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Small Tract Forestland (STF) severance tax


ORS 321.700-754


Purpose
The STF severance tax applies to timber harvested from lands classified under the STF Program. A landowner pays property tax on 20 percent of the forestland specially assessed value. The remaining 80 percent is intended to be recovered when timber is harvested.
 
The tax receipts in excess of DOR expenses incurred in the collection of taxes are distributed to the State School Fund, the Community College Support Fund, and the county general fund.
 

Tax rates
The tax rate in the table below is applied to each 1,000 board feet (MBF) of timber harvested. The tax rates are indexed annually at the year-over-year rate of change of the specially assessed forestland. The rate for the current year is available after the specially assessed forestland values are set on June 1.

 
STF Severance Tax Rates: Eastern Oregon
       
Period of Time
Tax Rate

1/1/2004 thru 12/31/2004
$3.03
1/1/2005 thru 12/31/2005
$3.12
1/1/2006 thru 12/31/2006
$3.21
1/1/2007 thru 12/31/2007
$3.30
1/1/2008 thru 12/31/2008
$3.40
1/1/2009 thru 12/31/2009
$3.50
1/1/2010 thru 12/31/2010
$3.60
1/1/2011 thru 12/31/2011
$3.70
​1/1/2012 ​thru ​12/31/2012 ​$3.80
​1/1/2013 ​thru ​12/31/2013 ​$3.91
​1/1/2014 ​thru ​12/31/2014 ​$4.03
 
 
STF Severance Tax Rates: Western Oregon
       
Period of Time
Tax Rate

1/1/2004 thru 12/31/2004
$3.89
1/1/2005 thru 12/31/2005
$4.00
1/1/2006 thru 12/31/2006
$4.11
1/1/2007 thru 12/31/2007
$4.23
1/1/2008 thru 12/31/2008
$4.35
1/1/2009 thru 12/31/2009
$4.48
1/1/2010 thru 12/31/2010
$4.61
1/1/2011 thru 12/31/2011
$4.74
​1/1/2012 ​thru ​12/31/2012 ​$4.88
1/1/2013​ ​thru ​12/31/2013 ​$5.03
​1/1/2014 ​thru ​12/31/2014 $5.18​
 
 

What is taxed

Generally, any logs, chips, poles, and pilings removed from land classified under the STF Program is considered for this tax. Loads of logs sold by the ton are taxable unless the loads consist of small (less than 5 inches in diameter) utility-grade logs. The Department of Revenue developed conversion rates to convert from log load weight (tons) to thousands of board feet (MBF). OAR 150-321.700(13)
  • Loads of logs containing a minimum of 20 percent of the log count with a 5-inch, 6-inch, and 7-inch scaling diameter are converted to MBF by dividing the tons by the chip logs conversion factor of 11.
  • Loads of logs in which all logs measure 5-inch scale and larger or the load contains three or more logs with 8-inch or larger scaling diameter are converted to MBF by dividing the tons by the saw logs conversion factor of 7.5.
  • Loads of chips are taxable unless they are made from logs of utility grade or lower and the chips are to be used as hog fuel.
  • Logs scaled as utility grade or lower are exempt from this tax.



Tax forms
Tax forms for the STF severance tax are only available through the Department of Revenue. The agency mails returns in December of the year of harvest or in January of the following year. The department identifies potential harvesters and mails the returns based on information provided on the Notification of Operations filed with the Department of Forestry and the STF application from the county assessors. Blank tax forms are not available.
 

Due date
The law requires that the completed STF severance tax return be received by January 31 of the year following the harvest.
 

Penalty and interest
Returns filed after this date will be assessed penalty and interest. A 5 percent penalty is assessed for returns filed between February 1 and April 30. Returns filed after April 30 receive a 25 percent penalty.
 

Have questions? Need help?
Call: 503-378-4988 or 1-800-356-4222 (toll-free from an Oregon prefix)
E-mail: timber.tax.help@state.or.us
In person: please call 1-800-356-4222 to make an appointment at the DOR office in Salem
 
 
STF Program