 §3;
1985 c.759 §27; 1993 c.653 §15; 1993 c.801 §22; 1999 c.631 §3; repealed by 2003
c.621 §35b]
     321.408 [1993 c.801 §25; 2003 c.621 §29; renumbered
321.808 in 2003]
     321.410 [1961 c.627 §2; 1993 c.801 §23; 2003 c.621 §30;
renumbered 321.817 in 2003]
     321.415 [1961 c.627 §5; 1963 c.60 §1; 1977 c.892 §39;
1983 c.657 §3; 1991 c.714 §1; 1993 c.801 §26; 1995 c.79 §176; 1997 c.154 §52;
1999 c.1078 §49; 2001 c.46 §2; 2001 c.114 §45; 2003 c.454 §112; 2003 c.621 §31;
renumbered 321.824 in 2003]
     321.420 [1961 c.627 §3; 1963 c.225 §1; 1971 c.654 §8;
1993 c.801 §27; 1999 c.19 §8; 1999 c.1078 §51; 2003 c.621 §32; renumbered
321.829 in 2003]
     321.421 [1993 c.801 §29; 1999 c.1078 §53; repealed
by 2003 c.621 §35b]
     321.425 [1961 c.627 §4; 1977 c.892 §39a; repealed by
1993 c.801 §43]
     321.426 [1991 c.714 §3; 1993 c.801 §39; repealed by
2003 c.621 §35b]
     321.430 [1961 c.627 §4a; 1983 c.563 §3; 1985 c.761 §19;
1993 c.98 §15; 1993 c.653 §17; 1993 c.801 §30; 1995 c.350 §4; repealed by 2003
c.621 §35b]
     321.432 [1987 c.551 §5; 1991 c.459 §302; 1993 c.801 §31;
2003 c.454 §71a; repealed by 2003 c.621 §§35b,35c]
     321.434 [1995 c.350 §2; repealed by 2003 c.621 §35]
     321.435 [1961 c.627 §6; 1963 c.86 §1; 1979 c.454 §6;
1981 c.706 §12; 1989 c.588 §2; 1991 c.459 §303; 1993 c.653 §18; repealed by
2003 c.621 §35b]
     321.440 [1961 c.627 §7; 1975 c.593 §20; 1977 c.870 §49;
1981 c.706 §13; 1982 s.s.1 c.16 §15; 1983 c.563 §4; repealed by 1985 c.759 §40]
     321.445 [1961 c.627 §8; 1981 c.706 §14; repealed by
1985 c.759 §40]
     321.450 [1961 c.627 §9; 1981 c.706 §15; 1983 c.696 §16;
1983 c.740 §96; repealed by 1985 c.759 §40]
     321.455 [1961 c.627 §10; repealed by 1981 c.706 §16]
     321.460 [1961 c.627 §11; 1977 c.892 §40; repealed by
1985 c.759 §40]
     321.465 [1961 c.627 §12; 1983 c.740 §97; repealed by
1985 c.759 §40]
     321.470 [1961 c.627 §13; 1965 c.6 §13; 1967 c.115 §1;
repealed by 1977 c.870 §59]
     321.475 [1961 c.627 §14; repealed by 2003 c.621 §35b]
     321.480 [1961 c.627 §15; repealed by 1985 c.759 §40]
     321.485 [1961 c.627 §16(1),(2),(3) and (5); 1963
c.86 §2; 1971 c.408 §2; 1981 c.623 §8; 1985 c.759 §28; 1989 c.966 §25; 1993
c.801 §40; 1997 c.586 §2; 1999 c.19 §10; 1999 c.1078 §55; 2003 c.454 §72; 2003
c.621 §34; 2005 c.94 §104; repealed by 2003 c.621 §37]
     321.487 [1999 c.1078 §57; 2001 c.114 §46; 2001 c.509
§5; repealed by 2003 c.621 §37]
     321.490 [1961 c.627 §16(4); 1963 c.86 §3; 1979 c.438
§6; repealed by 1985 c.759 §40]
     321.495 [1961 c.627 §17; repealed by 1971 c.408 §4]
     321.500 [1961 c.627 §18; repealed by 1971 c.408 §4]
     321.505 [1961 c.627 §19; 1963 c.86 §4; repealed by
1971 c.408 §4]
     321.510 [1961 c.627 §20; 1965 c.326 §1; repealed by
1971 c.408 §4]
     321.515 [1961 c.627 §21; 1971 c.408 §3; 1991 c.459 §304;
1993 c.801 §32; repealed by 1999 c.1078 §86]
     321.520 [1961 c.627 §22; repealed by 1999 c.1078 §85]
     321.525 [1961 c.627 §23; 1963 c.86 §5; repealed by
1971 c.408 §4]
     321.530 [1961 c.627 §24; 1967 c.335 §37; repealed by
1971 c.408 §4]
GENERALLY
     321.550
Notice of intent to harvest; rules; effect of failure to file notice. (1) No person shall harvest or cause to be
harvested any timber from land in
     (2) The notification shall specify where
and when the harvest will take place and the nature of the harvest and shall
include maps and other data as required by the State Forester and the
department. The department shall establish by rule procedures to assure the
receipt of the tax returns sent out or a report of nonharvest from the person.
The department shall conduct field and office audits to ascertain the
correctness of any timber tax return.
     (3)(a) If a person fails to file a written
notice as required in subsection (1) of this section with respect to any
harvest over 5,000 board feet, the department shall notify the person. If,
after the person has been notified, the person fails to file a written notice
as required in subsection (1) of this section with respect to any subsequent
harvest over 5,000 board feet, there shall be added to the amount of the timber
tax required to be shown on the return as a result of the subsequent harvest a
delinquency penalty of $250 for each violation occurring within a calendar
year. The department shall collect the penalty in the same manner as taxes are
collected.
     (b) No penalty shall be imposed under this
subsection if a penalty for failure to file the notice with the State Forester
has been imposed under ORS 527.992.
     (c) The delinquency penalty shall first be
added to the small tract forestland timber severance tax imposed under ORS
321.700 to 321.754, if applicable to the harvest. If the small tract forestland
timber severance tax is not applicable, the delinquency penalty shall be added
to the forest products harvest tax imposed under ORS 321.005 to 321.185. [1985
c.759 §2; 1989 c.588 §4; 1991 c.459 §305; 1993 c.801 §41; 2003 c.454 §54; 2003
c.621 §39a]
     321.560
Audit of returns; interest and penalties upon failure to file return or pay
tax. (1) The provisions of
ORS chapters 305 and 314 as to the audit and examination of reports and
returns, determination of deficiencies, liens, assessments, claims for refund,
conferences and appeals to the Oregon Tax Court, and the procedures relating
thereto, apply to the determination of taxes, penalties and interest imposed
under ORS 321.005 to 321.185, 321.560 to 321.600 or 321.700 to 321.754, except
where the context requires otherwise.
     (2) If a taxpayer fails to file a return
required by ORS 321.045 or 321.700 to 321.754, or fails to pay a tax at the
time the tax becomes due, there shall be added to the amount of tax required to
be shown on the return a delinquency penalty of five percent of the amount of
such tax.
     (3) If the failure to file a return
continues for a period in excess of three months after the due date, there
shall be added to the amount of tax required to be shown on the return a
failure to file penalty of 20 percent of the amount of such tax. This penalty
is in addition to the delinquency penalty imposed by subsection (2) of this
section.
     (4) If all or any part of the delinquency
or deficiency for which a determination is made is due to fraud or an intent to
evade the provisions of ORS 321.005 to 321.185, 321.560 to 321.600 or 321.700
to 321.754, or the rules adopted thereunder, a penalty of 100 percent of such
delinquency or deficiency shall be added, plus interest at the rate established
under ORS 305.220 for each month, or any fraction thereof, computed on the full
amount of the delinquency or deficiency plus penalty, from the time the return
was due.
     (5) For purposes of this section, the
amount of tax required to be shown on the return shall be reduced by the amount
of any part of the tax that is paid on or before the date prescribed for
payment of the tax and by the amount of any credit against the tax that may be
lawfully claimed upon the return.
