 Forestland and Timber Taxes are Changing
The 1999 Oregon Legislature made major changes in the taxation of forestland. Although the Forest Products Harvest Tax (FPFT) will remain, the Western and Eastern Oregon Privilege Taxes (WOPT and EOPT) will phase out by 2003. This transition period will help minimize the impact on schools and other taxing districts.
Because of their differing needs, forestland owners are divided into two categories based on ownership size. Those categories and highlights of tax law changes are described here.
Forestland Owners of 5,000 or more Acres
A. Forestland
- Starting July 1, 2000, ad valorem taxes on these owners' forestlands will increase from 20 percent of the statutory land value to 75 percent. See table.
- Starting July 1, 2003, ad valorem taxes on these owners' forestlands will increase from 75 percent of the statutory land value to 100 percent. See table.
A. Privilege Tax
- In calendar year 1999, these owners continued to pay WOPT and EOPT at the 3.2 percent and 1.8 percent (of stumpage value) rates, respectively.
- Starting calendar year 2000, these owners will pay WOPT and EOPT, but at a reduced rate because of the increase in the land taxes. See table.
Forestland Owners of less than 5,000 Acres
Starting July 1, 2000, these owners may continue in the current privilege tax program with land assessed at 20 percent of the statutory land value. They will continue to pay WOPT and EOPT on the value of the timber harvested at the 3.2 percent and 1.8 percent rates, respectively. Starting July 1, 2003, these owners will automatically move to annual property taxes based on 100 percent of the forestland value unless they opt into a New Privilege Tax program similar to the current program. OR
Starting July 1, 2000, these owners may choose to have their lands taxed like large forestlands. See table. To do this, they must apply between January 1 and April 1 prior to the property tax year the change will apply. Department of Revenue (DOR) forms will be available at DOR offices. Starting July 1, 2003, ad valorem taxes on the forestland of those taking this option will increase from 75 percent of the statutory land value to 100 percent unless they opt into a New Privilege Tax program similar to the current program.
Non-Forestland Owners
Starting January 1, 2000, owners of land not classified as forestland will be exempt from paying WOPT and EOPT upon harvesting. The FPHT is still required for all timber harvesters.
Recommendations will be made to the 2001 Legislature
The Legislature directed the DOR to make recommendations on forestland values, the appeals process and a new and easier-to-administer forestland tax system for small owners (those in the less than 5,000 acres category). To do this DOR has formed a group representing the Department of Forestry, County Assessors, Oregon Small Woodlands Association, Oregon Forest Industries Council and other forestland owners.
Need help? Contact any of the following:
• Oregon Department of Revenue Timber Tax Offices (Salem 503-378-4988 or Eugene 541-686-7945)
• Local Oregon Department of Forestry Service Foresters-for names and phone number call 503-945-7367 or visit the web site
• Local Oregon State University Extension Foresters (phone book under "County Government, OSU Extension Service") or visit the web site
| Year |
Western Oregon
Privilege Tax Rate |
Eastern Oregon
Privilege Tax Rate |
Percent Statutory Forest
Land Value Taxed |
| 1999 |
3.2% |
1.8% |
20% |
| 2000 |
1.9% |
1.1% |
75% |
| 2001 |
1.9% |
1.1% |
75% |
| 2002 |
1.4% |
0.8% |
75% |
| 2003 & Beyond |
0.0% |
0.0% |
100% |
Editor's note: This information was provided by the Oregon Department of Forestry.
|
