72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
SA to HB 2188 (A to RC)
LC 660/HB 2188-5
SENATE AMENDMENTS TO
HOUSE BILL 2188
(INCLUDING AMENDMENTS TO RESOLVE CONFLICTS)
By COMMITTEE ON REVENUE
July 7
On page 4 of the printed bill, after line 29, insert:
' { + SECTION 4a. + } { + If House Bill 2197 becomes law,
section 4 of this 2003 Act (amending ORS 321.267) is repealed and
ORS 321.267, as amended by sections 108 and 110, chapter 454,
Oregon Laws 2003 (Enrolled House Bill 2197), is amended to
read: + }
' 321.267. { - (1) - } The following { - timber and - }
forestland { - are not subject to - } { + may not be assessed
under + } ORS 321.257 to 321.390:
' { - (a) - } { + (1) + } { - 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) Timber on land that is exempt from ad valorem
taxation. - }
' { - (c) - } { + (2) + } Except as provided in ORS 321.347,
land { - and Christmas trees that are grown or growing on that
land - } that { - has been - } { + is + } prepared
{ - by - } { + using + } intensive cultivation and tilling and
on which all unwanted plant growth is controlled continuously for
the exclusive purpose of growing { - such - } Christmas trees.
' { - (d) - } { + (3) + } { - Except as provided in ORS
321.274, land and - } { + Land used for the purpose of
growing + } hardwood timber, including but not limited to hybrid
cottonwood, { - that are - } { + if + }:
' { - (A) - } { + (a) + } { - Grown or growing on land
that has been - } { + The land is + } prepared { - by - }
{ + using + } intensive cultivation methods and { - that - }
is cleared of competing vegetation for at least three years after
tree planting;
' { - (B) - } { + (b) The timber is + } of a species
marketable as fiber for inclusion in the { - ' furnish' - }
{ + furnish + } for manufacturing paper products;
' { - (C) - } { + (c) The timber is + } harvested on a
rotation cycle within 12 years after planting; and
' { - (D) - } { + (d) The land and timber are + } subject to
intensive agricultural practices such as fertilization, insect
and disease control, cultivation and irrigation.
' { - (e)(A) Timber on land that, at the time of harvest, is
assessed under ORS 308.146 (1) to (3) or specially assessed under
ORS 308A.050 to 308A.128 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 308A.050 to 308A.128 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. - }
' { - (f) - } { + (4) + } Small tract forestland qualified
under sections 1 to 14 { + , chapter 454, Oregon Laws 2003
(Enrolled House Bill 2197), + }
{ - of this 2003 Act - } and timber harvested from small tract
forestland qualified under sections 1 to 14 { + , chapter 454,
Oregon Laws 2003 (Enrolled House Bill 2197) + } { - of this
2003 Act - } .
' { - (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 that
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. - } '.
On page 5, after line 45, insert:
' { + SECTION 6a. + } { + If House Bill 2197 becomes law,
section 6 of this 2003 Act (amending ORS 321.307) is repealed and
ORS 321.307, as amended by section 11a, chapter 860, Oregon Laws
2001, and section 63, chapter 454, Oregon Laws 2003 (Enrolled
House Bill 2197), is amended to read: + }
' 321.307. (1) The revenue from the taxes imposed by ORS
321.273 { + (2001 Edition) + }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 that 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 { + (2001 Edition) + } and other expenses
associated with forest taxation, and for costs incurred by the
State Forestry Department in carrying out ORS 315.104 and
321.367.
' (2) Notwithstanding the provisions of ORS 291.238, the amount
of moneys necessary to pay refunds of the taxes imposed by ORS
321.273 { + (2001 Edition) + }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 { + (2001
Edition) + }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
{ + (2001 Edition) + } 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 (10) { + (2001 Edition) + } 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 (10) { + (2001 Edition) + } 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 15 of
each fiscal year, the department shall determine the amount
distributable to counties from the Western Oregon Timber Tax
Account as of May 1 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 1 of the fiscal
year and transferred on or before May 15 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.'.
On page 6, after line 18, insert:
' { + SECTION 7a. + } { + If House Bill 2197 becomes law,
section 7 of this 2003 Act (amending ORS 321.347) is repealed and
ORS 321.347, as amended by section 115, chapter 454, Oregon Laws
2003 (Enrolled House Bill 2197), is amended to read: + }
' 321.347. For the purposes of ORS 321.257 to 321.390:
' (1) All land in western Oregon valued as forestland for ad
valorem { + property + } tax purposes on January 1, 1977, shall
retain that classification for the purposes of ORS 321.257 to
321.390 unless it is specifically excluded from the provisions
thereof or unless it is removed from that classification as
provided in ORS 321.359 or is no longer land the highest and best
use of which is forestland.
' (2) Land designated as forestland pursuant to ORS 321.605 to
321.680 (1975 Replacement Part) shall retain the original date of
such designation.
' (3) Lands classified as reforestation lands as of July 1,
1977, pursuant to ORS 321.255 to 321.360 (1975 Replacement Part)
shall be considered to have been designated as forestland from
the date of original classification as reforestation lands. Any
lands so classified prior to February 1, 1972, shall be presumed
to have been designated not earlier than February 1, 1972.
' (4) Pursuant to the election of the owner, as provided in
section 45, chapter 892, Oregon Laws 1977, land which, as of
January 1, 1977, was designated under the provisions of ORS
321.705 to 321.765 { - (repealed) - } { + (2001 Edition) + }
shall be considered to have been designated as forestland for the
purposes of ORS 321.257 to 321.390 from the date of the original
designation under those provisions. Any lands so designated prior
to January 1, 1972, shall be presumed to have been designated not
earlier than January 1, 1972, for the purposes of additional
taxes imposed by ORS 308A.700 to 308A.733.'.
After line 28, insert:
' { + SECTION 9a. + } If House Bill 2197 becomes law, section
9 of this 2003 Act is amended to read:
' { + Sec. 9. + } The amendments to ORS 321.257, 321.259,
321.262, 321.267, 321.272, 321.307, 321.347 and 321.348 by
sections 1 to { + 3, 4a, 5, 6a, 7a and + } 8 of this 2003 Act
apply to property tax years beginning on or after July 1,
{ - 2003 - } { + 2004 + }.'.
On page 8, after line 13, insert:
' { + SECTION 13a. + } { + If House Bill 2197 becomes law,
sections 10 (amending ORS 321.354), 11, 12 (amending ORS 321.354)
and 13 of this 2003 Act are repealed. + } ' .
On page 11, after line 15, insert:
' { + SECTION 20a. + } { + If House Bill 2197 becomes law,
section 20 of this 2003 Act (amending ORS 321.390) is repealed
and ORS 321.390, as amended by section 126, chapter 454, Oregon
Laws 2003 (Enrolled House Bill 2197), is amended to read: + }
' 321.390. (1) Land described in ORS 321.267 { - (1)(d) - }
{ + (3) + } (relating to hardwood timberland, including hybrid
cottonwood timberland) shall be assessed as farm use land under
ORS 308A.050 to 308A.128 { - , unless the owner of the land
makes the election under ORS 321.274 - } .
' (2)(a) If land is or becomes land described under ORS 321.267
{ - (1)(d) - } { + (3) + } and the land is not located within
an exclusive farm use zone, the owner shall make application for
special valuation as farm use land in the manner provided under
ORS 308A.077, as follows:
' (A) If the change in use takes place on or after July 1, the
owner shall file the application on or before April 1 of the
following year.
' (B) If the change in use takes place prior to July 1, the
owner shall file the application on or before August 1 of the
same year.
