72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 660
House Bill 2188
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for the Department of Revenue)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Repeals inoperative western Oregon timber harvest privilege
tax, western Oregon small tract optional tax and eastern Oregon
timber harvest privilege tax. Makes conforming changes to other
statutes.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
215.203, 215.236, 215.262, 215.263, 215.284, 215.720, 215.730,
215.800, 215.801, 215.808, 305.514, 305.620, 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, 310.147, 310.165, 315.104, 316.045, 317.063,
321.005, 321.257, 321.259, 321.262, 321.267, 321.272, 321.307,
321.347, 321.348, 321.354, 321.356, 321.358, 321.359, 321.367,
321.390, 321.408, 321.410, 321.415, 321.420, 321.485, 321.550,
321.560, 321.570, 321.580, 321.600, 321.609, 321.682, 321.684,
321.763, 321.805, 321.812, 321.814, 321.815, 321.830, 321.991
and 457.010 and section 1, chapter 728, Oregon Laws 1997, and
section 4, chapter 460, Oregon Laws 1999; repealing ORS 92.102,
308A.721, 310.108, 321.273, 321.274, 321.282, 321.284, 321.287,
321.307, 321.312, 321.322, 321.351, 321.352, 321.353, 321.356,
321.365, 321.375, 321.379, 321.381, 321.405, 321.421, 321.426,
321.430, 321.432, 321.434, 321.435, 321.475, 321.485, 321.487,
321.705, 321.710, 321.715, 321.720, 321.725, 321.727, 321.730,
321.732, 321.737, 321.745, 321.747, 321.760, 321.763, 321.765,
321.810, 321.811, 321.814, 321.816, 321.823 and 321.950 and
sections 4 and 37, chapter 1078, Oregon Laws 1999, section 11,
chapter 816, Oregon Laws 2001, and section 29, chapter 860,
Oregon Laws 2001; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
{ +
WESTERN OREGON FORESTLAND ASSESSMENT + }
{ +
AND REPEAL OF PRIVILEGE TAX + }
SECTION 1. ORS 321.257 is amended to read:
321.257. As used in ORS 321.257 to 321.390, unless the context
requires otherwise:
{ - (1) 'Arms-length transaction' means a transaction made in
the open market where there is no duress, where each party is
independent of the other and where there are no trades or hidden
considerations involved. - }
{ - (2) 'Average Pacific Northwest Coast Lumber Price Index '
means the average of the Western Wood Products Association
Pacific Northwest Coast Lumber Price annual price indices for
Douglas Fir and Hem-Fir. - }
{ - (3) - } { + (1) + } 'Department' means the Department
of Revenue.
{ - (4) - } { + (2) + } 'Forestland' means land in western
Oregon { - (a) which - } { + that + } is being held or used
for the predominant purpose of growing and harvesting trees of a
marketable species and has been designated as forestland or
{ - (b) - } { + land in western Oregon, + } the highest and
best use of which is the growing and harvesting of such trees.
Trees of a marketable species may vary in different areas in
western Oregon and may change as the utilization of forest trees
changes. The size, age, location, quality and condition of trees
do not necessarily determine marketable species. Forestland often
contains isolated openings which because of rock outcrops, river
wash, swamps, chemical conditions of the soil, brush and other
like conditions prevent adequate stocking of such openings for
the production of trees of a marketable species. If
{ - such - } { + the + } openings in their natural state are
necessary to hold the surrounding forestland in forest use
through sound management practices, { - they - } { + the
openings + } are deemed forestland. Forestland does not include
buildings, structures, machinery, equipment or fixtures erected
upon, under or above the soil { - , but does include - } { + .
Forestland includes + } roads described in ORS 308.236.
{ - (5) '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. - }
{ - (6) 'Immediate harvest value' means the amount that each
species or subclassification of timber would sell for at a
voluntary sale made in the ordinary course of business for
purposes of immediate harvest. The value shall be determined by
methods that make reasonable and adequate allowance for age,
size, quality, growing conditions, costs of removal,
accessibility to point of conversion, market conditions and all
other relevant factors. - }
{ - (7) - } { + (3) + } 'Land class' or 'land classes'
means one of the eight classifications of forestland, used for
assessment purposes by the department, based upon State Tax
Commission Valuation Division Supplements published in 1967, and
identified in ORS
{ - 321.352 (1) - } { + 321.210 + }.
{ - (8) 'Market area' means those groups of areas containing
timber with similar values as designated by the department. The
department shall designate market areas by rule. - }
{ - (9) '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. - }
{ + (4) 'State Forester' means the State Forester or the
authorized representative of the State Forester. + }
{ - (10) - } { + (5) + } 'Sustained yield management' means
the growing and harvesting of timber crops on a continuous basis
on land that is primarily dedicated to timber production.
{ - (11) - } { + (6) + } 'Taxing district' or 'district'
means each county, city, school district and other corporation
vested with the power to levy property taxes in western Oregon.
{ - (12) 'Taxpayer' means the owner of timber at time of
harvest. - }
{ - (13) - } { + (7) + } 'Timber' means all logs which can
be measured in board feet and other forest products as determined
by department rule.
{ - (14) 'Unit of proper measurement' means any unit of
measurement commonly used in the timber industry for measuring
timber and timber products harvested. - }
{ - (15) - } { + (8) + } 'Western Oregon' means that
portion of the state lying west of a line beginning at the
intersection of the northern boundary of the State of Oregon and
the western boundary of Wasco County, thence southerly along the
western boundaries of the counties of Wasco, Jefferson, Deschutes
and Klamath to the southern boundary of the State of Oregon.
SECTION 2. ORS 321.259 is amended to read:
321.259. The Legislative Assembly finds that:
(1) Multiple taxation through a yearly ad valorem levy on both
trees and forestland managed in sustained yield timber operations
discourages conservation, private ownership and investment of
capital.
(2) The interests of the state, its citizens and future
citizens are best served by sustained yield practices and taxing
policies that encourage production of forest resources for
commerce, recreation and watersheds, stabilize employment levels,
prevent large population shifts and encourage millage of timber
products within Oregon.
(3) Timber on private lands managed on a sustained yield basis
should be treated as a crop and not taxed as real property.
{ - (4) A tax at time of harvest recognizes the hazards and
uncertainties involved in growing a long-term timber crop on a
sustained yield basis. - }
{ - (5) - } { + (4) + } Forestland should be taxed based on
the value of the forestland in timber production { - , and the
majority of the tax should be imposed at the time of harvest - }
.
SECTION 3. ORS 321.262 is amended to read:
321.262. The purposes of ORS 321.257 to 321.390 are:
(1) To impose with respect to forestlands in western Oregon a
{ - system of ad valorem taxation - } { + special assessment
program + } whereby the value of forestland is determined
{ - by the Legislative Assembly effective July 1, 1995, and
annually adjusted as described in ORS 321.352 - } { + as
prescribed in ORS 321.201 to 321.222 + }.
(2) To establish a { - privilege tax on timber harvested in
western Oregon - } { + special assessment program + } as a
means of:
(a) Recognizing the long-term nature of the forest crop and
fostering the public policy of Oregon to encourage the growing
and harvesting of timber.
(b) Protecting the public welfare by assuring that the citizens
of the state and future generations shall have the benefits to be
derived from the continuous production of forest products from
{ - the - } private forestlands { - of western Oregon - } .
(c) Promoting the state's policy of encouraging forestry and
the restocking of forestlands to provide present and future
benefits by enhancing the water supply, preventing erosion,
providing habitat for wildlife, providing scenic and recreational
opportunities and providing for needed products.
{ - (d) Producing revenues for local taxing districts at the
time of harvest in lieu of collecting a portion of ad valorem
taxes on forestland. - }
{ - (3) To assure local taxing districts that privilege tax
receipts will be considered a local revenue source. - }
SECTION 4. ORS 321.267 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) Except as provided in ORS 321.347, timber and land
classified under ORS 321.705 to 321.765. - }
{ - (c) Timber on land that is exempt from ad valorem
taxation. - }
{ - (d) - } { + (2) + } Except as provided in ORS 321.347,
land { - and Christmas trees which are grown or growing on that
land which has been - } { + that 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.
{ - (e) - } { + (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, { - which are - } { + if + }:
{ - (A) - } { + (a) + } { - Grown or growing on land
which has been - } { + The land is + } prepared { - by - }
{ + using + } intensive cultivation methods and { - which - }
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.
{ - (f)(A) Timber on land that, at the time of harvest, is
assessed under ORS 308.146 (1) to (3) or specially assessed under
ORS 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. - }
{ - (2) The tax imposed by ORS 321.273 shall be in addition
to that levied by ORS 321.005 to 321.185 and 321.560 to
321.600. - }
{ - (3) Nothing contained in ORS 321.257 to 321.390 shall
prevent: - }
{ - (a) The collection of ad valorem property taxes which
became a lien prior to January 1, 1978. - }
{ - (b) The collection of taxes levied by ORS 321.005 to
321.185 and 321.560 to 321.600. - }
{ - (c) Except as provided in section 45, chapter 892, Oregon
Laws 1977, the collection of amounts payable upon
declassification described under ORS 321.705 to 321.765. - }
SECTION 5. ORS 321.272 is amended to read:
321.272. { - (1) - } All timber in western Oregon shall be
exempt from ad valorem { + property + } taxation.
{ - (2) For the privilege of harvesting timber from privately
owned land in western Oregon a tax is imposed as provided in ORS
321.257 to 321.322. - }
{ - (3) The tax imposed by subsection (2) of this section is
intended to recover the annuitized value of forgone property
taxes on forestland. - }
SECTION 6. { + + } ORS 321.307, as amended by section 11a,
chapter 860, Oregon Laws 2001, 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 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 { + (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 321.705
to 321.765 { + (2001 Edition) + } for the period beginning July
1, 2001, and ending July 1, 2003.
(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 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 7. ORS 321.347 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 { + (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.
SECTION 8. ORS 321.348 is amended to read:
321.348. (1) { - As of the tax year beginning July 1, 1995,
and - } For each tax year { - thereafter - } , forestland shall
be assigned by the Department of Revenue to land classes as
defined in ORS 321.257.
(2) Land classes assigned under subsection (1) of this section
may be changed thereafter by the department upon the initiative
of the department, or upon the request of an owner, if further
investigation reveals that the basis for the land class
determination was inaccurate. Any such redetermination of land
class shall be certified immediately to the county assessor.
SECTION 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 8 of this 2003 Act apply to property tax years
beginning on or after July 1, 2003. + }
SECTION 10. { + + } ORS 321.354, as amended by section 7,
chapter 1078, Oregon Laws 1999, and section 2, chapter 860,
Oregon Laws 2001, 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 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. - } { + The assessed value of forestland within each land
class described in ORS 321.210 shall be determined under this
section. + }
(2) Forestland assessed under this section shall:
(a) Be disqualified from special assessment at a value per acre
equal to 75 percent of the value per acre determined under ORS
321.353 (2) to (5) { + (2001 Edition) + }for the applicable
land class of the forestland; and
(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 ORS 321.216 for the applicable land class of
the forestland.
(3) For each land class described in ORS 321.210, the
forestland maximum assessed value per acre shall equal 103
percent of the forestland 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 multiplying 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.
(5) Notwithstanding 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 subsection (4) of this section.
(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) - } { + (a) + } Additional taxes may not be imposed
as a result of a disqualification under subsection (2)(a) of this
section.
{ - (d) - } { + (b) + } 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 11. { + The amendments to ORS 321.354 by section 10 of
this 2003 Act apply to tax years beginning on or after July 1,
2003. + }
SECTION 12. ORS 321.354, as amended by section 10 of this 2003
Act, is amended to read:
321.354. (1) { - The assessed value of - } Forestland within
each land class described in ORS 321.210 shall { - be
determined under this section. - }
{ - (2) Forestland assessed under this section shall: - }
{ - (a) Be disqualified from special assessment at a value
per acre equal to 75 percent of the value per acre determined
under ORS 321.353 (2) to (5) (2001 Edition) for the applicable
land class of the forestland; and - }
{ - (b) Qualify for special assessment at a - } { + have a
specially assessed + } value per acre equal to the specially
assessed value certified to the county assessor for the tax year
under ORS 321.216 for the applicable land class of the
forestland.
{ - (3) - } { + (2) + } For each land class described in
ORS 321.210, the forestland maximum assessed value per acre shall
equal 103 percent of the forestland 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) - } { + (3)(a) + } The assessor shall compute
the assessed value of forestland by multiplying 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.
{ - (5) - } { + (4) + } Notwithstanding subsection
{ - (4) - } { + (3) + } 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
subsection { - (4) - } { + (3) + } of this section.
{ - (6) For purposes of this section: - }
{ - (a) Additional taxes may not be imposed as a result of a
disqualification under subsection (2)(a) of this section. - }
{ - (b) 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 13. { + The amendments to ORS 321.354 by section 12 of
this 2003 Act apply to tax years beginning on or after July 1,
2004. + }
SECTION 14. { + Section 15 of this 2003 Act is added to and
made a part of ORS 321.257 to 321.390. + }
SECTION 15. { + (1) Notwithstanding ORS 308.210, 311.405 or
311.410, but subject to subsection (2) of this section, the
removal under ORS 321.359 (1)(b)(C) of land from designation as
forestland because the land is no longer forestland shall occur
as of the January 1 assessment date for the tax year in which the
county assessor discovers that the land is no longer forestland.
(2) Subsection (1) of this section applies only if notice of
the removal is mailed by the county assessor prior to August 15
of the tax year for which the removal of the land is
asserted. + }
SECTION 16. 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
{ + (2001 Edition) + } for the previous tax year 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 section shall be assessed as
provided in ORS 321.354.
(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 under this section.
SECTION 17. ORS 321.358 is amended to read:
321.358. (1) An owner of land desiring that it be designated as
forestland shall make application to the county assessor on or
before April 1 of the assessment year for which special
assessment as forestland is first desired, and the owner may also
do so within 30 days of receipt of notice of its assessment as
omitted property.
(2) Notwithstanding subsection (1) of this section, an owner of
land may apply to the county assessor by December 15 to have the
land designated as forestland for the assessment year if:
(a) For the prior assessment year the land had been forestland
{ - under ORS 321.257 (4) - } by reason of the land being
highest and best use forestland; and
(b) For the current assessment year the land is being assessed
at a value reflecting a use other than highest and best use
forestland.
(3) The application shall be made upon forms prepared by the
Department of Revenue and supplied by the county assessor, and
shall include the following:
(a) A description of all land the applicant desires to be
designated as forestland.
(b) Date of acquisition.
(c) Whether the land is being held or used for the predominant
purpose of growing and harvesting trees of marketable species.
