Chapter 860 Oregon Laws 2001

AN ACT

HB 3537

Relating to taxation; creating new provisions; amending ORS 321.307, 321.353, 321.354, 321.356, 321.365, 321.682, 321.684, 321.720, 321.811, 321.812 and 321.814 and sections 4 and 37, chapter 1078, Oregon Laws 1999; repealing sections 8a and 41a, chapter 1078, Oregon Laws 1999; and appropriating money.

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

SECTION 1. ORS 321.353, as amended by section 14, chapter 1078, Oregon Laws 1999, is amended to read:

321.353. (1) The assessed value of forestland in western Oregon that is not subject to special assessment under ORS 321.354 or 321.720 shall be determined as provided in subsection (8) of this section.

(2) Notwithstanding ORS 308.205, 308.232 or 321.352 or other law and subject to subsection (3) of this section, forestland in western Oregon that is assessed under this section shall be considered to have a [specially assessed] base value per acre in accordance with the following schedule:

______________________________________________________________________________

Land Class Value Per Acre

FA $720

FB $619

FC $396

FD $299

FE $171

FF $42

FG $7

FX $1

______________________________________________________________________________

(3)(a)(A) For tax years beginning on or after July 1, 1995, and before July 1, 2001, the base values per acre [of forestland] as determined under subsection (2) of this section shall be adjusted according to the change calculated under this paragraph.

(B) The Department of Revenue shall determine the [assessed values of forestland] adjusted base values per acre by multiplying the [assessed values of the forestland] adjusted base values per acre for the previous year by the value index calculated by the department and certified to the appropriate county assessors under subsection (4) of this section. For the tax year beginning July 1, 1995, the [“assessed values of the forestland] “adjusted base values per acre for the previous year” means the base values set forth in subsection (2) of this section.

(C) As used in this paragraph, “value index” means the number 1.0 plus the decimal equivalent of 50 percent of the change, whether positive or negative, in the Average Western Oregon Log Value, as defined in ORS 321.257 (1997 Edition) for:

(i) The current and seven preceding six-month periods when compared with a similar calculation made one year previously for the tax year beginning July 1, 1995;

(ii) The current and nine preceding six-month periods when compared with a similar calculation made one year previously for the tax year beginning July 1, 1996;

(iii) The current and 11 preceding six-month periods when compared with a similar calculation made one year previously for the tax year beginning July 1, 1997; and

(iv) The current and 13 preceding six-month periods when compared with a similar calculation made one year previously for all tax years beginning on or after July 1, 1998.

(D) As used in this paragraph, “current” means the six-month period last ending before the calculation is made.

(E) For purposes of determining forestland values under this paragraph, forestland in western Oregon shall be divided into those land market areas as the department shall establish by rule.

(b)(A) For the tax year beginning July 1, 2001, and for each tax year thereafter, the [values per acre of forestland] adjusted base values per acre assessed under this section shall be determined by the department by multiplying the adjusted base values per acre for the previous tax year by the value index calculated by the department and certified to the appropriate county [assessor] assessors under subsection (4) of this section.

(B) As used in this paragraph, “value index” means the number 1.0 plus the decimal equivalent of one-half of the percentage change, whether positive or negative, in the average of the Average Pacific Northwest Coast Lumber Price Index values over the seven preceding one-year (calendar) periods when compared with the corresponding average calculated with respect to the previous year.

(4) [Prior to] On or before July 1 of each tax year, the department shall determine and certify to the appropriate county [assessor the values of forestland] assessors the adjusted base values per acre in western Oregon that are assessed under this section. Except as provided in ORS 321.352 (6), the county assessor shall use the [value] values so certified in the preparation of the assessment and tax rolls of the county each tax year.

(5) ORS 321.352 (5) to (7) apply to the [forestland] adjusted base values determined under this section.

(6) For the tax year beginning July 1, 1995, and for each tax year thereafter, forestland in western Oregon that is not assessed under ORS 321.354 or 321.720 shall be subject to ad valorem taxation at the same rates as nonforestland similarly situated. However, the specially assessed value for taxation of such forestland shall not exceed 20 percent of its value determined under [ORS 321.352 to 321.381] this section.

(7) For each land class described in subsection (2) of this section, the forestland maximum assessed value per acre of forestland assessed under this section shall equal 103 percent of the forestland [maximum] assessed value per acre for the preceding [assessment year] tax year or 100 percent of the forestland maximum assessed value per acre for the preceding tax year, whichever is greater.