' (b) If an application is filed as provided under this
subsection, the owner shall have seven years beginning with the
first year of classification to meet the income requirements of
ORS 308A.071 and need not meet the two-year farm use requirements
of ORS 308A.068.'.
After line 18, insert:
' { + SECTION 21a. + } If House Bill 2197 becomes law,
section 21 of this 2003 Act is amended to read:
' { + Sec. 21. + } Section 15 of this 2003 Act and the
amendments to ORS 321.356, 321.358, 321.359, 321.367 and 321.390
by sections 16 to { - 20 - } { + 19 and 20a + } of this 2003
Act apply to property tax years beginning on or after July 1,
{ - 2003 - } { + 2004 + }.'.
After line 20, insert:
' { + SECTION 22a. + } If House Bill 2197 becomes law,
section 22 of this 2003 Act is amended to read:
' { + Sec. 22. + } ORS { - 321.273, 321.274, 321.282, - }
321.284,
{ - 321.287, 321.322, - } 321.351, { - 321.352, 321.353,
321.365, - } 321.375, 321.379 { - , - } { + and + } 321.381
{ - and 321.950 - } are repealed.
' { + SECTION 22b. + } { + If House Bill 2197 becomes law,
ORS 321.273, 321.274, 321.282, 321.287, 321.322, 321.352,
321.353, 321.365 and 321.950 are repealed on January 2, 2004. + }
' { + SECTION 22c. + } { + Notwithstanding sections 114
(amending ORS 321.274), 62a (amending ORS 321.282) and 65
(amending ORS 321.353), chapter 454, Oregon Laws 2003 (Enrolled
House Bill 2197), if House Bill 2197 becomes law, ORS 321.274,
321.282 and 321.353 are repealed on January 2, 2004. + } ' .
After line 25, insert:
' { + SECTION 23a. + } If House Bill 2197 becomes law,
section 23 of this 2003 Act is amended to read:
' { + Sec. 23. + } { + (1) + } The repeal of ORS
{ - 321.273, 321.274, 321.282, - } 321.284, { - 321.287,
321.322, - } 321.351, { - 321.352, 321.353, 321.365, - }
321.375, 321.379 { - , - } { + and + } 321.381 { - and
321.950 - } by section 22 of this 2003 Act does not affect the
imposition, collection or administration of western Oregon
privilege taxes in privilege tax reporting periods ending before
January 1, 2003, or ad valorem property taxes imposed on western
Oregon forestlands in property tax years ending before July 1,
2003.
' { + (2) The repeal of ORS 321.273, 321.274, 321.282,
321.287, 321.322, 321.352, 321.353, 321.365 and 321.950 by
section 22b of this 2003 Act does not affect the imposition,
collection or administration of western Oregon privilege taxes in
privilege tax reporting periods ending before January 1, 2004, or
ad valorem property taxes imposed on western Oregon forestlands
in property tax years ending before July 1, 2004. + } ' .
After line 27, insert:
' { + SECTION 24a. + } If House Bill 2197 becomes law,
section 24 of this 2003 Act is amended to read:
' { + Sec. 24. + } ORS 321.356 { - and section 4, chapter
1078, Oregon Laws 1999, are - } { + is + } repealed on
{ - July 1, 2004 - } { + January 2, 2006 + }.'.
On page 13, after line 36, insert:
' { + SECTION 33a. + } If House Bill 2197 becomes law,
section 33 of this 2003 Act is amended to read:
' { + Sec. 33. + } The amendments to ORS 321.408, 321.410,
321.415 and 321.420 by sections 29 to 32 of this 2003 Act apply
to property tax years beginning on or after July 1,
{ - 2003 - } { + 2004 + }.'.
On page 15, after line 1, insert:
' { + SECTION 35a. + } If House Bill 2197 becomes law,
section 35 of this 2003 Act is amended to read:
' { + Sec. 35. + } ORS { - 321.405, 321.421, 321.426,
321.430, 321.432, - } 321.434 { - , 321.435 and 321.475 are - }
{ + is + } repealed. { + + }
' { + SECTION 35b. + } { + If House Bill 2197 becomes law,
ORS 321.405, 321.421, 321.426, 321.430, 321.432, 321.435 and
321.475 are repealed on January 2, 2004. + } { + + }
' { + SECTION 35c. + } { + Notwithstanding section 71a,
chapter 454, Oregon Laws 2003 (Enrolled House Bill 2197)
(amending ORS 321.432), if House Bill 2197 becomes law, ORS
321.432 is repealed on January 2, 2004. + } ' .
After line 6, insert:
' { + SECTION 36a. + } If House Bill 2197 becomes law,
section 36 of this 2003 Act is amended to read:
' { + Sec. 36. + } { + (1) + } The repeal of ORS
{ - 321.405, 321.421, 321.426, 321.430, 321.432, - } 321.434
{ - , 321.435 and 321.475 - } by section 35 of this 2003 Act
does not affect the imposition, collection or administration of
eastern Oregon privilege taxes in privilege tax reporting periods
ending before January 1, 2003, or ad valorem property taxes
imposed on eastern Oregon forestlands in property tax years
ending before July 1, 2003.
' { + (2) The repeal of ORS 321.405, 321.421, 321.426,
321.430, 321.432, 321.435 and 321.475 by section 35b of this 2003
Act does not affect the imposition, collection or administration
of eastern Oregon privilege taxes in privilege tax reporting
periods ending before January 1, 2004, or ad valorem property
taxes imposed on eastern Oregon forestlands in property tax years
ending before July 1, 2004. + } ' .
After line 38, insert:
' { + SECTION 39a. + } { + If House Bill 2197 becomes law,
section 39 of this 2003 Act (amending ORS 321.550) is repealed
and ORS 321.550, as amended by section 54, chapter 454, Oregon
Laws 2003 (Enrolled House Bill 2197), is amended to read: + }
' 321.550. (1) No person shall harvest or cause to be harvested
any timber from land in Oregon without first having notified the
State Forester in writing with a copy to the Department of
Revenue on forms prepared by the State Forester and the
department of intent to harvest pursuant to ORS 321.005 to
321.185 { - , 321.257 to 321.390, 321.405 to 321.487 - } and
321.560 to 321.600 and sections 1 to 14 { + , chapter 454, Oregon
Laws 2003 (Enrolled House Bill 2197) + } { - of this 2003
Act - } .
' (2) The notification shall specify where and when the harvest
will take place and the nature of the harvest and shall include
maps and other data as required by the State Forester and the
department. The department shall establish by rule procedures to
assure the receipt of the tax returns sent out or a report of
nonharvest from the person. The department shall conduct field
and office audits to ascertain the correctness of any timber tax
return.
' (3)(a) If a person fails to file a written notice as required
in subsection (1) of this section with respect to any harvest
over 5,000 board feet, the department shall notify the person.
If, after the person has been notified, the person fails to file
a written notice as required in subsection (1) of this section
with respect to any subsequent harvest over 5,000 board feet,
there shall be added to the amount of the timber tax required to
be shown on the return as a result of the subsequent harvest a
delinquency penalty of $250 for each violation occurring within a
calendar year. The department shall collect the penalty in the
same manner as taxes are collected.
' (b) No penalty shall be imposed under this subsection if a
penalty for failure to file the notice with the State Forester
has been imposed under ORS 527.992.
' (c) The delinquency penalty shall first be added to { - the
western Oregon forestland and privilege tax imposed under ORS
321.257 to 321.390, the eastern Oregon privilege tax imposed
under ORS 321.405 to 321.487 or - } the small tract forestland
timber severance tax imposed under sections 1 to 14 { + , chapter
454, Oregon Laws 2003 (Enrolled House Bill 2197) + } { - of
this 2003 Act - } , if { - any of these taxes is - }
applicable to the harvest. If { - none of the listed taxes
are - } { + the small tract forestland timber severance tax is
not + } applicable, the delinquency penalty shall be added to the
forest products harvest tax imposed under ORS 321.005 to
321.185.'.