     (6) A delinquent tax or a deficiency shall
bear interest at the rate established under ORS 305.220 for each month, or any
fraction thereof, from the time the return was due. [Formerly 321.055; 1991
c.459 §306; 1995 c.53 §4; 1995 c.350 §5; 1995 c.650 §95; 2003 c.454 §55; 2003
c.621 §40a]
     321.570
Warrant for collection of delinquent taxes. (1) If any tax imposed by ORS 321.005 to 321.185, 321.560 to 321.600
or 321.700 to 321.754, or any portion of the tax, is not paid within 30 days
after the date that the written notice and demand for payment required under
ORS 305.895 is mailed, the Department of Revenue may issue a warrant, directed
to the sheriff of any county of the state, commanding the sheriff to levy upon
and sell the real and personal property of the taxpayer owning the same, found
within that county, for the payment of the amount of the tax, with the added
penalties, interest and cost of executing the warrant, and to return the
warrant to the department and to pay to it the money collected from the sale,
within 60 days after receipt of the warrant. A copy of the warrant shall be
mailed or delivered to the taxpayer by the department at the taxpayerÂ’s
last-known address.
     (2) The sheriff shall, within five days
after the receipt of the warrant, record a copy with the county clerk, and the
clerk shall immediately enter in the County Clerk Lien Record the name of the
taxpayer mentioned in the warrant, and the amount of the tax or portion of the
tax and penalties for which the warrant is issued and the date when the copy is
recorded. The amount of the warrant so recorded shall become a lien upon the
title to and interest in real property of the taxpayer against which it is
issued, in the same manner as a judgment that creates a judgment lien under ORS
chapter 18. The sheriff immediately shall proceed upon the warrant in all
respects, with like effect, and in the same manner prescribed by law in respect
to executions issued against property upon judgments of a court of record, and
shall be entitled to the same fees for services in executing the warrant, to be
added to and collected as a part of the warrant liability.
     (3) In the discretion of the department a
warrant of like terms, force and effect may be issued and directed to any agent
authorized to collect this tax. In the execution of the warrant, such agent has
the powers conferred by law upon sheriffs, but is entitled to no fee or
compensation in excess of actual expenses paid in the performance of such duty.
     (4) If a warrant is returned not satisfied
in full, the department shall have the same remedies to enforce the claim for
taxes against the taxpayer as if the state had a recorded judgment against the
taxpayer for the amount of the tax. [Formerly 321.075; 1989 c.625 §78; 2003
c.454 §56; 2003 c.576 §203; 2003 c.621 §41a]
     321.580
Effect of failure or refusal to make return. If any taxpayer neglects or refuses to make a return required to be
made by ORS 321.005 to 321.185, 321.560 to 321.600 or 321.700 to 321.754, the
Department of Revenue is authorized to determine the tax due, based upon any
information in its possession or that may come into its possession. The
department shall give the taxpayer written notice of the tax and delinquency
charges and the tax and delinquency charges shall be a lien from the time of
severance. If the tax and delinquency charges are not paid within 30 days from
the mailing of the notice, the department shall proceed to collect the tax in
the manner provided in ORS 321.570. [Formerly 321.092; 2003 c.454 §57; 2003
c.621 §42a]
     321.590 [Formerly 321.095; repealed by 1993 c.801 §43]
     321.600
Tax as debt; collection; limitation. All taxes, interest and penalties due and unpaid under ORS 321.005 to
321.185, 321.560 to 321.600 or 321.700 to 321.754 constitute a debt due the
State of
     321.605 [1961 c.659 §2; 1963 c.60 §2; 1967 c.543 §1;
1975 c.745 §1; repealed by 1977 c.892 §51]
     321.609
Enforcement of certain statutes by department; rules. (1) ORS 321.005 to 321.185, 321.560 to 321.600
and 321.700 to 321.754 shall be enforced and the taxes imposed by ORS 321.005
to 321.185, 321.560 to 321.600 and 321.700 to 321.754 shall be collected by the
Department of Revenue, which shall have the power to prescribe forms and to
adopt rules for the ascertainment, assessment and collection of the taxes
imposed by ORS 321.005 to 321.185, 321.560 to 321.600 or 321.700 to 321.754.
     (2) For the purpose of determining the
taxes imposed by ORS 321.005 to 321.185, 321.560 to 321.600 or 321.700 to
321.754, the department may:
     (a) Require any person to furnish any
information deemed necessary.
     (b) Examine the books, records and files
of such person.
     (c) Subpoena and examine witnesses and
administer oaths.
     (d) Enter upon and inspect the land of any
owner of the land from which any timber has been harvested. [Formerly 321.135;
1999 c.21 §55; 2003 c.454 §59; 2003 c.621 §44a]
     321.610 [1961 c.659 §1; repealed by 1977 c.892 §51]
     321.615 [1961 c.659 §3; repealed by 1977 c.892 §51]
     321.617 [Formerly part of 321.620; repealed by 1977
c.892 §51]
     321.618 [Formerly part of 321.620; 1973 c.237 §1;
1977 c.884 §21; 1977 c.892 §54b; renumbered 321.358]
     321.619 [Formerly part of 321.620; 1971 c.684 §5;
1977 c.870 §50; 1977 c.892 §27; 1977 c.893 §20c; renumbered 321.359]
     321.620 [1961 c.659 §4; 1965 c.191 §1; 1967 c.93 §4;
1967 c.543 §2; renumbered 321.617, 321.618, 321.619 and 321.621]
     321.621 [Formerly part of 321.620; repealed by 1977
c.892 §51]
     321.622 [1961 c.659 §7(1),(3); repealed by 1977
c.892 §51]
     321.625 [1961 c.659 §6(1); repealed by 1977 c.892 §51]
     321.630 [1961 c.659 §6(2); repealed by 1977 c.892 §51]
     321.635 [1961 c.659 §7(2); repealed by 1977 c.884 §32;
1977 c.892 §51]
     321.640 [1961 c.659 §8; repealed by 1977 c.892 §51]
     321.645 [1961 c.659 §5(1),(2),(3),(4) and (5);
repealed by 1977 c.892 §51]
     321.650 [1961 c.659 §5(6); 1975 c.636 §1; repealed
by 1977 c.892 §51]
     321.655 [1961 c.659 §5(7),(8); 1967 c.78 §6;
repealed by 1977 c.892 §51]
     321.660 [1961 c.659 §5(9); 1965 c.6 §14; 1967 c.78 §7;
repealed by 1977 c.892 §51]
     321.665 [1961 c.659 §5(10); 1963 c.60 §3; repealed
by 1977 c.892 §51]
     321.670 [1961 c.659 §5(11); repealed by 1977 c.892 §51]
     321.675 [1961 c.659 §5(12); repealed by 1977 c.892 §51]
     321.680 [1961 c.659 §5(13); 1963 c.576 §39; repealed
by 1977 c.892 §51]
     321.682
Confidentiality of reports, returns and appraisal data. (1) Except as otherwise specifically
provided by law, it shall be unlawful for the Department of Revenue or any
officer or employee of the department to divulge or make known in any manner
the amount of the tax or any particulars set forth or disclosed in any report
or return required to be filed under ORS 321.045 or 321.741 or any appraisal
data collected to make determinations of specially assessed value of forestland
pursuant to ORS 321.201 to 321.222. It shall be unlawful for any person or
entity to whom information is disclosed or given by the department pursuant to
ORS 321.684 (2) or any other provision of state law to divulge or use such
information for any purpose other than that specified in the provisions of law
authorizing the use or disclosure. No subpoena or judicial order shall be
issued compelling the department or any of its officers or employees, or any
person who has acquired information pursuant to ORS 321.684 (2) or any other
provision of state law, to divulge or make known the amount of tax or any
particulars set forth or disclosed in any report or return except where the
taxpayerÂ’s liability for timber tax is to be adjudicated by the court from
which such process issues.
     (2) As used in this section, “officer,” “employee”
or “person” includes an authorized representative of the officer, employee or
person, or any former officer, employee or person, or an authorized
representative of such former officer, employee or person. [1989 c.1083 §18;
2001 c.860 §26; 2003 c.454 §60; 2003 c.621 §45a]
     321.684
Authority of department to make certain disclosures. (1) The Department of Revenue may:
     (a) Furnish to any taxpayer or authorized
representative, upon request of the taxpayer or authorized representative, a
copy of the taxpayerÂ’s forest products harvest tax report or return required by
ORS 321.045 or 321.741 that is filed with the department for any year, or a
copy of any report filed by the taxpayer in connection with the return.