(8) The assessor shall compute the assessed value of forestland by taking the lesser of the value established under subsection (6) of this section or subsection (7) of this section and multiplying the value by the acreage of the forestland.

(9) If the forestland being assessed consists of different land classes, the assessed value of the forestland shall be the sum of the assessed values computed for each land class under subsection (8) of this section.

[(9)] (10) For the first assessment year for which property is designated as forestland, the forestland’s assessed value shall be determined as provided in subsection (8) of this section.

SECTION 2. ORS 321.354, as amended by section 7, chapter 1078, Oregon Laws 1999, is amended to read:

321.354. (1) The Department of Revenue shall identify the forestland that is held in common ownership of 5,000 acres or more as of January 1, 2000. Forestland that the department has so identified shall be [specially assessed] subject to special assessment as provided in this section for the tax year beginning July 1, 2000, and for subsequent tax years, without regard to whether the forestland continues to be held in common ownership of 5,000 acres or more.

(2) Forestland assessed under this section shall:

(a) Be disqualified from [a specially assessed] special assessment at a value per acre equal to 75 percent of the value per acre determined under ORS 321.353 (2) to (5) for the applicable land class of the forestland; and

[(b) Qualify for a specially assessed value per acre equal to 100 percent of the value per acre determined under ORS 321.353 (2) to (5) for the applicable land class of the forestland.]

(b) Qualify for special assessment at a value per acre equal to the specially assessed value certified to the county assessor for the tax year under section 18 of this 2001 Act for the applicable land class of the forestland.

(3) For each land class described in [ORS 321.353 (2)] section 16 of this 2001 Act, the forestland maximum assessed value per acre shall equal 103 percent of the forestland [maximum] assessed value per acre for the preceding tax year or 100 percent of the forestland maximum assessed value per acre for the preceding tax year, whichever is greater.

(4)(a) The assessor shall compute the assessed value of forestland by [taking the lesser of the value established under subsection (2) or (3) of this section and] multiplying [that amount by] the acreage of the forestland in each land class by the lesser of:

(A) The specially assessed value per acre; or

(B) The maximum assessed value per acre.

(b) If the forestland being assessed consists of different land classes, the assessed value of the forestland shall be the sum of the assessed values computed for each land class under paragraph (a) of this subsection.

[(b)] (5) Notwithstanding [paragraph (a) of this] subsection (4) of this section, the forestland shall be assessed as provided in ORS 308.232 if the real market value of the forestland is less than the value established under [paragraph (a) of this] subsection (4) of this section.

[(5)] (6) For purposes of this section:

(a) The department shall certify to the county assessor of a county in which forestland identified in subsection (1) of this section is located a list of the property tax accounts containing forestland so identified.

(b) Forestland shall be considered to be in common ownership if the forestland is owned by the person directly or is owned by a corporation, partnership, association or other entity in which the person owns a majority interest.

(d) The notification requirements and other procedures that the county assessor must follow in disqualifying forestland do not apply to a disqualification occurring under subsection (2)(a) of this section.

SECTION 3. Section 4 of this 2001 Act is added to and made a part of ORS 321.257 to 321.390.

SECTION 4. Notwithstanding ORS 321.354 (3), for the tax year beginning July 1, 2003, the assessed value per acre of forestland subject to special assessment under ORS 321.354 may not exceed the lesser of the specially assessed value per acre certified by the Department of Revenue under section 18 of this 2001 Act for that tax year or the value per acre applicable to the land class of the forestland that is set out as follows:

____________________________________________________________________________

Land Class Value Per Acre

FA $450

FB $357

FC $299

FD $254

FE $169

FF $122

FG $51

FX $6

____________________________________________________________________________

SECTION 5. ORS 321.356 is amended to read:

321.356. (1) For the tax year beginning July 1, 2003, forestland subject to special assessment under ORS 321.353 [(6) to (9)] shall be disqualified from such special assessment. For the tax year beginning July 1, 2003, and for each tax year thereafter, the forestland described in this subsection shall be assessed as provided in ORS 321.354.

(2) Notwithstanding subsection (1) of this section, an owner of forestland that is held in common ownership of less than 5,000 acres may elect to have all of the forestland owned by the owner be assessed under ORS 321.353 [(6) to (9)].

(3) The election under subsection (2) of this section shall be made by filing an election form with the Department of Revenue. The form shall contain any information required by the department, including a list of the tax lots or account numbers of forestland owned or held in common ownership by the owner. The form shall contain an affirmation that the statements made on the form are true.