(d) Whether there is a forest management plan for it.
(e) If so, whether the plan is being implemented, and the
nature and extent of implementation.
(f) Whether the land is used for grazing.
(g) Whether the land has been platted under ORS chapter 92.
(h) Whether the land is timberland subject to ORS chapter 477,
and if it is not, the reasons therefor.
(i) Whether the land, or any of it, is subject to a lease or
option which permits it to be used for any purpose other than the
growing and harvesting of trees.
(j) A summary of past experience and activity of the applicant
in growing and harvesting trees.
(k) A summary of current and continuing activity of the
applicant in growing and harvesting trees.
(L) A statement that the applicant is aware of the potential
tax liability involved when the land ceases to be designated as
forestland.
(m) An affirmation that the statements contained in the
application are true.
(4) The county assessor shall approve an application for
forestland designation if the assessor finds that the land is
properly classifiable as forestland. The county assessor shall
not find land properly classifiable as forestland if:
(a) The application states the land is not being held or used
for the predominant purpose of growing and harvesting trees of
marketable species; or
(b) Subject to the provisions of ORS 321.257, the land does not
substantially meet minimum stocking or acreage requirements under
rules adopted by the department. Otherwise, the determination
whether the land is properly classifiable as forestland shall be
made with due regard to all relevant evidence and without any one
or more items of evidence necessarily being determinative.
(5) The application shall be deemed to have been approved
unless, within three months of the date such application was
delivered to the assessor or prior to August 15, whichever is
later, the assessor shall notify the applicant in writing of the
extent to which the application is denied.
SECTION 18. ORS 321.359 is amended to read:
321.359. (1)(a) When land has once been designated as
forestland either as a result of an application being filed
therefor or through the application of ORS 321.347 (3) or (4), it
shall be valued as such until the assessor removes the forestland
designation under paragraph (b) of this subsection.
(b) The county assessor shall remove the forestland designation
upon:
(A) Notification by the taxpayer to the assessor to remove the
designation;
(B) Sale or transfer to an ownership making it exempt from ad
valorem property taxation;
(C) Discovery by the assessor that the land is no longer
forestland; or
(D) The act of recording a subdivision plat under ORS chapter
92.
(2) A taxpayer whose application filed under ORS 321.358 has
been denied in whole or in part, or a taxpayer whose forestland
has had the designation thereof removed in whole or in part, may
appeal to the tax court within the time and in the manner
provided in ORS 305.404 to 305.560.
(3) If, under subsection (1)(b)(D) of this section, the county
assessor removes the forestland designation upon the act of
recording a subdivision plat, the land, or a part of the land,
may be requalified for forestland designation upon:
(a) Payment of all additional tax and applicable interest that
remains due and owing on the land;
(b) Submission by the owner of an application for designation
as forestland { - as provided in ORS 321.257 to 321.390 - } ;
(c) Meeting all of the qualifications for designation as
forestland { - as provided in ORS 321.347 to 321.375 - } ; and
(d) Meeting the requirements, if any, of applicable local
government zoning ordinances with regard to minimum lot or parcel
acreage for forest use.
SECTION 19. ORS 321.367 is amended to read:
321.367. (1) The State Forester shall identify all of the
forestlands that fail to meet the minimum stocking required under
ORS 527.610 to 527.770 and 527.992 and that are therefore
underproductive as described under ORS 526.455.
(2) { - (a) - } At any time the State Forester has reason to
believe that forestland is not being managed as forestland, the
State Forester shall review the owner's management plan, if any,
and inspect the property. Subject to subsection { - (4) - }
{ + (5) + } of this section, { + the State Forester shall
advise the owner as prescribed in subsection (3) of this
section + } if the State Forester { - then - } determines the
land is not being managed in accordance with a plan
{ - which makes provision - } { + that provides + } for:
{ - (A) - } { + (a) + } Regeneration of all suitable
nonstocked land;
{ - (B) - } { + (b) + } Maintenance of a free-to-grow
condition;
{ - (C) - } { + (c) + } Protection from fire, insects,
disease, animal damage, undesirable vegetative competition; and
{ - (D) - } { + (d) + } Final harvest { - , - } { + .
(3)(a) + } The State Forester shall advise the owner that the
land is not being managed in accordance with a plan that meets
the criteria set forth in { - this - } subsection { + (2) of
this section + } and that a plan for the land that does meet the
criteria must be developed and activated within one year after
the date of the advisement.
(b) At the request of the owner, the State Forester shall
assign a forester or provide a listing of foresters to assist the
owner in developing and implementing an appropriate management
plan for the land.
(c) As soon as practicable after the time indicated in the
advisement has expired, the State Forester shall view the land to
determine if the land is being managed in accordance with a plan
that meets the criteria set forth in { - paragraph (a) of
this - } subsection { + (2) of this section + }. If, upon
inspection, the State Forester finds that the land is not being
so managed, the State Forester shall notify the owner and the
county assessor.
{ - (3) - } { + (4) + } The county assessor, upon receipt
of the notice from the State Forester, shall cease to treat
{ - such lands - } { + that land + } as forestland under ORS
321.257 to 321.390 and shall value
{ - such lands under ORS 308.205 - } { + the land as
prescribed under ORS 308.146 + } and 308.232.
{ - (4) - } { + (5) + } If at the time that the State
Forester views the land under subsection { - (2)(c) - } { +
(3)(c) + } of this section, it is determined that a change in
ownership has occurred, the State Forester shall notify the new
owner as required under subsection
{ - (2)(a) - } { + (3) + } of this section in the manner of
the original notification.
{ - (5) - } { + (6) + } When the owner of { - forestland
declared ineligible for forestland taxation under this
section - } { + land disqualified from forestland
assessment + } provides satisfactory information to the State
Forester of subsequent action taken to correct the deficiency
resulting in the disqualification of land, or provides an
acceptable management plan to correct such deficiency, the State
Forester shall so indicate to the county assessor. The assessor
shall then assess the land under ORS 321.257 to 321.390, if the
land is otherwise qualified for such assessment.
{ - (6) - } { + (7) + } The State Forester shall adopt
rules necessary to carry out the purposes of this section.
SECTION 20. ORS 321.390 is amended to read:
321.390. (1) Land described in ORS 321.267 { - (1)(e) - }
{ + (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)(e) - } { + (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.
SECTION 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 of this 2003 Act apply to property tax years beginning
on or after July 1, 2003. + }
SECTION 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, 321.381 and 321.950 are repealed. + }
SECTION 23. { + 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, 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. + }
SECTION 24. { + ORS 321.356 and section 4, chapter 1078,
Oregon Laws 1999, are repealed on July 1, 2004. + }
SECTION 25. { + The repeal of ORS 321.356 and section 4,
chapter 1078, Oregon Laws 1999, by section 24 of this 2003 Act
does not affect the disqualification of forestland under ORS
321.356 or section 4, chapter 1078, Oregon Laws 1999, that
occurred prior to the repeal of ORS 321.356 or section 4, chapter
1078, Oregon Laws 1999. + }
SECTION 26. { + ORS 310.108, 321.307 and 321.312 and section
11, chapter 816, Oregon Laws 2001, and section 29, chapter 860,
Oregon Laws 2001, are repealed on December 31, 2006. + }
SECTION 27. { + Any moneys remaining in the Western Oregon
Timber Tax Account on December 31, 2006, are transferred to the
General Fund and may be used for any purpose for which General
Fund moneys may be used. + }
{ +
EASTERN OREGON PRIVILEGE TAX REPEAL + }
SECTION 28. { + ORS 321.408, 321.410, 321.415 and 321.420 are
added to and made a part of ORS 321.805 to 321.825. + }
SECTION 29. ORS 321.408 is amended to read:
321.408. The purposes of ORS { - 321.405 to 321.487 - } { +
321.805 to 321.825 + } are:
(1) To impose with respect to forestland in eastern Oregon a
{ - system of ad valorem taxation - } { + special assessment
program + } whereby the assessed value of forestland is
determined { - by the Legislative Assembly effective January 1,
1994, and annually adjusted as described in ORS 321.810 - } { +
as prescribed in ORS 321.201 to 321.222 + }.
(2) To establish a { - privilege tax on timber harvested in
eastern Oregon - } { + special assessment program + } as a
means of:
(a) Recognizing the findings in ORS 321.410 without
discriminating in favor of either eastern or western Oregon.
(b) Recognizing the long-term nature of the forest crop and
fostering the public policy of Oregon to encourage the growing
and harvesting of timber.
(c) Protecting the public welfare by assuring that the citizens
of the state and future generations shall have the benefits to be
derived from the continuous production of forest products from
{ - the - } private forestland { - of eastern Oregon - } .
(d) Promoting the state's policy of encouraging forestry and
the restocking of forestland to provide present and future
benefits by enhancing the water supply, preventing erosion,
providing habitat for wildlife, providing scenic and recreational
opportunities and providing for needed products.
{ - (e) Producing revenues for local taxing districts at the
time of harvest in lieu of collecting a portion of ad valorem
taxes on forestland. - }
{ - (3) To assure local taxing districts that privilege tax
receipts will be considered a local revenue source. - }
SECTION 30. ORS 321.410 is amended to read:
321.410. It is hereby found that:
(1) Multiple taxation through a yearly ad valorem levy on both
trees and forestland managed in sustained yield timber operations
discourages conservation, private ownership and investment of
capital.
(2) The interests of the state, its citizens and future
citizens are best served by sustained yield practices and tax
policies that encourage production of forest resources for
commerce, recreation and watersheds, stabilize employment levels,
prevent large population shifts and encourage millage of timber
products within Oregon.
(3) Timber on private lands managed on a sustained yield basis
should be treated as a crop and not taxed as real property.
{ - (4) A tax at time of harvest recognizes the hazards and
uncertainties involved in growing a long-term timber crop on a
sustained yield basis. - }
{ - (5) - } { + (4) + } That portion of our state lying
east of the summit of the Cascade Mountains differs greatly in
forest tree types, soils, climate, growing conditions and
topography from western Oregon.
{ - (6) - } { + (5) + } Eastern Oregon forests predominate
in Ponderosa pine and associated species, while western Oregon
forests predominate in Douglas fir and associated species.
SECTION 31. ORS 321.415 is amended to read:
321.415. (1) Lands assessed by the Department of Revenue
pursuant to ORS 308.505 to 308.665 or 308.805 to 308.820
{ - and the timber thereon shall not be subject to the
provisions of ORS 321.405 to 321.487 - } { + may not be
assessed under ORS 321.805 to 321.825 + }.
{ - (2) The tax imposed under the provisions of ORS 321.405
to 321.487 shall be additional to that levied under the
provisions of ORS 321.005 to 321.185 and 321.560 to 321.600. - }
{ - (3) Timber on timberland which is exempt from the ad
valorem real property tax shall be exempt from the privilege tax
imposed by ORS 321.405 to 321.487. - }
{ - (4) - } { + (2) + } Land used exclusively for growing
cultured Christmas trees { - , and the cultured Christmas trees
growing thereon, as defined in ORS 215.203, shall not be subject
to the provisions of ORS 321.405 to 321.487 and - } { + may not
be assessed under + } 321.805 to 321.825.
{ - (5) - } { + (3) + } { - Except as provided in ORS
321.426, land and - } { + Land that is used to grow + }
hardwood timber, including but not limited to hybrid cottonwood,
{ - shall not be subject to the provisions of ORS 321.405 to
321.487 and - } { + may not be assessed under + } 321.805 to
321.825 if { - the land and timber are - } :
(a) { - Grown or growing on land which has been - } { + The
land is + } prepared { - by - } { + using + } intensive
cultivation methods and { - which - } is cleared of competing
vegetation for at least three years after tree planting;
(b) { + The timber is + } of a species marketable as fiber for
inclusion in the { - ' furnish' - } { + furnish + } for
manufacturing paper products;
(c) { + The timber is + } harvested on a rotation cycle within
12 years after planting; and
(d) { + The land and timber are + } subject to intensive
agricultural practices such as fertilization, insect and disease
control, cultivation and irrigation.
{ - (6)(a) Timber on land that, at the time of harvest, is
assessed under ORS 308.146 (1) to (3) or specially assessed under
ORS 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, shall not be subject to the
provisions of ORS 321.405 to 321.487. - }
{ - (b) For purposes of this subsection and ORS 321.421 (4),
land that has been forestland assessed under ORS 321.812 for any
of the five property tax years preceding the date the timber was
harvested from the land shall be considered to be forestland
assessed under ORS 321.812. - }
{ - (7) - } { + (4) + } Nothing contained in ORS
{ - 321.405 to 321.487 - } { + 321.805 to 321.825 + } shall
prevent:
(a) The collection of ad valorem property taxes which became a
lien against timber prior to July 1, 1962.
(b) The collection of taxes, charges or assessments made
pursuant to law for protection.
(c) The collection of taxes levied under the provisions of ORS
321.005 to 321.185 and 321.560 to 321.600.
SECTION 32. ORS 321.420 is amended to read:
321.420. { - (1) - } All timber in eastern Oregon shall be
exempt from { - levy and collection of the general - } ad
valorem { - real - } property { - tax - } { + taxation + }.
{ - (2) For the privilege of harvesting timber from privately
owned land in eastern Oregon a tax is imposed as set forth in ORS
321.405 to 321.487. - }
{ - (3) The tax imposed by subsection (2) of this section is
intended to recover the annuitized value of forgone property
taxes on forestland. - }
SECTION 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. + }
SECTION 34. ORS 321.485 is amended to read:
321.485. (1) The revenue from the taxes imposed by ORS 321.405
to 321.487 { + (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 which shall
be known as the Eastern 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 Eastern Oregon Timber Tax Account for use in reimbursing
the General Fund for expenses incurred in the collection of taxes
imposed by ORS 321.405 to 321.487 { + (2001 Edition) + } and
other expenses associated with administering forest taxes and for
costs incurred by the State Forestry Department in carrying out
the provisions of ORS 526.425 by providing assistance to
nonindustrial private forest landowners in eastern Oregon.
(2) Notwithstanding the provisions of ORS 291.238, the amount
of moneys necessary to pay refunds of the taxes imposed under ORS
321.405 to 321.487 { + (2001 Edition) + } is appropriated
continuously to the department from the suspense account referred
to in subsection (1) of this section, and shall be used by the
department for the payment of all refunds of taxes imposed under
ORS 321.405 to 321.487 which have been audited and approved by
the department. Any penalties, interest and taxes then due from
the taxpayer 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 Eastern 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 321.811
(8) to (11) { + (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 321.811
(8) to (11) { + (2001 Edition) + } shall be distributed to
county general funds of eastern 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 eastern Oregon
counties under subsection (3)(b) of this section shall be
distributed to each eastern Oregon county in the proportion that
the assessed value of forestland in the county in 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 Eastern 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 Eastern 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 Eastern Oregon
Timber Tax Account for the payment of administrative expenses
described in subsection (1) of this section.
