OAR 150-321-0200
Forestland Valuation Rule

(1)

Purpose: The purpose of this rule is to describe the process used to develop the annual preliminary forestland values and to clarify the establishment of the final certified forestland values (ORS 321.216 (Certified specially assessed values)).

(2)

General Principles and Definitions:

(a)

For the purpose of this rule, “forestland” has the meaning provided in ORS 321.257 (Definitions for ORS 321.257 to 321.390)(2) for Western Oregon, and ORS 321.805 (Definitions for ORS 321.805 to 321.855)(4) for Eastern Oregon.

(b)

Values developed by this rule are the values of bare forestland.

(c)

The mix of sales of highest and best use forestland in Western Oregon will approximate, over the long term, the percentage distribution of acres in each land productivity class in Western Oregon.

(d)

The department will rely on market sale evidence as the primary appraisal method for determining forestland values in both Eastern Oregon and Western Oregon.

(e)

Sales of forestland in Eastern Oregon often include the influence of non-forestland values. Non-forestland values include, but are not limited to, values associated with grazing, hunting or other recreational uses.

(3)

Forestland Sales Data:

(a)

The department will collect and verify forestland sales data. Only sales with the following characteristics will be considered:

(A)

The current or immediate future use of the land is the growing and harvesting of timber,

(B)

The improvement values and other non-forestland values can be accurately extracted from the sale price to give a land residual value,

(C)

The transaction is at arm’s-length,

(D)

The purchase consideration is cash or a financing method standard to the real estate market,

(E)

The bare land value is greater than $0, and

(F)

The sale is 20 acres or larger of productive forestland.

(b)

The department will compile the sales data in a forestland sales database.

(c)

The department will analyze calendar year (January 1 to December 31) sales data to determine a single per acre Western Oregon Average Value (WAV) and a single per acre Eastern Oregon Average Value (EAV). The acres to be included in the denominator for each sale are productive forestland acres only, that is, land in classes FA through FG in Western Oregon and land not classed as wasteland in Eastern Oregon.

(d)

The WAV and EAV will be determined only from data where sales identified as a statistical outlier have been rejected.
An outlier is defined as a sale with a price that is outside of the range of plus or minus two standard deviations from the seven year average of all sales in Western Oregon or plus or minus two standard deviations from the seven year average for all sales in Eastern Oregon. For the purpose of determining whether a sale is an outlier, the department will consider all sales from the prior seven years, including any outliers identified from prior years’ analysis. If a sale is an outlier for three consecutive years, the sale will be treated as an outlier in all subsequent years.

(e)

In the absence of sales for the current year, the department will average the two prior years to get an average for the year. For a previous year with no sales the department will average the year prior and the next year going forward.

(f)

The resulting average per acre values calculated for Western and Eastern Oregon in subsection (c) above will be further processed as follows:

(4)

Western Oregon Process.

(a)

For each of the seven calendar years of sales data immediately prior to the January 1 assessment date, calculate the WAV for each year. WAV is the arithmetic mean of the individual sales’ average value per acre of forestland for the calendar year.

(b)

Sum the current plus six immediately prior years WAV from subsection (3)(c) of this rule and divide by seven to obtain the seven-year average for Western Oregon (7YAVWO).

(c)

Multiply the resulting 7YAVWO by the Western Forestland Class Spread (WFCS), see below, [ED. NOTE: Tables referenced are available from the agency.] For each productivity class (FA through FX) to obtain the value for each productivity class.

(d)

The value obtained in subsection (4)(c) of this rule, rounded to the nearest whole dollar, is the preliminary value by productivity class for the January 1 assessment date.

(5)

Eastern Oregon Process:

(a)

For each of the seven calendar years of sales data immediately prior to the January 1 assessment date, calculate the EAV for each year.

(b)

Calculate a least squares regression line of seven EAV’s established in subsection (5)(a) of this rule for Eastern Oregon to determine the annual value change ratio (delta V) for the sales data collection period. The annual change ratio (delta V) is the calculated value along the regression line at year 7 divided by the calculated value at year 6.

(c)

The annual rate of change in subsection (5)(b) of this rule will be applied to the certified immediately prior year SAV for Eastern Oregon (EOR PSAV) for a preliminary estimate of the current year SAV:
EOR PSAV x (delta V) = Preliminary current year EOR SAV.