On page 16, after line 22, insert:
' { + SECTION 40a. + } { + If House Bill 2197 becomes law,
section 40 of this 2003 Act (amending ORS 321.560) is repealed
and ORS 321.560, as amended by section 55, chapter 454, Oregon
Laws 2003 (Enrolled House Bill 2197), is amended to read: + }
' 321.560. (1) { - (a) - } The provisions of ORS chapters 305
and 314 as to the audit and examination of reports and returns,
determination of deficiencies, liens, assessments, claims for
refund, conferences and appeals to the Oregon Tax Court, and the
procedures relating thereto, apply to the determination of taxes,
penalties and interest imposed under ORS 321.005 to 321.185
{ - , 321.257 to 321.390, 321.405 to 321.487 - } or 321.560 to
321.600 or sections 1 to 14 { + , chapter 454, Oregon Laws 2003
(Enrolled House Bill 2197) + } { - of this 2003 Act - } ,
except where the context requires otherwise.
' { - (b) In addition, on or before March 1 of the year of
determination, any taxpayer may appeal to the Oregon Tax Court
for the revision of a harvest value for an area determined
pursuant to ORS 321.430. - }
' (2) If a taxpayer fails to file a return required by ORS
321.045 { - , 321.257 to 321.390 or 321.405 to 321.487 - } or
sections 1 to 14 { + , chapter 454, Oregon Laws 2003 (Enrolled
House Bill 2197) + }
{ - of this 2003 Act - } , or fails to pay a tax at the time
the tax becomes due, there shall be added to the amount of tax
required to be shown on the return a delinquency penalty of five
percent of the amount of such tax.
' (3) If the failure to file a return continues for a period in
excess of three months after the due date, there shall be added
to the amount of tax required to be shown on the return a failure
to file penalty of 20 percent of the amount of such tax. This
penalty is in addition to the delinquency penalty imposed by
subsection (2) of this section.
' (4) If all or any part of the delinquency or deficiency for
which a determination is made is due to fraud or an intent to
evade the provisions of ORS 321.005 to 321.185 { - , 321.257 to
321.390, 321.405 to 321.487 - } or 321.560 to 321.600 or
sections 1 to 14 { + , chapter 454, Oregon Laws 2003 (Enrolled
House Bill 2197), + }
{ - of this 2003 Act - } or the rules adopted thereunder, a
penalty of 100 percent of such delinquency or deficiency shall be
added, plus interest at the rate established under ORS 305.220
for each month, or any fraction thereof, computed on the full
amount of the delinquency or deficiency plus penalty, from the
time the return was due.
' (5) For purposes of this section, the amount of tax required
to be shown on the return shall be reduced by the amount of any
part of the tax that is paid on or before the date prescribed for
payment of the tax and by the amount of any credit against the
tax that may be lawfully claimed upon the return.
' (6) A delinquent tax or a deficiency shall bear interest at
the rate established under ORS 305.220 for each month, or any
fraction thereof, from the time the return was due.'.
On page 17, after line 5, insert:
' { + SECTION 41a. + } { + If House Bill 2197 becomes law,
section 41 of this 2003 Act (amending ORS 321.570) is repealed
and ORS 321.570, as amended by section 56, chapter 454, Oregon
Laws 2003 (Enrolled House Bill 2197), is amended to read: + }
' 321.570. (1) If any tax imposed by ORS 321.005 to 321.185
{ - , 321.257 to 321.390, 321.405 to 321.487 - } or 321.560 to
321.600 or sections 1 to 14 { + , chapter 454, Oregon Laws 2003
(Enrolled House Bill 2197) + } { - of this 2003 Act - } , or
any portion of { - such - } { + the + } tax, is not paid
within 30 days after the date that the written notice and demand
for payment required under ORS 305.895 is mailed, the Department
of Revenue may issue a warrant, directed to the sheriff of any
county of the state, commanding the sheriff to levy upon and sell
the real and personal property of the taxpayer owning the same,
found within that county, for the payment of the amount of the
tax, with the added penalties, interest and cost of executing the
warrant, and to return the warrant to the department and to pay
to it the money collected from the sale, within 60 days after
receipt of the warrant. A copy of the warrant shall be mailed or
delivered to the taxpayer by the department at the taxpayer's
last-known address.
' (2) The sheriff shall, within five days after the receipt of
the warrant, record a copy with the county clerk, and the clerk
shall immediately enter in the County Clerk Lien Record the name
of the taxpayer mentioned in the warrant, and the amount of the
tax or portion of the tax and penalties for which the warrant is
issued and the date when the copy is recorded. The amount of the
warrant so recorded shall become a lien upon the title to and
interest in real property of the taxpayer against which it is
issued, in the same manner as a judgment duly docketed. The
sheriff immediately shall proceed upon the warrant in all
respects, with like effect, and in the same manner prescribed by
law in respect to executions issued against property upon
judgments of a court of record, and shall be entitled to the same
fees for services in executing the warrant, to be added to and
collected as a part of the warrant liability.
' (3) In the discretion of the department a warrant of like
terms, force and effect may be issued and directed to any agent
authorized to collect this tax. In the execution of the warrant,
such agent has the powers conferred by law upon sheriffs, but is
entitled to no fee or compensation in excess of actual expenses
paid in the performance of such duty.
' (4) If a warrant is returned not satisfied in full, the
department shall have the same remedies to enforce the claim for
taxes against the taxpayer as if the state had a recorded
judgment against the taxpayer for the amount of the tax.'.
After line 13, insert:
' { + SECTION 42a. + } { + If House Bill 2197 becomes law,
section 42 of this 2003 Act (amending ORS 321.580) is repealed
and ORS 321.580, as amended by section 57, chapter 454, Oregon
Laws 2003 (Enrolled House Bill 2197), is amended to read: + }
' 321.580. If any taxpayer neglects or refuses to make a return
required to be made by ORS 321.005 to 321.185 { - , 321.257 to
321.390, 321.405 to 321.487 - } or 321.560 to 321.600 or
sections 1 to 14 { + , chapter 454, Oregon Laws 2003 (Enrolled
House Bill 2197) + }
{ - of this 2003 Act - } , the Department of Revenue is
authorized to determine the tax due, based upon any information
in its possession or that may come into its possession. The
department shall give the taxpayer written notice of the tax and
delinquency charges and the tax and delinquency charges shall be
a lien from the time of severance. If the tax and delinquency
charges are not paid within 30 days from the mailing of the
notice, the department shall proceed to collect the tax in the
manner provided in ORS 321.570.'.
After line 21, insert:
' { + SECTION 43a. + } { + If House Bill 2197 becomes law,
section 43 of this 2003 Act (amending ORS 321.600) is repealed
and ORS 321.600, as amended by section 58, chapter 454, Oregon
Laws 2003 (Enrolled House Bill 2197), is amended to read: + }
' 321.600. All taxes, interest and penalties due and unpaid
under ORS 321.005 to 321.185 { - , 321.257 to 321.390, 321.405
to 321.487 - } or 321.560 to 321.600 or sections 1 to 14 { + ,
chapter 454, Oregon Laws 2003 (Enrolled House Bill 2197), + }
{ - of this 2003 Act - } constitute a debt due the State of
Oregon and may be collected, together with interest, penalty and
costs, by appropriate judicial proceeding, which remedy is in
addition to all other existing remedies. However, no proceeding
for the collection of taxes under ORS 321.005 to 321.185 { - ,
321.257 to 321.390, 321.405 to 321.487 - } or 321.560 to 321.600
or sections 1 to 14 { + , chapter 454, Oregon Laws 2003 (Enrolled
House Bill 2197), + } { - of this 2003 Act - } shall be
instituted after the expiration of six years from the date
{ - such - } { + the + } taxes were due.'.
