| How Forestland Land is Taxed in Oregon |
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Property in Oregon is valued and taxed based upon the real market value—the price land would sell for on the open market. The Legislature recognized that urban areas are encroaching on lands capable of growing timber. Legislators also recognized that this drives up the value of and tax on these properties, and makes holding these lands while the timber is growing more expensive. Oregon offers special assessment programs to forestland owners. These programs reduce the property tax the landowner pays if they agree to manage the property primarily for growing and harvesting timber.
Most forestland owners choose to have their property taxed under the Forestland program. This program is available to owners who own at least two acres of forested land. Under this program, the property tax is based upon a special-assessment value that represents the price a knowledgeable purchaser would pay for land that is primarily used to grow timber. This specially assessed value is typically much lower than the real market value. The landowner is required to be actively growing a native species of trees on the property or have a plan for growing trees that will eventually be harvested. To apply for this designation, apply to the assessor of the county in which the property is located. More information about this program is available from the Forestland link.
The Small Tract Forestland (STF) Option is designed with the small-woodland owner in mind. This program is available to landowners who own at least 10 acres but less than 5,000 acres of forestland. Under the STF program, 80 percent of the forestland property tax is delayed until timber is harvested from the land. When timber is harvested from lands under this program, the owner must pay the STF Severance Tax. Another condition of this program is that once the property enters the STF program it stays in the program until the property is sold or transferred. More information about this program is available from the Small Tract Forestland (STF) Option link.
A third option is available for owners who wish to manage their land for wildlife habit rather than timber production. Under this program, the owner develops a wildlife management plan. The Oregon Department of Fish and Wildlife approves the plan and allows for special assessment as either farm or forestland. The property tax is then based on the farm or forestland special assessment value. For more information about this program, please visit the ODF&W Web site.
Last revised February 16, 2005.
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