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.

 
 
 
     71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 972
 
                         House Bill 2157
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Governor John A. Kitzhaber,
  M.D., for State Department of Agriculture)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Increases number of years of harvest rotation cycle for which
certain hardwood timber is exempt from privilege tax and
underlying land may not be assessed as forestland for property
tax purposes.
  Applies to privilege tax reporting periods beginning on or
after January 1, 2002, and property tax years beginning on or
after July 1, 2002.
 
                        A BILL FOR AN ACT
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.
  (c) Timber on land that is exempt from ad valorem taxation.
  (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;
  (C) Harvested on a rotation cycle within   { - 10 - }  { +
12 + } years after planting; and
 
 
  (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;
  (c) Harvested on a rotation cycle within   { - 10 - }  { +
12 + } years after planting; and
  (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.
  (c) The collection of taxes levied under the provisions of ORS
321.005 to 321.185 and 321.560 to 321.600.
  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. + }
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