72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
HA to HB 2197
 
LC 703/HB 2197-4
 
                       HOUSE AMENDMENTS TO
                         HOUSE BILL 2197
 
                     By COMMITTEE ON REVENUE
 
                           February 17
 
  On page 1 of the printed bill, line 5, after '321.274, ' insert
'321.282,' and after '321.415,' insert '321.432,'.
  On page 5, after line 12, insert:
  ' (d) The land that is the subject of the application must not
have been disqualified from small tract forestland assessment
under sections 1 to 14 of this 2003 Act for any of the five tax
years preceding the year for which small tract forestland
assessment is sought under this section.'.
  On page 7, line 17, delete '2006' and insert '2005'.
  In line 22, after 'acre' insert 'of small tract forestland in
western Oregon'.
  In line 23, after 'acre' insert 'of small tract forestland in
western Oregon'.
  In line 24, after 'acre' insert 'of small tract forestland in
western Oregon'.
  In line 25, after 'acre' insert 'of small tract forestland'.
  In line 30, after 'acre' insert 'of small tract forestland in
eastern Oregon'.
  In line 31, after 'acre' insert 'of small tract forestland in
eastern Oregon'.
  On page 25, before line 41, insert:
  '  { +  SECTION 62a. + } ORS 321.282 is amended to read:
  ' 321.282. (1) The Department of Revenue shall determine on or
before February 1 of each year the immediate harvest values as of
January 1 of the calendar year for which the immediate harvest
values are to be used in computing the privilege tax imposed by
ORS 321.273. The values shall be determined for each species or
subclassification, as provided in subsection (2) of this section,
and shall be expressed in terms of a dollar amount per thousand
board foot or other unit measure. The total listing of values
shall be combined into a convenient set of tables issued by the
department. A copy of the tables shall be retained on file in the
office of the department.
  ' (2) The department shall select various areas in western
Oregon to be treated as units for the application of the
immediate harvest values determined under this section. The
department shall determine unit values for immediate harvest for
each species in each area. The department may make further value
classifications based on age, size and other relevant factors.
The areas shall be selected, within the discretion of the
department based on administrative feasibility, to include timber
having similar growing and marketing conditions. The
determination of the size and location of appropriate areas shall
not be subject to review by the courts.
  ' (3) Public hearings shall be held at least 45 days prior to
the adoption of timber valuation schedules or changes in the
boundaries of valuation areas developed in accordance with
subsections (1) and (2) of this section. Notice of the hearings
shall be published in a newspaper of general circulation
throughout the state at least 14 days prior to the hearings date.
In addition, the department may cause notice to be broadcast
pursuant to ORS 193.310 to 193.360.
  ' (4)(a) A taxpayer who   { - harvests less than 500,000 board
feet of timber in the calendar year or who has less than
1,000 - }  { +  owns or holds in common ownership less than
5,000 + } acres of forestland in western Oregon, and who, during
the calendar year immediately preceding the due date of the
privilege tax return, is not engaged in and does not have an
ownership interest of more than 10 percent in a business engaged
in the processing of timber into wood products, may elect to
calculate and pay a tax on the basis of net stumpage recovery
from such forestland rather than by use of the tables prepared in
accordance with subsections (1) and (2) of this section.
  ' (b) For purposes of this subsection, 'net stumpage recovery'
means the selling price of the logs at a conversion center in an
arm's length transaction, less the costs described in one of the
following subparagraphs:
  ' (A) The logging costs reflected by a written agreement
entered into in connection with the logging operation. The
department may analyze the agreement and adjust the contract
price to eliminate costs paid by the taxpayer for work or
material not connected with logging, log hauling costs and
marketing the timber.
  ' (B) Administration, logging and log hauling costs typical for
the type of harvest as determined by the department.
  ' (c) The department may require such proof from the taxpayer
as it deems necessary to determine the amount of stumpage
recovery and eligibility for the alternate calculation of the tax
provided in this subsection.
  '  { +  SECTION 62b. + }  { + The amendments to ORS 321.282 by
section 62a of this 2003 Act apply to timber privilege tax
reporting periods beginning on or after January 1, 2003. + } ' .
  On page 30, after line 9, insert:
  '  { +  SECTION 71a. + } ORS 321.432 is amended to read:
  ' 321.432. (1) A taxpayer who   { - harvests less than 500,000
board feet of timber in the calendar year - }  { +  owns or holds
in common ownership less than 5,000 acres of forestland in
eastern Oregon + } and who, during the 12-month period
immediately preceding the due date of the privilege tax return,
is not engaged in and does not have an ownership interest of more
than 10 percent in a business engaged in the processing of timber
into wood products, may elect to calculate and pay a tax on the
basis of net stumpage recovery from such forestland rather than
by use of the tables prepared in accordance with ORS 321.430.
  ' (2) For purposes of this section, 'net stumpage recovery '
means the selling price of the logs at a conversion center in an
arm's length transaction, less the costs described in one of the
following paragraphs:
  ' (a) The logging costs reflected by a written agreement
entered into in connection with the logging operation. The
Department of Revenue may analyze the agreement and adjust the
contract price to eliminate costs paid by the taxpayer for work
or material not connected with logging, log hauling costs and
marketing the timber.
  ' (b) Administration, logging and log hauling costs typical for
the type of harvest as determined by the department.
  ' (3) The department may require such proof from the taxpayer
as it deems necessary to determine the amount of stumpage
recovery and eligibility for the alternate calculation of the tax
provided in this section.
  '  { +  SECTION 71b. + }  { + The amendments to ORS 321.432 by
section 71a of this 2003 Act apply to timber privilege tax
reporting periods beginning on or after January 1, 2003. + } ' .
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