     (b) Publish a list of taxpayers who are
entitled to unclaimed tax refunds.
     (c) Publish statistics classified so as to
prevent the identification of taxable value or any particulars contained in any
report or return.
     (d) Disclose a taxpayer’s name, address
and Social Security number or employer identification number to the extent
necessary in connection with the processing and mailing of forms for any report
or return required in the administration of ORS 321.045 and 321.741.
     (e) Disclose to the State Forester, upon
request of the forester, for the purpose of soliciting nominations and
recommendations referred to in ORS 526.610, the names of producers meeting
producer class qualifications established under ORS 526.610 who filed forest
products harvest tax returns.
     (f) Disclose appraisal data collected to
make determinations of specially assessed value of forestland under ORS 321.201
to 321.222 to any member of a forestland value advisory committee the
department has convened under ORS 321.213.
     (2) The department also may disclose and
give access to information described in ORS 321.682 to:
     (a) The Commissioner of Internal Revenue
or authorized representative, for tax purposes only.
     (b) The United States Forest Service,
Bureau of Land Management and the State Forestry Department pursuant to their
regulatory programs and for investigative purposes related to timber theft.
     (c) The Attorney General, assistants and
employees in the Department of Justice or other legal representative of the
State of
     (d) Employees of the State of Oregon,
other than the Department of Revenue or Department of Justice, to the extent
the department considers disclosure or access necessary for such employees to
perform their duties under contracts or agreements between the department and
any other department, agency or subdivision of the State of Oregon in the
departmentÂ’s administration of the tax laws.
     (e) The Legislative Revenue Officer or the
authorized representative of the Legislative Revenue Officer upon compliance
with ORS 173.850. The officer or representative may not remove from the
premises of the department any materials that would reveal the identity of any
taxpayer or any other person or the volume of harvest and value reported on
individual returns and reports.
     (f) Any agency of the State of Oregon, or
any person, or any officer or employee of the agency or person to whom
disclosure or access is given by state law and not otherwise referred to in
this section, including but not limited to the Secretary of State as Auditor of
Public Accounts under section 2, Article VI of the Constitution of the State of
Oregon.
     (3) Each officer or employee of the
department and each person described or referred to in subsection (2)(b) to (f)
of this section to whom disclosure or access to the tax information is given
under subsection (2) of this section or any other provision of state law, prior
to beginning employment or the performance of duties involving such disclosure
or access, shall be advised in writing of the provisions of ORS 321.682 and
321.686 relating to penalties for the violation of ORS 321.682, and shall, as a
condition of employment or performance of duties, execute a certificate for the
department, in a form prescribed by the department, stating in substance that
the person has read these provisions of law, that the person has had them
explained and that the person is aware of the penalties for the violation of
ORS 321.682. [1989 c.1083 §19; 1991 c.949 §24; 1993 c.653 §22; 1995 c.225 §1;
1999 c.1078 §81; 2001 c.860 §27; 2003 c.423 §8; 2003 c.454 §61; 2003 c.621 §46;
2005 c.94 §105]
     321.686
Penalty for violation of ORS 321.682. Violation of ORS 321.682 is subject to a fine not exceeding $5,000 or,
if committed by an officer or employee of the state, dismissal or removal from
office or employment, or both fine and dismissal or removal from office or
employment. [1989 c.1083 §20; 2005 c.94 §106]
SMALL TRACT
FORESTLAND PROGRAM
     321.700
Definitions for ORS 321.700 to 321.754. As used in ORS 321.700 to 321.754:
     (1) “Common ownership” means direct
ownership by one or more individuals or ownership by a corporation,
partnership, association or other entity in which an individual owns a majority
interest.
     (2) “Contiguous” means having a common
boundary that is greater than a single point.
     (3) “Contiguous parcels”:
     (a) Includes parcels separated by public
or county roads, state highways, nonnavigable streams or nonnavigable rivers.
     (b) Does not include parcels that are
separated by an interstate highway, a navigable stream or a navigable river,
unless there is an underpass, a bridge or another direct access between the
separated parcels.
     (4) “Department” means the Department of
Revenue.
     (5) “Eastern Oregon” means that portion of
the State of Oregon lying east of a line beginning at the intersection of the
northern boundary of the state and the western boundary of Wasco County, thence
southerly along the western boundaries of the counties of Wasco, Jefferson,
Deschutes and Klamath to the southern boundary of the state.
     (6) “Forestland” means land that meets the
definition of forestland under ORS 321.257 if the land is located in western
     (7) “Harvest” means the point at which
timber that has been cut, severed or removed for purposes of sale or use is
first measured in the ordinary course of business as determined by reference to
common practice in the timber industry.
     (8) “Land class” means a forestland land
class described in ORS 321.210 or eastern
     (9) “Owner of timber” has the meaning
given that term in ORS 321.005.
     (10) “Parcel” means a quantity of land
that is capable of being described in a single description by a closed
traverse, as one or more subsections or sections of a township, as one or more
lots, blocks or tracts in a subdivision or as one or more tax lots.
     (11) “Small tract forestland” means
forestland subject to assessment under ORS 321.700 to 321.754 and from which
the harvesting of timber is subject to severance taxation under ORS 321.700 to
321.754.
     (12) “Taxpayer” means the owner of timber
at time of harvest.
     (13) “Timber” includes logs that are
capable of being measured in board feet and that meet or exceed minimum sawmill
grade and other forest products determined by the Department of Revenue by
rule.
     (14) “Unit of proper measurement” means
any unit of measurement commonly used in the timber industry for measuring
timber and harvested timber products.
     (15) “Western Oregon” means that portion
of the State of Oregon lying west of a line beginning at the intersection of
the northern boundary of the state and the western boundary of Wasco County,
thence southerly along the western boundaries of the counties of Wasco,
Jefferson, Deschutes and Klamath to the southern boundary of the state. [2003
c.454 §1]
     321.703
Legislative findings and declarations. (1) The Legislative Assembly finds that:
     (a)
     (b) Healthy productive forests provide a
sustainable flow of goods, services, values and products.
     (c) Private family and nonindustrial
forestlands are important parts of the forest resource base of this state.
Private family and nonindustrial forestlands make major contributions to the
economy of this state and provide many other social and environmental benefits.
     (d) Because of the wide array of
management goals and objectives that apply to private family and nonindustrial
forestlands, these forestlands provide a great range of valuable forest
diversity across the landscape of this state.
     (e) Many lower gradient streams, which are
key components of numerous watersheds and are extremely important for some
aquatic species, flow through private family and nonindustrial forestlands.
     (f) The interests of this state, its
citizens and future citizens are best served by sustainable forest practices
and taxing policies that encourage maintaining and establishing diverse forest
resources for watersheds, commerce, recreation and stabilized employment
levels. These practices and policies prevent shifts in population and encourage
the processing of forest products within
     (g) Timber on private land that is managed
on a sustainable basis should be treated as a crop and not taxed as real
property.
     (h) A tax imposed at the time of harvest
coincides with the cash flow of small timber operations and recognizes the
hazards and uncertainties involved in growing a long-term timber crop on a
sustainable basis.