After line 35, insert:
' { + SECTION 44a. + } { + If House Bill 2197 becomes law,
section 44 of this 2003 Act (amending ORS 321.609) is repealed
and ORS 321.609, as amended by section 59, chapter 454, Oregon
Laws 2003 (Enrolled House Bill 2197), is amended to read: + }
' 321.609. (1) ORS 321.005 to 321.185 { - , 321.257 to
321.390, 321.405 to 321.487 - } and 321.560 to 321.600 and
sections 1 to 14 { + , chapter 454, Oregon Laws 2003 (Enrolled
House Bill 2197), + } { - of this 2003 Act - } shall be
enforced and the taxes imposed by ORS 321.005 to 321.185 { - ,
321.257 to 321.390, 321.405 to 321.487 - } and 321.560 to
321.600 and sections 1 to 14 { + , chapter 454, Oregon Laws 2003
(Enrolled House Bill 2197), + } { - of this 2003 Act - } shall
be collected by the Department of Revenue, which shall have the
power to prescribe forms and to adopt rules for the
ascertainment, assessment and collection of the taxes imposed by
ORS 321.005 to 321.185 { - , 321.257 to 321.390, 321.405 to
321.487 - } or 321.560 to 321.600 or sections 1 to 14 { + ,
chapter 454, Oregon Laws 2003 (Enrolled House Bill 2197) + }
{ - of this 2003 Act - } .
' (2) For the purpose of determining the taxes imposed by ORS
321.005 to 321.185 { - , 321.257 to 321.390, 321.405 to
321.487 - } or 321.560 to 321.600 or sections 1 to 14 { + ,
chapter 454, Oregon Laws 2003 (Enrolled House Bill 2197) + }
{ - of this 2003 Act - } , the department may:
' (a) Require any person to furnish any information deemed
necessary.
' (b) Examine the books, records and files of such person.
' (c) Subpoena and examine witnesses and administer oaths.
' (d) Enter upon and inspect the land of any owner of the land
from which any timber has been harvested.'.
On page 18, after line 7, insert:
' { + SECTION 45a. + } { + If House Bill 2197 becomes law,
section 45 of this 2003 Act (amending ORS 321.682) is repealed
and ORS 321.682, as amended by section 60, chapter 454, Oregon
Laws 2003 (Enrolled House Bill 2197), is amended to read: + }
' 321.682. { + (1) + } 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 or
321.950 - } or section 10 { + , chapter 454, Oregon Laws 2003
(Enrolled House Bill 2197), + } { - of this 2003 Act - } or
any appraisal data collected to make determinations of specially
assessed value of forestland pursuant to ORS 321.201 to 321.222.
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.
' { + (2) + } 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.'.
On page 19, after line 19, insert:
' { + SECTION 47a. + } If House Bill 2197 becomes law,
section 47 of this 2003 Act is amended to read:
' { + Sec. 47. + } The amendments to ORS 321.550, 321.560,
321.570, 321.580, 321.600, 321.609, 321.682 and 321.684 by
sections { - 39 to - } { + 39a, 40a, 41a, 42a, 43a, 44a, 45a
and + } 46 of this 2003 Act apply to forest products harvest
tax { + and small tract forestland timber severance tax + }
reporting periods beginning on or after January 1,
{ - 2003 - } { + 2004 + }.'.
After line 33, insert:
' { + SECTION 48a. + } { + If House Bill 2197 becomes law,
section 48 of this 2003 Act (amending ORS 321.763) is repealed
and ORS 321.763, as amended by section 80, chapter 454, Oregon
Laws 2003 (Enrolled House Bill 2197), is amended to read: + }
' 321.763. (1) For the tax year beginning July 1, 2003,
forestland classified under ORS 321.705 to 321.765
{ - (repealed) - } { + (2001 Edition) + } 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 { - (repealed) - } { + (2001 Edition) + }
constitutes a disqualification for purposes of section 11,
Article XI of the Oregon Constitution.'.
On page 22, after line 18, insert:
' { + SECTION 57a. + } { + If House Bill 2197 becomes law,
sections 54 (amending ORS 321.812), 55, 56 (amending ORS 321.812)
and 57 of this 2003 Act are repealed. + } ' .
On page 23, after line 40, insert:
' { + SECTION 61a. + } If House Bill 2197 becomes law,
section 61 of this 2003 Act is amended to read:
' { + Sec. 61. + } The amendments to ORS 321.805, 321.815 and
321.830 by sections 53, 59 and 60 of this 2003 Act apply to
property tax years beginning on or after July 1, { - 2003 - }
{ + 2004 + }.'.
After line 42, insert:
' { + SECTION 63a. + } If House Bill 2197 becomes law,
section 63 of this 2003 Act is amended to read:
' { + Sec. 63. + } ORS 321.810, 321.811, 321.816 and 321.823
are repealed { + on July 1, 2004 + }.'.
After line 45, insert:
' { + SECTION 64a. + } If House Bill 2197 becomes law,
section 64 of this 2003 Act is amended to read:
' { + Sec. 64. + } The repeal of ORS 321.810, 321.811,
321.816 and 321.823 by section 63 of this 2003 Act does not
affect the imposition, collection or administration of ad valorem
property taxes imposed on eastern Oregon forestlands in property
tax years ending before July 1, { - 2003 - } { + 2004 + }.'.
On page 24, after line 2, insert:
' { + SECTION 65a. + } If House Bill 2197 becomes law,
section 65 of this 2003 Act is amended to read:
' { + Sec. 65. + } ORS 321.814 { - and section 37, chapter
1078, Oregon Laws 1999, are - } { + is + } repealed { - July
1, 2004 - } { + January 2, 2006 + }.'.
On page 25, after line 20, insert:
' { + SECTION 67a. + } { + If House Bill 2197 becomes law,
section 67 of this 2003 Act (amending ORS 215.203) is repealed
and ORS 215.203, as amended by section 117, chapter 454, Oregon
Laws 2003 (Enrolled House Bill 2197), is amended to read: + }
' 215.203. (1) Zoning ordinances may be adopted to zone
designated areas of land within the county as exclusive farm use
zones. Land within such zones shall be used exclusively for farm
use except as otherwise provided in ORS 215.213, 215.283 or
215.284. Farm use zones shall be established only when such
zoning is consistent with the comprehensive plan.
' (2)(a) As used in this section, 'farm use' means the current
employment of land for the primary purpose of obtaining a profit
in money by raising, harvesting and selling crops or the feeding,
breeding, management and sale of, or the produce of, livestock,
poultry, fur-bearing animals or honeybees or for dairying and the
sale of dairy products or any other agricultural or horticultural
use or animal husbandry or any combination thereof. 'Farm use'
includes the preparation, storage and disposal by marketing or
otherwise of the products or by-products raised on such land for
human or animal use. 'Farm use' also includes the current
employment of land for the primary purpose of obtaining a profit
in money by stabling or training equines including but not
limited to providing riding lessons, training clinics and
schooling shows. 'Farm use' also includes the propagation,
cultivation, maintenance and harvesting of aquatic species and
bird and animal species to the extent allowed by the rules
adopted by the State Fish and Wildlife Commission. 'Farm use'
includes the on-site construction and maintenance of equipment
and facilities used for the activities described in this
subsection. 'Farm use ' does not include the use of land subject
to the provisions of ORS chapter 321, except land used
exclusively for growing cultured Christmas trees as defined in
subsection (3) of this section or land described in ORS 321.267
{ - (1)(d) - } { + (3) + } or 321.415 { - (5) - }
{ + (3) + }.