(4)(a) An election shall be filed with the department on or before April 1 preceding the first tax year for which the election is to be in effect.

(b) Notwithstanding paragraph (a) of this section, an election may be filed under this section on or before December 31 of the first tax year for which the election is to be in effect, if accompanied by a late filing fee equal to the greater of $200 or one-tenth of one percent of the assessed value of the forestland immediately prior to the filing of the election.

(5) An election shall first apply to the determination of privilege taxes imposed under ORS 321.273 for the calendar year in which the election is made.

(6) Forestland assessed under ORS 321.354 shall continue to be assessed under ORS 321.354 following a change in ownership to an owner that owns forestland that is assessed under ORS 321.353 [(6) to (9)]. Following the change in ownership, the new owner may file an additional election under subsection (2) of this section. The election applies to all forestland owned or held in common ownership by the owner.

(7) Additional taxes may not be imposed as a result of a disqualification under this section.

(8) The notification requirements and other procedures that the county assessor must follow in disqualifying forestland do not apply to a disqualification under this section.

(9) The provisions of ORS 321.354 [(5)(b)] (6)(b) apply to this section.

SECTION 6. ORS 321.720 is amended to read:

321.720. (1) The assessed value of forestland classified under ORS 321.705 to 321.765 shall be determined as provided in subsection (7) of this section.

(2) Notwithstanding ORS 308.205 or any other provision of law forestland in western Oregon classified under the provisions of ORS 321.705 to 321.765 shall be considered to have a specially assessed value per acre for a site class equal to the adjusted base value per acre the forestland would have under ORS 321.353 if the forestland were subject to ORS 321.257 to 321.390.

(3) The values determined under subsection (2) of this section shall first apply to the [July] January 1 assessment date for which the application for classification of the land is made with the State Forester under ORS 321.730. The site class used in subsection (2) of this section shall be the average site class certified for the land by the State Forester.

(4) Conversion of average site class to forestland class for the purpose of determining the adjusted base value per acre that the forestland would have under ORS 321.353 if the forestland were [subject to ORS 321.257 to 321.390] assessed under ORS 321.353shall be made in accordance with the following schedule:

______________________________________________________________________________

Site Class Land Class

I FA

II FC

III FD

IV FF

V FG

______________________________________________________________________________

(5) Timber on forestland classified under ORS 321.705 to 321.765 shall be exempt from separate ad valorem taxation.

(6) Forestland classified under ORS 321.705 to 321.765 shall have a maximum assessed value per acre equal to 103 percent of the forestland’s [maximum] assessed value per acre for the preceding [assessment] tax year or 100 percent of the forestland maximum assessed value per acre for the preceding tax year, whichever is greater.

(7) The assessor shall compute the assessed value of forestland classified under ORS 321.705 to 321.765 by [taking the lesser of the value established per acre under subsection (2) of this section or subsection (6) of this section for the applicable site class for the forestland and] multiplying [the value by] the acreage of the forestland by the lesser of:

(a) The specially assessed value per acre; or

(b) The maximum assessed value per acre.

(8) If the forestland being assessed consists of different site classes, the assessed value of the forestland shall be the sum of the assessed values computed for each land class under subsection (7) of this section.

[(8)] (9) For the first [assessment] tax year for which property is classified under ORS 321.705 to 321.765, the forestland’s assessed value shall be determined as provided in subsection (7) of this section.

SECTION 7. ORS 321.811, as amended by section 46, chapter 1078, Oregon Laws 1999, is amended to read:

321.811. (1) The assessed value of forestland in eastern Oregon that is not subject to special assessment under ORS 321.812 shall be determined as provided in subsection (10) of this section.

(2) Notwithstanding ORS 308.205 and 308.235, and for purposes of ORS 308.232, the [specially assessed value of forestland] adjusted base value per acre that is assessed under this section shall be determined under subsections (2) to [(8)] (7) of this section. Land that has been designated as forestland under ORS 321.805 to 321.825 shall be valued as forestland under subsections (2) to (7) of this section and shall be noted on the assessment and tax roll as being forestland potentially subject to additional taxes under ORS 308A.700 to 308A.733.

(3) Subject to subsection (4) of this section, for tax years beginning on or after July 1, 1995, forestland shall be considered, for purposes of ORS 321.805 to 321.825, to have a base value of $42 per acre.

