US Laws, Codes, Statutes & Cases

Chapter 321 — Timber and Forestland Taxation

 

2005 EDITION

 

 

TIMBER AND FORESTLAND TAXATION

 

REVENUE AND TAXATION

 

FOREST PRODUCTS HARVEST TAX

 

321.005     Definitions for ORS 321.005 to 321.185, 321.560 to 321.600 and 477.440 to 477.460

 

321.011     Policy

 

321.012     Public to share cost of suppressing fires caused by public

 

321.015     Levy of privilege tax upon harvest of timber for forest research, fire suppression and administering Oregon Forest Practices Act; exclusion

 

321.017     Levy of additional privilege tax; distribution to Oregon Forest Resources Institute Fund

 

321.035     Determination of moneys available in Oregon Forest Land Protection Fund

 

321.045     Payment of tax; returns; estimated tax; payment

 

321.145     Tax revenue credited to suspense account; refunds

 

321.152     Distribution of tax revenue to Forest Research and Experiment Account, State Forestry Department Account and Oregon Forest Land Protection Fund

 

321.185     Forest Research and Experiment Account; appropriation

 

FORESTLAND VALUATION

 

321.201     Definition of “forestland” for ORS 321.201 to 321.222

 

321.204     Legislative findings and declarations

 

321.207     Valuation models; rules

 

321.210     Proposed specially assessed values; notice; comments; hearing

 

321.213     Forestland value advisory committee

 

321.216     Certified specially assessed values

 

321.219     Appeal of certified specially assessed values; notice; effect of decision modifying values

 

321.222     Jurisdiction of board of property tax appeals

 

SPECIAL ASSESSMENT OF WESTERN OREGON FORESTLAND

 

321.257     Definitions for ORS 321.257 to 321.390

 

321.259     Legislative findings

 

321.262     Purposes

 

321.267     Lands not eligible for special assessment

 

321.272     Exemption of timber from property taxation

 

321.307     Western Oregon Timber Tax Account; distribution to State School Fund, Community College Support Fund and counties; rules

 

321.312     Privilege tax on harvest of timber to be offset against operating taxes

 

321.347     Land designations; classifications; certain election by landowners

 

321.348     Assignment of forestland to land classes; change in class

 

321.349     Valuation of certain forestland at farm use value

 

321.354     Common ownership minimum acreage requirements; specially assessed value and maximum assessed value of forestland of large landowners

 

321.358     Application for designation as forestland; special filing date for change in highest and best use; contents; approval

 

321.359     Removal of designation; appeal from reassessment or denial; requalification

 

321.362     Notation of forestland on tax roll for potential additional tax liability

 

321.366     Date on which removal of forestland designation is effective; notice of removal

 

321.367     Forestland management; effect of failure to manage forestland in accordance with management plan; rules

 

321.390     Land used to grow certain hardwood to be assessed as farm use land; application required for unzoned land

 

PHASEOUT OF EASTERN OREGON PRIVILEGE TAX

 

321.485     Eastern Oregon Timber Tax Account; deposit of tax revenues; refunds; distribution to State School Fund, Community College Support Fund and counties

 

321.487     Privilege tax distribution to offset operating taxes

 

GENERALLY

 

321.550     Notice of intent to harvest; rules; effect of failure to file notice

 

321.560     Audit of returns; interest and penalties upon failure to file return or pay tax

 

321.570     Warrant for collection of delinquent taxes

 

321.580     Effect of failure or refusal to make return

 

321.600     Tax as debt; collection; limitation

 

321.609     Enforcement of certain statutes by department; rules

 

321.682     Confidentiality of reports, returns and appraisal data

 

321.684     Authority of department to make certain disclosures

 

321.686     Penalty for violation of ORS 321.682

 

SMALL TRACT FORESTLAND PROGRAM

 

321.700     Definitions for ORS 321.700 to 321.754

 

321.703     Legislative findings and declarations

 

321.706     Application for small tract forestland qualification; contents; filing deadlines; review; appeal

 

321.709     Small tract forestland qualification requirements

 

321.712     Circumstances under which notification is required; disqualification for failure to notify

 

321.716     Disqualification; requalification under certain circumstances; notice; automatic qualification as forestland

 

321.719     Continued qualification as small tract forestland following sale or transfer; requirements; late filing procedure and fee

 

321.722     Valuation

 

321.726     Severance tax upon harvest from small tract forestland

 

321.733     Severance tax returns

 

321.741     Due dates for severance tax return and payment

 

321.746     Severance tax revenues

 

321.751     Western Oregon Timber Severance Tax Fund; revenue distribution

 

321.754     Eastern Oregon Timber Severance Tax Fund; revenue distribution

 

SPECIAL ASSESSMENT OF EASTERN OREGON FORESTLAND

 

321.805     Definitions for ORS 321.805 to 321.855

 

321.808     Purposes

 