' (b) 'Current employment' of land for farm use includes:
' (A) Farmland, the operation or use of which is subject to any
farm-related government program;
' (B) Land lying fallow for one year as a normal and regular
requirement of good agricultural husbandry;
' (C) Land planted in orchards or other perennials, other than
land specified in subparagraph (D) of this paragraph, prior to
maturity;
' (D) Land not in an exclusive farm use zone which has not been
eligible for assessment at special farm use value in the year
prior to planting the current crop and has been planted in
orchards, cultured Christmas trees or vineyards for at least
three years;
' (E) Wasteland, in an exclusive farm use zone, dry or covered
with water, neither economically tillable nor grazeable, lying in
or adjacent to and in common ownership with a farm use land and
which is not currently being used for any economic farm use;
' (F) Except for land under a single family dwelling, land
under buildings supporting accepted farm practices, including the
processing facilities allowed by ORS 215.213 (1)(x) and 215.283
(1)(u);
' (G) Water impoundments lying in or adjacent to and in common
ownership with farm use land;
' (H) Any land constituting a woodlot, not to exceed 20 acres,
contiguous to and owned by the owner of land specially valued for
farm use even if the land constituting the woodlot is not
utilized in conjunction with farm use;
' (I) Land lying idle for no more than one year where the
absence of farming activity is due to the illness of the farmer
or member of the farmer's immediate family. For purposes of this
paragraph, illness includes injury or infirmity whether or not
such illness results in death;
' (J) Any land described under ORS 321.267 { - (1)(d) - }
{ + (3) + } or 321.415 { - (5) - } { + (3) + }; and
' (K) Land used for the primary purpose of obtaining a profit
in money by breeding, raising, kenneling or training of
greyhounds for racing.
' (c) As used in this subsection, 'accepted farming practice '
means a mode of operation that is common to farms of a similar
nature, necessary for the operation of such farms to obtain a
profit in money, and customarily utilized in conjunction with
farm use.
' (3) 'Cultured Christmas trees' means trees:
' (a) Grown on lands used exclusively for that purpose, capable
of preparation by intensive cultivation methods such as plowing
or turning over the soil;
' (b) Of a marketable species;
' (c) Managed to produce trees meeting U.S. No. 2 or better
standards for Christmas trees as specified by the Agriculture
Marketing Services of the United States Department of
Agriculture; and
' (d) Evidencing periodic maintenance practices of shearing for
Douglas fir and pine species, weed and brush control and one or
more of the following practices: Basal pruning, fertilizing,
insect and disease control, stump culture, soil cultivation,
irrigation.'.
On page 36, after line 11, insert:
' { + SECTION 79a. + } { + If House Bill 2197 becomes law,
section 79 of this 2003 Act (amending ORS 307.320) is repealed
and ORS 307.320, as amended by section 118, chapter 454, Oregon
Laws 2003 (Enrolled House Bill 2197), is amended to read: + }
' 307.320. The value of any deciduous trees, shrubs, plants or
crops, whether annual or perennial, and any cultured Christmas
trees, as defined in ORS 215.203, or timber described under ORS
321.267 { - (1)(d) - } { + (3) + } or 321.415 { - (5) - }
{ + (3) + }, growing upon agricultural land devoted to
agricultural purposes, shall be exempt from assessment and
taxation and shall not be deemed real property under the
provisions of ORS 307.010.'.
On page 38, after line 2, insert:
' { + SECTION 81a. + } { + If House Bill 2197 becomes law,
section 81 of this 2003 Act (amending ORS 308A.056) is repealed
and ORS 308A.056, as amended by section 120, chapter 454, Oregon
Laws 2003 (Enrolled House Bill 2197), is amended to read: + }
' 308A.056. (1) As used in ORS 308A.050 to 308A.128, 'farm use'
means the current employment of land for the primary purpose of
obtaining a profit in money by:
' (a) Raising, harvesting and selling crops;
' (b) Feeding, breeding, managing or selling livestock,
poultry, fur-bearing animals or honeybees or the produce thereof;
' (c) Dairying and selling dairy products;
' (d) Stabling or training equines, including but not limited
to providing riding lessons, training clinics and schooling
shows;
' (e) Propagating, cultivating, maintaining or harvesting
aquatic species and bird and animal species to the extent allowed
by the rules adopted by the State Fish and Wildlife Commission;
' (f) On-site constructing and maintaining equipment and
facilities used for the activities described in this subsection;
' (g) Preparing, storing or disposing of, by marketing or
otherwise, the products or by-products raised for human or animal
use on land described in this section; or
' (h) Using land described in this section for any other
agricultural or horticultural use or animal husbandry or any
combination thereof.
' (2) 'Farm use' does not include the use of land subject to
timber and forestland taxation under ORS chapter 321, except land
used exclusively for growing cultured Christmas trees or land
described in ORS 321.267 { - (1)(d) - } { + (3) + } or
321.415 { - (5) - } { + + } { + (3) + } (relating to land
used to grow certain hardwood timber, including hybrid
cottonwood).
' (3) For purposes of this section, land is currently employed
for farm use if the land is:
' (a) Farmland, the operation or use of which is subject to any
farm-related government program;
' (b) Land lying fallow for one year as a normal and regular
requirement of good agricultural husbandry;
' (c) Land planted in orchards or other perennials, other than
land specified in paragraph (d) of this subsection, prior to
maturity;
' (d) Land not in an exclusive farm use zone that has not been
eligible for assessment at special farm use value in the year
prior to planting the current crop and has been planted in
orchards, cultured Christmas trees or vineyards for at least
three years;
' (e) Wasteland, in an exclusive farm use zone, dry or covered
with water, neither economically tillable nor grazeable, lying in
or adjacent to and in common ownership with farm use land and
that is not currently being used for any economic farm use;
' (f) Except for land under a single family dwelling, land
under buildings supporting accepted farming practices, including
the processing facilities allowed by ORS 215.213 (1)(x) and
215.283 (1)(u);
' (g) Water impoundments lying in or adjacent to and in common
ownership with farm use land;
' (h) Any land constituting a woodlot, not to exceed 20 acres,
contiguous to and owned by the owner of land specially valued for
farm use even if the land constituting the woodlot is not
utilized in conjunction with farm use;
' (i) Land lying idle for no more than one year when the
absence of farming activity is the result of the illness of the
farmer or a member of the farmer's immediate family, including
injury or infirmity, regardless of whether the illness results in
death;
' (j) Land described under ORS 321.267 { - (1)(d) - } { +
(3) + } or 321.415 { - (5) - } { + (3) + } (relating to land
used to grow certain hardwood timber, including hybrid
cottonwood); or
' (k) Land used for the primary purpose of obtaining a profit
in money by breeding, raising, kenneling or training greyhounds
for racing.
' (4) As used in this section:
' (a) 'Accepted farming practice' means a mode of operation
that is common to farms of a similar nature, necessary for the
operation of these similar farms to obtain a profit in money and
customarily utilized in conjunction with farm use.