SECTION 35. { + ORS 321.405, 321.421, 321.426, 321.430,
321.432, 321.434, 321.435 and 321.475 are repealed. + }
SECTION 36. { + 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. + }
SECTION 37. { + ORS 321.485 and 321.487 are repealed on
December 31, 2006. + }
SECTION 38. { + Any moneys remaining in the Eastern Oregon
Timber Tax Account on December 31, 2006, are transferred to the
General Fund and may be used for any purpose for which General
Fund moneys may be used. + }
{ +
FOREST PRODUCTS HARVEST TAX ADMINISTRATION + }
SECTION 39. ORS 321.550 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.
(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 - } { + forest products harvest + } tax return.
(3)(a) If { - , on or after October 3, 1989, - } 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 - } { + forest
products harvest + }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
either the western Oregon forestland and privilege tax imposed
under ORS 321.257 to 321.390, or the eastern Oregon privilege tax
imposed under ORS 321.405 to 321.487, if either tax is applicable
to the harvest. If neither tax is applicable, the delinquency
penalty shall be added to the forest products harvest tax imposed
under ORS 321.005 to 321.185. - }
SECTION 40. ORS 321.560 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, shall 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 - }
{ + and + } 321.560 to 321.600, 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
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 - } { + and + } 321.560 to
321.600 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 which is paid on or before the date prescribed for
payment of the tax and by the amount of any credit against the
tax which 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.
SECTION 41. ORS 321.570 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 - } { +
and + } 321.560 to 321.600, 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.
SECTION 42. ORS 321.580 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 - } { + and + } 321.560 to
321.600 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.
SECTION 43. ORS 321.600 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 - } { + and + } 321.560 to 321.600 shall 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 - } { + and + } 321.560 to 321.600 shall be
instituted after the expiration of six years from the date
{ - such - } { + the + } taxes were due.
SECTION 44. ORS 321.609 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 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 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 - } { + and + } 321.560 to 321.600.
(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 - } { + and + } 321.560 to 321.600, 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.
SECTION 45. ORS 321.682 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 and 321.950 - } 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 - } { + forest
products harvest + } 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.
SECTION 46. ORS 321.684 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 - } { + forest products harvest + }
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) - } { + (e) + } 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) - } { + (f) + } Disclose appraisal data collected
to make determinations of specially assessed value of forestland
under ORS 321.201 to 321.222 to any member of a forestland value
advisory committee the department has convened under ORS 321.213.
(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 { + of the Legislative Revenue Officer + } upon
compliance with ORS 173.850. { - Such - } { + The + } officer
or representative { - shall - } { + may + } 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 - } { + the + } 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 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 46 of this 2003 Act apply to forest products
harvest tax reporting periods beginning on or after January 1,
2003. + }
{ +
WESTERN OREGON SMALL TRACT + }
{ +
OPTIONAL TAX REPEAL + }
SECTION 48. ORS 321.763 is amended to read:
321.763. (1) For the tax year beginning July 1, 2003,
forestland classified under ORS 321.705 to 321.765 { + (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 { + (2001 Edition) + } constitutes a
disqualification for purposes of section 11, Article XI of the
Oregon Constitution.
SECTION 49. { + ORS 92.102, 308A.721, 321.705, 321.710,
321.715, 321.720, 321.725, 321.727, 321.730, 321.732, 321.737,
321.745, 321.747, 321.760 and 321.765 are repealed. + }
SECTION 50. { + The repeal of ORS 308A.721, 321.705, 321.710,
321.715, 321.720, 321.725, 321.727, 321.730, 321.732, 321.737,
321.745, 321.747, 321.760 and 321.765 by section 49 of this 2003
Act does not affect the classification or declassification of
land under ORS 321.705 to 321.765 or the imposition, collection
or administration of ad valorem property taxes imposed on land
classified under ORS 321.705 to 321.765 in property tax years
ending before July 1, 2003. + }
SECTION 51. { + ORS 321.763 is repealed July 1, 2004. + }
SECTION 52. { + The repeal of ORS 321.763 by section 51 of
this 2003 Act does not affect the declassification of western
Oregon small tract optional tax forestland under ORS 321.763 that
occurred prior to the repeal of ORS 321.763. + }
{ +
EASTERN OREGON FORESTLAND ASSESSMENT + }
SECTION 53. ORS 321.805 is amended to read:
321.805. As used in ORS 321.805 to 321.825, unless the context
requires otherwise:
{ - (1) 'Average Pacific Northwest Inland Lumber Price Index
' means the average of the Western Wood Products Association
Pacific Northwest Inland Lumber Price annual price indices for
Douglas Fir-Larch, White Fir (Hem-Fir) and Coast Inland North
Ponderosa Pine. - }
{ + (1) '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 basal
pruning, fertilizing, insect and disease control, stump culture,
soil cultivation or irrigation.
(2) 'Department' means the Department of Revenue.
(3) 'Eastern Oregon' means that portion of the state lying east
of a line beginning at the intersection of the northern boundary
of the State of Oregon and the western boundary of Wasco County,
thence south along the western boundaries of the counties of
Wasco, Jefferson, Deschutes and Klamath to the southern boundary
of the State of Oregon. + }
{ - (2) - } { + (4) + } 'Forestland' means land { - east
of the summit of the Cascade Mountains which - } { + in eastern
Oregon that + } { - is not assessed as farmland pursuant to ORS
308A.050 to 308A.128 and is not assessed by the Department of
Revenue pursuant to ORS 308.505 to 308.665 or 308.805 to 308.820;
and which either - } is being held or used for the predominant
purpose of growing and harvesting trees of a marketable species
and { + that + } has been designated as forestland under ORS
321.805 to 321.825 { - , or is land - } { + or land in eastern
Oregon, + } the highest and best use of which is the growing and
harvesting of such trees. Forestland is the land alone.
Forestland often contains isolated openings that because of rock
outcrops, river wash, swamps, chemical conditions of the soil,
brush and other like conditions prevent adequate stocking of such
openings for the production of trees of a marketable species. If
such openings in their natural state are necessary to hold the
surrounding forestland in forest use through sound management
practices, { - they - } { + the openings + } are deemed
forestland.
{ - (3) 'Owner' means any individual or combination of
individuals, partnership, firm, corporation or association of
whatever nature owning or controlling forestland. - }
{ + (5) 'State Forester' means the State Forester or the
authorized representative of the State Forester. + }
{ - (4) - } { + (6) + } { - The - } 'Summit of the
Cascade Mountains' { - shall be considered to be - } { +
means + } a line beginning at the intersection of the northern
boundary of the State of Oregon and the western boundary of Wasco
County, thence southerly along the western boundaries of the
counties of Wasco, Jefferson, Deschutes and Klamath to the
southern boundary of the State of Oregon.
{ + (7) 'Timber' means all logs which can be measured in
board feet and other forest products as determined by department
rule, but does not include western juniper or products from
harvested western juniper. + }
SECTION 54. { + + } ORS 321.812, as amended by section 40,
chapter 1078, Oregon Laws 1999, and section 8, chapter 860,
Oregon Laws 2001, 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 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 - } { + assessed value of forestland shall be determined
under this section + }.
(2) Forestland assessed under this section shall:
(a) Be disqualified from special assessment at a value per acre
equal to 75 percent of the value per acre determined under ORS
321.811 (2) to (7) { + (2001 Edition) + }; and
(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 ORS 321.216.
(3) Forestland assessed under this section shall have a maximum
assessed value per acre equal to 103 percent of the forestland
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 multiplying 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) - } { + (a) + } Additional taxes may not be imposed
as a result of a disqualification under subsection (2)(a) of this
section.
{ - (d) - } { + (b) + } 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 55. { + The amendments to ORS 321.812 by section 54 of
this 2003 Act apply to tax years beginning on or after July 1,
2003. + }
SECTION 56. { + + } ORS 321.812, as amended by section 54 of
this 2003 Act, is amended to read:
321.812. { - (1) The assessed value of forestland shall be
determined under this section. - }
{ - (2) Forestland assessed under this section shall: - }
{ - (a) Be disqualified from special assessment at a value
per acre equal to 75 percent of the value per acre determined
under ORS 321.811 (2) to (7) (2001 edition); and - }
{ - (b) - } { + (1) + } { - Qualify for special
assessment at a - } { + Forestland shall have a specially
assessed + } value per acre equal to the specially assessed value
certified to the county assessor for the tax year under ORS
321.216.
{ - (3) - } { + (2) + } Forestland { - assessed under
this section - } shall have a maximum assessed value per acre
equal to 103 percent of the forestland 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) - } { + (3)(a) + } The assessor shall compute
the assessed value of forestland by multiplying 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) Additional taxes may not be imposed as a result of a
disqualification under subsection (2)(a) of this section. - }
{ - (b) 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 57. { + The amendments to ORS 321.812 by section 56 of
this 2003 Act apply to tax years beginning on or after July 1,
2004. + }
SECTION 58. 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
{ + (2001 Edition) + } for the previous tax year shall be
disqualified from such special assessment, and shall be assessed
as provided in ORS 321.812.
(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 under this section.
SECTION 59. ORS 321.815 is amended to read:
321.815. (1) An owner of land desiring that it be designated as
forestland for purposes of ORS 321.805 to 321.825 shall make
application to the county assessor on or before April 1 of the
assessment year for which special assessment as forestland is
first desired, and the owner may also do so within 30 days of
receipt of notice of its assessment as omitted property.
(2) Notwithstanding subsection (1) of this section, an owner of
land may apply to the county assessor by December 15 to have the
land designated as forestland for the assessment year if:
(a) For the prior assessment year the land had been forestland
{ - under ORS 321.257 (4) - } by reason of the land being
highest and best use forestland; and
(b) For the current assessment year the land is being assessed
at a value reflecting a use other than highest and best use
forestland.
(3) The application shall be made upon forms prepared by the
Department of Revenue and supplied by the county assessor, and
shall include the following:
(a) A description of all land the applicant desires to be
designated as forestland.
(b) Date of acquisition.
(c) Whether the land is being held or used for the predominant
purpose of growing and harvesting trees of marketable species.
(d) Whether there is a forest management plan for it.
(e) If so, whether the plan is being implemented, and the
nature and extent of implementation.
(f) Whether the land is being held or used for the predominant
purpose of grazing or raising of livestock.
(g) Whether the land has been platted under ORS chapter 92.
(h) Whether a permit has been granted for harvesting for
excepted purposes under the Oregon Forest Practices Act.
(i) Whether the land is timberland subject to ORS chapter 477,
and if it is not, the reasons therefor.
(j) Whether the land, or any of it, is subject to a lease or
option which permits it to be used for any purpose other than the
growing and harvesting of trees.
(k) A summary of past experience and activity of the applicant
in growing and harvesting trees.
(L) A summary of current and continuing activity of the
applicant in growing and harvesting trees.
(m) A statement that the applicant is aware of the potential
tax liability involved when the land ceases to be designated as
forestland.
(n) An affirmation that the statements contained in the
application are true.
(4) The county assessor shall approve an application for
forestland designation if the assessor finds that the land is
properly classifiable as forestland. The county assessor shall
not find land properly classifiable as forestland if the
application states the land is not being held or used for the
predominant purpose of growing and harvesting trees of marketable
species. Otherwise, the determination whether the land is
properly classifiable as forestland shall be made with due regard
to all relevant evidence and without any one or more items of
evidence necessarily being determinative.
(5) The application shall be considered to have been approved
unless, within three months of the date such application was
delivered to the assessor or prior to August 15, whichever is
later, the assessor shall notify the applicant in writing of the
extent to which the application is denied.
SECTION 60. ORS 321.830 is amended to read:
321.830. (1) Land described in ORS 321.415 { - (5) - } { +
(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 321.426 - } .
(2)(a) If land is or becomes land described under ORS 321.415
{ - (5) - } { + (3) + } and the land is not located within an
exclusive farm use zone, the owner shall make application for
special valuation 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 tax 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 tax 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.
SECTION 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. + }
SECTION 62. { + ORS 321.830 is added to and made a part of ORS
321.805 to 321.825. + }
SECTION 63. { + ORS 321.810, 321.811, 321.816 and 321.823 are
repealed. + }
SECTION 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. + }
SECTION 65. { + ORS 321.814 and section 37, chapter 1078,
Oregon Laws 1999, are repealed July 1, 2004. + }
SECTION 66. { + The repeal of ORS 321.814 and section 37,
chapter 1078, Oregon Laws 1999, by section 65 of this 2003 Act
does not affect the disqualification of forestland under ORS
321.814 or section 37, chapter 1078, Oregon Laws 1999, that
occurred prior to the repeal of ORS 321.814 or section 37,
chapter 1078, Oregon Laws 1999. + }
{ +
CONFORMING AMENDMENTS + }
SECTION 67. ORS 215.203 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)(e) - } { + (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)(e) - } { +
(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.
SECTION 68. ORS 215.236 is amended to read:
215.236. (1) As used in this section, 'dwelling' means a
single-family residential dwelling not provided in conjunction
with farm use.
(2) The governing body or its designee may not grant final
approval of an application made under ORS 215.213 (3) or 215.284
(1), (2), (3), (4) or (7) for the establishment of a dwelling on
a lot or parcel in an exclusive farm use zone that is, or has
been, receiving special assessment without evidence that the lot
or parcel upon which the dwelling is proposed has been
disqualified for special assessment at value for farm use under
ORS 308A.050 to 308A.128 or other special assessment under ORS
308A.315, 321.257 to 321.390 { - , 321.730 or 321.815 - } { +
or 321.805 to 321.825 + } and any additional tax imposed as the
result of disqualification has been paid.
(3) The governing body or its designee may grant tentative
approval of an application made under ORS 215.213 (3) or 215.284
(1), (2), (3), (4) or (7) for the establishment of a dwelling on
a lot or parcel in an exclusive farm use zone that is specially
assessed at value for farm use under ORS 308A.050 to 308A.128
upon making the findings required by ORS 215.213 (3) or 215.284
(1), (2), (3), (4) or (7). An application for the establishment
of a dwelling that has been tentatively approved shall be given
final approval by the governing body or its designee upon receipt
of evidence that the lot or parcel upon which establishment of
the dwelling is proposed has been disqualified for special
assessment at value for farm use under ORS 308A.050 to 308A.128
and any additional tax imposed as the result of disqualification
has been paid.
