No, they must be placed in the same tax program, either the Forestland Program or the STF Program.
If the chips come from logs graded "4-sawmill and better," then they are subject to the severance tax. If the chips come from logs below "4-sawmill" grade, then the severance tax does not apply.
Yes, all logs (including hardwood logs) graded "4-sawmill and better" are subject to the severance tax, regardless of species.
Yes. Company Y (the timber owner) is responsible for paying it.
Yes. Oregon law requires that your timber tax return be signed and contain all information necessary to determine the correct amount of timber tax [(ORS 321.045-2(2)].
Effective in 2004, all forestland was put into the Forestland Program. If you want your land included in the STF Program, you must apply to the county assessor.
No. The severance and property taxes are calculated separately. Additional taxes are levied only on property taxes.
No, a conservation easement (CE) does not transfer ownership. There is usually no effect on forest taxation. However, as specified in writing in the CE, rights to conduct various activities on the property are transferred. For example, if the CE prohibits the property owner from harvesting timber, then there would be a change in the property’s use, and that would remove it from forest use. This would affect the property’s forest taxation status.
Talk to your local county assessor's office to determine what tax programs and productivity classes your land is currently classified in and the most advantageous tax program for you. To have your land included in the new STF Program, you must apply to your county assessor between January 1 and April 1 to be included in the program for the current tax year.
Owners who expect to owe Forest Products Harvest Tax in excess of $1,500 for the year are required to file an "Estimate of Timber Tax Liability" form with the DOR Timber Unit and make quarterly estimated payments. The forms and payments are due by April 30, July 31, and October 31. Contact the DOR Timber Unit to get a form.
At least 10 acres of forestland, but fewer than 5,000 acres.
You must file the return(s) mailed to you.If you had the trees cut into Logs and sold them to a mill, you are required, by law, to file a return. Complete the return as directed.
If you cut the trees into firewood, then you will not owe a harvest tax. Mark the “No Harvest” box in the upper right-hand corner and write “Cut for Firewood only.”
To file your return(s), sign the return(s) and mail to the DOR Timber Unit.
You'll need to file an amended return with the DOR Timber Unit. To obtain a return, contact DOR Timber Unit. Check the "Amended Return" box, complete the return as if it were the original, and mail it in.
If you don't already have a return, you'll need to contact the DOR Timber Unit and obtain a form for the account number (BIN) listed in the letter.
On both the Forest Products Harvest Tax and Small Tract Forestland Severance Tax returns, check the "No Harvest" box in the upper right-hand corner of the forms. Sign both returns and mail to the DOR Timber Unit.
On the return, write the name and address of the person with whom you have a contract showing that they are responsible for filing and paying any timber taxes. Also, inlcude a copy of the written agreement (contract) that verifies your statement. Sign and mail your return and a copy of your agreement to the Oregon Department of Revenue, Timber Unit.
No, the additional tax would only apply to the length of time the property was in STF, up to a maximum of 10 years.
Yes. If your application is received by the April 1 deadline and accepted, you will owe severance tax on all harvests from your property in the entire calendar year. Severance taxes are collected on a calendar year basis.
No, property is only disqualified from the STF Program if the property is sold; ownership is transferred; the property is no longer forestland; your ownership or holding in common ownership is more than 5,000 acres or less than 10 acres; written notice is received from the State Department of Forestry that the property no longer meets the stocking and species requirements applicable to the STF Program; the property is qualified for another special assessment; or the property is recorded as a subdivision plat. If any of these conditions are met, additional taxes shall be determined as provided in ORS 308A.707.
Yes, all contiguous forestland parcels owned by any of the individuals must be included in the application for the STF Program.
No, forestland and farmland have different tax status. The Forestland Program and STF Program apply to forestland only. If contiguous parcels both contain forestland, both must be in either the Forestland Program or the STF Program.
The letter is only to verify that the name and address are correct and to provide you with your business identification number (BIN) that is used when contacting the DOR Timber Unit. The circular provides information about timber taxes and how to calculate the tax. This does not take the place of timber tax form instructions. You will receive the instructions with the form in mid-December.
If you want it to remain in STF, you must apply to the assessor in the county where the property is located within 30 days of the date of the county assessor's letter of intent to disqualify. Failure to make such application will transfer the property into the Forestland Program. You may be subject to rollback taxes not to exceed 10 years of the difference between property tax at 100 percent of the forestland value and property tax at 20 percent of the forestland value.
Complete the return with the volume harvested. Line 10 subtracts the 25 MBF. Sign, date, and mail.
No, but on the return you should mark the "No Harvest" box. Write under the box "Firewood only."
A unit of measurement representing a board one foot long, one foot wide, and one inch thick.
The BIN is the number assigned by the DOR to every timber taxpayer (individual or business).
It's a tax on timber cut from any land in Oregon.
A description of land that describes where it is located. The legal description of land, or a parcel of land, is the exact location of the parcel of land according to an established system.
Notice of intent to harvest timber given to the Oregon Department of Forestry, which is sent to us. Timber tax forms are mailed to the party indicated as timber owner.
It's a tax on timber harvested from lands classified as STF by the county assessor.
Thousand board feet (1,000 bf).
Net volume is gross volume minus defect. This measurement is used in tax calculations for STF Severance Tax.
Stumpage is timber in unprocessed form as found in the woods.
Timber is merchantable logs and trees; the uncut forest.
Logs that don't meet the minimum requirements of peeler or sawmill grades, but are suitable for the productions of firm, usable pulp chips. Utility cull is included in the definition of adjusted gross volume.
In addition to the Forestland Program, which is available to all forestland owners, the 2003 Legislature passed Oregon House Bill 2197. This bill created a new Small Tract Forestland Program (STF) for small woodland owners who own at least 10, but less than 5,000 acres of forestland. The new STF Program took effect in 2004. To obtain STF Program benefits, eligible owners must apply with their county assessor. The new STF Program allows small woodland owners to continue to pay the majority of their forestland taxes at the time of timber harvest.
Highest and best use, and designated forestlands.
Timber taxes are due by January 31 of the year following harvest.
Timber tax returns are mailed in mid-December. If you have not received your return by December 30, contact us with the following information:
- Taxpayer name, and
- Phone number (including area code), and
- The tax year you are requesting, and
- Business identification number (BIN), or
- Social Security number, or
- Notification of Operations number (permit), if available.
Additional taxes are due in the tax statement in the year following disqualification. At that time, the current property owner is responsible for paying the additional tax.
The owner of the timber at the time the logs are first measured. The timber owner and the landowner may be the same person.
The owner may also be an individual or combination of individuals, partnership, firm, corporation, or association of any nature holding title to harvested timber at first measurement. The owner is the party responsible for the timber taxes.
Everyone with an interest in the property must sign the application.
When you harvest timber in Oregon, you are required to file a Forest Products Harvest Tax (FPHT). In addition, harvests may be subject to the Small Tract Forestland Severance Tax (western or eastern Oregon) if the land on which the harvest occurred is classified as STF by the county assessor. (Landowners must apply to the county assessor and meet certain criteria to have their land classified and taxed under the STF Program.)