     (2) The Legislative Assembly declares the
purposes of the small tract forestland tax option program established under ORS
321.700 to 321.754 are to:
     (a) Impose property taxes on forestland
values that are annually determined and adjusted as described in ORS 321.201 to
321.222 and then specially assessed; and
     (b) Impose a severance tax on the
harvesting of timber from small tract forestland in order to:
     (A) Recognize the long-term nature of the
forest crop and foster the public policy of this state to encourage the growing
and harvesting of timber;
     (B) Protect the public welfare by ensuring
that the citizens of this state and future generations will have the benefits
to be derived from the continuous production of forest products from privately
held small tract forestland;
     (C) Promote the public policy of this
state to encourage forestry and the restocking of forestlands in order to
provide present and future benefits, including but not limited to water supply
enhancement, erosion prevention, wildlife habitat, scenic and recreational
opportunities and needed forest products;
     (D) Produce revenues for local taxing
districts;
     (E) Match the incidence of taxation with
the realization of the economic benefits of harvest; and
     (F) Encourage the establishment of new
forests on denuded, nonstocked or underproducing forestland. [2003 c.454 §2]
     321.705 [1961 c.714 §1; 1977 c.892 §41; 1977 c.893 §1a;
1979 c.553 §1; 1997 c.586 §3; repealed by 2003 c.454 §81 and 2003 c.621 §49]
     321.706
Application for small tract forestland qualification; contents; filing deadlines;
review; appeal. (1) An owner
of forestland seeking to have the forestland qualified under ORS 321.700 to
321.754 shall apply to the county assessor of the county in which the
forestland is located for qualification of the forestland as small tract
forestland. If the forestland to be qualified is located in more than one
county, the owner shall apply for qualification to the county assessor of each
county in which the forestland is located.
     (2) An application shall be made on a form
prescribed by the Department of Revenue and supplied by the county assessor
that contains:
     (a) The name and address of the forestland
owner;
     (b) The taxpayer identification number of
the forestland owner;
     (c) A statement listing the county and
containing a description sufficient to identify the location of all land for
which small tract forestland qualification is sought;
     (d) A statement describing the uses of the
land for which qualification as small tract forestland is sought;
     (e) A statement indicating the extent to
which the land that has been the subject of the application has been platted
under ORS chapter 92;
     (f) The total acreage of
     (g) A statement that the applicant is
aware of the potential tax liability that arises under ORS 308A.707 upon
disqualification of small tract forestland;
     (h) An affirmation that the statements
contained in the application are true; and
     (i) Any other relevant information the
department may prescribe.
     (3) The applicant shall file the
application with the county assessor on or before the later of:
     (a) April 1 of the first assessment year
for which the forestland is to be qualified as small tract forestland;
     (b) In the case of land that is omitted
property, within 30 days of the notice of assessment of the property as omitted
property; or
     (c) December 15 of the first assessment
year for which the forestland is to be qualified as small tract forestland if:
     (A) For the prior assessment year the land
was highest and best use forestland; and
     (B) For the current assessment year the
land is being assessed at a value reflecting a use other than highest and best
use forestland.
     (4) The county assessor shall review an
application and qualify the forestland under ORS 321.700 to 321.754 if the land
meets the qualifications for small tract forestland under ORS 321.709.
     (5) Land that qualifies as small tract
forestland is also disqualified from any other special assessment program as of
the tax year for which the land first qualifies as small tract forestland.
     (6) An application shall be deemed
approved unless, within three months of the date the application was made or
before August 15 of the year in which the application was filed, whichever is
later, the county assessor notifies the applicant in writing that the
application has been wholly or partially denied.
     (7) A taxpayer may appeal the decision of
the county assessor to wholly or partially deny an application for small tract
forestland qualification to the tax court in the time and manner prescribed
under ORS 305.404 to 305.560.
     (8) In the case of property that qualifies
as small tract forestland, the county assessor shall send to the department a
written notification of the qualification and a copy of the application. [2003
c.454 §3; 2005 c.400 §5]
     321.709
Small tract forestland qualification requirements. (1) To qualify for small tract forestland
assessment under ORS 321.700 to 321.754 for each tax year:
     (a) The owner of the land that is the
subject of an application filed under ORS 321.706 must own or hold common
ownership interest in at least 10 acres of Oregon forestland but less than
5,000 acres of Oregon forestland;
     (b) The land that is the subject of the
application must constitute all forestland within a single tax lot and all
forestland within contiguous parcels owned or held in common ownership by the
owner; and
     (c) The forestland that is the subject of
the application must meet minimal stocking and species requirements applicable
to forestland under rules adopted by the Department of Revenue.
     (2)(a) Whether land qualifies for small
tract forestland assessment shall be determined as of January 1 of each
assessment year.
     (b) If land qualified for small tract
forestland assessment under this section as of January 1 of an assessment year
but is disqualified from small tract forestland assessment prior to July 1 of
the same assessment year, the land shall be assessed as provided under ORS
308.146 or as otherwise provided by law.
     (c) If land qualified for small tract
forestland assessment under this section as of January 1 of an assessment year
but ceases to meet the qualifications for small tract forestland assessment on
or after July 1, the land shall continue to be assessed as small tract
forestland for the current tax year.
     (d) The land that is the subject of the
application must not have been disqualified from small tract forestland
assessment under ORS 321.700 to 321.754 for any of the five tax years preceding
the year for which small tract forestland assessment is sought under this
section.
     (3) For each year that land qualifies for
small tract forestland assessment, the county assessor shall enter the notation
“potential additional tax liability” on the assessment and tax roll. [2003
c.454 §4]
     321.710 [1961 c.714 §2; repealed by 2003 c.454 §81
and 2003 c.621 §49]
     321.712
Circumstances under which notification is required; disqualification for
failure to notify. (1) An
owner of small tract forestland shall notify the county assessor:
     (a) When the owner acquires, either
directly or through common ownership, one or more tax lots that are contiguous
to small tract forestland owned or held in common ownership by the owner;
     (b) When the owner acquires, either
directly or through common ownership, additional forestland that results in the
ownerÂ’s owning or holding in common ownership more than 5,000 acres of Oregon
forestland;
     (c) When the owner sells, either directly
or through common ownership, small tract forestland that results in the ownerÂ’s
owning or holding in common ownership less than 10 acres of Oregon forestland;
or
     (d) When there is a change in use of any
portion of small tract forestland to a use that is not a forestland use.
     (2) The notification under subsection (1)
of this section must be made in writing.
     (3) The county assessor may disqualify
small tract forestland if the assessor discovers an acquisition, sale or change
in use described in subsection (1) of this section for which the owner did not
give written notification as required under this section.
     (4) The county assessor shall send a copy
of any notification made under this section and received by the assessor to the
Department of Revenue. [2003 c.454 §5]
     321.715 [1961 c.714 §9; 1975 c.617 §3; 1997 c.541 §400;
repealed by 2003 c.454 §81 and 2003 c.621 §49]
     321.716
Disqualification; requalification under certain circumstances; notice;
automatic qualification as forestland. (1) The county assessor shall disqualify land as small tract
forestland upon:
     (a)
     (b) Discovery by the assessor that the
land is no longer forestland;
     (c) The owner’s owning or holding in
common ownership more than 5,000 acres of
     (d) The owner’s owning or holding in
common ownership less than 10 acres of
     (e) Written notice from the State Forestry
Department that the land no longer meets the stocking and species requirements
applicable to small tract forestland under rules adopted by the Department of
Revenue;
     (f) The land’s qualifying for another
special assessment listed in ORS 308A.706 (1)(d)(A), (B), (F) or (G); or
     (g) The recording of a subdivision plat
under ORS chapter 92 that subdivides the land.
     (2) If, pursuant to subsection (1)(g) of
this section, the county assessor disqualifies small tract forestland upon the
recording of a subdivision plat, the land may requalify for small tract
forestland assessment upon:
     (a) Payment of all additional tax and
interest that remains due and owing as a result of the disqualification;
     (b) Submission of an application for small
tract forestland assessment under ORS 321.706 and approval of the application
by the county assessor; and
     (c) Compliance with any applicable local
government zoning ordinances governing minimum lot or parcel acreage for forest
use.
     (3)(a) If a sale or transfer of small
tract forestland is the basis for disqualification under subsection (1)(a) of
this section, the land may not be disqualified until 30 days after the county
assessor issues a notice of intent to disqualify to the purchaser or transferee
of the small tract forestland. The assessor shall issue a notice of intent to
disqualify within 15 months after the date of the sale or transfer.
     (b) The land shall automatically qualify
for special assessment under ORS 321.257 to 321.390 or 321.805 to 321.855,
whichever is applicable, unless the assessor determines that the land does not
constitute forestland.
     (4) Upon disqualification of land under
subsection (1) of this section, additional taxes shall be determined as
provided in ORS 308A.700 to 308A.733. [2003 c.454 §6; 2005 c.400 §1; 2007 c.809
§20]
     Note: Section 21, chapter 809, Oregon Laws 2007,
provides:
     Sec.