(4) The owner of a lot or parcel upon which the establishment
of a dwelling has been tentatively approved as provided by
subsection (3) of this section shall, before final approval,
simultaneously:
(a) Notify the county assessor that the lot or parcel is no
longer being used as farmland;
(b) Request that the county assessor disqualify the lot or
parcel for special assessment under ORS 308A.050 to 308A.128,
308A.315, 321.257 to 321.390 { - , 321.730 or 321.815 - } { +
or 321.805 to 321.825 + }; and
(c) Pay any additional tax imposed upon disqualification from
special assessment.
(5) A lot or parcel that has been disqualified pursuant to
subsection (4) of this section may not requalify for special
assessment unless, when combined with another contiguous lot or
parcel, it constitutes a qualifying parcel.
(6) When the owner of a lot or parcel upon which the
establishment of a dwelling has been tentatively approved
notifies the county assessor that the lot or parcel is no longer
being used as farmland and requests disqualification of the lot
or parcel for special assessment at value for farm use, the
county assessor shall:
(a) Disqualify the lot or parcel for special assessment at
value for farm use under ORS 308A.050 to 308A.128 or other
special assessment by removing the special assessment;
(b) Provide the owner of the lot or parcel with written notice
of the disqualification; and
(c) Impose the additional tax, if any, provided by statute upon
disqualification.
(7) The Department of Consumer and Business Services, a
building official, as defined in ORS 455.715 (1), or any other
agency or official responsible for the administration and
enforcement of the state building code, as defined in ORS
455.010, may not issue a building permit for the construction of
a dwelling on a lot or parcel in an exclusive farm use zone
without evidence that the owner of the lot or parcel upon which
the dwelling is proposed to be constructed has paid the
additional tax, if any, imposed by the county assessor under
subsection (6)(c) of this section.
SECTION 69. ORS 215.262 is amended to read:
215.262. (1) The Legislative Assembly declares that the
creation of small parcels for nonfarm dwellings in exclusive farm
use zones introduces potential conflicts into commercial
agricultural areas and allows a limited number of nonfarm
dwellings in exclusive farm use zones. To protect the state's
land base for commercial agriculture from being divided into
multiple parcels for nonfarm dwellings while continuing to allow
a limited number of nonfarm dwellings on less productive
agricultural land not suitable for farm use, it is necessary to:
(a) Limit the incremental division of lots or parcels larger
than the minimum size established under ORS 215.780 into smaller
lots or parcels for the purpose of creating new nonfarm
dwellings; and
(b) Allow a limited number of lots or parcels equal to or less
than the minimum size established under ORS 215.780 to be
partitioned into not more than two parcels unsuitable for farm
use and eligible for siting nonfarm dwellings under ORS 215.284.
(2) The amendments to ORS 215.263 by section 3, chapter 704,
Oregon Laws 2001, address the partition of land within an
exclusive farm use zone to create parcels smaller than the
minimum size established under ORS 215.780 for the purpose of
siting dwellings not provided in conjunction with farm use in
eastern Oregon, as defined in ORS { - 321.405 - } { +
321.805 + }, and in western Oregon, as defined in ORS 321.257.
SECTION 70. ORS 215.263 is amended to read:
215.263. (1) Any proposed division of land included within an
exclusive farm use zone resulting in the creation of one or more
parcels of land shall be reviewed and approved or disapproved by
the governing body or its designee of the county in which the
land is situated. The governing body of a county by ordinance
shall require such prior review and approval for such divisions
of land within exclusive farm use zones established within the
county.
(2) The governing body of a county or its designee may approve
a proposed division of land to create parcels for farm use as
defined in ORS 215.203 if it finds:
(a) That the proposed division of land is appropriate for the
continuation of the existing commercial agricultural enterprise
within the area; or
(b) The parcels created by the proposed division are not
smaller than the minimum size established under ORS 215.780.
(3) The governing body of a county or its designee may approve
a proposed division of land in an exclusive farm use zone for
nonfarm uses, except dwellings, set out in ORS 215.213 (2) or
215.283 (2) if it finds that the parcel for the nonfarm use is
not larger than the minimum size necessary for the use. The
governing body may establish other criteria as it considers
necessary.
(4) In western Oregon, as defined in ORS 321.257, but not in
the Willamette Valley, as defined in ORS 215.010, the governing
body of a county or its designee:
(a) May approve a division of land in an exclusive farm use
zone to create up to two new parcels smaller than the minimum
size established under ORS 215.780, each to contain a dwelling
not provided in conjunction with farm use if:
(A) The nonfarm dwellings have been approved under ORS 215.213
(3) or 215.284 (2) or (3);
(B) The parcels for the nonfarm dwellings are divided from a
lot or parcel that was lawfully created prior to July 1, 2001;
(C) The parcels for the nonfarm dwellings are divided from a
lot or parcel that complies with the minimum size established
under ORS 215.780;
(D) The remainder of the original lot or parcel that does not
contain the nonfarm dwellings complies with the minimum size
established under ORS 215.780; and
(E) The parcels for the nonfarm dwellings are generally
unsuitable for the production of farm crops and livestock or
merchantable tree species considering the terrain, adverse soil
or land conditions, drainage or flooding, vegetation, location
and size of the tract. A parcel may not be considered unsuitable
based solely on size or location if the parcel can reasonably be
put to farm or forest use in conjunction with other land.
(b) May approve a division of land in an exclusive farm use
zone to divide a lot or parcel into two parcels, each to contain
one dwelling not provided in conjunction with farm use if:
(A) The nonfarm dwellings have been approved under ORS 215.284
(2) or (3);
(B) The parcels for the nonfarm dwellings are divided from a
lot or parcel that was lawfully created prior to July 1, 2001;
(C) The parcels for the nonfarm dwellings are divided from a
lot or parcel that is equal to or smaller than the minimum size
established under ORS 215.780 but equal to or larger than 40
acres;
(D) The parcels for the nonfarm dwellings are:
(i) Not capable of producing more than at least 50 cubic feet
per acre per year of wood fiber; and
(ii) Composed of at least 90 percent Class VI through VIII
soils;
(E) The parcels for the nonfarm dwellings do not have
established water rights for irrigation; and
(F) The parcels for the nonfarm dwellings are generally
unsuitable for the production of farm crops and livestock or
merchantable tree species considering the terrain, adverse soil
or land conditions, drainage or flooding, vegetation, location
and size of the tract. A parcel may not be considered unsuitable
based solely on size or location if the parcel can reasonably be
put to farm or forest use in conjunction with other land.
(5) In eastern Oregon, as defined in ORS { - 321.405 - }
{ + 321.805 + }, the governing body of a county or its
designee:
(a) May approve a division of land in an exclusive farm use
zone to create up to two new parcels smaller than the minimum
size established under ORS 215.780, each to contain a dwelling
not provided in conjunction with farm use if:
(A) The nonfarm dwellings have been approved under ORS 215.284
(7);
(B) The parcels for the nonfarm dwellings are divided from a
lot or parcel that was lawfully created prior to July 1, 2001;
(C) The parcels for the nonfarm dwellings are divided from a
lot or parcel that complies with the minimum size established
under ORS 215.780;
(D) The remainder of the original lot or parcel that does not
contain the nonfarm dwellings complies with the minimum size
established under ORS 215.780; and
(E) The parcels for the nonfarm dwellings are generally
unsuitable for the production of farm crops and livestock or
merchantable tree species considering the terrain, adverse soil
or land conditions, drainage or flooding, vegetation, location
and size of the tract. A parcel may not be considered unsuitable
based solely on size or location if the parcel can reasonably be
put to farm or forest use in conjunction with other land.
(b) May approve a division of land in an exclusive farm use
zone to divide a lot or parcel into two parcels, each to contain
one dwelling not provided in conjunction with farm use if:
(A) The nonfarm dwellings have been approved under ORS 215.284
(7);
(B) The parcels for the nonfarm dwellings are divided from a
lot or parcel that was lawfully created prior to July 1, 2001;
(C) The parcels for the nonfarm dwellings are divided from a
lot or parcel that is equal to or smaller than the minimum size
established under ORS 215.780 but equal to or larger than 40
acres;
(D) The parcels for the nonfarm dwellings are:
(i) Not capable of producing more than at least 20 cubic feet
per acre per year of wood fiber; and
(ii) Either composed of at least 90 percent Class VII and VIII
soils, or composed of at least 90 percent Class VI through VIII
soils and are not capable of producing adequate herbaceous forage
for grazing livestock. The Land Conservation and Development
Commission, in cooperation with the State Department of
Agriculture and other interested persons, may establish by rule
objective criteria for identifying units of land that are not
capable of producing adequate herbaceous forage for grazing
livestock. In developing the criteria, the commission shall use
the latest information from the United States Natural Resources
Conservation Service and consider costs required to utilize
grazing lands that differ in acreage and productivity level;
(E) The parcels for the nonfarm dwellings do not have
established water rights for irrigation; and
(F) The parcels for the nonfarm dwellings are generally
unsuitable for the production of farm crops and livestock or
merchantable tree species considering the terrain, adverse soil
or land conditions, drainage or flooding, vegetation, location
and size of the tract. A parcel may not be considered unsuitable
based solely on size or location if the parcel can reasonably be
put to farm or forest use in conjunction with other land.
(6) This section does not apply to the creation or sale of
cemetery lots, if a cemetery is within the boundaries designated
for a farm use zone at the time the zone is established.
(7) This section does not apply to divisions of land resulting
from lien foreclosures or divisions of land resulting from
foreclosure of recorded contracts for the sale of real property.
(8) The governing body of a county may not approve any proposed
division of a lot or parcel described in ORS 215.213 (1)(e) or
(k), 215.283 (1)(e) or (2)(L) or 215.284 (1), or a proposed
division that separates a processing facility from the farm
operation specified in ORS 215.213 (1)(x) or 215.283 (1)(u).
(9) The governing body of a county may approve a proposed
division of land in an exclusive farm use zone to create a parcel
with an existing dwelling to be used:
(a) As a residential home as described in ORS 197.660 (2) only
if the dwelling has been approved under ORS 215.213 (3) or
215.284 (1), (2), (3), (4) or (7); and
(b) For historic property that meets the requirements of ORS
215.213 (1)(q) and 215.283 (1)(o).
(10)(a) Notwithstanding ORS 215.780, the governing body of a
county or its designee may approve a proposed division of land
provided:
(A) The land division is for the purpose of allowing a provider
of public parks or open space, or a not-for-profit land
conservation organization, to purchase at least one of the
resulting parcels; and
(B) A parcel created by the land division that contains a
dwelling is large enough to support continued residential use of
the parcel.
(b) A parcel created pursuant to this subsection that does not
contain a dwelling:
(A) Is not eligible for siting a dwelling, except as may be
authorized under ORS 195.120;
(B) May not be considered in approving or denying an
application for siting any other dwelling;
(C) May not be considered in approving a redesignation or
rezoning of forestlands except for a redesignation or rezoning to
allow a public park, open space or other natural resource use;
and
(D) May not be smaller than 25 acres unless the purpose of the
land division is:
(i) To facilitate the creation of a wildlife or pedestrian
corridor or the implementation of a wildlife habitat protection
plan; or
(ii) To allow a transaction in which at least one party is a
public park or open space provider, or a not-for-profit land
conservation organization, that has cumulative ownership of at
least 2,000 acres of open space or park property.
(11) The governing body of a county or its designee may approve
a division of land smaller than the minimum lot or parcel size
described in ORS 215.780 (1) and (2) in an exclusive farm use
zone provided:
(a) The division is for the purpose of establishing a church,
including cemeteries in conjunction with the church;
(b) The church has been approved under ORS 215.213 (1) or
215.283 (1);
(c) The newly created lot or parcel is not larger than five
acres; and
(d) The remaining lot or parcel, not including the church,
meets the minimum lot or parcel size described in ORS 215.780 (1)
and (2) either by itself or after it is consolidated with another
lot or parcel.
(12) The governing body of a county may not approve a division
of land for nonfarm use under subsection (3), (4), (5), (9), (10)
or (11) of this section unless any additional tax imposed for the
change in use has been paid.
(13) Parcels used or to be used for training or stabling
facilities may not be considered appropriate to maintain the
existing commercial agricultural enterprise in an area where
other types of agriculture occur.
SECTION 71. ORS 215.284 is amended to read:
215.284. (1) In the Willamette Valley, a single-family
residential dwelling not provided in conjunction with farm use
may be established, subject to approval of the governing body or
its designee, in any area zoned for exclusive farm use upon a
finding that:
(a) The dwelling or activities associated with the dwelling
will not force a significant change in or significantly increase
the cost of accepted farming or forest practices on nearby lands
devoted to farm or forest use;
(b) The dwelling will be sited on a lot or parcel that is
predominantly composed of Class IV through Class VIII soils that
would not, when irrigated, be classified as prime, unique, Class
I or Class II soils;
(c) The dwelling will be sited on a lot or parcel created
before January 1, 1993;
(d) The dwelling will not materially alter the stability of the
overall land use pattern of the area; and
(e) The dwelling complies with such other conditions as the
governing body or its designee considers necessary.
(2) In counties not described in subsection (1) of this
section, a single-family residential dwelling not provided in
conjunction with farm use may be established, subject to approval
of the governing body or its designee, in any area zoned for
exclusive farm use upon a finding that:
(a) The dwelling or activities associated with the dwelling
will not force a significant change in or significantly increase
the cost of accepted farming or forest practices on nearby lands
devoted to farm or forest use;
(b) The dwelling is situated upon a lot or parcel or portion of
a lot or parcel that is generally unsuitable land for the
production of farm crops and livestock or merchantable tree
species, considering the terrain, adverse soil or land
conditions, drainage and flooding, vegetation, location and size
of the tract. A lot or parcel or portion of a lot or parcel may
not be considered unsuitable solely because of size or location
if it can reasonably be put to farm or forest use in conjunction
with other land;
(c) The dwelling will be sited on a lot or parcel created
before January 1, 1993;
(d) The dwelling will not materially alter the stability of the
overall land use pattern of the area; and
(e) The dwelling complies with such other conditions as the
governing body or its designee considers necessary.