(4) Each tax year beginning on or after July 1, 1995, the value of forestland shall be determined by multiplying the [value of the forestland] adjusted base value per acre for the previous tax year by the value index calculated by the Department of Revenue and certified to the appropriate county assessors under subsection (5) of this section.

(5) The Department of Revenue shall calculate[,] and certify to each county assessor on or before [August 15 of each tax year the value index to be used in the calculation of the value of forestland as of the assessment date immediately preceding] July 1 of each tax year the adjusted base value per acre to be used in determining the assessed value of forestland that is assessed under this section. Except as provided in ORS 321.810 (6), the county assessor shall use the [index] adjusted base value so certified in the preparation of the assessment and tax roll.

(6) As used in subsections (2) to (7) of this section, “ value index” means the number 1.0 plus the decimal equivalent of one-half of the percentage change, whether positive or negative, in the average of the Average Pacific Northwest Inland Lumber Price Index values over the five preceding one-year (calendar) periods when compared with the corresponding average calculated with respect to the previous year.

(7) ORS 321.810 (5) to (7) apply to the [forestland] adjusted base values determined under subsections (2) to (7) of this section.

(8) For the tax year beginning July 1, 1995, and for each tax year thereafter, forestland that is not assessed under ORS 321.812 shall be subject to ad valorem property taxation at the same rates as nonforestland similarly situated. However, the specially assessed value for taxation of such forestland shall not exceed 20 percent of [its value] the adjusted base value per acre determined under subsections (2) to (7) of this section.

(9) Forestland assessed under this section shall have a maximum assessed value per acre equal to 103 percent of the [forestland’s maximum] forestland assessed value per acre for the preceding [assessment year.] tax year or 100 percent of the forestland maximum assessed value per acre for the preceding tax year, whichever is greater.

(10) The assessor shall compute the assessed value of forestland by taking the lesser of the value established under subsection (8) of this section or subsection (9) of this section and multiplying the value by the acreage of the forestland.

(11) For the first assessment year for which property is designated as forestland, the forestland’s assessed value shall be determined as provided in subsection (10) of this section.

SECTION 8. ORS 321.812, as amended by section 40, chapter 1078, Oregon Laws 1999, is amended to read:

321.812. (1) The Department of Revenue shall identify the forestland that is held in common ownership of 5,000 acres or more as of January 1, 2000. Forestland that the department has so identified shall be [specially assessed] subject to special assessment as provided in this section for the tax year beginning July 1, 2000, and for subsequent tax years, without regard to whether the forestland continues to be held in common ownership of 5,000 acres or more.

(2) Forestland assessed under this section shall:

(a) Be disqualified from [a specially assessed] special assessment at a value per acre equal to 75 percent of the value per acre determined under ORS 321.811 (2) to (7); and

(b) [Qualify for a specially assessed value per acre equal to 100 percent of the value per acre determined under ORS 321.811 (2) to (7)] Qualify for special assessment at a value per acre equal to the specially assessed value certified to the county assessor for the tax year under section 18 of this 2001 Act.

(3) Forestland assessed under this section shall have a maximum assessed value per acre equal to 103 percent of the forestland [maximum] assessed value per acre for the preceding tax year or 100 percent of the forestland maximum assessed value per acre for the preceding tax year, whichever is greater.

(A) The specially assessed value per acre; or

(B) The maximum assessed value per acre.

(b) Notwithstanding paragraph (a) of this subsection, the forestland shall be assessed as provided in ORS 308.232 if the real market value of the forestland is less than the value established under paragraph (a) of this subsection.

(5) For purposes of this section:

SECTION 9. Section 10 of this 2001 Act is added to and made a part of ORS 321.805 to 321.825.

SECTION 10. Notwithstanding ORS 321.812 (3), for the tax year beginning July 1, 2003, the assessed value per acre of forestland subject to special assessment under ORS 321.812 may not exceed the lesser of the specially assessed value per acre certified by the Department of Revenue under section 18 of this 2001 Act for that tax year or $51 per acre.

SECTION 11. ORS 321.814 is amended to read:

321.814. (1) For the tax year beginning July 1, 2003, forestland subject to special assessment under ORS 321.811 [(8) to (11)] shall be disqualified from such special assessment, and shall be assessed as provided in ORS 321.812.

(4)(a) An election shall be filed with the department on or before April 1 preceding the first tax year for which the election is to be in effect.

(5) An election shall first apply to the determination of privilege taxes imposed under ORS 321.421 for the calendar year in which the election is made.