21. Sections 2 to 7 of this
2007 Act [308A.450 to 308A.465] and the amendments to ORS 215.236, 271.785,
308A.253, 308A.318, 308A.703, 308A.706, 308A.707, 308A.712, 308A.718, 308A.724,
308A.733, 308A.743 and 321.716 by sections 8 to 20 of this 2007 Act apply to
tax years beginning on or after July 1, 2008. [2007 c.809 §21]
     321.719
Continued qualification as small tract forestland following sale or transfer;
requirements; late filing procedure and fee. (1) Notwithstanding ORS 321.716 (1)(a), if the sale or transfer of
small tract forestland is to a person who, following the date of the sale or
transfer, does not own or hold in common ownership less than 10 acres or 5,000
acres or more of forestland in Oregon, the sold or transferred forestland may
remain small tract forestland, if:
     (a) Within 30 days after the date the
county assessor issues the notice of intent to disqualify under ORS 321.716,
the purchaser or transferee has applied for continued qualification of the
small tract forestland;
     (b) The purchaser or transferee is
otherwise eligible to be an owner of small tract forestland under ORS 321.700
to 321.754; and
     (c) Any forestland owned or held in common
ownership by the purchaser or transferee that is a contiguous parcel to the
purchased or transferred forestland is:
     (A) Qualified as small tract forestland or
is the subject of an application for qualification under ORS 321.706; or
     (B) Included as part of the application
for continued qualification filed under this section, and the additional
information required in an application for qualification of small tract
forestland under ORS 321.706 is included in the application for continued
qualification filed under this section.
     (2)(a) A purchaser or transferee described
in subsection (1) of this section shall apply for continued qualification to
the county assessor of the county in which the forestland that is the subject
of the sale or transfer is located. If the forestland is located in more than
one county, the purchaser or transferee shall apply for continued qualification
to the county assessor of each county in which the forestland is located.
     (b) The application shall be on a form
prescribed by the Department of Revenue and supplied by the county assessor
that contains:
     (A) The name and address of the seller or
transferor of the small tract forestland;
     (B) The name, address and taxpayer
identification number of the purchaser or transferee of the small tract
forestland;
     (C) A statement listing the county and
containing a description sufficient to identify the location of the small tract
forestland being purchased or transferred;
     (D) A statement listing the county and
containing a description sufficient to identify the location of all parcels of
land owned or held in common ownership by the purchaser or transferee that are
contiguous to the small tract forestland that is being purchased or
transferred;
     (E) The total acreage of
     (F) A statement that the applicant is
aware of the potential tax liability that arises under ORS 308A.707;
     (G) An affirmation that the statements
contained in the application are true; and
     (H) Any other relevant information the
department may prescribe.
     (3) The assessor shall review the
application and grant the continued qualification of the land as small tract
forestland following the sale or transfer if the purchaser or transferee
satisfies the requirements of subsection (1) of this section.
     (4)(a) If the application for continued
qualification is filed prior to July 1 of the assessment year, the assessor
shall process the application for continued qualification for the tax year
beginning that July 1.
     (b) If the notice of intent to disqualify
is issued on or after June 1 of the assessment year, the assessor may not
disqualify the land as small tract forestland for the tax year beginning July
1, and shall process the application for continued qualification for the tax
year beginning the next succeeding July 1.
     (c) An application for continued
qualification shall be deemed approved unless, within three months of the date
the application was made or before August 15 of the year in which the
application was filed, whichever is later, the county assessor notifies the
purchaser or transferee in writing that the application has been wholly or
partially denied.
     (5) A purchaser or transferee may appeal
the decision of the county assessor to wholly or partially deny an application
for continued qualification to the tax court in the time and manner prescribed
under ORS 305.404 to 305.560.
     (6) In the case of an application for
continued qualification that is approved by the county assessor, the assessor
shall send a written notification of the approval and a copy of the application
to the department.
     (7) For purposes of computing additional
taxes under ORS 308A.707, upon a subsequent disqualification of small tract
forestland that is granted continued qualification under this section, the small
tract forestland is considered to have been subject to small tract forestland
assessment without interruption from the period before the sale or transfer to
the date of subsequent disqualification from small tract forestland assessment.
     (8) Notwithstanding subsection (1) of this
section, a purchaser or transferee of small tract forestland may file an
application for continued qualification of the small tract forestland after the
date prescribed in subsection (1) of this section if:
     (a) The application is filed on or before
December 15 of the first tax year for which the forestland would otherwise be
disqualified from small tract forestland assessment; and
     (b) The applicant pays a $200 late filing
fee at the time the application is filed. [2003 c.621 §109; 2005 c.400 §2]
     321.720 [1961 c.714 §3; 1969 c.326 §5; 1975 c.617 §1;
1977 c.892 §42; 1977 c.893 §3; 1979 c.787 §1; 1985 c.157 §2; 1991 c.459 §307;
1997 c.541 §397; 1997 c.586 §4; 2001 c.816 §5; 2001 c.860 §6; repealed by 2003
c.454 §81 and 2003 c.621 §49]
     321.721 [1975 c.617 §2; repealed by 1991 c.459 §321]
     321.722
Valuation. (1) Small tract
forestland shall have a specially assessed value per acre:
     (a) Equal to 20 percent of the specially
assessed value per acre determined under ORS 321.354, if located in western
     (b) Equal to 20 percent of the specially
assessed value per acre determined under ORS 321.833, if located in eastern
     (2) For each land class, the maximum
assessed value per acre of small tract forestland shall equal 103 percent of
the small tract forestland assessed value per acre for the preceding tax year
or 100 percent of the small tract forestland maximum assessed value per acre
for the preceding tax year, whichever is greater.
     (3) The county assessor shall compute the
assessed value of small tract forestland by multiplying the acreage of the
small tract forestland in each land class by the lesser of:
     (a) The specially assessed value per acre;
or
     (b) The maximum assessed value per acre.
     (4) If the small tract forestland being
assessed consists of different land classes, the assessed value of the small
tract forestland shall be the sum of the assessed values computed for each land
class under subsection (3) of this section. [2003 c.454 §7]
     321.725 [1961 c.714 §4; 1969 c.326 §1; 1971 c.684 §1;
1975 c.617 §6; 1977 c.893 §6; 1979 c.553 §2; 1983 c.745 §1; 1997 c.586 §5;
repealed by 2003 c.454 §81 and 2003 c.621 §49]
     321.726
Severance tax upon harvest from small tract forestland. (1) A severance tax is imposed at the time
of the harvest of timber from small tract forestland.
     (2) The tax is imposed on the owner of
timber at the time of harvest, and remains a liability of the owner of timber
until paid.
     (3) The tax is imposed at the rate of:
     (a) $3.89 per thousand feet, board
measure, of timber harvested in western
     (b) $3.03 per thousand feet, board
measure, of timber harvested in eastern
     (4) The tax shall be imposed on the net
volume of timber harvested, determined by unit of proper measurement for the
kind of timber, species, quality class, grade or product harvested.
     (5) For calendar years beginning on or
after January 1, 2005, the tax rates imposed under subsection (3) of this
section shall be indexed as follows:
     (a) For the rate that applies to the
harvest of timber from small tract forestland in western Oregon, the tax rate
applicable to the harvest of timber from small tract forestland in western
Oregon for the previous calendar year shall be multiplied by the ratio of the
average assessed value per acre of small tract forestland in western Oregon for
the property tax year in which the current calendar year begins over the
average assessed value per acre of small tract forestland in western Oregon for
the previous property tax year. For purposes of this paragraph, the average
assessed value per acre of small tract forestland in western
     (b) For the rate that applies to the
harvest of timber from small tract forestland in eastern Oregon, the tax rate
applicable to the harvest of timber from small tract forestland in eastern
Oregon for the previous calendar year shall be multiplied by the ratio of the
assessed value per acre of small tract forestland in eastern Oregon for the
property tax year in which the current calendar year begins over the assessed
value per acre of small tract forestland in eastern Oregon for the previous
property tax year.