321.817     Legislative findings

 

321.824     Lands not eligible for special assessment

 

321.829     Exemption of timber from property taxation

 

321.833     Common ownership minimum acreage requirements; specially assessed value and maximum assessed value of forestland of large landowners

 

321.839     Application for forestland designation; special filing date for change in highest and best use; contents; approval

 

321.842     Removal of forestland designation; appeal; requalification

 

321.845     Disqualification of land no longer forestland to occur only if assessor mails notice before August 15

 

321.848     Disqualification

 

321.855     Land used to grow certain hardwood to be assessed as farm use land; application required for unzoned land

 

PENALTY

 

321.991     Penalty

 

FOREST PRODUCTS HARVEST TAX

 

      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 United States of America through contract with the State Forester;

      (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 United States of America wherein such agency agrees to protect specific federal forestlands and, in return, the United States of America agrees to protect specific lands of such agency.

      (3) “Department” means the Department of Revenue.

      (4) “Committee” means the Emergency Fire Cost Committee.

      (5) “Forestland” means any land producing forest products.

      (6) “Forest products” means products from harvested timber, but does not include products from short rotation fiber grown under agricultural conditions as described in ORS 321.267 (3) or 321.824 (3), western juniper or products from harvested western juniper.

      (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 Oregon. The Legislative Assembly recognizes that:

      (1) The forested areas situated within eastern Oregon predominate in Ponderosa pine trees and associated species, and that the forested areas situated within western Oregon predominate in Douglas fir and associated species;

      (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 Oregon are established by ORS 321.005 to 321.185 and 321.560 to 321.600. [1957 c.309 §2; 2005 c.94 §100]

 

      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, 2006, and January 1, 2007, there is levied a privilege tax of 67 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 50 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, 2006, and January 1, 2007, 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 55 cents 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 2006 and 2007.

      (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 department’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]

 

      Note: Section 2, chapter 796, Oregon Laws 2005, provides:

      Sec. 2. The amendments to ORS 321.015 by section 1 of this 2005 Act apply to forest products harvest tax reporting periods beginning on or after January 1, 2006. [2005 c.796 §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 year’s increase in the Consumer Price Index (Portland area -- all items) as published by the Bureau of Labor Statistics of the United States Department of Labor for the Portland, Oregon, area.

      (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 Oregon Forest Land Protection Fund. (1) For purposes of determining the moneys available in the Oregon Forest Land Protection Fund described in ORS 477.750 as of February 16, such shall be the balance shown on such date less the total of:

      (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 taxpayer’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 taxpayer’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 Oregon Forest Land Protection Fund. (1) Subject to ORS 321.145 (2), moneys remaining in the Department of Revenue’s suspense account referred to in ORS 321.145 on February 10, May 10, August 10 and November 10 of each year shall be transferred to the various appropriation accounts described in subsections (2), (3) and (4) of this section.

      (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 Oregon and eastern Oregon.

      (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]

 

      Note: Section 29, chapter 860, Oregon Laws 2001, provides:

      Sec. 29. Notwithstanding ORS 321.307 (3) and 321.485 (3), moneys are appropriated continuously from the Western Oregon Timber Tax Account and the Eastern Oregon Timber Tax Account for use in reimbursing the General Fund for amounts appropriated to the Department of Revenue for the purpose of developing forestland valuation models described in section 15 of this 2001 Act [321.207]. [2001 c.860 §29]

 

      Note: Section 29, chapter 860, Oregon Laws 2001, is repealed December 31, 2006. See section 26, chapter 621, Oregon Laws 2003.

 

      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 Oregon shall be for land classes FA, FB, FC, FD, FE, FF, FG and FX. Specially assessed values also shall be proposed under this section and certified under ORS 321.216 for forestland in eastern Oregon.

      (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 Oregon and eastern Oregon.

      (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 Oregon to the county assessors of eastern Oregon and the specially assessed values of forestland in western Oregon to the county assessors of western Oregon.

      (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 WESTERN OREGON FORESTLAND

 

      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 Oregon and may change as the utilization of forest trees changes. The size, age, location, quality and condition of trees do not necessarily determine marketable species. Forestland often contains isolated openings which because of rock outcrops, river wash, swamps, chemical conditions of the soil, brush and other like conditions prevent adequate stocking of such openings for the production of trees of a marketable species. If the openings in their natural state are necessary to hold the surrounding forestland in forest use through sound management practices, the openings are deemed forestland. Forestland does not include buildings, structures, machinery, equipment or fixtures erected upon, under or above the soil. Forestland includes roads described in ORS 308.236.

      (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 Oregon.

      (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 Oregon.

      (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 Oregon a special assessment program whereby the value of forestland is determined as prescribed in ORS 321.201 to 321.222.

      (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 Oregon to encourage the growing and harvesting of timber.