(6) Forestland assessed under ORS 321.812 shall continue to be assessed under ORS 321.812 following a change in ownership to an owner that owns forestland that is assessed under ORS 321.811 [(8) to (11)]. Following the change in ownership, the new owner may file an additional election under subsection (2) of this section. The election applies to all forestland owned or held in common ownership by the owner.

(7) Additional taxes may not be imposed as a result of a disqualification under this section.

(8) The notification requirements and other procedures that the county assessor must follow in disqualifying forestland do not apply to a disqualification under this section.

(9) The provisions of ORS 321.812 (5)(b) apply to this section.

SECTION 11a. ORS 321.307 is amended to read:

321.307. (1) The revenue from the taxes imposed by ORS 321.273 shall be remitted by the Department of Revenue to the State Treasurer who shall deposit it in a suspense account, separate and distinct from the General Fund, established under the provisions of ORS 293.445 which shall be known as the Western Oregon Timber Tax Account. Interest earned on cash balances invested by the State Treasurer shall be credited to this account. Moneys are appropriated continuously from the Western Oregon Timber Tax Account for use in reimbursing the General Fund for expenses incurred in the collection of taxes imposed by ORS 321.273 and other expenses associated with forest taxation and for costs incurred by the State Forestry Department in carrying out ORS 315.104 and 321.705 to 321.765 for the period beginning July 1, 1999, and ending July 1, 2001.

(2) Notwithstanding the provisions of ORS 291.238, the amount of moneys necessary to pay refunds of the taxes imposed by ORS 321.273 is appropriated continuously to the department and shall be used by the department for the payment of all refunds of taxes imposed by ORS 321.273 which have been audited and approved by the department. This appropriation shall be from the Western Oregon Timber Tax Account. Any penalties, interest and taxes due from the taxpayer on account of taxes imposed by ORS 321.273 shall be applied in that order in computing any refund, and only the balance due the taxpayer, if any, shall be refunded.

(3) Moneys remaining in the Western Oregon Timber Tax Account following the appropriations described in subsections (1) and (2) of this section shall be distributed as follows:

(a) Sixty-five percent of moneys that are derived from the harvest of timber on land subject to assessment under ORS 321.353 (6) to [(9)] (10) shall be distributed as follows:

(A) Ninety-three percent of the amount distributed under this paragraph shall be transferred to and is continuously appropriated to the State School Fund for the purposes for which State School Fund moneys may be spent.

(B) Seven percent of the amount distributed under this paragraph shall be transferred to and is continuously appropriated to the Community College Support Fund established under ORS 341.620.

(b) Thirty-five percent of moneys that are derived from the harvest of timber on land subject to assessment under ORS 321.353 (6) to [(9)] (10) shall be distributed to county general funds of western Oregon counties.

(B) Seven percent of the amount distributed under this paragraph shall be transferred to and is continuously appropriated to the Community College Support Fund established under ORS 341.620.

(4)(a) Moneys that are to be distributed to western Oregon counties under subsection (3)(b) of this section shall be distributed to each western Oregon county in the proportion that the assessed value of forestland in the county for the preceding fiscal year bears to the total assessed value of forestland for the preceding fiscal year.

(b) The Department of Revenue may adopt rules to further implement the distribution calculation described in this subsection.

(5) All moneys distributed to counties pursuant to subsection (4) of this section are continuously appropriated to the counties to which the moneys are distributed. On or before August 31 of each fiscal year, the department shall determine the amount distributable to counties from the Western Oregon Timber Tax Account as of May 15 of the preceding fiscal year, and shall remit to the counties the amounts so determined. The department shall certify to the county assessor the amount remitted to the county under this subsection.

(6) The amount of Western Oregon Timber Tax Account moneys to be transferred for a fiscal year under subsection (3)(a) and (c) of this section shall be determined as of May 15 of the fiscal year and transferred on or before May 31 of the fiscal year in which the distribution is being made.

(7) A working balance may be retained in the Western Oregon Timber Tax Account for the payment of administrative expenses described in subsection (1) of this section.

SECTION 11b. ORS 321.365 is amended to read:

321.365. (1) If an owner of forestland that is assessed under ORS 321.354 acquires additional forestland that was assessed under ORS 321.353 (6) to [(9)] (10) as of the assessment date preceding acquisition, the additional forestland shall be disqualified from assessment under ORS 321.353 (6) to [(9)] (10) and shall be assessed under ORS 321.354 as of the assessment date immediately following the acquisition.

