OAR 629-023-0420
Underproductive Forestland Conversion Tax Credit — Definitions
(1)
“Appropriate sites” means those sites capable of producing a commercial hardwood or softwood stand which meet the definition of commercial forestland and are planted with suitable forest tree species.(2)
“Commercial forestland” means land for which a primary use is the growing and harvesting of forest tree species.(3)
“Forest tree species” means those species that are ecologically suited to the planting site, capable of producing commercial forest products, and marketable in the future as determined by the State Forester.(4)
“Hardwood harvests conducted for the purpose of converting underproductive forestland” means the harvest of an area occupied by a low volume and low value stand in which significant commercial harvest of forest tree species is not possible as defined in OAR 629-023-0440 (Underproductive Forestland Conversion Tax Credit — Standards and Specifications)(2), or the landowner can demonstrate that the stand is or was unmerchantable by showing a negative economic return.(5)
“Negative economic return” means the costs that result from the harvest, such as logging, taxation and reforestation costs, exceed the market value received or to be received.(6)
“Project Costs” mean costs paid by the taxpayer to afforest underproductive forestland. For projects planted on or after January 1, 2008, the tax credit application fee is a project cost.(7)
“Reasonable costs” mean:(a)
Costs that a prudent person in the field of forestry would be willing to pay for a product or service; and(A)
Are competitive; and(B)
Associated with generally accepted practices listed in OAR 629-023-0440 (Underproductive Forestland Conversion Tax Credit — Standards and Specifications)(3)–(9); or(b)
Costs that are otherwise approved by the State Forester.(8)
“Reasons beyond the control of the taxpayer” means:(a)
Natural disaster including fire, flood, landslides, unusual weather conditions, and other natural incidents as determined by the State Forester; or(b)
The forest is not established even though the project was completed in accordance with the specifications of OAR 629-023-0440 (Underproductive Forestland Conversion Tax Credit — Standards and Specifications) as determined by the State Forester.(9)
“Reasons under the control of the taxpayer” means the reforestation project was not completed in accordance with the specifications of OAR 629-023-0440 (Underproductive Forestland Conversion Tax Credit — Standards and Specifications) as determined by the State Forester.(10)
“Tax credit application fee” means a nonrefundable fee that is paid by the taxpayer, in accordance with OAR 629-023-0450 (Underproductive Forestland Conversion Tax Credit — Preliminary Certificate Issuance)(2), at the time the written request for preliminary certificate is filed with the State Forester.
Source:
Rule 629-023-0420 — Underproductive Forestland Conversion Tax Credit — Definitions, https://secure.sos.state.or.us/oard/view.action?ruleNumber=629-023-0420.