Or. Admin. Code § 629-607-0400 - Forest Conservation Tax Credit - Process for Determining Eligibility
(1) To be eligible
to apply for a forest conservation tax credit, a small forestland owner shall:
(a) Certify that they meet the definition and
criteria of a small forestland owner as described in OAR
629-600-0100 and the criteria
for this tax credit under chapter 34, section (2), Oregon Laws 2022. The State
Forester may require additional information for program participation as
outlined in OAR 629-607-0200(1)(b).
(b) Submit a notification of operation for a
timber harvest type 1, type 2, or type 3 to the State Forester as required by
ORS 527.670(6) to
harvest timber adjacent to riparian areas, as described in OAR
629-643-0100 through
629-643-0135. The harvest area
must be greater than or equal to the portion of area the small forestland owner
elects not to harvest.
(c) Elect to
follow the standard practice vegetation retention requirements as described in
OAR 629-643-0100 through
629-643-0135.
(d) Indicate at the time of submitting the
notification of operation the intent to apply for a forest conservation tax
credit.
(2) After filing
the notification of operation, but no later than three months after completing
the timber harvest, the small forestland owner shall submit documentation of
the stumpage values and costs of appraisal to the Small Forestland Owner
Assistance Office.
(3) After
receiving the notification of operation, documentation of stumpage values and
costs associated with appraisal, and filing a deed restriction from the small
forestland owner, the Small Forestland Owner Assistance Office shall evaluate
and approve the stumpage value or request additional documentation as needed.
Once stumpage values are approved, the office shall issue a certificate of
eligibility to both the small forestland owner and the Department of
Revenue.
(4) After receiving
certification, a small forestland owner shall sign and record the deed
restriction, in the county where the eligible forest conservation area is
located, which prohibits the owner and the owner's successors in interest from
conducting a harvest or otherwise removing trees within the forest conservation
area.
(5) If the small forestland
owner is taxed as a trust, partnership, or S corporation, the entity can
distribute the forest conservation tax credit to owners or beneficiaries, as
allowed by law.
(6) A nonresident
small forestland owner shall follow the same process as a resident of this
state for obtaining eligibility for the forest conservation tax
credit.
(7) Type 4 harvests are not
eligible to claim a forest conservation tax credit.
(8) In addition to all other requirements of
administrative rule promulgated under the Forest Practices Act, small
forestland owners shall comply with the requirements under chapter 34, Oregon
Laws 2022.
(9) If a future
legislature cancels the forest conservation tax credit, the State Forester will
remove all restrictions on using the small forestland owner minimum option
within a fifth field watershed for riparian areas where a credit has not been
issued, though the department will continue to track the frequency of harvests
under the small forestland owner minimum option. If a future legislature
reinstates the forest conservation tax credit, the State Forester will renew
the system.
Notes
Statutory/Other Authority: ORS 527.710 & Section 2(11), Chapter 34, Oregon Laws 2022
Statutes/Other Implemented: Section 3, Chapter 34, Oregon Laws 2022
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.