(2) Notwithstanding ORS 321.273 (3) or (4), any timber harvested from forestland described in subsection (1) of this section, during the year of acquisition and the four calendar years immediately following, shall be subject to the privilege tax imposed under ORS 321.273 (2).

(3) Additional taxes may not be imposed as a result of a disqualification under this section.

(4) The notification requirements and other procedures that the county assessor must follow in disqualifying forestland do not apply to a disqualification under this section.

SECTION 12. Sections 4 and 10 of this 2001 Act and the amendments to ORS 321.307, 321.353, 321.354, 321.356, 321.365, 321.720, 321.811, 321.812 and 321.814 by sections 1, 2, 5 to 8, 11, 11a and 11b of this 2001 Act apply to tax years beginning on or after July 1, 2003.

SECTION 13. As used in sections 13 to 20 of this 2001 Act, “forestland” means either forestland, as defined in ORS 321.257, that is located in western Oregon or forestland, as defined in ORS 321.805, that is located in eastern Oregon.

SECTION 14. The Legislative Assembly finds that an accurate system of annually determining forestland values in this state is vital to achieving a fair and equitable system of taxing the forest resources of this state. The Legislative Assembly declares that an annual determination of forestland values is the process that best achieves an accurate assessment of forestland in this state.

SECTION 15. (1) The Department of Revenue by rule shall develop valuation models to be used to value forestland in western Oregon and eastern Oregon.

(2) The valuation models may consider forestland sales, stumpage values, immediate harvest values, log prices or other commercially reasonable factors or data that promote real market value analysis of forestland.

SECTION 16. (1) Pursuant to the valuation models adopted by the Department of Revenue under section 15 of this 2001 Act and for the purpose of certifying specially assessed values of forestland under ORS 321.354 and 321.812, for each tax year the Department of Revenue shall give notice of proposed specially assessed values of forestland. The values shall be proposed by the department on or before April 1 of the assessment year.

(2) The specially assessed values proposed under this section and certified under section 18 of this 2001 Act for forestland in western Oregon shall be for land classes FA, FB, FC, FD, FE, FF, FG and FX. Specially assessed values also shall be proposed under this section and certified under section 18 of this 2001 Act for forestland in eastern Oregon.

(3) The department shall give notice of the proposed specially assessed values to:

(a) County assessors and associations, trade organizations and other persons that the department, in its discretion, finds represent forestland owners; and

(b) Any other person that has made a written request to the department to be given notice of proposed specially assessed values.

(4) The notice required under subsection (3) of this section must contain:

(a) The proposed specially assessed values;

(b) A description of the valuation model employed in determining the proposed specially assessed values;

(c) A summary of the market data used to determine the proposed specially assessed values; and

(d) The date, time and location of the public hearing described in subsection (6) of this section.

(5) Following the giving of notice required under this section, members of the public may submit written comments on the proposed specially assessed values to the department. Written comments received by the department on or before May 1 of the assessment year for which the specially assessed values are proposed shall be considered by the department prior to the department certifying specially assessed values to the county assessors under section 18 of this 2001 Act.

(6) Prior to adopting specially assessed values of forestland for a tax year, the department shall conduct a public hearing on the proposed specially assessed values. Any person interested in providing testimony on the proposed specially assessed values shall be given the opportunity to do so at the hearing.

SECTION 17. (1) At any time, the Department of Revenue may convene a forestland value advisory committee to assist the department in developing a valuation model under section 15 of this 2001 Act or in determining specially assessed values of forestland. If the department convenes a committee, it shall be composed of members appointed by the Director of the Department of Revenue. In appointing members, the director shall strive to include representation of counties, the State Forestry Department and large and small forestland owners from western Oregon and eastern Oregon.

(2) The Department of Revenue shall provide staff and administrative support to facilitate the work of a committee convened by the department.

SECTION 18. (1) On or before June 1 of each assessment year, the Department of Revenue shall adopt specially assessed values of forestland, as of the assessment date for that year. The department shall certify the specially assessed values of forestland in eastern Oregon to the county assessors of eastern Oregon and the specially assessed values of forestland in western Oregon to the county assessors of western Oregon.

(2) The certified specially assessed values constitute:

(a) The department’s determination of the real market value, as of the assessment date for the tax year, of highest and best use forestland in the land class for which the certification is being made; and

(b) The specially assessed values, as of the assessment date for the tax year, of designated forestland that is assessed under ORS 321.354 and 321.812 in the land class for which the certification is being made.