(3) In counties in western Oregon, as defined in ORS 321.257,
not described in subsection (4) of this section, a single-family
residential dwelling not provided in conjunction with farm use
may be established, subject to approval of the governing body or
its designee, in any area zoned for exclusive farm use upon a
finding that:
(a) The dwelling or activities associated with the dwelling
will not force a significant change in or significantly increase
the cost of accepted farming or forest practices on nearby lands
devoted to farm or forest use;
(b) The dwelling is situated upon a lot or parcel or portion of
a lot or parcel that is generally unsuitable land for the
production of farm crops and livestock or merchantable tree
species, considering the terrain, adverse soil or land
conditions, drainage and flooding, vegetation, location and size
of the tract. A lot or parcel or portion of a lot or parcel may
not be considered unsuitable solely because of size or location
if it can reasonably be put to farm or forest use in conjunction
with other land;
(c) The dwelling will be sited on a lot or parcel created after
January 1, 1993, as allowed under ORS 215.263 (4);
(d) The dwelling will not materially alter the stability of the
overall land use pattern of the area; and
(e) The dwelling complies with such other conditions as the
governing body or its designee considers necessary.
(4)(a) In the Willamette Valley, a lot or parcel allowed under
paragraph (b) of this subsection for a single-family residential
dwelling not provided in conjunction with farm use may be
established, subject to approval of the governing body or its
designee, in any area zoned for exclusive farm use upon a finding
that the originating lot or parcel is equal to or larger than the
applicable minimum lot or parcel size and:
(A) Is not stocked to the requirements under ORS 527.610 to
527.770;
(B) Is composed of at least 95 percent Class VI through Class
VIII soils; and
(C) Is composed of at least 95 percent soils not capable or
producing 50 cubic feet per acre per year of wood fiber.
(b) Any parcel to be created for a dwelling from the
originating lot or parcel described in paragraph (a) of this
subsection will not be smaller than 20 acres.
(c) The dwelling or activities associated with the dwelling
allowed under this subsection will not force a significant change
in or significantly increase the cost of accepted farming or
forest practices on nearby lands devoted to farm or forest use.
(d) The dwelling allowed under this subsection will not
materially alter the stability of the overall land use pattern of
the area.
(e) The dwelling allowed under this subsection complies with
such other conditions as the governing body or its designee
considers necessary.
(5) No final approval of a nonfarm use under this section shall
be given unless any additional taxes imposed upon the change in
use have been paid.
(6) If a single-family dwelling is established on a lot or
parcel as set forth in ORS 215.705 to 215.750, no additional
dwelling may later be sited under subsection (1), (2), (3), (4)
or (7) of this section.
(7) In counties in eastern Oregon, as defined in ORS
{ - 321.405 - } { + 321.805 + }, a single-family residential
dwelling not provided in conjunction with farm use may be
established, subject to the approval of the county governing body
or its designee, in any area zoned for exclusive farm use upon a
finding that:
(a) The dwelling or activities associated with the dwelling
will not force a significant change in or significantly increase
the cost of accepted farming or forest practices on nearby lands
devoted to farm or forest use;
(b) The dwelling will be sited on a lot or parcel created after
January 1, 1993, as allowed under ORS 215.263 (5);
(c) The dwelling will not materially alter the stability of the
overall land use pattern of the area; and
(d) The dwelling complies with such other conditions as the
governing body or its designee considers necessary.
SECTION 72. ORS 215.800 is amended to read:
215.800. (1) The Legislative Assembly declares that the
protection and preservation of the wildlife resources of this
state ought to be encouraged by recognizing wildlife habitat
conservation and enhancement as an allowed land use in areas:
(a) Zoned for exclusive farm use, mixed farm and forest use or
highest and best use forestland; or
(b) Assessed as designated forestland { - or under the
Western Oregon Small Tract Optional Tax - } .
(2) The Legislative Assembly further declares that ORS 215.800
to 215.808 are intended to allow for the conservation and
enhancement of wildlife habitat.
(3) The Legislative Assembly further recognizes that the
integration of wildlife habitat conservation and management plans
with generally accepted agricultural and forestry practices in
farm and forest zones is an important element in exercising good
stewardship over these lands.
SECTION 73. ORS 215.801 is amended to read:
215.801. As used in ORS 215.800 to 215.808:
(1) 'Cooperating agency' means the State Department of Fish and
Wildlife, the United States Fish and Wildlife Service, the United
States Natural Resources Conservation Service, the Oregon State
University Extension Service or other persons with wildlife
habitat conservation and management training considered
appropriate for the preparation of a conservation and management
plan, as established by rules of the State Department of Fish and
Wildlife.
(2) 'Department' means the State Department of Fish and
Wildlife.
(3) 'Forestland' means forestland as defined in ORS 321.257
{ - , 321.705 - } or 321.805.
(4) 'Lot' has the meaning given that term in ORS 92.010.
(5) 'Parcel' has the meaning given that term in ORS 215.010
(1).
(6) 'Wildlife habitat conservation and management plan' or '
plan' means a plan developed by a cooperating agency and
landowner that specifies the conservation and management
practices, including farm and forest uses consistent with the
overall intent of the plan, that will be conducted to preserve,
enhance and improve wildlife habitat on an affected lot or
parcel.
SECTION 74. ORS 215.808 is amended to read:
215.808. (1) The State Department of Fish and Wildlife shall
review and approve plans submitted under ORS 215.802 (1) for
compliance with the standards set forth in the rules adopted
under ORS 215.806.
(2) The State Fish and Wildlife Commission may establish by
rule a limit on the number of plans that may be approved for each
tax year. An application that is not approved because the maximum
number of plans for a tax year have already been approved shall
be held for consideration for approval for the next tax year.
(3) When a plan is approved by the department and is
implemented, the owner of the land subject to the plan may make
application to the county assessor for open space use assessment
under ORS 308A.300 to 308A.330 for that land, except that, if
approved, the land shall be assessed:
(a) At its value for farm use under ORS 308A.050 to 308A.128 if
the land is in an exclusive farm use zone or a farm and forest
zone and has historically been in farm use; or
(b) At its forestland value if, but for application under this
section, the land is zoned as highest and best use forestland
{ - , - } { + or is + } assessed as designated forestland
{ - or assessed under the Western Oregon Small Tract Optional
Tax - } .
(4) If the land that is the subject of the application includes
a farm or forest homesite, upon approval the homesite shall be
assessed as provided in ORS 308A.250 to 308A.259.
(5) Application shall be made as provided in ORS 308A.300 to
308A.330 except that:
(a) The granting authority shall be the State Department of
Fish and Wildlife. The department shall approve the plan relating
to the land of the applicant and determine compliance with the
plan in accordance with rules adopted under ORS 215.806.
(b) The owner, in lieu of designating the paragraph of ORS
308A.300 (1) under which the open space use falls, shall
designate the open space use as wildlife habitat conservation and
management under ORS 215.800 to 215.808.
(c) Applications for open space use assessment under this
section shall be made to the county assessor not later than April
1 immediately preceding the first tax year for which such
assessment is requested.
(d) The application shall include a certified copy of the
department's declaration that the land described in the
application is subject to a wildlife habitat conservation and
management plan approved by the department and that the plan is
being implemented.
(e) When the application for open space use assessment includes
a certified copy of the declaration described in paragraph (d) of
this subsection, the county assessor may not refer the
application to the planning commission or to the county governing
body under ORS 308A.309 (1), but shall assess the land described
in the application at its assessed value under the appropriate
special assessment program listed under subsection (3) or (4) of
this section. In each year in which the land is assessed under
the provisions of this section, the county assessor shall also
enter on the assessment roll, as a notation, the assessed value
of the land were it not so assessed.
(6) An approved wildlife habitat conservation and management
plan shall be reviewed by the department periodically to ensure
that the land is managed in accordance with the plan. If the plan
is not being implemented as approved, the department shall notify
the owner and require compliance measures to be taken within six
months. If the plan is still not being implemented as required by
the department at the end of the six-month period, the department
shall notify the county assessor of the county in which the
affected land is situated. The county assessor shall withdraw the
land from open space use classification as provided in ORS
308A.321 (1), except that notice of the withdrawal shall be given
to the governing body of the county in which the land is
situated.
(7) Notwithstanding ORS 215.236 and 308A.700 to 308A.733, land
that is assessed as provided in this section may not be subject
to any additional taxes when the land is changed to open space
use assessment based on wildlife habitat conservation and
management as provided in ORS 215.800 to 215.808 and shall be
allowed to return unrestricted to assessment under the
appropriate special assessment program listed in subsection (3)
or (4) of this section, if otherwise qualified, without payment
of any additional taxes. However, the land may be subject to
additional taxes as provided in ORS 308A.700 to 308A.733.
SECTION 75. { + The amendments to ORS 215.800, 215.801 and
215.808 by sections 72 to 74 of this 2003 Act apply to property
tax years beginning on or after July 1, 2003. + }
SECTION 76. Section 4, chapter 460, Oregon Laws 1999, is
amended to read:
{ + Sec. 4. + } (1) As used in this section, 'eastern Oregon'
has the meaning given that term in ORS { - 321.405 - } { +
321.805 + } but also includes Hood River County.
(2) Of the 10 additional enterprise zones provided for in the
amendments to ORS 285B.653 by section 2 { + , chapter 460, Oregon
Laws 1999, + } { - of this 1999 Act - } and initially
designated after { - the effective date of this 1999 Act - }
{ + October 23, 1999 + }, at least four of the enterprise zones
must be located in eastern Oregon.
(3) The designation of any enterprise zone provided for in the
amendments to ORS 285B.653 by section 2 { + , chapter 460, Oregon
Laws 1999, + } { - of this 1999 Act - } is not effective
unless made on or before January 1, 2004.
(4) When requesting a change to the boundary of an enterprise
zone under ORS 285B.680, the zone sponsor and any other city or
county that seeks to become a sponsor as part of the boundary
change proceeding may request a waiver of the distance limit
imposed under ORS 285B.683 (1)(c). The Director of the Economic
and Community Development Department shall grant the waiver and
order the change to the enterprise zone boundary, if:
(a) The proposed boundary change satisfies all other
requirements for a boundary change; and
(b) The director makes a determination, consistent with rules
adopted by the Economic and Community Development Department,
that designation of a separate enterprise zone is not a practical
option under the particular circumstances, that the overall
distances involved can be effectively administered and that the
waiver will further the goals and purposes of applicable state
policies.
SECTION 77. ORS 305.514 is amended to read:
305.514. (1) A plaintiff may elect to file a small claims
procedure in the following classes of cases:
(a) A proceeding for refund or to set aside additional taxes
assessed or taxes assessed when no return was filed in any case
involving taxes imposed under ORS chapters 314, 316, 317 and 318,
with respect to any year for which the amount in controversy does
not exceed $5,000, exclusive of interest and penalties.
(b) A proceeding by a taxpayer in any property tax case in
which a taxpayer has the right to appeal and that involves only
the question of the assessed or specially assessed value of real
or personal property, where a board of property tax appeals (by
order of the board), an assessor or a tax collector has
determined that the assessed or specially assessed value of:
(A) A parcel of land is not in excess of $250,000;
(B) The improvement on a parcel of land is not in excess of
$250,000;
(C) Both a parcel of land and the improvement are not in excess
of $250,000; or
(D) Personal property is not in excess of $250,000.
(c) A proceeding for the refund or the revision of taxes
imposed by ORS chapter 118 where the amount in controversy does
not exceed $5,000, exclusive of interest and penalties.
(d) A proceeding for the elderly rental assistance authorized
under ORS 310.635 without limitation to the amount in
controversy.
{ - (e) A proceeding by a taxpayer in any case authorized by
ORS 321.560 where the amount in controversy does not exceed
$5,000, exclusive of interest and penalties. - }
{ - (f) - } { + (e) + } A proceeding for refund or the
revision of taxes imposed by the Tobacco Products Tax Act where
the amount in controversy does not exceed $5,000, exclusive of
interest and penalties.
{ - (g) - } { + (f) + } A proceeding for refund or to set
aside additional taxes assessed or taxes assessed when no return
was filed in any case involving taxes administered by a state
agency or department under ORS 305.620 with respect to any year
in which the amount in controversy does not exceed $5,000,
exclusive of interest and penalties.
{ - (h) - } { + (g) + } A proceeding for refund or to set
aside interest or penalties assessed in connection with any tax
administered by the Department of Revenue, where the amount in
controversy does not exceed $5,000. This paragraph does not apply
to the denial of a request for the discretionary waiver of
interest or penalties.
(2) Under a small claims procedure, the hearing shall not be
recorded and the parties shall have no right to appeal the
determination of the magistrate.
(3)(a) If the plaintiff elects a small claims procedure in a
property tax case involving only the question of the assessed or
specially assessed value of real property, the plaintiff may
elect, in lieu of a hearing in the magistrate division, to have
the property appraised as provided in this subsection.
(b) The election by the taxpayer may be included in the
petition, or may be made by a separate petition in a form and
filed as prescribed by the rules of the tax court. The clerk of
the court shall give notice of the election by the taxpayer to
the applicable county assessor.
(c) If the taxpayer elects as provided under this paragraph to
have the real property appraised, there shall be no hearing in
the magistrate division and the magistrate shall appoint an
independent fee appraiser to appraise the property. The appraisal
by the appointed appraiser shall be in writing and signed by the
appraiser. For the purpose of the proceeding, the appraisal shall
constitute the real market or specially assessed value of the
property and shall be incorporated in the determination of the
magistrate of the property's assessed or specially assessed
value.
(d) The taxpayer shall pay to the appraiser appointed under
paragraph (c) of this subsection a reasonable fee for the
appraisal services rendered by the appraiser.
SECTION 78. ORS 305.620 is amended to read:
305.620. (1) Any state agency or department may enter into
agreements with any political subdivision of this state for the
collection, enforcement, administration and distribution of local
taxes of the political subdivision imposed upon or measured by
gross or net income, wages or net earnings from self-employment
or local general sales and use taxes.
(2) The department or agency shall prescribe the rules by which
the agreements entered into under subsection (1) of this section
are administered.
(3) The department or agency shall prescribe the rules by which
the taxes described by subsection (1) of this section are
administered, collected, enforced and distributed.
(4) A political subdivision may appear as an intervenor at any
conference held by the Department of Revenue or conference,
hearing or proceeding held by another department or agency in
connection with a local tax administered by the department or
agency. The political subdivision may be represented by its own
counsel. The department or agency shall adopt rules governing the
procedures to be followed by the political subdivision in making
an appearance.
(5) Costs incurred by the department or agency in the
administration, enforcement, collection and distribution of taxes
under the agreements entered into under subsection (1) of this
section shall be first deducted from the taxes collected before
distribution is made to the political subdivision which is a
party to the agreement.
(6) The Oregon Tax Court shall have exclusive jurisdiction to
review determinations of the Department of Revenue or orders of
another department or agency relating to the collection,
enforcement, administration and distribution of local taxes under
agreements entered into under subsection (1) of this section.
