Small Tract Forestland (STF) Severance Tax
Purpose of the tax: The STF severance tax applies to timber harvested from lands classified under the STF Option. A landowner pays 20 percent of the property tax through the annual property tax system. The remaining 80 percent is paid when timber is harvested.
Tax rates: The tax rates are intended to recover the unpaid property tax projected over a typical rotation length for an average productivity class. The tax rate is in terms of dollars per 1,000 board feet ($/MBF).
| STF Severance Tax Rates: Eastern Oregon | | | | | | | Period of Time | Tax Rate |
| | 1/1/2004 | thru | 12/31/2004 | $3.03 | | 1/1/2005 | thru | 12/31/2005 | $3.12 | | 1/1/2006 | thru | 12/31/2006 | $3.21 | | 1/1/2007 | thru | 12/31/2007 | $3.30 | | 1/1/2008 | thru | 12/31/2008 | $3.40 | | 1/1/2009 | thru | 12/31/2009 | n/a | | 1/1/2010 | thru | 12/31/2010 | n/a | | 1/1/2011 | thru | 12/31/2011 | n/a |
| STF Severance Tax Rates: Western Oregon | | | | | | | Period of Time | Tax Rate |
| | 1/1/2004 | thru | 12/31/2004 | $3.89 | | 1/1/2005 | thru | 12/31/2005 | $4.00 | | 1/1/2006 | thru | 12/31/2006 | $4.11 | | 1/1/2007 | thru | 12/31/2007 | $4.23 | | 1/1/2008 | thru | 12/31/2008 | $4.35 | | 1/1/2009 | thru | 12/31/2009 | n/a | | 1/1/2010 | thru | 12/31/2010 | n/a | | 1/1/2011 | thru | 12/31/2011 | n/a |
The tax rates will be indexed annually at the rate that the specially assessed forestland has increased or decreased from one year to the next. The actual rate change will not be known until the specially assessed forestland value is set, June 1.
What is taxed: Generally, any logs or chips removed from land classified under the STF Option is considered for this tax. Loads of logs sold by the ton are taxable unless the loads consist of small (less than 5 inches in diameter) utility-grade logs. The Department of Revenue developed conversion rates to convert from log load weight (tons) to thousands of board feet (MBF).
- Loads of logs made up of small logs (less than 8 inches in diameter) will be converted using a rate of 11 tons/MBF.
- Loads of logs with more than two logs greater than 8 inches in diameter will be converted at a rate of 7.5 tons/MBF.
- Loads of chips are taxable unless they are made from logs that would grade utility grade or lower and the chips are to be used as “hog fuel.”
- Logs scaled as utility grade or lower are exempt from this tax.
Tax forms: Tax forms for the STF severance tax are only available through the Department of Revenue. The agency mails out returns in December of the year of harvest or in January of the following year. The data used to print and mail these returns comes from the Notice of Operations filed with the Department of Forestry prior to the harvest. The law requires that the completed return be mailed back to the Department of Revenue. Please note that returns are computer generated and take two days to produce. Blank tax forms are not available.
Due date: The STF severance tax is due on January 31 of the year following the harvest. Returns filed after this date will be assessed penalty and interest. A 5-percent penalty is assessed for returns filed between January 31 and April 30. Returns filed after April 30 receive a 25-percent penalty.
Help with tax forms: The Department of Revenue will provide assistance with tax forms over the phone. Please call 1-800-356-4222. Questions can be asked and answered through e-mail at: timber.tax.help@state.or.us.
If you prefer in-person assistance, please visit the Department of Revenue office in Salem. Please call to make an appointment
Where the tax money goes: Net tax receipts are distributed on an annual basis.
STF Severance Tax Distribution
Links:
STF Option
Estimated Timber Tax Payments
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