(d)

The value obtained in subsection (5)(c) of this rule, rounded to the nearest whole dollar, is the preliminary value for the January 1 assessment date.

(6)

Response to Preliminary Values:

(a)

Data pertinent to the forestland valuation process that was not evaluated previously may be collected during a review by the Forestland Value Advisory Committee (ORS 321.213 (Forestland value advisory committee)) or through written comments submitted during the public hearing on proposed specially assessed forestland values (ORS 321.210 (Proposed specially assessed values)). Pertinent data may be added to the forestland database to recalculate the WAV and EAV described in subsection (3)(c) of this rule, to then obtain revised preliminary values.

(b)

The department will consider the revised preliminary values and any other information provided by additional research by the department, the Forestland Value Advisory Committee, submitted written comments, or the hearing process to determine the final values to be certified under ORS 321.216 (Certified specially assessed values).
[ED. NOTE: Tables referenced are available from the agency.]
[ED. NOTE: To view attachments referenced in rule text, click here to view rule.]

Source: Rule 150-321-0200 — Forestland Valuation Rule, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=150-321-0200.

150‑321‑0010
Establishing Legal Taxpayer for FPHT 150‑321‑0020
Timber Subject to the Forest Products Harvest Tax: Measurement Standards 150‑321‑0030
Estimated Tax Payments for FPHT 150‑321‑0200
Forestland Valuation Rule 150‑321‑0210
Forestland Classification 150‑321‑0300
Redetermination of Forestland Land Classes 150‑321‑0310
Requirements to Qualify Certain Forestland for Special Assessment at Farm Use Values Under ORS 308A.092 150‑321‑0320
Common Ownership of Forestland for Large Landowners 150‑321‑0330
Date of Acquisition 150‑321‑0340
Minimum Stocking and Acreage Requirements for Designation as Forestland in Western Oregon 150‑321‑0350
Acceptable Uses of Western Oregon Forestland 150‑321‑0360
Notification by Assessor of Denial of Application 150‑321‑0500
Procedure to Ensure Timber Tax Return Filing 150‑321‑0510
Notice of Intent to Harvest 150‑321‑0520
Penalty for Failure to Obtain Notification of Operations 150‑321‑0530
Prescribed Filing of Timber Harvest Returns 150‑321‑0540
Check Scaling at the Point of First Measurement 150‑321‑0550
Measuring Harvested Timber 150‑321‑0560
Timber Harvest Records 150‑321‑0570
Use of Microfilm and Microfiche Records 150‑321‑0580
Records Kept by Automated Data Processing 150‑321‑0590
Preservation of Records and Their Reproductions 150‑321‑0600
Requests for Confidential Information 150‑321‑0610
Information Which May Be Furnished 150‑321‑0620
Common Ownership of Small Tract Forestlands 150‑321‑0630
Establishing the Identity of the Taxpayer for Severance Tax 150‑321‑0640
Timber Subject to the Small Tract Forestland Severance Tax 150‑321‑0650
Definition of Owner for Small Tract Forestland Purposes 150‑321‑0660
Required Signatures for Small Tract Forestland Application 150‑321‑0670
Powers Delegated to County Assessor 150‑321‑0680
Definition of Taxpayer for Appeal of Small Tract Forestland Application Denial 150‑321‑0690
Contiguous Parcels Held in Common Ownership 150‑321‑0700
Minimal Stocking and Species Requirements for Small Tract Forestland Assessment 150‑321‑0710
Notation on Assessment and Tax Roll 150‑321‑0720
Notification to County Assessor by Small Tract Forestland Owner 150‑321‑0730
Common Ownership for Sale of Small Tract Forestland 150‑321‑0750
Distribution of Severance Tax Receipts for Western Oregon 150‑321‑0760
Distribution of Severance Tax Receipts for Eastern Oregon 150‑321‑0770
Definition of “Sound Management Practices” 150‑321‑0780
Common Ownership for Special Assessment of Forestland for Large Landowners 150‑321‑0790
Notation on Tax Roll: “Forestland — Potential Additional Tax Liability” 150‑321‑0800
Date of Acquisition 150‑321‑0810
Minimum Stocking and Acreage Requirements for Designation as Forestland in Eastern Oregon 150‑321‑0820
Notification by Assessor of Denial of Application
Last Updated

Jun. 8, 2021

Rule 150-321-0200’s source at or​.us