(7) A proceeding for refund or to set aside additional taxes or
taxes assessed when no return was filed may be initiated before
the state agency or department or as provided in ORS 305.514
{ - (1)(g) - } { + (1)(f) + }.
(8) An appeal from a determination or an order may be taken by
the taxpayer or by the political subdivision whose taxes are in
issue, by filing an original and two certified copies of a
complaint with the clerk of the Oregon Tax Court at its principal
office at the state capital, Salem, Oregon, within 60 days after
the notice of the determination of the Department of Revenue or
the order of the department or agency is sent to the taxpayer or
the political subdivision. The filing of the complaint in the
Oregon Tax Court shall constitute perfection of the appeal.
Service of the taxpayer's complaint shall be accomplished by the
clerk of the tax court by filing a certified copy of the
complaint with the administrative head of the department or
agency and a certified copy with the political subdivision.
Service of the political subdivision's complaint shall be
accomplished by the clerk of the tax court by filing a certified
copy of the complaint with the administrative head of the
department or agency and mailing a certified copy of the
complaint to the taxpayer. The complaint of a taxpayer shall be
entitled in the name of the person filing as plaintiff and the
department or agency as defendant. The complaint of a political
subdivision shall be entitled in the name of the political
subdivision as plaintiff and the taxpayer and the department or
agency as defendants. A copy of the order of the department or
agency shall be attached to the original complaint. All
procedures shall be in accordance with ORS 305.405 to 305.494.
SECTION 79. ORS 307.320 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)(e) - } { + (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.
SECTION 80. ORS 308.236 is amended to read:
308.236. (1) The availability, usefulness and cost of using
roads, including all roads of the owner of land or timber, and
all roads which such owner has the right to use, shall be taken
into consideration in determining the real market value of land
{ - , the immediate harvest value of timber in eastern Oregon as
defined in ORS 321.430 (3) and the immediate harvest value of
timber in western Oregon as defined in ORS 321.257 - } .
(2) Farm or grazing land roads and forest roads themselves,
except principal exterior timber access roads, shall not be
appraised, valued or assessed and they shall not be classed as
improvements under ORS 308.215. The underlying land upon which
roads are constructed shall be assessed if it is otherwise
subject to assessment.
(3)(a) As used in this section, 'road' includes fills, ballast,
bridges, culverts, drains, surfacing and other appurtenances of a
like kind commonly associated with roads, but excludes railroads.
(b) 'Principal exterior timber access roads' means those
portions of high standard main-line private roads that provide
access from a conversion center or public way to the exterior
boundary of the principal forest area served by the road. A high
standard main-line private road is a permanent road of two lanes
or more which is paved, macadamized, or with fine-gravel surface
which is permanently and continuously maintained.
SECTION 81. ORS 308A.056 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)(e) - } { + (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)(e) - } { +
(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.
SECTION 82. ORS 308A.250 is amended to read:
308A.250. As used in ORS 308A.250 to 308A.259:
(1) 'Exclusive farm use zone' has the meaning given that term
in ORS 308A.053.
(2) 'Forestland' means forestland that is a parcel of land of
more than 10 acres that has been zoned in the comprehensive plan
for exclusive farm use, forest use or farm and forest use and
that is, as of the assessment date for which value for the forest
homesite is being determined:
(a) Land that has as its highest and best use the growing and
harvesting of trees of a marketable species; { + or + }
(b) Land that has been designated as forestland under ORS
321.257 to 321.390 or 321.805 to 321.825 { + . + } { - ; or - }
{ - (c) Land that has been classified under ORS 321.705 to
321.765. - }
(3) 'Homesite' means land described in ORS 308A.253, including
all tangible improvements to the land under and adjacent to a
dwelling and other structures, if any, that are customarily
provided in conjunction with the dwelling.
(4) 'Nonexclusive farm use zone farmland' has the meaning given
that term in ORS 308A.053.
(5) 'Owner' or 'owners' means:
(a) The person who holds an estate in the homesite in fee
simple or for life.
(b) Any one of tenants in common or tenants by the entirety,
holding an estate in the homesite in fee simple or for life.
(c) Any person of legal age, duly authorized in writing to act
on behalf of any person described in paragraph (a) or (b) of this
subsection in filing an application for special assessment of
nonexclusive farm use zone farmland.
(d) The guardian or conservator of an owner, or the executor or
administrator of an owner's estate.
(e) The purchaser of the fee simple or life estate of an owner
under a contract of sale.
SECTION 83. ORS 308A.377 is amended to read:
308A.377. (1) Land may be designated as riparian upon
application and approval of the application under ORS 308A.356
and 308A.359 if the land is being assessed under any of the
following special assessment programs:
(a) ORS 308A.050 to 308A.128 (relating to farm use special
assessment).
(b) ORS { - 321.347, 321.348, 321.353, 321.358 and
321.359 - } { + 321.257 to 321.390 + } (relating to special
assessment as designated forestland in western Oregon).
(c) ORS 321.805 to 321.825 (relating to special assessment as
designated forestland in eastern Oregon).
{ - (d) ORS 321.705 to 321.765 (relating to classification as
Western Oregon Small Tract Optional Tax forestland). - }
{ - (e) - } { + (d) + } ORS 308A.300 to 308A.330 (relating
to classification as open space land).
(2) Notwithstanding the provisions of any of the special
assessment laws listed in subsection (1) of this section, the
additional taxes, penalties and interest that would be due as a
result of a change of designation to riparian shall be abated and
shall not be collected.
SECTION 84. ORS 308A.700 is amended to read:
308A.700. As used in ORS 308A.700 to 308A.733:
(1) 'Disqualification' includes the removal of forestland
designation under ORS 321.359 or 321.820 { - or the
declassification from Western Oregon Small Tract Optional Tax
classification under ORS 321.760 - } .
(2) 'Urban growth boundary' means an urban growth boundary
contained in a city or county comprehensive plan that has been
acknowledged by the Land Conservation and Development Commission
pursuant to ORS 197.251 or an urban growth boundary that has been
adopted by a metropolitan service district under ORS 268.390 (3).
SECTION 85. ORS 308A.703 is amended to read:
308A.703. (1) This section applies to land upon the land's
disqualification from special assessment under any of the
following sections:
(a) Exclusive farm use zone farmland under ORS 308A.113;
(b) Nonexclusive farm use zone farmland under ORS 308A.116;
(c) Western Oregon designated forestland under ORS 321.359;
(d) Eastern Oregon designated forestland under ORS 321.820;
{ + or + }
{ - (e) Western Oregon Small Tract Optional Tax
classification under ORS 321.760; or - }
{ - (f) - } { + (e) + } Wildlife habitat open space use
assessment under ORS 215.808.
(2) Following a disqualification listed in subsection (1) of
this section, an additional tax shall be added to the tax
extended against the land on the next assessment and tax roll, to
be collected and distributed in the same manner as other ad
valorem property tax moneys. The additional tax shall be equal to
the difference between the taxes assessed against the land and
the taxes that would otherwise have been assessed against the
land, for each of the number of years determined under subsection
(3) of this section.
(3) The number of years for which additional taxes shall be
calculated shall equal the lesser of the number of consecutive
years the land had qualified for the special assessment program
for which disqualification has occurred or:
(a) Ten years, in the case of exclusive farm use zone farmland,
but only if the land, immediately following disqualification,
remains outside an urban growth boundary;
(b) Ten years, in the case of wildlife habitat open space use
assessment land within an exclusive farm use zone, but only if
the land, immediately following disqualification, remains outside
an urban growth boundary; or
(c) Five years, in the case of:
(A) Nonexclusive farm use zone farmland;
(B) Western Oregon designated forestland;
(C) Eastern Oregon designated forestland;
{ - (D) Western Oregon Small Tract Optional Tax classified
forestland; - }
{ - (E) - } { + (D) + } Exclusive farm use zone farmland
that is not described in paragraph (a) of this subsection; or
{ - (F) - } { + (E) + } Wildlife habitat open space use
special assessment land that is not described in paragraph (b) of
this subsection.
(4) The additional taxes described in this section shall be
deemed assessed and imposed in the year to which the additional
taxes relate.
(5) If the disqualification of the land is the result of the
sale or transfer of the land to an ownership making the land
exempt from ad valorem property taxation, the lien for additional
taxes shall attach as of the day preceding the sale or transfer.
(6) The amount determined to be due under this section may be
paid to the tax collector prior to the time of the next general
property tax roll, pursuant to the provisions of ORS 311.370.
{ - (7) If additional taxes are imposed under this section as
a result of the declassification of Western Oregon Small Tract
Optional Tax classified forestland, the following amounts shall
be added to and considered a part of the additional taxes
otherwise due under this section, to be collected in the same
manner in which additional taxes are collected: - }
{ - (a) The amount of privilege taxes that would have been
payable under ORS 321.257 to 321.322, during the five years
immediately preceding the extension of additional taxes on the
tax roll; and - }
{ - (b) Interest on the amounts of taxes added pursuant to
paragraph (a) of this subsection at the rate of six percent a
year from the date at which such increased taxes would have been
payable if the forestland had been valued without regard to ORS
321.720. - }
{ - (8) The Department of Revenue shall provide the amounts
described in subsection (7) of this section to the county
assessor. - }
SECTION 86. ORS 308A.706 is amended to read:
308A.706. (1) Notwithstanding that land may have been
disqualified from special assessment, the additional taxes
described under ORS 308A.703 shall not be imposed and shall
remain a potential tax liability if, as of the date the
disqualification is taken into account on the assessment and tax
roll, the land is any of the following:
(a) Disqualified exclusive farm use zone farmland or
nonexclusive farm use zone farmland that:
(A) Is not being used as farmland; and
(B) Is not being used for industrial, commercial, residential
or other use that is incompatible with a purpose to return the
land to farm use.
(b) Acquired by a governmental agency or body as a result of an
exchange of the land for land of approximately equal value held
by the governmental agency or body.
(c) Acquired and used for natural heritage purposes and all of
the following additional requirements are met:
(A) The land is registered under ORS 273.581 as a natural
heritage conservation area;
(B) The land is acquired by a private nonprofit corporation;
(C) The land is retained by the corporation, or transferred to
the state by the corporation, for the purpose of educational,
scientific and passive recreational use consistent with
conservation of the ecological values and natural heritage
elements of the area;
(D) If the land is retained by the corporation, it remains open
to the public without charge for the uses described in
subparagraph (C) of this paragraph; and
(E) The land is managed pursuant to a voluntary management
agreement under ORS 273.581 (5).
(d) Qualified for special assessment under:
(A) ORS 308A.062, relating to farm use special assessment of
land in an exclusive farm use zone;
(B) ORS 308A.068, relating to farm use special assessment of
nonexclusive farm use zone farmland;
(C) ORS 321.358, relating to classification as designated
forestland in western Oregon;
{ - (D) ORS 321.730, relating to classification as Western
Oregon Small Tract Optional Tax forestland; - }
{ - (E) - } { + (D) + } ORS 321.815, relating to
classification as designated forestland in eastern Oregon; or
{ - (F) - } { + (E) + } ORS 215.808, relating to wildlife
habitat open space use assessment.
{ - (e) Declassified Western Oregon Small Tract Optional Tax
forestland that is considered to be western Oregon designated
forestland under ORS 321.347 (4). - }
{ - (f) - } { + (e) + } Disqualified nonexclusive farm use
zone farmland, to the extent the additional taxes are deferred or
abated as provided in ORS 308A.119.
(2) In any case where the additional tax is deferred under the
provisions of this section but may subsequently be imposed under
ORS 308A.712, the county assessor shall continue to enter the
notation 'potential additional tax liability' on the assessment
and tax roll.
SECTION 87. ORS 308A.709 is amended to read:
308A.709. Notwithstanding that land may have been disqualified
from special assessment, no additional taxes may be imposed under
ORS 308A.703 if, as of the date the disqualification is taken
into account on the assessment and tax roll, the land is any of
the following:
(1) Acquired by a governmental agency as a result of the lawful
exercise of the power of eminent domain or the threat or
imminence thereof.
(2) Acquired by purchase, agreement or donation under ORS
390.121 (relating to State Parks and Recreation Commission
acquisitions).
(3) Acquired by a city, county, metropolitan service district
created under ORS chapter 268 or park and recreation district
organized under ORS chapter 266 for public recreational purposes
or for the preservation of scenic or historic places.
(4) Acquired for wildlife management purposes under ORS
496.146.
(5) Public property that was leased or rented to a taxable
owner as described in ORS 307.110 at the time of
disqualification, and the reason for the disqualification was the
termination of the lease under which the land was assessed.
(6) Land that ceases to be located within the boundaries of an
exclusive farm use zone as the result of a change in the
boundaries of the zone or removal of the zone following an action
by the governing body of the county or city that:
(a) Was not requested or initiated by the owner of the land; or
(b) Was requested by:
(A) The State Parks and Recreation Department for public park
purposes under ORS 390.121; or
(B) The State Fish and Wildlife Commission for wildlife
management purposes under ORS 496.146.
{ - (7) Declassified as Western Oregon Small Tract Optional
Tax forestland under ORS 321.760 (1)(c) and (d) because: - }
{ - (a) The State Forester has determined that the
predominant use of the land is for the production of cultured
Christmas trees; or - }
{ - (b) Notwithstanding ORS 321.727, the land is transferred
to an owner who, upon completion of the transfer, has a total
ownership of forestland in western Oregon of less than 10
acres. - }
{ - (8) - } { + (7) + } Forestland acquired by a federal,
state or local governmental agency. In the case of an acquisition
described in this subsection, a lien for additional taxes and
interest may not attach on the day preceding the day of transfer
of the forestland to the governmental agency.
SECTION 88. ORS 308A.712 is amended to read:
308A.712. (1) If the disqualification of land from special
assessment results in the deferral of additional taxes under ORS
308A.706:
(a) The amount of deferred additional taxes shall be determined
as provided for in this section in lieu of ORS 308A.703; and
(b) The deferred additional taxes shall be added to the
assessment and tax roll for the year in which the event described
in subsections (2) to (6) of this section is first taken into
account for property tax purposes, to be collected and
distributed in the same manner as other ad valorem property
taxes.
(2) If additional taxes are deferred under ORS 308A.706 (1)(a)
(relating to compatible nonuse of farmland) and subsequently the
land is changed to an industrial, commercial, residential or
other use incompatible with a return of the land to farm use,
then:
(a) The amount of additional tax due for each year to which the
additional tax applies shall be the difference between the taxes
assessed against the land and the taxes that would have been
assessed against the land in that year had the land not been in
special assessment; and
(b) The number of years for which the additional tax shall be
collected shall be the total number of years (whether or not
continuous) that the farm use special assessment was in effect
for the land, not to exceed:
(A) In the case of disqualified exclusive farm use zone
farmland located outside an urban growth boundary, 10 tax years,
or such lesser number of years, corresponding to the number of
years of farm use zoning applicable to the property; or
(B) In the case of all other farmland disqualified from farm
use special assessment, five tax years.