     (6) The tax imposed under this section
does not apply to an owner of forestland totaling 5,000 acres or more that, on
or after July 1 of an assessment year, acquires ownership of small tract
forestland and harvests timber from the acquired small tract forestland. [2003
c.454 §9]
     321.727 [1977 c.893 §8; 1997 c.586 §6; repealed by
2003 c.454 §81 and 2003 c.621 §49]
     321.730 [1961 c.714 §§6,14; 1967 c.619 §1; 1969
c.326 §2; 1971 c.684 §2; 1977 c.893 §9; 1979 c.553 §3; 1985 c.157 §3; 1991
c.459 §308; 1991 c.854 §1; 1997 c.541 §402; repealed by 2003 c.454 §81 and 2003
c.621 §49]
     321.731 [1991 c.854 §2; repealed by 2001 c.114 §47]
     321.732 [1977 c.893 §12; 1979 c.553 §4; 1991 c.854 §3;
repealed by 2003 c.454 §81 and 2003 c.621 §49]
     321.733
Severance tax returns. (1)
The Department of Revenue shall mail a severance tax return form to an owner of
timber harvested from lands assessed as small tract forestland, as shown on a
State Forestry Department Notification of Operations permit issued during a
calendar year.
     (2) Any owner of timber receiving a
severance tax return mailed by the Department of Revenue shall complete the
return and submit the return to the department within the time prescribed in
ORS 321.741, even if the owner of timber has not incurred severance tax
liability during the calendar year. [2003 c.454 §11]
     321.735 [1961 c.714 §5; 1963 c.582 §1; 1965 c.371 §1;
1967 c.619 §2; 1969 c.326 §3; repealed by 1979 c.553 §11]
     321.737 [1979 c.553 §4b; repealed by 2003 c.454 §81
and 2003 c.621 §49]
     321.740 [1961 c.714 §7; 1967 c.34 §3; repealed by
1991 c.854 §5]
     321.741
Due dates for severance tax return and payment. (1) The severance tax imposed under ORS
321.726 is due and payable annually on or before the last day of January of
each year with respect to all timber harvested during the previous calendar
year.
     (2) At the time at which the severance tax
is paid and on or before the last day of January of each year, each taxpayer
who has harvested any timber during the previous calendar year shall prepare a
return on a form prescribed by the Department of Revenue showing the amounts
and kinds of timber harvested for the previous calendar year, the amount of tax
for which the taxpayer is liable for harvesting during the previous calendar
year and any other information that the department considers necessary to
correctly determine the tax due and shall mail or deliver the return, together
with a remittance for the unpaid balance of the tax, to the department. The
return shall be signed and certified by the taxpayer or a duly authorized agent
of the taxpayer, as provided in ORS 305.810. The department may allow, upon
written application made on or before the last day of January, further time not
exceeding 30 days for filing a return. The tax shall be delinquent if not paid
by the last day of January, regardless of any extension of time for filing the
return.
     (3) All severance tax payments received
under ORS 321.700 to 321.754 shall be credited first to penalty and then to
interest accrued on the tax being paid and then to the tax.
     (4) A taxpayer incurring less than $10
total severance tax liability under ORS 321.700 to 321.754 in any calendar year
is excused from the payment of the tax but is required to file a return. [2003
c.454 §10]
     321.745 [1961 c.714 §8; repealed by 2003 c.454 §81
and 2003 c.621 §49]
     321.746
Severance tax revenues. (1)
Revenue from the severance tax imposed in western
     (2) Revenue from the severance tax imposed
in eastern
     321.747 [1983 c.745 §4; 1991 c.459 §310; 1997 c.541 §397a;
1997 c.586 §7; repealed by 2003 c.454 §81 and 2003 c.621 §49]
     321.750 [1961 c.714 §11; 1963 c.582 §2; 1965 c.371 §2;
1971 c.684 §3; 1977 c.892 §43; repealed by 1979 c.553 §11]
     321.751
Western
     (2) Moneys are continuously appropriated
from the Western Oregon Timber Severance Tax Fund for use in reimbursing the
General Fund for expenses incurred in the collection of taxes imposed under ORS
321.700 to 321.754.
     (3) A working balance may be retained in
the Western Oregon Timber Severance Tax Fund for the payment of expenses
described in subsection (2) of this section. The balance of the Western Oregon
Timber Severance Tax Fund, as of May 1 of each calendar year, shall be
distributed as follows:
     (a) 60.5 percent to the State School Fund
established under ORS 327.008. A distribution made under this paragraph shall
be made on or before May 15 of the year.
     (b) 4.5 percent to the Community College
Support Fund established under ORS 341.620. A distribution made under this
paragraph shall be made on or before May 15 of the year.
     (c) 35 percent to the Department of
Revenue for further distribution to the counties of this state that are located
in western
     321.754
Eastern
     (2) Moneys are continuously appropriated
from the Eastern Oregon Timber Severance Tax Fund for use in reimbursing the
General Fund for expenses incurred in the collection of taxes imposed under ORS
321.700 to 321.754.
     (3) A working balance may be retained in
the Eastern Oregon Timber Severance Tax Fund for the payment of expenses
described in subsection (2) of this section. The balance of the Eastern Oregon
Timber Severance Tax Fund, as of May 1 of each calendar year, shall be
distributed as follows:
     (a) 60.5 percent to the State School Fund
established under ORS 327.008. A distribution made under this paragraph shall
be made on or before May 15 of the year.
     (b) 4.5 percent to the Community College
Support Fund established under ORS 341.620. A distribution made under this
paragraph shall be made on or before May 15 of the year.
     (c) 35 percent to the Department of
Revenue for further distribution to the counties of this state that are located
in eastern
     Note: Sections 17 and 18, chapter 454, Oregon Laws
2003, provide:
     Sec.
17. (1) The Department of
Revenue shall study the taxation of timber harvested from small tract
forestland for the period January 1, 2004, through December 31, 2008, and the
indexing of severance tax rates during that period to ensure that the indexed
severance tax rates accurately reflect the proportion of each forestland land
class that is qualified as small tract forestland.
     (2) The department shall report the
results of its study to those committees of the Seventy-fifth Legislative
Assembly having jurisdiction over revenue and tax matters. The report must be
made on or before February 1, 2009. [2003 c.454 §17]
     Sec.
18. (1) The Department of
Revenue shall take appropriate action to inform owners of
     (2) This section is repealed June 30,
2008. [2003 c.454 §18]
     321.755 [1961 c.714 §12; 1963 c.576 §40; repealed by
1979 c.553 §11]
     321.760 [1961 c.714 §10; 1969 c.326 §4; 1971 c.684 §4;
1975 c.617 §7; 1977 c.892 §44; 1977 c.893 §10a; 1979 c.350 §16; 1979 c.553 §5a;
1981 c.419 §8; 1981 c.791 §11; 1983 c.745 §2; 1985 c.157 §1; 1991 c.459 §311;
1991 c.854 §4; 1993 c.801 §42; 1995 c.79 §177; 1997 c.586 §8; 1999 c.314 §69;
repealed by 2003 c.454 §81 and 2003 c.621 §49]
     321.761 [1991 c.459 §311b; repealed by 1991 c.459 §311b(2)]
     321.763 [2001 c.816 §7; 2003 c.454 §80; 2003 c.621 §48a;
repealed by 2003 c.454 §83 and 2003 c.621 §51]
     321.765 [1961 c.714 §13; 1965 c.6 §15; 1977 c.870 §60;
1977 c.893 §13a; 1979 c.553 §6; 1991 c.459 §312; 1997 c.541 §401; repealed by
2003 c.454 §81 and 2003 c.621 §49]
     321.770 [1975 c.617 §5; repealed by 1977 c.893 §19]
     321.795 [1983 c.543 §1; 1991 c.459 §313; 1999 c.314 §42;
renumbered 308A.727 in 1999]
SPECIAL
ASSESSMENT OF
     321.805
Definitions for ORS 321.805 to 321.855. As used in ORS 321.805 to 321.855, unless the context requires
otherwise:
     (1) “Cultured Christmas trees” means
trees:
     (a) Grown on lands used exclusively for
that purpose, capable of preparation by intensive cultivation methods such as
plowing or turning over the soil;
     (b) Of a marketable species;
     (c) Managed to produce trees meeting U.S.
