71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
HA to HB 2162
 
LC 983/HB 2162-3
 
                       HOUSE AMENDMENTS TO
                         HOUSE BILL 2162
 
     By COMMITTEE ON SCHOOL FUNDING AND TAX FAIRNESS/REVENUE
 
                              May 7
 
  On page 1 of the printed bill, line 2, after 'taxation; '
delete the rest of the line and insert 'creating new provisions;
amending ORS 321.307, 321.353, 321.356, 321.720, 321.811 and
321.814; appropriating money; and prescribing an effective
date.'.
  In line 13, before the period insert 'for the period beginning
July 1, 2001, and ending July 1, 2003'.
  On page 2, delete lines 26 through 28 and insert:
  '  { +  SECTION 2. + }  { + (1) The State Forestry Department
shall convene a working group to review state tax policies
affecting family and nonindustrial small tract forestland in
Oregon. In the course of the review conducted by the working
group, the working group shall consider:
  ' (a) The interest of the state in encouraging diverse
management and uses of family and nonindustrial small tract
forestland;
  ' (b) The contribution of family and nonindustrial small tract
forestland to a healthy ecosystem;
  ' (c) Special issues associated with family and nonindustrial
small tract forestland ownership; and
  ' (d) Any other values or principles the working group finds
relevant to the development of state tax policy concerning family
and nonindustrial small tract forestland in this state.
  ' (2) The working group shall consist of representatives of
family and nonindustrial small tract forestland owners from
eastern Oregon and western Oregon, the conservation community,
county assessors, the Department of Revenue and the State
Forestry Department.
  ' (3) The working group shall report the results of the group's
review of state tax policies affecting family and nonindustrial
small tract forestland, including any recommendations for changes
in those policies, to those committees of the Seventy-second
Legislative Assembly having jurisdiction over revenue matters.
  ' (4) As used in this section, 'family and nonindustrial small
tract forestland' refers to forestland held in common ownership
of less than 5,000 acres. + }
  '  { +  SECTION 3. + } 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 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 shall be considered to have a specially assessed
value per acre in accordance with the following schedule:
' _______________________________________________________________
 
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
 Land ClValue Per Acre
 
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
     FA...........$720
     FB...........$619
     FC...........$396
     FD...........$299
     FE...........$171
     FF............$42
     FG.............$7
     FX.............$1
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
' _______________________________________________________________
  ' (3)(a)(A) For tax years beginning on or after July 1, 1995,
and before July 1, 2001, the 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 by multiplying the assessed values of the
forestland 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 for the
previous year' means the 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 shall be
determined by the department by multiplying the values per acre
for the previous tax year by the value index calculated by the
department and certified to the appropriate county assessor 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 July 1 of each tax year, the department shall
determine and certify to the appropriate county assessor the
values of forestland in western Oregon. Except as provided in ORS
321.352 (6), the county assessor shall use the value 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 values
determined under this section.
  ' (6) For the tax year beginning July 1, 1995, and for each tax
year thereafter { +  that begins before July 1, 2003 + },
forestland in western Oregon that is not assessed under ORS
321.354 shall be subject to ad valorem taxation at the same rates
as nonforestland similarly situated. However, the assessed value
for taxation of such forestland shall not exceed 20 percent of
its value determined under ORS 321.352 to 321.381.
  ' (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.
  ' (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) 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 4. + } ORS 321.356 is amended to read:
  ' 321.356. (1) For the tax year beginning July 1, 2003,
forestland subject to assessment under ORS 321.353 (6) to (9)
 { + for the previous tax year + } shall be disqualified from
such assessment.  For the tax year beginning July 1, 2003, and
for each tax year thereafter, the forestland described in this
 { - subsection - }  { +  section + } 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) - }  { +  (2) + } Additional taxes may not be
imposed as a result of a disqualification under this section.
  '  { - (8) - }  { +  (3) + } 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) apply to this
section. - }
  '  { +  SECTION 5. + } 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 { +  for tax years beginning
before July 1, 2003 + }.
  ' (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 value per
acre for a site class equal to the 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 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 value per acre that the forestland
would have under ORS 321.353 if the forestland were subject to
ORS 321.257 to 321.390 shall be made in accordance with the
following schedule:
' _______________________________________________________________
 
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
  Site ClassLand Class
 
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
     I          FA
     II         FC
     III        FD
     IV         FF
     V          FG
' _______________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
  ' (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 year.
  ' (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.
  ' (8) For the first assessment 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 6. + }  { + Section 7 of this 2001 Act is added
to and made a part of ORS 321.705 to 321.765. + }
  '  { +  SECTION 7. + }  { + (1) For the tax year beginning July
1, 2003, forestland classified under ORS 321.705 to 321.765 shall
be declassified from such classification. For the tax year
beginning July 1, 2003, and for each tax year thereafter, the
forestland described in this section shall be assessed as
provided in ORS 321.354.
  ' (2) Additional taxes may not be imposed as a result of a
declassification under this section.
  ' (3) The notification requirements and other procedures that
the State Forester and county assessor must follow in
declassifying forestland do not apply to a declassification under
this section.
  ' (4) A declassification of forestland classified under ORS
321.705 to 321.765 constitutes a disqualification for purposes of
section 11, Article XI of the Oregon Constitution. + }
  '  { +  SECTION 8. + } 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 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 shall
be determined under subsections (2) to (8) 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
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 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.
Except as provided in ORS 321.810 (6), the county assessor shall
use the index 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 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 { +  that begins before July 1, 2003 + },
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 assessed value for
taxation of such forestland shall not exceed 20 percent of its
value 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 assessed value per acre for the preceding
assessment year.
  ' (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 9. + } ORS 321.814 is amended to read:
  ' 321.814. (1) For the tax year beginning July 1, 2003,
forestland subject to assessment under ORS 321.811 (8) to
(11) { +  for the previous tax year + } shall be disqualified
from such assessment, and shall be assessed as provided in ORS
321.812.
  '  { - (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 321.811 (8) to (11). - }
  '  { - (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 321.421 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) - }  { +  (2) + } Additional taxes may not be
imposed as a result of a disqualification under this section.
  '  { - (8) - }  { +  (3) + } 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 10. + }  { + In addition to and not in lieu of
any other appropriation, there is appropriated to the State
Forestry Department, for the biennium beginning July 1, 2001, out
of the General Fund, the amount of $50,000 for the purpose of
paying the expenses of the working group established under
section 2 of this 2001 Act. + }
  '  { +  SECTION 11. + }  { + 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 State Forestry Department for the purpose of
paying the expenses of the working group established under
section 2 of this 2001 Act. + }
  '  { +  SECTION 12. + }  { + This 2001 Act takes effect on the
91st day after the date on which the regular session of the
Seventy-first Legislative Assembly adjourns sine die. + } ' .
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