' (b) 'Cultured Christmas trees' means trees:
' (A) Grown on lands used exclusively for that purpose, capable
of preparation by intensive cultivation methods such as plowing
or turning over the soil;
' (B) Of a marketable species;
' (C) Managed to produce trees meeting U.S. No. 2 or better
standards for Christmas trees as specified by the Agricultural
Marketing Service of the United States Department of Agriculture;
and
' (D) Evidencing periodic maintenance practices of shearing for
Douglas fir and pine species, weed and brush control and one or
more of the following practices:
' (i) Basal pruning;
' (ii) Fertilizing;
' (iii) Insect and disease control;
' (iv) Stump culture;
' (v) Soil cultivation; or
' (vi) Irrigation.'.
On page 46, after line 33, insert:
' { + SECTION 96a. + } If House Bill 2197 becomes law,
section 96 of this 2003 Act is amended to read:
' { + Sec. 96. + } The amendments to ORS { - 307.320, - }
308.236,
{ - 308A.056, - } 308A.250, 308A.377, 308A.700, 308A.703,
308A.706, 308A.709, 308A.712, { - 308A.718, - } 308A.724,
308A.730, 308A.733, 308A.743 { - , 310.110 - } and 310.165 by
sections { - 79 to 95 - } { + 80, 82 to 88, 90 to 93 and
95 + } of this 2003 Act apply to property tax years beginning on
or after July 1, 2003.
' { + SECTION 96b. + } { + If House Bill 2197 becomes law,
the amendments to ORS 307.320, 308A.056, 308A.718 and 310.110 by
sections 79a, 81a, 89 and 94 of this 2003 Act apply to property
tax years beginning on or after July 1, 2004. + } ' .
On page 48, after line 25, insert:
' { + SECTION 97a. + } { + If House Bill 2197 becomes law,
section 97 of this 2003 Act (amending ORS 315.104) is repealed
and ORS 315.104, as amended by section 122, chapter 454, Oregon
Laws 2003 (Enrolled House Bill 2197), is amended to read: + }
' 315.104. (1) A credit against the taxes otherwise due under
ORS chapter 316 (or if the taxpayer is a corporation, under ORS
chapter 317 or 318) shall be allowed in an amount equal to 50
percent of reforestation project costs actually paid or incurred
to reforest underproductive Oregon forestlands. Such costs
include, but are not limited to site preparation, tree planting
and other silviculture treatments considered necessary by the
State Forester to establish commercial, hardwood or softwood
stands on appropriate sites. Subject to subsection (5) of this
section:
' (a) One-half of the credit shall be taken in the tax year for
which the State Forester, after physical inspection of the
forestland, issues a preliminary certificate under ORS 315.106
certifying that the land qualifies as underproductive Oregon
forestland and that the reforestation project undertaken meets
the requirements of this section and the specifications
established by the State Forester and the costs appear to be
reasonable; and
' (b) One-half of the credit shall be taken in the tax year for
which the State Forester, after further physical inspection of
the land and project, certifies that the new forest is
established in accordance with the specifications of the State
Forester.
' (2) No credit shall be allowed under either subsection (1)(a)
or (b) of this section unless written certification containing
the following statements accompanies the claim for the credit or
is otherwise filed with the Department of Revenue:
' (a) A preliminary certificate issued by the State Forester
under ORS 315.106 that the land and project meet the preliminary
specifications established by the State Forester or that the new
forest is established, whichever is applicable at the time.
' (b) A statement by the landowner or person in possession of
the land that the land within the project area will be used for
the primary purpose of growing and harvesting trees of an
acceptable species.
' (c) A statement that the landowner or person in possession of
the land is aware that maintenance practices, including release,
may be needed to insure that a new forest is established and will
remain established.
' (3) For purposes of this section, reforestation project costs
shall not include:
' (a) Costs paid or incurred to reforest any forestland that
has been commercially logged to the extent that reforestation is
required under the Oregon Forest Practices Act, except costs paid
or incurred to reforest forestland following a hardwood harvest,
conducted for the purposes of converting underproductive
forestlands, as determined by administrative rule.
' (b) That portion of costs or expenses paid through a federal
or state cost share, financial assistance or other incentive
program.
' (c) Those costs paid or incurred to grow Christmas trees,
ornamental trees, shrubs or plants, or { - , except as provided
under ORS 321.274 or 321.426, - } those costs paid or incurred
to grow hardwood timber described under ORS 321.267
{ - (1)(d) - } { + (3) + } or 321.415 { - (5) - } { +
(3) + }.
' (d) Any costs paid or incurred to purchase or otherwise
acquire the land.
' (e) The cost of purchase or other acquisition of tools and
equipment with a useful life of more than one year.
' (4) To qualify for the credit:
' (a) The project must be completed to specifications approved
by the State Forester.
' (b) The taxpayer's portion of the project costs must be $500
or more.
' (c) The taxpayer must be a private individual, corporation,
group, Indian tribe or other native group, association or other
nonpublic legal entity owning, purchasing under recorded contract
of sale or leasing at least five acres of Oregon commercial
forestland.
' (5) Any tax credit otherwise allowable under this section
which is not used by the taxpayer in a particular year may be
carried forward and offset against the taxpayer's tax liability
for the next succeeding tax year. Any credit remaining unused in
such next succeeding tax year may be carried forward and used in
the second succeeding tax year, and likewise, any credit not used
in that second succeeding tax year may be carried forward and
used in the third succeeding tax year, but may not be carried
forward for any tax year thereafter. In all cases the taxpayer
must be the person who made the investment into the project.
' (6) The credit provided by this section shall be in addition
to and not in lieu of any depreciation or amortization deduction
to which the taxpayer otherwise may be entitled with respect to
the reforestation project and the credit shall not affect the
computation of basis for the property.
' (7) In compliance with ORS 183.310 to 183.550, the Department
of Revenue and the State Forestry Department may adopt rules
consistent with law for carrying out the provisions of this
section.
' (8) As used in this section, 'underproductive Oregon
forestlands' means Oregon commercial forestlands not meeting the
minimum stocking standards of the Oregon Forest Practices Act.
' (9) If, for any reason other than those specified in
subsection (10) of this section, a new forest is not established
by the last day of the second taxable year following the taxable
year for which the preliminary certificate was issued, the State
Forester shall so report to the Department of Revenue. The report
filed under this subsection shall be the basis for the department
to recover any credit granted under subsection (1)(a) of this
section. If, however, the new forest is not established within
the time required by this subsection on account of the reasons
specified in subsection (10) of this section, any credit allowed
under subsections (1)(a) and (5) of this section shall not be
recovered but no further credit as provided under subsections
(1)(b) and (5) of this section shall be allowed.
' (10) Subject to requalification under this section in the
manner applicable for the original claim, including obtaining a
new preliminary certificate, a taxpayer may claim an additional
credit or credits for reestablishing a new planting in the event
that the new forest is destroyed by a natural disaster or is not
established for reasons beyond the control of the taxpayer, if
the measures taken in completing the original or earlier project
would normally have resulted in establishing the minimum number
of trees per acre anticipated by the project.
' (11) Any owner affected by a determination, regarding the
reforestation tax credit made by:
' (a) The State Forester, except for a denial of a request for
a preliminary certificate due to the annual reforestation credit
cost limitation calculated under ORS 315.108, may appeal that
determination in the manner provided for in ORS 526.475 (1).
' (b) The Department of Revenue, may appeal that determination
in the manner provided for in ORS 526.475 (2).
' { + SECTION 97b. + } { + If House Bill 2197 becomes law,
the amendments to ORS 315.104 by section 97a of this 2003 Act
apply to income and corporate excise tax years beginning on or
after January 1, 2004. + } ' .