(3)(a) If additional taxes are deferred under ORS 308A.706
(1)(b) (relating to government exchange of land), additional
taxes shall be collected when the land acquired as a result of
the exchange is disqualified from special assessment. The
additional taxes shall equal the total amount of additional taxes
under ORS 308A.703 (2) attributable to the number of years the
land transferred to the governmental agency or body received the
special assessment before the exchange plus the number of years,
if any, the land acquired from the governmental agency or body
received a special assessment after the exchange.
(b) The total number of years taken into account shall not
exceed the maximum number of years for which additional taxes may
be collected under the provision of law applicable to either the
exchanged land (immediately before the exchange) or the acquired
land, whichever is greater.
(4) If additional taxes are deferred under ORS 308A.706 (1)(c)
(relating to natural heritage), the additional taxes that would
have been imposed under ORS 308A.703 at the time of
disqualification shall be collected when the land is no longer
used as described in ORS 308A.706 (1)(c).
(5) If additional taxes are deferred under ORS 308A.706 (1)(d)
(relating to change in special assessment), the additional taxes
that would have been collected at the time of disqualification
shall be collected at the time the land is disqualified from any
other special assessment law listed in ORS 308A.706 (1)(d). The
total amount of additional tax shall be calculated as follows:
(a) The amount of the additional tax due for each year to which
the additional tax applies shall be the difference between the
taxes assessed against the land and the taxes that would have
been assessed against the land in that year had the land not been
in special assessment; and
(b) The number of years for which the additional tax shall be
collected shall be the total number of continuous tax years that
a special assessment listed in ORS 308A.706 (1)(d) was in effect
for the land, not to exceed:
(A) Five tax years; or
(B) If the property had, within the past 10 tax years, been
disqualified from a special assessment program described in ORS
308A.703 (3)(a) or (b) and had been continuously subject to
special assessment, then 10 tax years. However, the number of
continuous preceding years of special assessment under the
special assessment programs listed in ORS 308A.703 (3)(c) that
may be taken into consideration for purposes of computing the
additional tax may not exceed five years.
(6) In determining the additional tax under subsection (5) of
this section { + , + } { - : - }
{ - (a) - } the number of continuous preceding years of
special assessment counted shall not include those years in which
the land was specially assessed under any of the special
assessment laws listed in ORS 308A.706 (1)(d) prior to a
disqualification of the land for special assessment as exclusive
farm use zone farmland under the conditions described in ORS
308A.709 (6).
{ - (b) The number of continuous preceding years of special
assessment counted shall not include those years of special
assessment under ORS 321.705 to 321.765 if the land was
disqualified under the conditions described in ORS 308A.709
(7). - }
SECTION 89. ORS 308A.718 is amended to read:
308A.718. (1) The county assessor shall send notice as provided
in this section if land is disqualified under any of the
following special assessment programs:
(a) Farm use special assessment under ORS 308A.050 to 308A.128.
(b) Farm or forest homesite special assessment under ORS
308A.250 to 308A.259.
(c) Western Oregon designated forestland special assessment
under ORS { - 321.347, 321.348, 321.353, 321.358 and
321.359 - } { + 321.257 to 321.390 + }.
(d) Eastern Oregon designated forestland special assessment
under ORS 321.805 to 321.825.
(2) Notwithstanding that a change in use described in this
section is not a disqualification, the assessor shall send notice
as provided in this section when the highest and best use of land
changes from forestland to a different highest and best use.
(3) Within 30 days after the date that land is disqualified
from special assessment, the assessor shall notify the taxpayer
in writing of the disqualification and shall state the reason for
the disqualification.
(4) Following receipt of the notification, the taxpayer may
appeal the assessor's determination to the Oregon Tax Court
within the time and in the manner provided in ORS 305.404 to
305.560.
(5)(a) When any land has been granted special assessment under
any of the special assessment laws listed in subsection (1) of
this section and the land is disqualified from such special
assessment, the county assessor shall furnish the owner with a
written explanation summarizing:
(A) ORS 308A.706 (1)(d) (relating to change in special
assessment);
(B) ORS 308A.727 (relating to change in use to open space use
special assessment for certain golf courses);
(C) The administrative act necessary under ORS 308A.724 to
change the property to another classification described in this
paragraph; and
(D) The imposition of any penalties that would result from the
disqualification if no requalification or reclassification is
made under one of the other special assessment laws listed in
this paragraph.
(b) The written explanation required by this subsection shall
be given in conjunction either with the notice of
disqualification required under this section or with an order or
notice of disqualification otherwise provided by law.
(c)(A) If no notice of disqualification is required to be made
by this section or other provision of law, the written
explanation required by this subsection shall be made by the
county assessor.
(B) A written explanation made under this paragraph shall be
made by the assessor within 30 days of the effective date of the
disqualification.
(6) Subsections (1) to (5) of this section do not apply if the
reason for the disqualification is:
(a) The result of a request for disqualification by the
property owner; or
(b) Because the property is being acquired by a government or
tax-exempt entity.
SECTION 90. ORS 308A.724 is amended to read:
308A.724. (1)(a) In order for additional taxes imposed under
ORS 308A.703 to be deferred under ORS 308A.706 (1)(d) (relating
to change in special assessment), the owner must file an
application or claim for classification under another special
assessment law.
(b) If the disqualification is effective prior to July 1 in any
year, the owner shall file the required claim or application on
or before August 1 of that year.
(c) If the disqualification is effective on or after July 1 in
any year, the county taxing authorities shall continue the
classification on the current assessment and tax rolls, and the
owner shall file the required claim or application in the next
calendar year in accordance with the laws governing the
particular special assessment program.
(2) If an owner of land disqualified under one of the special
assessment laws listed in ORS 308A.706 (1)(d) seeks to qualify
for farm use special assessment of nonexclusive farm use zone
farmland under ORS 308A.068, the owner shall have five years,
beginning with the first year in which application is made under
this section, to qualify for the two-year farm use requirement of
ORS 308A.068 and the income requirement under ORS 308A.071.
(3) Notwithstanding subsection (1) of this section, an owner
may make application under this section at any time within 30
days of the date notice of disqualification is sent by the
assessor under ORS 308A.718 { - or declassification
certification is made by the State Forester under ORS 321.760 - }
.
SECTION 91. ORS 308A.730 is amended to read:
308A.730. (1) If land specially valued under ORS 308A.062,
308A.068, 321.257 to 321.390 { - , 321.720 - } or 321.805 to
321.825 is acquired by a governmental agency or body as a result
of an exchange of the land for land of approximately equal value
held by the governmental agency or body and the land acquired
from the governmental agency or body is not farm use land located
within an exclusive farm use zone or is not land, the highest and
best use of which is the growing and harvesting of trees of a
marketable species, the owner shall make application for special
valuation as farm or forest land in the manner provided under ORS
308A.077, 321.358 { - , 321.730 - } or 321.815, whichever is
applicable, as follows:
(a) If the exchange takes place prior to July 1, the owner
shall file the application on or before August 1.
(b) If the exchange takes place on or after July 1, the owner
shall file the application on or before April 1 of the following
year.
(2) Failure to file an application as required under this
section, or failure to otherwise meet the qualification for
special valuation under the special assessment law for which
application is made shall disqualify the land under ORS 308A.703.
However, the amount of additional taxes imposed upon the
disqualification under this subsection shall be equal to those
that would have been imposed against the land transferred to the
governmental agency or body on account of the exchange were it
not for ORS 308A.706 (1)(b).
(3) If an application filed under this section is for
classification for farm use special assessment under ORS
308A.068, the owner shall have five years beginning with the
first year of classification to meet the income requirements
under ORS 308.372 and need not meet the two-year farm use
requirements of ORS 308A.068.
(4) This section { - shall - } { + does + } not apply to an
exchange of forestland to which ORS 308A.706 (1)(b) (relating to
governmental exchange) applies.
SECTION 92. ORS 308A.733 is amended to read:
308A.733. (1) Where any property has been granted special
assessment for the purposes of property taxation under any of the
special assessment laws listed in subsection (2) of this section,
and the owner or other qualified person applies for a change in
the classification under another special assessment law, the
applicant shall have 30 days thereafter within which to withdraw
the application, by giving written notice to the public official
or agency to whom the applicant applied for the change in
classification. If no notice of withdrawal is given by the
applicant, the application shall be acted upon and the change in
classification made, as otherwise provided by law.
(2) This section applies to the following special assessment
laws:
(a) ORS 308A.050 to 308A.128 (relating to special assessment at
value for farm use).
(b) ORS { - 321.347, 321.348, 321.353, 321.358 and
321.359 - } { + 321.257 to 321.390 + } (relating to special
assessment as designated forestland in western Oregon).
(c) ORS 321.805 to 321.825 (relating to special assessment as
designated forestland in eastern Oregon).
{ - (d) ORS 321.705 to 321.765 (relating to classification as
Western Oregon Small Tract Optional Tax forestland). - }
{ - (e) - } { + (d) + } ORS 308A.300 to 308A.330 (relating
to classification as open space land).
{ - (f) - } { + (e) + } ORS 308A.350 to 308A.383 (relating
to designation as riparian land).
SECTION 93. ORS 308A.743 is amended to read:
308A.743. (1) Land that is specially assessed under ORS 215.800
to 215.808, 308A.050 to 308A.128, 308A.300 to 308A.330, 321.257
to 321.390 { - , 321.705 to 321.765 - } or 321.805 to 321.825,
or land that is exempt from property tax under ORS 308A.350 to
308A.383, may not be disqualified from the special assessment or
exemption, and may not be subject to additional taxes under ORS
308A.700 to 308A.733, if the property owner has:
(a) Entered into a wildlife habitat conservation and management
plan, as described in ORS 215.800 to 215.808, approved by the
State Department of Fish and Wildlife; or
(b) Executed a conservation easement, as defined in ORS
271.715, or a deed restriction and the land:
(A) Is managed in compliance with the conservation easement or
deed restriction; and
(B) Continues to meet the requirements for special assessment
or exemption. The existence of the conservation easement or deed
restriction may not cause the disqualification of the land from
special assessment or exemption or preclude the disqualification
of the land from special assessment or exemption for some other
reason.
(2) A property owner who executes a conservation easement may
convey the easement to a land trust or other qualified entity
without a loss of benefits under this section.
(3) In order for land to be subject to this section:
(a) The conservation easement, deed restriction or wildlife
habitat conservation and management plan must be recorded in the
records of the clerk of the county in which the land is located;
and
(b) A copy of the conservation easement, deed restriction or
wildlife habitat conservation and management plan, along with the
property tax account number for the land, must be sent to the
county assessor.
SECTION 94. ORS 310.110 is amended to read:
310.110. (1) If a taxing district lies in two or more counties,
and the district certifies an item of ad valorem property tax as
an amount in the notice required under ORS 310.060, the amount
certified by the district shall be apportioned on the basis of
the assessed value used to compute the tax rate for the current
tax year, in the proportion that the assessed value of the part
of the district lying in each county bears to the assessed value
of the whole district. However, if a boundary change affecting
the district becomes effective as to the levy being apportioned,
an adjustment of the assessed value shall be made so as to
reflect the boundary change.
(2) Any assessor who is unable to certify the current assessed
value for any joint district lying partially in the county by
September 25 shall, with the cooperation of the Department of
Revenue, estimate as closely as practicable the assessed value of
that district for the purpose of apportioning the ad valorem
property taxes of the joint district in the current year as
equitably as is possible. The estimate shall be completed and
certified to the assessor or assessors of the other counties on
the fifth business day after September 25 and shall be used as
the basis for the apportionment required by this section.
{ - (3) Notwithstanding any provision of ORS 321.405 to
321.487, timber shall be considered as though it remained on the
tax rolls at the appraised values established pursuant to ORS
321.487, but only for the purpose of apportionment of the levy
required by subsection (1) of this section. - }
SECTION 95. ORS 310.165 is amended to read:
310.165. (1) For any unit of property partially exempt from tax
under ORS 307.250, 307.370, 308.459 or 358.480 to 358.545 or any
other law, the assessor shall determine the maximum amount of
taxes on property to be imposed on such property under ORS
310.150, by using the lesser of the real market value or the
taxable value of the property after the exemption has been
applied.
(2) For any land that is specially assessed for ad valorem tax
purposes under ORS 308A.050 to 308A.128, 308A.250 to 308A.259,
308A.315, 321.257 to 321.390 { - , 321.705 to 321.765 - } or
321.805 to 321.825, the assessor shall determine the maximum
amount of taxes on property to be imposed on such property under
ORS 310.150 by using the lesser of the real market value or the
specially assessed value of the property.
(3) In the case of any unit of property of which a part of the
unit is exempt from taxation, and that part may be identified
both as to value and physical description, the real market value
of the unit shall not include the value of the exempt part of the
unit.
(4) If any unit of property described in subsection (1) or (2)
of this section for which the maximum amount of taxes imposed has
been determined under this section is subject to imposition of
additional taxes due to disqualification from special assessment
or partial exemption, the determination of the maximum amount of
additional taxes that may be imposed due to disqualification
shall be made on the basis of the real market value of the
property for the year to which the additional taxes relate.
SECTION 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 of this 2003
Act apply to property tax years beginning on or after July 1,
2003. + }
SECTION 97. ORS 315.104 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)(e) - } { + (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 98. ORS 316.045 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)(e) - } { + (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 99. ORS 317.063 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)(e) - } { + (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 100. ORS 321.005 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)(e) - } { + (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 101. ORS 321.991 is amended to read:
321.991. { - (1) - } Violation of any provision of ORS
321.005 to 321.185 and 321.560 to 321.600 is punishable, upon
conviction, by a fine not exceeding $1,000 or by imprisonment in
the county jail for not exceeding one year, or by both.
{ - (2) Violation of ORS 321.730 (7) is punishable, upon
conviction, by a fine of not more than $500 or by imprisonment in
the county jail for not more than three months, or both. Justice
courts shall have concurrent jurisdiction with the circuit court
of all prosecutions for violations of ORS 321.730 (7). - }
SECTION 102. ORS 215.720 is amended to read:
215.720. (1) A dwelling authorized under ORS 215.705 may be
allowed on land zoned for forest use under a goal protecting
forestland only if:
(a) The tract on which the dwelling will be sited is in western
Oregon, as defined in ORS 321.257, and is composed of soils not
capable of producing 5,000 cubic feet per year of commercial tree
species and is located within 1,500 feet of a public road as
defined under ORS 368.001. The road shall be maintained and
either paved or surfaced with rock and shall not be:
(A) A United States Bureau of Land Management road; or
(B) A United States Forest Service road unless the road is
paved to a minimum width of 18 feet, there is at least one
defined lane in each direction and a maintenance agreement exists
between the United States Forest Service and landowners adjacent
to the road, a local government or a state agency.