No. 2 or better standards for Christmas trees as specified by the Agriculture
Marketing Services of the United States Department of Agriculture; and
     (d) Evidencing periodic maintenance
practices of shearing for Douglas fir and pine species, weed and brush control,
and basal pruning, fertilizing, insect and disease control, stump culture, soil
cultivation or irrigation.
     (2) “Department” means the Department of
Revenue.
     (3) “Eastern Oregon” means that portion of
the state lying east of a line beginning at the intersection of the northern
boundary of the State of Oregon and the western boundary of Wasco County,
thence south along the western boundaries of the counties of Wasco, Jefferson,
Deschutes and Klamath to the southern boundary of the State of Oregon.
     (4) “Forestland” means land in eastern
     (5) “State Forester” means the State
Forester or the authorized representative of the State Forester.
     (6) “Summit of the Cascade Mountains”
means a line beginning at the intersection of the northern boundary of the
State of Oregon and the western boundary of Wasco County, thence southerly
along the western boundaries of the counties of Wasco, Jefferson, Deschutes and
Klamath to the southern boundary of the State of Oregon.
     (7) “Timber” means all logs which can be
measured in board feet and other forest products as determined by department
rule, but does not include western juniper or products from harvested western
juniper. [1971 c.654 §2; 1977 c.892 §46; 1983 c.539 §4; 1995 c.79 §178; 1997
c.154 §53; 1999 c.314 §55; 1999 c.1078 §45; 2003 c.621 §53]
     321.808
Purposes. The purposes of
ORS 321.805 to 321.855 are:
     (1) To impose with respect to forestland
in eastern
     (2) To establish a special assessment
program as a means of:
     (a) Recognizing the findings in ORS
321.817 without discriminating in favor of either eastern or western
     (b) Recognizing the long-term nature of
the forest crop and fostering the public policy of
     (c) Protecting the public welfare by
assuring that the citizens of the state and future generations shall have the
benefits to be derived from the continuous production of forest products from
private forestland.
     (d) Promoting the state’s policy of
encouraging forestry and the restocking of forestland to provide present and
future benefits by enhancing the water supply, preventing erosion, providing
habitat for wildlife, providing scenic and recreational opportunities and
providing for needed products. [Formerly 321.408]
     321.810 [1971 c.654 §3; 1981 c.337 §1; 1985 c.759 §31;
1991 c.459 §314; 1993 c.270 §66; 1993 c.653 §19; 1993 c.801 §35; 1995 c.650 §97;
1999 c.21 §56; 1999 c.314 §70; repealed by 2003 c.621 §63]
     321.811 [1993 c.801 §§33a,34; 1997 c.541 §404; 1999
c.21 §57; 1999 c.314 §71; 1999 c.1078 §46; 2001 c.816 §8; 2001 c.860 §7; 2003
c.454 §74; repealed by 2003 c.621 §63]
     321.812 [1999 c.1078 §35; 1999 c.1078 §40; 2001
c.860 §8; 2003 c.454 §75; renumbered 321.833 in 2003]
     321.814 [1999 c.1078 §42; 2001 c.816 §9; 2001 c.860 §11;
2003 c.454 §79; 2003 c.621 §58; renumbered 321.836 in 2003]
     321.815 [1971 c.654 §4; 1977 c.884 §24; 1981 c.804 §94;
1983 c.462 §9; 1983 c.657 §1; 1991 c.459 §315; 1993 c.801 §35a; 1997 c.541 §§408,408a;
1999 c.314 §93; 1999 c.1078 §76; 2003 c.621 §59; renumbered 321.839 in 2003]
     321.816 [1999 c.1078 §43; repealed by 2003 c.621 §63]
     321.817
Legislative findings. It is hereby
found that:
     (1) Multiple taxation through a yearly ad
valorem levy on both trees and forestland managed in sustained yield timber
operations discourages conservation, private ownership and investment of
capital.
     (2) The interests of the state, its
citizens and future citizens are best served by sustained yield practices and
tax policies that encourage production of forest resources for commerce,
recreation and watersheds, stabilize employment levels, prevent large
population shifts and encourage millage of timber products within
     (3) Timber on private lands managed on a
sustained yield basis should be treated as a crop and not taxed as real
property.
     (4) That portion of our state lying east
of the summit of the Cascade Mountains differs greatly in forest tree types,
soils, climate, growing conditions and topography from western
     (5) Eastern
     321.820 [1971 c.654 §5; 1973 c.296 §1; 1977 c.870 §53;
1977 c.893 §21a; 1983 c.462 §10; 1983 c.563 §5; 1987 c.158 §54; 1991 c.459 §316;
1995 c.650 §98; 1999 c.314 §53; renumbered 321.842 in 2003]
     321.821 [1991 c.459 §316b; repealed by 1991 c.459 §316b(2)]
     321.822 [1993 c.5 §6; 1999 c.314 §54; renumbered
321.845 in 2003]
     321.823 [1983 c.462 §12; repealed by 2003 c.621 §63]
     321.824
Lands not eligible for special assessment. (1) Lands assessed by the Department of Revenue pursuant to ORS
308.505 to 308.665 or 308.805 to 308.820 may not be assessed under ORS 321.805
to 321.855.
     (2) Land used exclusively for growing
cultured Christmas trees may not be assessed under ORS 321.805 to 321.855.
     (3) Land that is used to grow hardwood timber,
including but not limited to hybrid cottonwood, may not be assessed under ORS
321.805 to 321.855 if:
     (a) The land is prepared using intensive
cultivation methods and is cleared of competing vegetation for at least three
years after tree planting;
     (b) The timber is of a species marketable
as fiber for inclusion in the furnish for manufacturing paper products;
     (c) The timber is harvested on a rotation
cycle within 12 years after planting; and
     (d) The land and timber are subject to
intensive agricultural practices such as fertilization, insect and disease
control, cultivation and irrigation.
     (4) Nothing contained in ORS 321.805 to
321.855 shall prevent:
     (a) The collection of ad valorem property
taxes that became a lien against timber prior to July 1, 1962.
     (b) The collection of taxes, charges or
assessments made pursuant to law for protection.
     (c) The collection of taxes levied under
the provisions of ORS 321.005 to 321.185 and 321.560 to 321.600. [Formerly
321.415; 2005 c.94 §107]
     321.825 [1971 c.654 §6; 1977 c.893 §24; 1979 c.350 §17;
1981 c.791 §6; 1983 c.462 §17; 1991 c.459 §317; 1999 c.314 §85; renumbered
321.848 in 2003]
     321.829
Exemption of timber from property taxation. All timber in eastern
     321.830 [1991 c.714 §8; 1997 c.541 §409; 1999 c.314 §72;
2003 c.621 §60; renumbered 321.855 in 2003]
     321.833
Common ownership minimum acreage requirements; specially assessed value and
maximum assessed value of forestland of large landowners. (1)(a) The Department of Revenue shall
identify the forestland that is held in common ownership of 5,000 acres or more
as of the assessment date for each tax year.
     (b) Forestland that the department has
identified under paragraph (a) of this subsection that, for the previous tax
year, was subject to small tract forestland assessment shall be disqualified
from any small tract forestland assessment and shall be subject to special
assessment as provided in this section as of the first tax year the forestland
is held in common ownership of 5,000 acres or more.
     (c) For purposes of this subsection, “forestland”
includes land that meets the definition of forestland under ORS 321.257.
     (2) Forestland assessed under this section
shall have a specially assessed value per acre equal to the value certified to
the county assessor for the tax year under ORS 321.216.
     (3) Forestland assessed under this section
shall have a maximum assessed value per acre equal to 103 percent of the
forestland assessed value per acre for the preceding tax year or 100 percent of
the forestland maximum assessed value per acre for the preceding tax year,
whichever is greater.
     (4)(a) The assessor shall compute the
assessed value of forestland by multiplying the acreage of the forestland by
the lesser of:
     (A) The specially assessed value per acre;
or
     (B) The maximum assessed value per acre.
     (b) Notwithstanding paragraph (a) of this
subsection, the forestland shall be assessed as provided in ORS 308.232 if the
real market value of the forestland is less than the value established under
paragraph (a) of this subsection.