On page 49, after line 33, insert:
' { + SECTION 98a. + } { + If House Bill 2197 becomes law,
section 98 of this 2003 Act (amending ORS 316.045) is repealed
and ORS 316.045, as amended by section 123, chapter 454, Oregon
Laws 2003 (Enrolled House Bill 2197), is amended to read: + }
' 316.045. (1) As used in this section:
' (a) 'Farming' means:
' (A) Raising, harvesting and selling crops;
' (B) Feeding, breeding, managing or selling livestock,
poultry, fur-bearing animals or honeybees or the produce thereof;
' (C) Dairying and selling dairy products;
' (D) Stabling or training equines, including but not limited
to providing riding lessons, training clinics and schooling
shows;
' (E) Propagating, cultivating, maintaining or harvesting
aquatic species and bird and animal species to the extent allowed
by the rules adopted by the State Fish and Wildlife Commission;
' (F) On-site constructing and maintaining equipment and
facilities used for the activities described in this subsection;
' (G) Preparing, storing or disposing of, by marketing or
otherwise, the products or by-products raised for human or animal
use on land employed in activities described in this subsection;
or
' (H) Any other agricultural or horticultural activity or
animal husbandry, or any combination of these activities, except
that 'farming' does not include growing and harvesting trees of a
marketable species other than growing and harvesting cultured
Christmas trees or certain hardwood timber described in ORS
321.267 { - (1)(d) - } { + (3) + } or 321.415 { - (5) - }
{ + (3) + }.
' (b) 'Section 1231 gain' has the meaning given that term in
section 1231 of the Internal Revenue Code.
' (2) Notwithstanding ORS 316.037, taxable income that consists
of net long-term capital gain shall be subject to tax under this
chapter at a rate of five percent if all of the following
conditions apply:
' (a) The gain is:
' (A) Derived from the sale or exchange of capital assets
consisting of ownership interests in a corporation, partnership
or other entity in which, prior to the sale or exchange, the
taxpayer owned at least a 10 percent ownership interest; or
' (B) Section 1231 gain.
' (b) The property that was sold or exchanged consisted of:
' (A) Ownership interests in a corporation, partnership or
other entity that is engaged in the trade or business of farming;
or
' (B) Property that is predominantly used in the trade or
business of farming.
' (c) The sale or exchange is to a person who is not related to
the taxpayer under section 267 of the Internal Revenue Code.
' (d) The sale or exchange constitutes a substantially complete
termination of all of the taxpayer's ownership interests in a
trade or business that is engaged in farming or a substantially
complete termination of all of the taxpayer's ownership interests
in property that is employed in the trade or business of farming.
Ownership of a farm dwelling or farm homesite does not constitute
ownership of property employed in the trade or business of
farming.
' (3) If the taxpayer has net long-term capital gain derived in
part from the sale or exchange of property described in
subsection (2)(b) of this section and in part from the sale or
exchange of all other property, the net long-term capital gain
that is subject to tax under this section shall be determined as
follows:
' (a) Compute the net long-term capital gain derived from all
property described in subsection (2)(b) of this section that was
sold or exchanged during the tax year.
' (b) Compute the net capital gain or loss from the sale or
exchange of all other property during the tax year.
' (c) If the amount determined under paragraph (b) of this
subsection is a net capital gain, the gain that is subject to tax
under subsection (2) of this section shall be the amount
determined under paragraph (a) of this subsection.
' (d) If the amount determined under paragraph (b) of this
subsection is a net capital loss, the gain that is subject to tax
under subsection (2) of this section shall be the amount
determined under paragraph (a) of this subsection minus the
amount determined under paragraph (b) of this subsection.
' { + SECTION 98b. + } { + If House Bill 2197 becomes law,
the amendments to ORS 316.045 by section 98a of this 2003 Act
apply to income and corporate excise tax years beginning on or
after January 1, 2004. + } ' .
On page 50, after line 40, insert:
' { + SECTION 99a. + } { + If House Bill 2197 becomes law,
section 99 of this 2003 Act (amending ORS 317.063) is repealed
and ORS 317.063, as amended by section 124, chapter 454, Oregon
Laws 2003 (Enrolled House Bill 2197), is amended to read: + }
' 317.063. (1) As used in this section:
' (a) 'Farming' means:
' (A) Raising, harvesting and selling crops;
' (B) Feeding, breeding, managing or selling livestock,
poultry, fur-bearing animals or honeybees or the produce thereof;
' (C) Dairying and selling dairy products;
' (D) Stabling or training equines, including but not limited
to providing riding lessons, training clinics and schooling
shows;
' (E) Propagating, cultivating, maintaining or harvesting
aquatic species and bird and animal species to the extent allowed
by the rules adopted by the State Fish and Wildlife Commission;
' (F) On-site constructing and maintaining equipment and
facilities used for the activities described in this subsection;
' (G) Preparing, storing or disposing of, by marketing or
otherwise, the products or by-products raised for human or animal
use on land employed in activities described in this subsection;
or
' (H) Any other agricultural or horticultural activity or
animal husbandry, or any combination of these activities, except
that 'farming' does not include growing and harvesting trees of a
marketable species other than growing and harvesting cultured
Christmas trees or certain hardwood timber described in ORS
321.267 { - (1)(d) - } { + (3) + } or 321.415 { - (5) - }
{ + (3) + }.
' (b) 'Section 1231 gain' has the meaning given that term in
section 1231 of the Internal Revenue Code.
' (2) Notwithstanding ORS 317.061, taxable income that consists
of net long-term capital gain shall be subject to tax under this
chapter at a rate of five percent if all of the following
conditions apply:
' (a) The gain is:
' (A) Derived from the sale or exchange of capital assets
consisting of ownership interests in a corporation, partnership
or other entity in which, prior to the sale or exchange, the
taxpayer owned at least a 10 percent ownership interest; or
' (B) Section 1231 gain.
' (b) The property that was sold or exchanged consisted of:
' (A) Ownership interests in a corporation, partnership or
other entity that is engaged in the trade or business of farming;
or
' (B) Property that is predominantly used in the trade or
business of farming.
' (c) The sale or exchange is to a person who is not related to
the taxpayer under section 267 of the Internal Revenue Code.
' (d) The sale or exchange constitutes a substantially complete
termination of all of the taxpayer's ownership interests in a
trade or business that is engaged in farming or a substantially
complete termination of all of the taxpayer's ownership interests
in property that is employed in the trade or business of farming.
' (3) If the taxpayer has net long-term capital gain derived in
part from the sale or exchange of property described in
subsection (2)(b) of this section and in part from the sale or
exchange of all other property, the net long-term capital gain
that is subject to tax under this section shall be determined as
follows:
' (a) Compute the net long-term capital gain derived from all
property described in subsection (2)(b) of this section that was
sold or exchanged during the tax year.
' (b) Compute the net capital gain or loss from the sale or
exchange of all other property during the tax year.
' (c) If the amount determined under paragraph (b) of this
subsection is a net capital gain, the gain that is subject to tax
under subsection (2) of this section shall be the amount
determined under paragraph (a) of this subsection.
' (d) If the amount determined under paragraph (b) of this
subsection is a net capital loss, the gain that is subject to tax
under subsection (2) of this section shall be the amount
determined under paragraph (a) of this subsection minus the
amount determined under paragraph (b) of this subsection.
' { + SECTION 99b. + } { + If House Bill 2197 becomes law,
the amendments to ORS 317.063 by section 99a of this 2003 Act
apply to income and corporate excise tax years beginning on or
after January 1, 2004. + } ' .
On page 51, after line 29, insert:
' { + SECTION 100a. + } { + If House Bill 2197 becomes law,
section 100 of this 2003 Act (amending ORS 321.005) is repealed
and ORS 321.005, as amended by section 125, chapter 454, Oregon
Laws 2003 (Enrolled House Bill 2197), is amended to read: + }
' 321.005. As used in ORS 321.005 to 321.185, 321.560 to
321.600 and 477.440 to 477.460, unless the context requires
otherwise:
' (1) 'Board' means the State Board of Forestry.