(3) Upon receipt of the certified values, the county assessors shall develop tables for each assessment year that reflect, for each class and area, the values determined under this section and that express the values as values per acre.

SECTION 19. (1) At any time following certification of the specially assessed values under section 18 of this 2001 Act and before July 1 of the tax year, five or more taxpayers owning in the aggregate not less than five percent of the total forestland in a single land market area may appeal any or all of the specially assessed values so certified.

(2) Appeals under this section shall be made to the Oregon Tax Court by filing a joint petition with the tax court in the manner provided for appeals from orders of the county boards of property tax appeals. The petition shall designate one of the taxpayers as the representative of all of the taxpayers, and all proceedings before the tax court and any appeal from its determination shall be conducted procedurally as though the designated representative was the only petitioner.

(3) Notice of the appeal shall be made in each county having specially assessed values affected by the appeal in the manner of personal service, certified mail on each taxpayer affected, or publication made once a week for two consecutive weeks in a newspaper of general circulation in the county. The notice shall designate the specially assessed values appealed and include a statement of the provisions of subsections (4) and (5) of this section.

(4) Unless an appeal is resolved prior to September 15 of the tax year and results in a change in a specially assessed value that was certified under section 18 of this 2001 Act, then notwithstanding the appeal of a certified specially assessed value, the certified specially assessed values shall be entered on the assessment and tax roll for the year and the property taxes for the tax year shall be imposed on those values.

(5) If a decision by the tax court, or by the Oregon Supreme Court following an appeal of a tax court decision:

(a) Results in a decrease in a specially assessed value certified under section 18 of this 2001 Act, any refund of tax arising as a result of the decision shall be made by reducing the tax imposed on forestland affected by the decision in the first tax year following the decision.

(b) Results in an increase in a specially assessed value certified under section 18 of this 2001 Act, any additional taxes becoming due shall be payable without interest if paid prior to the 16th day of the month following the month in which the final order of the court is issued. If the additional taxes are not paid within this period, the additional taxes shall thereafter be considered delinquent and shall bear interest at the rate provided in ORS 311.505.

SECTION 20. Any appeal of forestland value that does not involve an appeal of a specially assessed value certified under section 18 of this 2001 Act shall be made to the board of property tax appeals in the manner prescribed in ORS 309.100.

SECTION 21. Sections 13 to 20 of this 2001 Act apply to property tax years beginning on or after July 1, 2003.

SECTION 22. Sections 13 to 20 of this 2001 Act are added to and made a part of ORS chapter 321.

SECTION 23. Section 4, chapter 1078, Oregon Laws 1999, is amended to read:

Sec. 4. (1) Forestland that is assessed under [section 2 of this 1999 Act] ORS 321.354 shall be disqualified from special assessment under ORS 321.353 (6) to (9) (1999 Edition).

(2) Additional taxes may not be imposed as a result of a disqualification under this section.

(3) The notification requirements and other procedures that the county assessor must follow in disqualifying forestland do not apply to a disqualification occurring under this section.

SECTION 24. Section 37, chapter 1078, Oregon Laws 1999, is amended to read:

Sec. 37. (1) Forestland that is assessed under [section 35 of this 1999 Act] ORS 321.812 shall be disqualified from special assessment under ORS 321.811 (8) to (11).

(2) Additional taxes may not be imposed as a result of a disqualification under this section.

(3) The notification requirements and other procedures that the county assessor must follow in disqualifying forestland do not apply to a disqualification occurring under this section.

SECTION 25. The amendments to sections 4 and 37, chapter 1078, Oregon Laws 1999, by sections 23 and 24 of this 2001 Act apply to tax years beginning on or after July 1, 2000.

SECTION 26. ORS 321.682 is amended to read:

321.682. Except as otherwise specifically provided by law, it shall be unlawful for the Department of Revenue or any officer or employee of the department to divulge or make known in any manner the amount of the tax or any particulars set forth or disclosed in any report or return required to be filed under ORS 321.045, 321.322, 321.435 and 321.950 or any appraisal data collected to make determinations of specially assessed value of forestland pursuant to sections 13 to 20 of this 2001 Act. It shall be unlawful for any person or entity to whom information is disclosed or given by the department pursuant to ORS 321.684 (2) or any other provision of state law to divulge or use such information for any purpose other than that specified in the provisions of law authorizing the use or disclosure. No subpoena or judicial order shall be issued compelling the department or any of its officers or employees, or any person who has acquired information pursuant to ORS 321.684 (2) or any other provision of state law, to divulge or make known the amount of tax or any particulars set forth or disclosed in any report or return except where the taxpayer’s liability for timber tax is to be adjudicated by the court from which such process issues. As used in this section, “officer,” “employee” or “person” includes an authorized representative of the officer, employee or person, or any former officer, employee or person, or an authorized representative of such former officer, employee or person.