      (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 Oregon shall be exempt from ad valorem property taxation. [1977 c.892 §4; 1993 c.801 §6; 1999 c.1078 §19; 2003 c.621 §5]

 

      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 Western Oregon Timber Tax Account; distribution to State School Fund, Community College Support Fund and counties; rules. (1) The revenue from the taxes imposed by ORS 321.273 (2001 Edition) shall be remitted by the Department of Revenue to the State Treasurer who shall deposit it in a suspense account, separate and distinct from the General Fund, established under the provisions of ORS 293.445 that shall be known as the Western Oregon Timber Tax Account. Interest earned on cash balances invested by the State Treasurer shall be credited to this account. Moneys are appropriated continuously from the Western Oregon Timber Tax Account for use in reimbursing the General Fund for expenses incurred in the collection of taxes imposed by ORS 321.273 (2001 Edition) and other expenses associated with forest taxation, and for costs incurred by the State Forestry Department in carrying out ORS 315.104 and 321.367.

      (2) Notwithstanding the provisions of ORS 291.238, the amount of moneys necessary to pay refunds of the taxes imposed by ORS 321.273 (2001 Edition) is appropriated continuously to the department and shall be used by the department for the payment of all refunds of taxes imposed by ORS 321.273 (2001 Edition) which have been audited and approved by the department. This appropriation shall be from the Western Oregon Timber Tax Account. Any penalties, interest and taxes due from the taxpayer on account of taxes imposed by ORS 321.273 (2001 Edition) shall be applied in that order in computing any refund, and only the balance due the taxpayer, if any, shall be refunded.

      (3) Moneys remaining in the Western Oregon Timber Tax Account following the appropriations described in subsections (1) and (2) of this section shall be distributed as follows:

      (a) Sixty-five percent of moneys that are derived from the harvest of timber on land subject to assessment under ORS 321.353 (6) to (10) (2001 Edition) shall be distributed as follows:

      (A) Ninety-three percent of the amount distributed under this paragraph shall be transferred to and is continuously appropriated to the State School Fund for the purposes for which State School Fund moneys may be spent.

      (B) Seven percent of the amount distributed under this paragraph shall be transferred to and is continuously appropriated to the Community College Support Fund established under ORS 341.620.

      (b) Thirty-five percent of moneys that are derived from the harvest of timber on land subject to assessment under ORS 321.353 (6) to (10) (2001 Edition) shall be distributed to county general funds of western Oregon counties.

      (c) The balance of the account shall be distributed as follows:

      (A) Ninety-three percent of the amount distributed under this paragraph shall be transferred to and is continuously appropriated to the State School Fund for the purposes for which State School Fund moneys may be spent.

      (B) Seven percent of the amount distributed under this paragraph shall be transferred to and is continuously appropriated to the Community College Support Fund established under ORS 341.620.

      (4)(a) Moneys that are to be distributed to western Oregon counties under subsection (3)(b) of this section shall be distributed to each western Oregon county in the proportion that the assessed value of forestland in the county for the preceding fiscal year bears to the total assessed value of forestland for the preceding fiscal year.

      (b) The Department of Revenue may adopt rules to further implement the distribution calculation described in this subsection.

      (5) All moneys distributed to counties pursuant to subsection (4) of this section are continuously appropriated to the counties to which the moneys are distributed. On or before August 15 of each fiscal year, the department shall determine the amount distributable to counties from the Western Oregon Timber Tax Account as of May 1 of the preceding fiscal year, and shall remit to the counties the amounts so determined. The department shall certify to the county assessor the amount remitted to the county under this subsection.

      (6) The amount of Western Oregon Timber Tax Account moneys to be transferred for a fiscal year under subsection (3)(a) and (c) of this section shall be determined as of May 1 of the fiscal year and transferred on or before May 15 of the fiscal year in which the distribution is being made.

      (7) A working balance may be retained in the Western Oregon Timber Tax Account for the payment of administrative expenses described in subsection (1) of this section. [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]

 

      Note: 321.307 is repealed December 31, 2006. See section 26, chapter 621, Oregon Laws 2003.

 

      Note: Section 27, chapter 621, Oregon Laws 2003, provides:

      Sec. 27. Any moneys remaining in the Western Oregon Timber Tax Account on December 31, 2006, are transferred to the General Fund and may be used for any purpose for which General Fund moneys may be used. [2003 c.621 §27]

 

      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 Privilege tax on harvest of timber to be offset against operating taxes. Each year, when extending the operating taxes, as defined in ORS 310.055, of the county upon the assessment roll, the county assessor shall reduce the operating tax rate submitted by the county so as to offset the amount of revenue distributed to the county pursuant to ORS 321.307 (3)(b) against the operating taxes of the county for the current fiscal year. [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]

 

      Note: 321.312 is repealed December 31, 2006. See section 26, chapter 621, Oregon Laws 2003.

 

      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]