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 3744
A-Engrossed
House Bill 3537
Ordered by the House April 6
Including House Amendments dated April 6
Sponsored by Representative SHETTERLY
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.
Establishes new procedures for determining certain forestland
special assessment values and for appealing certain forestland
values. Establishes certain statutory tables of forestland
values.
Applies to tax years beginning on or after July 1, 2003.
A BILL FOR AN ACT
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:
_________________________________________________________________
____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 { + 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.
(c) Additional taxes may not be imposed as a result of a
disqualification under subsection (2)(a) of this section.
(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:
_________________________________________________________________
+ }
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
ValueCPersAcre + }
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
FA $450
FB...........$357
FC...........$299
FD...........$254
FE...........$169
FF...........$122
FG............$51
FX.........$6 + }
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
_________________________________________________________________
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 321.353 + } 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 - } { + 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 + }.
(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 { + by
the lesser of:
(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:
(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.
(c) Additional taxes may not be imposed as a result of a
disqualification under subsection (2)(a) of this section.
(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 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.
(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) 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.
(c) The balance of the account 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.
(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 $50,000 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. + }
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