Oregon's Timber Tax Fairness Please join us for a Zoom discussion"Timber Tax Fairness: for Counties, Water and Forests”Each session is focused on an area of the stateJoin others from your area to discuss how best to address these issues through timber tax reform In 1977, new laws replaced the Western Oregon Ad Valorem Tax. In addition, harvests may be subject to the Small Tract Forestland (STF) severance tax. from taxes and from regulations. Oregon Department of Revenue / Programs / Property Tax / Timber taxes 2015 Understanding Oregon’s Timber Tax Programs and How to Complete Forms Forests contain one of Oregon’s most valuable natural resources—trees. No distinction is made between timber harvested from private lands or government-owned lands. Program Requirements . A distribution made under this paragraph shall be made on or before May 15 of the year. . The tax has been eliminated for large timber companies, but forestland owners with fewer than 5,000 acres can still opt to pay it as a means of further reducing their property taxes. . Min. Tax Treatment of Timber. This put most Oregon forest-land under a land and severance tax system that based the annual property tax on 100 percent of the specially assessed value, Tax Responsibility: Specify in the contract who is responsible to pay required timber harvest tax, based on the harvest volume. Currently, timber is not taxed through the property tax system. Title: Understanding Oregon’s Timber Tax Programs and How to Complete Forms, 150-441-409 Author: Oregon Department of Revenue Created Date: 7/1/2015 8:07:37 AM This is an extraordinary story about the manipulation of the legislature to give timber owners a free ride in Oregon . The National Timber Tax Website was developed to be used by timberland owners, as well as a reference for accountants, attorneys, consulting foresters and other professionals who work with timberland owners regarding the tax treatment of timber related activities. 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 (State School Fund). Stating this in the contract removes any doubt about expectations. Continuously updating western Oregon timber inventories was expensive. The Forest Products Harvest Tax (FPHT) applies to timber harvested from any land in Oregon. In Oregon, it is the landowner’s legal responsibility to pay the required harvest tax. Harvesting Timber and Timber Taxes All timber harvested in Oregon is subject to the Forest Products Harvest Tax. taxes; instead, a severance tax was due when timber was cut. 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