SECTION 27. ORS 321.684, as amended by section 81, chapter 1078, Oregon Laws 1999, is amended to read:

321.684. (1) The Department of Revenue may:

(a) Furnish to any taxpayer or authorized representative, upon request of the taxpayer or authorized representative, a copy of the taxpayer’s timber tax return filed with the department for any year, or a copy of any report filed by the taxpayer in connection with the return.

(b) Publish a list of taxpayers who are entitled to unclaimed tax refunds.

(c) Publish statistics classified so as to prevent the identification of taxable value or any particulars contained in any report or return.

(d) Disclose a taxpayer’s name, address and social security number or employer identification number to the extent necessary in connection with the processing and mailing of forms for any report or return required in the administration of ORS 321.045, 321.322, 321.435 and 321.950.

(e) Disclose names and addresses of taxpayers filing under ORS 321.282 (4) and 321.432 to Oregon State University pursuant to surveys and programs related to forest management.

(f) Disclose to the State Forester, upon request of the forester, for the purpose of soliciting nominations and conducting elections referred to in ORS 526.610, the names of producers meeting producer class qualifications established under ORS 526.610 who filed forest products harvest tax returns.

(g) Disclose appraisal data collected to make determinations of specially assessed value of forestland under sections 13 to 20 of this 2001 Act to any member of a forestland value advisory committee the department has convened under section 17 of this 2001 Act.

(2) The department also may disclose and give access to information described in ORS 321.682 to:

(a) The Commissioner of Internal Revenue or authorized representative, for tax purposes only.

(b) The United States Forest Service, Bureau of Land Management and the State Forestry Department pursuant to their regulatory programs and for investigative purposes related to timber theft.

(c) The Attorney General, assistants and employees in the Department of Justice or other legal representative of the State of Oregon, to the extent the department considers disclosure or access necessary for the performance of the duties of advising or representing the department pursuant to ORS 321.045, 321.322, 321.435 and 321.950.

(d) Employees of the State of Oregon, other than the Department of Revenue or Department of Justice, to the extent the department considers disclosure or access necessary for such employees to perform their duties under contracts or agreements between the department and any other department, agency or subdivision of the State of Oregon in the department’s administration of the tax laws.

(e) The Legislative Revenue Officer or the authorized representative upon compliance with ORS 173.850. Such officer or representative shall not remove from the premises of the department any materials that would reveal the identity of any taxpayer or any other person or the volume of harvest and value reported on individual returns and reports.

(f) Any agency of the State of Oregon, or any person, or any officer or employee of such agency or person to whom disclosure or access is given by state law and not otherwise referred to in this section, including but not limited to the Secretary of State as Auditor of Public Accounts under section 2, Article VI of the Constitution of the State of Oregon.

(3) Each officer or employee of the department and each person described or referred to in subsection (2)(b) to (f) of this section to whom disclosure or access to the tax information is given under subsection (2) of this section or any other provision of state law, prior to beginning employment or the performance of duties involving such disclosure or access, shall be advised in writing of the provisions of ORS 321.682 and 321.686 relating to penalties for the violation of ORS 321.682, and shall, as a condition of employment or performance of duties, execute a certificate for the department, in a form prescribed by the department, stating in substance that the person has read these provisions of law, that the person has had them explained and that the person is aware of the penalties for the violation of ORS 321.682.

SECTION 28. In addition to and not in lieu of any other appropriation, there is appropriated to the Department of Revenue, for the biennium beginning July 1, 2001, out of the General Fund, the amount of $196,157 for the purpose of developing the forestland valuation models described in section 15 of this 2001 Act.

SECTION 29. Notwithstanding ORS 321.307 (3) and 321.485 (3), moneys are appropriated continuously from the Western Oregon Timber Tax Account and the Eastern Oregon Timber Tax Account for use in reimbursing the General Fund for amounts appropriated to the Department of Revenue for the purpose of developing forestland valuation models described in section 15 of this 2001 Act.

SECTION 30. Sections 8a and 41a, chapter 1078, Oregon Laws 1999, are repealed.

Approved by the Governor July 27, 2001

Filed in the office of Secretary of State July 27, 2001

Effective date January 1, 2002

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