ORS 321.015
Levy of privilege taxes upon harvest of timber for certain purposes
- exclusion
Amended by HB 4055
Effective since June 3, 2022
Relating to forest products harvest taxation; creating new provisions; amending ORS 321.015; prescribing an effective date; and providing for revenue raising that requires approval by a three-fifths majority.
(1)
For the calendar years beginning January 1, 2020, and January 1, 2021, there is levied a privilege tax of 90.00 cents per thousand feet, board measure, upon taxpayers for the privilege of harvesting of all merchantable forest products harvested on forestlands. Subject to ORS 321.145 (Tax revenue credited to suspense account), the proceeds of the tax shall be transferred as provided in ORS 321.152 (Distribution of tax revenue) (2) to the Forest Research and Experiment Account for use for the forest resource research, experimentation and studies described in ORS 526.215 (Oregon State University research and experimentation programs) and for the Forest Research Laboratory established under ORS 526.225 (Forest Research Laboratory).(2)
Except as provided in ORS 477.760 (Reserve base of fund fixed), in addition to the tax levied by subsection (1) of this section, there is levied a forest products harvest tax upon taxpayers of 62.5 cents per thousand feet, board measure, for the privilege of harvesting all merchantable forest products harvested on forestlands for the payment of benefits related to fire suppression as provided in ORS 321.005 (Definitions for ORS 321.005 to 321.185, 321.560 to 321.600 and 477.440 to 477.460) to 321.185 (Forest Research and Experiment Account), 321.560 (Audit of returns) to 321.600 (Tax as debt) and 477.440 (Emergency Fire Cost Committee) to 477.460 (Duties of administrator).(3)
For the calendar years beginning January 1, 2020, and January 1, 2021, in addition to the taxes levied under subsections (1) and (2) of this section, there is levied a privilege tax upon taxpayers for the privilege of harvesting all merchantable forest products harvested on forestlands in the amount of 138.72 cents per thousand feet, board measure, for the purpose of administering the Oregon Forest Practices Act in an amount not to exceed 40 percent of the total expenditures approved by the Legislative Assembly for this purpose, including salary adjustments approved by the Legislative Assembly for fiscal years 2020 and 2021.(4)
For the calendar years beginning January 1, 2020, and January 1, 2021, in addition to the taxes levied by subsections (1) to (3) of this section, there is levied a privilege tax of 10 cents per thousand feet, board measure, upon taxpayers for the privilege of harvesting all merchantable forest products harvested on forestlands. Subject to ORS 321.145 (Tax revenue credited to suspense account), the proceeds of the tax shall be transferred as provided in ORS 321.152 (Distribution of tax revenue) (5) to the subaccount established pursuant to ORS 350.520 (Public University Fund subaccount for professional forestry education) for use by Oregon State University for the purpose of making investments in professional forestry education at the College of Forestry.(5)
Subject to subsection (6) of this section, the taxes shall be measured by and be applicable to each per thousand feet, board measure, on the total quantity of forest products harvested in this state measured by use of any log scale which is or may be in general use in the logging industry and which is designed to measure total volume of merchantable forest products in board feet. However, if the Department of Revenue finds that the scale used by any taxpayer in computing the taxes due under ORS 321.005 (Definitions for ORS 321.005 to 321.185, 321.560 to 321.600 and 477.440 to 477.460) to 321.185 (Forest Research and Experiment Account) and 321.560 (Audit of returns) to 321.600 (Tax as debt) does not accurately reflect the total quantity of merchantable forest products harvested by the taxpayer, it may require the taxpayer to adopt another log scale in general use in the industry which in the department’s opinion will accurately reflect merchantable harvest in board feet.(6)
The first 25,000 feet, board measure, of forest products harvested annually by any taxpayer during each calendar year shall be excluded from the total quantity of harvested forest products that constitutes the measure of the taxes under ORS 321.005 (Definitions for ORS 321.005 to 321.185, 321.560 to 321.600 and 477.440 to 477.460) to 321.185 (Forest Research and Experiment Account) and 321.560 (Audit of returns) to 321.600 (Tax as debt). [1953 c.375 §2; 1957 c.309 §14; 1981 c.321 §10; 1985 c.759 §6; 1989 c.769 §1; 1991 c.459 §273; 1991 c.639 §1; 1993 c.653 §2; 1995 c.507 §1; 1997 c.519 §1; 1999 c.968 §§1,1a; 1999 c.1061 §1; 2001 c.872 §1; 2003 c.769 §1; 2005 c.796 §1; 2007 c.779 §1; 2007 c.852 §1; 2009 c.763 §1; 2011 c.594 §1; 2013 c.639 §1; 2015 c.714 §1; 2017 c.621 §1; 2019 c.647 §1]
Source:
Section 321.015 — Levy of privilege taxes upon harvest of timber for certain purposes; exclusion, https://www.oregonlegislature.gov/bills_laws/ors/ors321.html.
Notes of Decisions
Forest product is “merchantable” if salable, regardless of whether sold for profit or loss. Ellingson Lumber Co. v. Department of Revenue, 8 OTR 273 (1980)
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