' (2) 'Protected forestlands' means those lands which are
protected from the starting or spread of fire thereon or
therefrom by:
' (a) The State Forester, with the approval of the board;
' (b) The United States of America through contract with the
State Forester;
' (c) Any forest protective agency under contract with the
State Forester or the board pursuant to ORS 477.406; or
' (d) Any forest protective agency, described in paragraph (c)
of this subsection, under an agreement with the United States of
America wherein such agency agrees to protect specific federal
forestlands and, in return, the United States of America agrees
to protect specific lands of such agency.
' (3) 'Department' means the Department of Revenue.
' (4) 'Committee' means the Emergency Fire Cost Committee.
' (5) 'Forestland' means any land producing forest products.
' (6) 'Forest products' means products from harvested timber,
but does not include products from short rotation fiber grown
under agricultural conditions as described in ORS 321.267
{ - (1)(d) - } { + (3) + } or 321.415 { - (5) - } { +
(3) + }, western juniper or products from harvested western
juniper.
' (7) 'Harvest' means the point at which timber that has been
cut, severed, or removed for purposes of sale or use is first
measured in the ordinary course of business as determined by
reference to common practice in the timber industry.
' (8) 'Merchantable stand of timber' means any stand on
forestlands containing living or dead timber which is being or
can be harvested.
' (9) 'Taxpayer' means the owner of timber at time of harvest.
' (10) 'Taxes' means the taxes provided for in ORS 321.015.
' (11) 'Owner of timber' means any individual or combination of
individuals, partnership, firm, corporation or association of
whatever nature holding title to harvested timber by virtue of:
' (a) An instrument of conveyance;
' (b) The harvesting of the timber; or
' (c) The harvesting of the timber and payment therefor.
' (12) 'Timber' means all logs which can be measured in board
feet and other forest products as determined by department rule.
' { + SECTION 100b. + } { + If House Bill 2197 becomes law,
the amendments to ORS 321.005 by section 100a of this 2003 Act
apply to forest products harvest tax reporting periods beginning
on or after January 1, 2004. + } ' .
On page 53, after line 29, insert:
' { + SECTION 105a. + } If House Bill 2197 becomes law,
section 105 of this 2003 Act is amended to read:
' { + Sec. 105. + } The amendments to ORS 310.147 by section
104 of this 2003 Act apply to property tax years beginning on or
after July 1, { - 2003 - } { + 2004 + }.'.
On page 55, after line 28, insert:
' { + SECTION 106a. + } { + If House Bill 2197 becomes law,
the amendments to ORS 457.010 by section 106 of this 2003 Act
apply to tax years beginning on or after July 1, 2004. + } ' .
On page 56, after line 27, insert:
' { + SECTION 108. + } { + Section 109 of this 2003 Act is
added to and made a part of sections 1 to 14, chapter 454, Oregon
Laws 2003 (Enrolled House Bill 2197). + }
' { + SECTION 109. + } { + (1) Notwithstanding section 6
(1)(a), chapter 454, Oregon Laws 2003 (Enrolled House Bill 2197),
if the sale or transfer of small tract forestland is to a person
who, following the date of the sale or transfer, does not own or
hold in common ownership less than 10 acres or 5,000 acres or
more of forestland in Oregon, the sold or transferred forestland
may remain small tract forestland, if:
' (a) Within 30 days of the recorded date of the sale or
transfer, the purchaser or transferee has applied for continued
qualification of the small tract forestland;
' (b) The purchaser or transferee is otherwise eligible to be
an owner of small tract forestland under sections 1 to 14,
chapter 454, Oregon Laws 2003 (Enrolled House Bill 2197); and
' (c) Any forestland owned or held in common ownership by the
purchaser or transferee that is a contiguous parcel to the
purchased or transferred forestland is:
' (A) Qualified as small tract forestland or is the subject of
an application for qualification under section 3, chapter 454,
Oregon Laws 2003 (Enrolled House Bill 2197); or
' (B) Included as part of the application for continued
qualification filed under this section, and the additional
information required in an application for qualification of small
tract forestland under section 3, chapter 454, Oregon Laws 2003
(Enrolled House Bill 2197), is included in the application for
continued qualification filed under this section.
' (2)(a) A purchaser or transferee described in subsection (1)
of this section shall apply for continued qualification to the
county assessor of the county in which the forestland that is the
subject of the sale or transfer is located. If the forestland is
located in more than one county, the purchaser or transferee
shall apply for continued qualification to the county assessor of
each county in which the forestland is located.
' (b) The application shall be on a form prescribed by the
Department of Revenue and supplied by the county assessor that
contains:
' (A) The name and address of the seller or transferor of the
small tract forestland;
' (B) The name, address and taxpayer identification number of
the purchaser or transferee of the small tract forestland;
' (C) A statement listing the county and containing a
description sufficient to identify the location of the small
tract forestland being purchased or transferred;
' (D) A statement listing the county and containing a
description sufficient to identify the location of all parcels of
land owned or held in common ownership by the purchaser or
transferee that are contiguous to the small tract forestland that
is being purchased or transferred;
' (E) The total acreage of Oregon forestland owned or held in
common ownership by the purchaser or transferee;
' (F) A statement that the applicant is aware of the potential
tax liability that arises under ORS 308A.703 and section 31,
chapter 454, Oregon Laws 2003 (Enrolled House Bill 2197);
' (G) An affirmation that the statements contained in the
application are true; and
' (H) Any other relevant information the department may
prescribe.
' (3) The assessor shall review the application and grant the
continued qualification of the land as small tract forestland
following the sale or transfer if the purchaser or transferee
satisfies the requirements of subsection (1) of this section.
' (4)(a) If the purchase or transfer occurred prior to July 1
of the assessment year, the assessor shall process the
application for continued qualification for the tax year
beginning that July 1.
' (b) If the purchase or transfer occurred on or after July 1
of the assessment year, the assessor shall process the
application for continued qualification for the tax year
beginning the next succeeding July 1.
' (c) An application for continued qualification shall be
deemed approved unless, within three months of the date the
application was made or before August 15 of the year in which the
application was filed, whichever is later, the county assessor
notifies the purchaser or transferee in writing that the
application has been wholly or partially denied.
' (5) A purchaser or transferee may appeal the decision of the
county assessor to wholly or partially deny an application for
continued qualification to the tax court in the time and manner
prescribed under ORS 305.404 to 305.560.
' (6) In the case of an application for continued qualification
that is approved by the county assessor, the assessor shall send
a written notification of the approval and a copy of the
application to the department.
' (7) For purposes of computing additional taxes under section
31, chapter 454, Oregon Laws 2003 (Enrolled House Bill 2197),
upon a subsequent disqualification of small tract forestland that
is granted continued qualification under this section, the small
tract forestland is considered to have been subject to small
tract forestland assessment without interruption from the period
before the sale or transfer to the date of subsequent
disqualification from small tract forestland assessment. + }
' { + SECTION 110. + } { + Section 109 of this 2003 Act
applies to property tax years beginning on or after July 1,
2004. + }
' { + SECTION 111. + } { + Sections 108 to 110 of this 2003
Act do not become operative unless House Bill 2197 becomes law.
Sections 108 to 110 of this 2003 Act become operative on the
effective date of chapter 454, Oregon Laws 2003 (Enrolled House
Bill 2197). + } ' .
In line 31, delete '108' and insert '112'.
In line 37, delete '109' and insert '113'.
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