(b) The tract on which the dwelling will be sited is in eastern
Oregon, as defined in ORS { - 321.405 - } { + 321.805 + },
and is composed of soils not capable of producing 4,000 cubic
feet per year of commercial tree species and is located within
1,500 feet of a public road as defined under ORS 368.001. The
road shall be maintained and either paved or surfaced with rock
and shall not be:
(A) A United States Bureau of Land Management road; or
(B) A United States Forest Service road unless the road is
paved to a minimum width of 18 feet, there is at least one
defined lane in each direction and a maintenance agreement exists
between the United States Forest Service and landowners adjacent
to the road, a local government or a state agency.
(2) For purposes of this section, 'commercial tree species '
means trees recognized under rules adopted under ORS 527.715 for
commercial production.
(3) No dwelling other than those described in this section and
ORS 215.740, 215.750 and 215.755 may be sited on land zoned for
forest use under a land use planning goal protecting forestland.
SECTION 103. ORS 215.730 is amended to read:
215.730. (1) A local government shall require as a condition of
approval of a single-family dwelling allowed under ORS 215.705 on
lands zoned forestland that:
(a)(A) If the lot or parcel is more than 30 acres in eastern
Oregon as defined in ORS { - 321.405 - } { + 321.805 + }, the
property owner submits a stocking survey report to the assessor
and the assessor verifies that the minimum stocking requirements
adopted under ORS 527.610 to 527.770 have been met; or
(B) If the lot or parcel is more than 10 acres in western
Oregon as defined in ORS 321.257, the property owner submits a
stocking survey report to the assessor and the assessor verifies
that the minimum stocking requirements adopted under ORS 527.610
to 527.770 have been met.
(b) The dwelling meets the following requirements:
(A) The dwelling has a fire retardant roof.
(B) The dwelling will not be sited on a slope of greater than
40 percent.
(C) Evidence is provided that the domestic water supply is from
a source authorized by the Water Resources Department and not
from a Class II stream as designated by the State Board of
Forestry.
(D) The dwelling is located upon a parcel within a fire
protection district or is provided with residential fire
protection by contract.
(E) If the dwelling is not within a fire protection district,
the applicant provides evidence that the applicant has asked to
be included in the nearest such district.
(F) If the dwelling has a chimney or chimneys, each chimney has
a spark arrester.
(G) The owner provides and maintains primary fuel-free break
and secondary break areas on land surrounding the dwelling that
is owned or controlled by the owner.
(2)(a) If a governing body determines that meeting the
requirement of subsection (1)(b)(D) of this section would be
impracticable, the governing body may provide an alternative
means for protecting the dwelling from fire hazards. The means
selected may include a fire sprinkling system, on-site equipment
and water storage or other methods that are reasonable, given the
site conditions.
(b) If a water supply is required under this subsection, it
shall be a swimming pool, pond, lake or similar body of water
that at all times contains at least 4,000 gallons or a stream
that has a minimum flow of at least one cubic foot per second.
Road access shall be provided to within 15 feet of the water's
edge for fire-fighting pumping units, and the road access shall
accommodate a turnaround for fire-fighting equipment.
SECTION 104. ORS 310.147 is amended to read:
310.147. (1) Each year, the county assessor shall establish a
system of code areas, identified by code numbers, which shall
represent all of the various combinations of taxing districts, or
tax zones of taxing districts in which district taxes differ, as
of July 1 of that year in which a piece of property was located
in the county on January 1 of that year.
(2) The assessor shall compute a tentative consolidated ad
valorem property tax rate for each code area. The tentative
consolidated ad valorem property tax rate for the code area shall
be determined for each category under ORS 310.150. The tentative
consolidated ad valorem property tax rate for each category for
the code area shall be the sum of the category rates determined
under ORS 310.090 for each taxing district in the code area
{ - as further modified by ORS 310.108 - } .
(3)(a) The assessor shall compute the consolidated category
rate for each category under ORS 310.150 using the ad valorem
property taxes to be imposed on each property after adjustment
under ORS 310.150. In the case of the exempt bonded indebtedness
category, the tentative consolidated category rate for the code
area shall be the consolidated category rate for the code area.
(b) The total consolidated rate for the code area shall equal
the sum of the consolidated rates for each category determined
under paragraph (a) of this subsection after adjustment under ORS
310.150.
(4) The assessor shall indicate on the assessment roll the code
area number for each item of property assessed. In addition, the
assessor shall compile in duplicate a list of all code areas and
their numbers and identify for each area the names of each taxing
district in the area, the rate, after adjustment under ORS
310.150, for each item of the taxing district reported on the
notice filed under ORS 310.060, the total rate for each taxing
district and by category as described in ORS 310.150 and the
total consolidated rate for the code area. The list shall
constitute a part of the certificate prepared under ORS 311.105,
to be delivered to the county clerk and to the tax collector.
SECTION 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. + }
SECTION 106. ORS 457.010 is amended to read:
457.010. As used in this chapter, unless the context requires
otherwise:
(1) 'Blighted areas' means areas that, by reason of
deterioration, faulty planning, inadequate or improper
facilities, deleterious land use or the existence of unsafe
structures, or any combination of these factors, are detrimental
to the safety, health or welfare of the community. A blighted
area is characterized by the existence of one or more of the
following conditions:
(a) The existence of buildings and structures, used or intended
to be used for living, commercial, industrial or other purposes,
or any combination of those uses, that are unfit or unsafe to
occupy for those purposes because of any one or a combination of
the following conditions:
(A) Defective design and quality of physical construction;
(B) Faulty interior arrangement and exterior spacing;
(C) Overcrowding and a high density of population;
(D) Inadequate provision for ventilation, light, sanitation,
open spaces and recreation facilities; or
(E) Obsolescence, deterioration, dilapidation, mixed character
or shifting of uses;
(b) An economic dislocation, deterioration or disuse of
property resulting from faulty planning;
(c) The division or subdivision and sale of property or lots of
irregular form and shape and inadequate size or dimensions for
property usefulness and development;
(d) The laying out of property or lots in disregard of
contours, drainage and other physical characteristics of the
terrain and surrounding conditions;
(e) The existence of inadequate streets and other rights of
way, open spaces and utilities;
(f) The existence of property or lots or other areas that are
subject to inundation by water;
(g) A prevalence of depreciated values, impaired investments
and social and economic maladjustments to such an extent that the
capacity to pay taxes is reduced and tax receipts are inadequate
for the cost of public services rendered;
(h) A growing or total lack of proper utilization of areas,
resulting in a stagnant and unproductive condition of land
potentially useful and valuable for contributing to the public
health, safety and welfare; or
(i) A loss of population and reduction of proper utilization of
the area, resulting in its further deterioration and added costs
to the taxpayer for the creation of new public facilities and
services elsewhere.
(2) 'Certified statement' means the statement prepared and
filed pursuant to ORS 457.430 or an amendment to the certified
statement prepared and filed pursuant to ORS 457.430.
(3) 'City' means any incorporated city.
(4) 'Consolidated billing tax rate' means:
(a) If the urban renewal plan is an existing urban renewal plan
(other than an existing urban renewal plan designated as an
Option Three plan under ORS 457.435 (2)(c)) or an urban renewal
plan adopted on or after October 6, 2001, the total of all
district tax rates used to extend taxes after any adjustment to
reflect tax offsets under ORS 310.105 { - and 310.108 - } , but
does not include any rate derived from:
(A) Any urban renewal special levy under ORS 457.435;
(B) A local option tax, as defined in ORS 280.040, that is
approved by taxing district electors after October 6, 2001; or
(C) A tax pledged to repay exempt bonded indebtedness (other
than exempt bonded indebtedness used to fund local government
pension and disability plan obligations that, until funded by the
exempt bonded indebtedness, were described in section 11 (5),
Article XI of the Oregon Constitution), as defined in ORS
310.140, that is approved by taxing district electors after
October 6, 2001; and
(b) In the case of all other urban renewal plans, the total of
all district ad valorem property tax rates used to extend taxes
after any adjustments to reflect tax offsets under ORS 310.105
{ - and 310.108 - } , except that 'consolidated billing tax
rate' does not include any urban renewal special levy rate under
ORS 457.435.
(5)(a) 'Existing urban renewal plan' means an urban renewal
plan that provides for a division of ad valorem property taxes as
described under ORS 457.420 to 457.460 adopted by ordinance
before December 6, 1996, that:
(A) Except for an amendment made on account of ORS 457.190 (3)
and subject to paragraph (b) of this subsection, is not changed
by substantial amendment, as described in ORS 457.085 (2)(i)(A)
or (B), on or after December 6, 1996; and
(B) For tax years beginning on or after July 1, 1998, includes
the limit on indebtedness as described in ORS 457.190 (3).
(b) If, on or after July 1, 1998, the maximum limit on
indebtedness (adopted by ordinance before July 1, 1998, pursuant
to ORS 457.190) of an existing urban renewal plan is changed by
substantial amendment, then 'indebtedness issued or incurred to
carry out the existing urban renewal plan' for purposes of ORS
457.435 includes only the indebtedness within the indebtedness
limit adopted by ordinance under ORS 457.190 (3)(c) before July
1, 1998.
(6) 'Fiscal year' means the fiscal year commencing on July 1
and closing on June 30.
(7) 'Governing body of a municipality' means, in the case of a
city, the common council or other legislative body thereof, and,
in the case of a county, the board of county commissioners or
other legislative body thereof.
(8) 'Housing authority' or 'authority' means any housing
authority established pursuant to the Housing Authorities Law.
(9) 'Increment' means that part of the assessed value of a
taxing district attributable to any increase in the assessed
value of the property located in an urban renewal area, or
portion thereof, over the assessed value specified in the
certified statement.
(10) 'Maximum indebtedness' means the amount of the principal
of indebtedness included in a plan pursuant to ORS 457.190 and
does not include indebtedness incurred to refund or refinance
existing indebtedness.
(11) 'Municipality' means any county or any city in this state.
'The municipality' means the municipality for which a particular
urban renewal agency is created.
(12) 'Taxing body' or 'taxing district' means the state, city,
county or any other taxing unit which has the power to levy a
tax.
(13) 'Urban renewal agency' or 'agency' means an urban renewal
agency created under ORS 457.035 and 457.045.
(14) 'Urban renewal area' means a blighted area included in an
urban renewal plan or an area included in an urban renewal plan
under ORS 457.160.
(15) 'Urban renewal project' or 'project' means any work or
undertaking carried out under ORS 457.170 in an urban renewal
area.
(16) 'Urban renewal plan' or 'plan' means a plan, as it exists
or is changed or modified from time to time for one or more urban
renewal areas, as provided in ORS 457.085, 457.095, 457.105,
457.115, 457.120, 457.125, 457.135 and 457.220.
SECTION 107. Section 1, chapter 728, Oregon Laws 1997, is
amended to read:
{ + Sec. 1. + } (1) Notwithstanding ORS 215.283, a guest
ranch may be established in conjunction with an existing and
continuing livestock operation, using accepted livestock
practices, that qualifies as a farm use under ORS 215.203 in any
area zoned for exclusive farm use in eastern Oregon.
(2) A guest ranch established under this section shall meet the
following conditions:
(a) Except as provided in paragraph (d) of this subsection, the
lodge, bunkhouses or cottages cumulatively shall:
(A) Include not less than four nor more than 10 overnight guest
rooms exclusive of kitchen areas, rest rooms, storage and other
shared indoor facilities; and
(B) Not exceed a total of 12,000 square feet in floor area.
(b) The guest ranch shall be located on a lawfully created
parcel:
(A) That is at least 160 acres;
(B) That is the parcel containing the dwelling of the person
conducting the livestock operation; and
(C) That is not classified as high-value farmland as defined in
ORS 215.710.
(c) The guest ranch may be sited on any portion of a lot or
parcel if the majority of the lot or parcel is more than 10 air
miles from an urban growth boundary containing a population
greater than 5,000, regardless of whether any other portion of
the lot or parcel is within 10 miles of the urban growth
boundary. The guest ranch shall be deemed to comply with this
paragraph if it is located within the range set by the standard
margin of error on the county's map used to determine the
distance from an urban growth boundary.
(d) For each doubling of the initial 160 acres required under
paragraph (b) of this subsection, up to five additional overnight
guest rooms and 3,000 square feet of floor area may be added to
the guest ranch for a total of not more than 25 guest rooms and
21,000 square feet of floor area.
(3) A guest ranch may provide recreational activities that can
be provided in conjunction with the livestock operation's natural
setting, including but not limited to hunting, fishing, hiking,
biking, horseback riding, camping or swimming. Intensively
developed recreational facilities, such as golf courses as
identified in ORS 215.283, shall not be allowed. A campground as
described in ORS 215.283 (2)(c) shall not be allowed in
conjunction with a guest ranch, and a guest ranch shall not be
allowed in conjunction with an existing golf course under ORS
215.283 (2)(f) or with an existing campground under ORS 215.283
(2)(c).
(4) Food services shall be incidental to the operation of the
guest ranch and shall be provided only for the guests of the
guest ranch. The cost of meals provided to the guests shall be
included as part of the fee to visit or stay at the guest ranch.
The sale of individual meals to persons who are not guests of the
guest ranch shall not be allowed.
(5) Approval of a guest ranch shall be subject to the
provisions of ORS 215.296 (1) and (2) and other approval or
siting standards of the county.
(6) As used in this section:
(a) 'Eastern Oregon' shall have the meaning provided in ORS
{ - 321.405 - } { + 321.805 + }.
(b) 'Guest ranch' means a facility for overnight lodging
incidental and accessory to an existing livestock operation that
qualifies as a farm use under ORS 215.203. Guest ranch facilities
may include a lodge, bunkhouse or cottage accommodations as well
as passive recreational activities and food services as set forth
in subsections (2) to (4) of this section.
(c) 'Livestock' means cattle, sheep, horses and bison.
{ +
CAPTIONS + }
SECTION 108. { + The unit captions used in this 2003 Act are
provided only for the convenience of the reader and do not become
a part of the statutory law of this state or express any
legislative intent in the enactment of this 2003 Act. + }
{ +
EFFECTIVE DATE + }
SECTION 109. { + This 2003 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-second
Legislative Assembly adjourns sine die. + }
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