     (5) For purposes of this section:
     (a) The department shall certify to the
county assessor of a county in which forestland identified in subsection (1) of
this section is located a list of the property tax accounts containing
forestland so identified.
     (b) Forestland shall be considered to be
in common ownership if the forestland is owned by the person directly or is
owned by a corporation, partnership, association or other entity in which the
person owns a majority interest.
     (c) Additional taxes may not be imposed as
a result of a disqualification under subsection (1) of this section.
     (d) The notification requirements and
other procedures that the county assessor must follow in disqualifying
forestland do not apply to a disqualification occurring under subsection (1) of
this section.
     (e) The department shall notify the county
assessor of forestland identified under subsection (1)(a) of this section that is
located in that county. [Formerly 321.812]
     321.836 [Formerly 321.814; repealed by 2003 c.621 §65]
     321.839
Application for forestland designation; special filing date for change in
highest and best use; contents; approval. (1) An owner of land desiring that it be designated as forestland for
purposes of ORS 321.805 to 321.855 shall make application to the county
assessor on or before April 1 of the assessment year for which special
assessment as forestland is first desired, and the owner may also do so within
30 days of receipt of notice of its assessment as omitted property.
     (2) Notwithstanding subsection (1) of this
section, an owner of land may apply to the county assessor by December 15 to
have the land designated as forestland for the assessment year if:
     (a) For the prior assessment year the land
had been forestland by reason of the land being highest and best use
forestland; and
     (b) For the current assessment year the
land is being assessed at a value reflecting a use other than highest and best
use forestland.
     (3) The application shall be made upon
forms prepared by the Department of Revenue and supplied by the county
assessor, and shall include the following:
     (a) A description of all land the
applicant desires to be designated as forestland.
     (b) Date of acquisition.
     (c) Whether the land is being held or used
for the predominant purpose of growing and harvesting trees of marketable
species.
     (d) Whether there is a forest management
plan for it.
     (e) If so, whether the plan is being
implemented, and the nature and extent of implementation.
     (f) Whether the land is being held or used
for the predominant purpose of grazing or raising of livestock.
     (g) Whether the land has been platted
under ORS chapter 92.
     (h) Whether a permit has been granted for
harvesting for excepted purposes under the Oregon Forest Practices Act.
     (i) Whether the land is timberland subject
to ORS chapter 477, and if it is not, the reasons therefor.
     (j) Whether the land, or any of it, is
subject to a lease or option which permits it to be used for any purpose other
than the growing and harvesting of trees.
     (k) A summary of past experience and
activity of the applicant in growing and harvesting trees.
     (L) A summary of current and continuing
activity of the applicant in growing and harvesting trees.
     (m) A statement that the applicant is
aware of the potential tax liability involved when the land ceases to be
designated as forestland.
     (n) An affirmation that the statements
contained in the application are true.
     (4) The county assessor shall approve an
application for forestland designation if the assessor finds that the land is
properly classifiable as forestland. The county assessor shall not find land
properly classifiable as forestland if the application states the land is not
being held or used for the predominant purpose of growing and harvesting trees
of marketable species. Otherwise, the determination whether the land is
properly classifiable as forestland shall be made with due regard to all
relevant evidence and without any one or more items of evidence necessarily
being determinative.
     (5) The application shall be considered to
have been approved unless, within three months of the date such application was
delivered to the assessor or prior to August 15, whichever is later, the
assessor shall notify the applicant in writing of the extent to which the
application is denied. [Formerly 321.815]
     321.842
Removal of forestland designation; appeal; requalification. (1)(a) When land has once been designated as
forestland as a result of an application being filed therefor it shall be
valued as such until the county assessor removes the forestland designation
under paragraph (b) of this subsection.
     (b) The county assessor shall remove the
forestland designation upon:
     (A) Notification by the taxpayer to the
assessor to remove the designation;
     (B)
     (C) Discovery by the assessor that the
land is no longer forestland; or
     (D) The act of recording a subdivision
plat under ORS chapter 92.
     (2) A taxpayer whose application filed
under ORS 321.839 has been denied in whole or in part, or a taxpayer whose
forestland has had the designation thereof removed in whole or in part, may
appeal to the Oregon Tax Court within the time and in the manner provided in
ORS 305.404 to 305.560.
     (3) If, under subsection (1)(b)(D) of this
section, the county assessor removes the forestland designation upon the act of
recording a subdivision plat, the land, or a part of the land, may be
requalified for forestland designation upon:
     (a) Payment of all additional tax and
interest that remains due and owing with respect to the land;
     (b) Submission by the owner of an
application for designation as forestland as provided in this section;
     (c) Meeting all of the qualifications for
designation as forestland as provided in ORS 321.805 to 321.855; and
     (d) Meeting the requirements, if any, of
applicable local government zoning ordinances with regard to minimum lot or
parcel acreage for forest use. [Formerly 321.820]
     321.845
Disqualification of land no longer forestland to occur only if assessor mails
notice before August 15. (1)
Notwithstanding ORS 308.210, 311.405 or 311.410 but subject to subsection (2)
of this section, removal under ORS 321.842 (1)(b)(C) by the county assessor of
land from designation as forestland for the reason that the land is no longer
forestland shall occur as of the January 1 assessment date of the tax year in
which the county assessor discovers that the land is no longer forestland.
     (2) This section shall apply only if
notice of removal is mailed by the county assessor prior to August 15 of the
tax year for which the removal of the land is asserted. [Formerly 321.822]
     321.848
Disqualification. ORS 308A.700
to 308A.733 apply whenever land designated as forestland as a result of an
application being filed therefor under ORS 321.805 to 321.855 thereafter
becomes disqualified. [Formerly 321.825]
     321.855
Land used to grow certain hardwood to be assessed as farm use land; application
required for unzoned land.
(1) Land described in ORS 321.824 (3) (relating to hardwood timberland,
including hybrid cottonwood timberland) shall be assessed as farm use land
under ORS 308A.050 to 308A.128.
     (2)(a) If land is or becomes land
described under ORS 321.824 (3) and the land is not located within an exclusive
farm use zone, the owner shall make application for special valuation in the
manner provided under ORS 308A.077, as follows:
     (A) If the change in use takes place on or
after July 1, the owner shall file the application on or before April 1 of the
following tax year.
     (B) If the change in use takes place prior
to July 1, the owner shall file the application on or before August 1 of the
tax year.
     (b) If an application is filed as provided
under this subsection, the owner shall have seven years beginning with the
first year of classification to meet the income requirements of ORS 308A.071
and need not meet the two-year farm use requirements of ORS 308A.068. [Formerly
321.830]
     321.950 [1979 c.454 §4; 1982 s.s.1 c.16 §16; 1987
c.551 §6; 1991 c.459 §318; 1993 c.653 §§20,20a; 1999 c.1078 §64; repealed by
2003 c.621 §22b]
     321.955 [Formerly 308.309; 1965 c.412 §1; 1971 c.272
§1; 1975 c.636 §2; repealed by 1977 c.892 §51]
     321.960 [1975 c.617 §4; 1977 c.892 §47; 1979 c.553 §7;
1981 c.419 §1; 1981 c.791 §9; 1985 c.607 §3; 1991 c.459 §319; 1993 c.270 §66a;
1997 c.586 §9; repealed by 1999 c.314 §94]
     321.970 [1983 c.773 §4; 1985 c.607 §4; 1989 c.904 §33;
1991 c.459 §320; 1997 c.217 §1; repealed by 1999 c.314 §94]
PENALTY
     321.990 [Repealed by 1953 c.375 §38]
     321.991
Penalty. Violation of any
provision of ORS 321.005 to 321.185 and 321.560 to 321.600 is punishable, upon
conviction, by a fine not exceeding $1,000 or by imprisonment in the county
jail for not exceeding one year, or by both. [1953 c.375 §35; subsections (2)
and (3) formerly 528.990; subsection (4) enacted as 1961 c.659 §9; subsection
(5) enacted as 1961 c.714 §15; subsections (6) and (7) formerly part of 308.990;
1977 c.892 §50; 2003 c.454 §116; 2003 c.621 §101]
_______________
CHAPTER 322
[Reserved for expansion]
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