Chapter 46 Oregon Laws 2001

AN ACT

HB 2157

Relating to number of years of hardwood timber harvest rotation cycle for tax purposes; creating new provisions; and amending ORS 321.267 and 321.415.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 321.267 is amended to read:

321.267. (1) The following timber and forestland are not subject to ORS 321.257 to 321.390:

(a) Timber and forestland assessed by the Department of Revenue pursuant to ORS 308.505 to 308.665, 308.805 to 308.820 and 308.990.

(b) Except as provided in ORS 321.347, timber and land classified under ORS 321.705 to 321.765.

(d) Except as provided in ORS 321.347, land and Christmas trees which are grown or growing on that land which has been prepared by intensive cultivation and tilling and on which all unwanted plant growth is controlled continuously for the exclusive purpose of growing such Christmas trees.

(e) Except as provided in ORS 321.274, land and hardwood timber, including but not limited to hybrid cottonwood, which are:

(A) Grown or growing on land which has been prepared by intensive cultivation methods and which is cleared of competing vegetation for at least three years after tree planting;

(B) Of a species marketable as fiber for inclusion in the “furnish” for manufacturing paper products;

(D) Subject to intensive agricultural practices such as fertilization, insect and disease control, cultivation and irrigation.

(f)(A) Timber on land that, at the time of harvest, is assessed under ORS 308.146 (1) to (3) or specially assessed under ORS 308.370 or 308A.300 to 308A.330, if the land was assessed under ORS 308.146 (1) to (3) or 308.232 or was specially assessed under ORS 308.370 or 308A.300 to 308A.330 for at least five property tax years preceding the date the timber was harvested from the land.

(B) For purposes of this paragraph and ORS 321.273 (3) and (4), land that has been forestland assessed under ORS 321.354 for any of the five property tax years preceding the date the timber was harvested from the land shall be considered to be forestland assessed under ORS 321.354.

(2) The tax imposed by ORS 321.273 shall be in addition to that levied by ORS 321.005 to 321.185 and 321.560 to 321.600.

(3) Nothing contained in ORS 321.257 to 321.390 shall prevent:

(a) The collection of ad valorem property taxes which became a lien prior to January 1, 1978.

(b) The collection of taxes levied by ORS 321.005 to 321.185 and 321.560 to 321.600.

(c) Except as provided in section 45, chapter 892, Oregon Laws 1977, the collection of amounts payable upon declassification described under ORS 321.705 to 321.765.

SECTION 2. ORS 321.415 is amended to read:

321.415. (1) Lands assessed by the Department of Revenue pursuant to ORS 308.505 to 308.665 or 308.805 to 308.820 and the timber thereon shall not be subject to the provisions of ORS 321.405 to 321.515.

(2) The tax imposed under the provisions of ORS 321.405 to 321.515 shall be additional to that levied under the provisions of ORS 321.005 to 321.185 and 321.560 to 321.600.

(3) Timber on timberland which is exempt from the ad valorem real property tax shall be exempt from the privilege tax imposed by ORS 321.405 to 321.515.

(4) Land used exclusively for growing cultured Christmas trees, and the cultured Christmas trees growing thereon, as defined in ORS 215.203, shall not be subject to the provisions of ORS 321.405 to 321.515 and 321.805 to 321.825.

(5) Except as provided in ORS 321.426, land and hardwood timber, including but not limited to hybrid cottonwood, shall not be subject to the provisions of ORS 321.405 to 321.515 and 321.805 to 321.825 if the land and timber are:

(a) Grown or growing on land which has been prepared by intensive cultivation methods and which is cleared of competing vegetation for at least three years after tree planting;

(b) Of a species marketable as fiber for inclusion in the “furnish” for manufacturing paper products;

(d) Subject to intensive agricultural practices such as fertilization, insect and disease control, cultivation and irrigation.

(6)(a) Timber on land that, at the time of harvest, is assessed under ORS 308.146 (1) to (3) or specially assessed under ORS 308.370 or 308A.300 to 308A.330, if the land was assessed under ORS 308.146 (1) to (3) or 308.232 or was specially assessed under ORS 308.370 or 308A.300 to 308A.330 for at least five property tax years preceding the date the timber was harvested from the land, shall not be subject to the provisions of ORS 321.405 to 321.515.

(b) For purposes of this subsection and ORS 321.421 (4), land that has been forestland assessed under ORS 321.812 for any of the five property tax years preceding the date the timber was harvested from the land shall be considered to be forestland assessed under ORS 321.812.

(7) Nothing contained in ORS 321.405 to 321.515 shall prevent:

(a) The collection of ad valorem property taxes which became a lien against timber prior to July 1, 1962.

(b) The collection of taxes, charges or assessments made pursuant to law for protection.

SECTION 3. The amendments to ORS 321.267 and 321.415 by sections 1 and 2 of this 2001 Act apply to privilege tax reporting periods beginning on or after January 1, 2002, and property tax years beginning on or after July 1, 2002.

Approved by the Governor April 6, 2001

Filed in the office of Secretary of State April 6, 2001

Effective date January 1, 2002

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