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Ad valorem Annual tax based on value.
Adjusted gross volume An amount of wood deducted from the gross volume that still has a commercial value. This would include unsound wood that is still able to make chips for paper or wood that has been discolored by a fungus. Adjusted gross volume plus net volume make up the taxable volume.
Amended Return A new form filed by the taxpayer to make necessary corrections showing the difference from the original return.
Arm's Length Transaction A written agreement made in open market where there is no duress, each party is independent of each other, and no trades or hidden considerations are involved.
Assessment A billing for taxes when a return has not been filed or a deficiency has not been paid or appealed.
Basic Logging Cost Total costs of moving logs from the stump to the mill.
Business Identification Number (BIN) Assigned by the DOR to every timber taxpayer (individual or business).
Board foot A unit of measurement representing a board one foot long, one foot wide, and one inch thick.
Bolt A segment sawn or split from a log or any short log (usually cedar) used for shakes and shingles. Bolts are not taxed.
Chips A small piece of wood used in the manufacture of paper and particleboard.
Common ownership Direct ownership by one or more individuals or ownership by a corporation, partnership, association or other entity in which an individual owns a majority interest (more than 50 percent).
Conifer A tree with cones and needle-shaped leaves. It produces wood known commonly as softwood (fir, pine, spruce, and cedar).
Contiguous parcels Land that touches at two or more points (i.e., corner touching corner is one point). Includes parcels separated by public or county roads, state highways, nonnavigable streams or nonnavigable rivers.
Contract A written, signed, and dated agreement with an explanation for logging showing rate, type of payment (by the ton, lump sum, or thousand board feet (MBF), and the work to be completed.
Deficiency A billing for taxes when errors on a return are corrected during the processing of the return or when, during an audit, a return is found to have not reported all volume or dollars or both.
Designated Forest Land Land that has a higher and better use than forestland and has been designated as forestland at the request of the landowner and with the approval of the county assessor.
Diameter Breast Height (DBH) The diameter of a tree measured approximately four and a half feet from the ground.
Eastern Oregon The portion of the state east of a line beginning at the intersection of the northern boundary of Oregon and the western boundary of Wasco County, southerly along the western boundaries of Wasco, Jefferson, Deschutes, and Klamath counties to the southern boundary of Oregon.
Estimated tax Tentative calculation of tax due.
Extreme Logging Conditions Conditions beyond the control of the logger that greatly increase logging costs, i.e., over 1,000 foot average yarding distance, logging over streams and highways, or the use of special equipment such as helicopters. Pre-harvest approval of special logging cost adjustment is required from the DOR.
Fee Timber Private timber that is owned free and clear.
Forestland Land where the highest and best use is the growing and harvesting marketable species of trees or land that has a higher market value than forestland, such as commercial or residential property, but that is being held or used predominantly for growing and harvesting trees and has been "designated" as forestland through application to the county assessor. Forestland does not include trees, buildings, or machinery.
Gross Volume The full volume of a log before defects are subtracted. This volume is not used for tax calculations.
Hardwood Generally trees that have broad leaves which are shed in winter and do not have cones. Usually these trees have denser wood (alder, maple, and oak).
Harvest Unit A geographical area from which timber is harvested, no larger than 320 acres. It must be entirely within one county and one timber value area, and must be harvested by a single method.
Highest and Best Use Forestland Land classified and assessed by the county assessor as Best-Use Forestland.
Large Owner A landowner who owns more than 5,000 acres of forestland in Western Oregon or who owns more than 5,000 acres of forest land in Eastern Oregon, or one who has applied to be taxed as a large owner.
Log Grade An estimate of the type and quality of lumber recovered when the log is sawed.
Log Purchaser A company or person who purchases logs to be manufactured or processed.
MBF Thousand board feet (1,000 bf).
Net Stumpage Recovery Value of logs at a mill less the cost of logging and transport.
Net volume Gross volume minus defect. This measurement, along with adjusted gross volume, is used in tax calculations.
Non-Forestland Owners A person who harvests timber from other than designated forestland or land assessed as Highest and Best Use Forestland.
Peeler A log from which veneer is peeled for the production of plywood.
Permit (Notification of Operations) Notice of intent to harvest timber given to the Oregon Department of Forestry, which furnishes a copy to DOR. Timber tax forms are mailed to the party indicated as timber owner.
Salvage Wood Usually logs of poor quality, utility, and special cull, dead or burned, which are removed before further deterioration can take place.
Sawlog Any log that is sawn to produce lumber.
Seller of Logs A company or person who sells logs to a processing facility.
Slash Material such as limbs and pieces of logs usually burned or left in the woods after a harvest. Slash is exempt from timber taxes unless it is removed from the woods in log or chip form.
Small Owner A landowner who owns less than 5,000 acres of forestland in Western Oregon or Eastern Oregon.
Small Sawlogs A classification of logs used by the Department of Revenue to describe conifer saw logs less than 9 inches in diameter and purchased by weight.
Small Tract Forestland (STF) Forestland of an owner that meets the requirements below and is the subject of an approved application.
Special Cull Logs that do not meet the minimum requirements of peeler or sawmill grade logs, but are suited for rotary cutting of veneer. Special culls are included in the definition of adjusted gross volume.
Species Type of tree. Common species in Western Oregon: Douglas Fir, Western Hemlock, and Red Alder. Common species in Eastern Oregon: Ponderosa Pine and Lodgepole Pine.
Stumpage Timber in unprocessed form as found in the woods.
Stumpage Value The appraised value of standing timber.
Thinning Cutting in an immature stand to increase its rate of growth and to promote sanitation. DOR allows no more than 35 percent of the volume to be harvested to qualify as a thinning adjustment.
Timber All logs that can be measured in board feet and meet the minimum of utility cull or better, and other forest products as determined by department rule.
Timberland Specially Assessed Value A value set by Legislature. Adjusted by DOR using statute and rules to accommodate changes in the market.
Timber Owner An individual or combination of individuals, any partnership, firm, corporation, or association of any nature holding title to harvested timber at first measurement. The party responsible for the timber taxes.
Utility Cull Logs that do not meet the minimum requirements of peeler or sawmill grades, but are suitable for the production of firm, usable pulp chips. Utility cull is included in the definition of adjusted gross volume.
Western Oregon The portion of the state west of a line beginning at the intersection of the northern boundary of Oregon and the western boundary of Wasco County, southerly along the western boundaries of Wasco, Jefferson, Deschutes, and Klamath counties to the southern boundary of Oregon.
Western Oregon Small Tract Optional Tax (WOSTOT) A program administered by the Department of Forestry. Owners pay tax on the land according to site class. With some exceptions, the timber is not subject to the WOPT. Program is open to owners with 10 to 2,000 acres of forestland and trees less than 40 years old. WOSTOT is not available after 2002.
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