OREGON 
Yield Tax.! 
Optional. Enacted 1929. Amended 1935, 1948, 1945, 1949, 
1951, 1953, 1955, 1959, 1961, 1963, and 1967. 
Revised Statutes, Ch. 321-255 to 321.360. 
Classification 
Qualification. The following are eligible for 
classification as “reforestation lands’: (a) lands 
denuded or substantially denuded of timber in 
merchantable quantities by fire, insects, disease or 
other causes, (b) cutover lands meeting specified 
standards and (c) lands supporting a minimum 
forest tree growth. In addition such lands must 
have an adequate tree seed source available or be 
supporting minimum stocking of trees, be suitable 
for and likely to produce new forest crops and be 
protected from fire, insects and disease. 
Procedure. The State Forester determines from 
time to time what lands in the State may be 
classified as reforestation lands. An owner who 
wishes to have his lands classified petitions the 
State Forester, giving a legal description of the 
land and presenting evidence that it is eligible 
for such treatment. Following hearing, the State 
Board of Forestry forwards recommendations to 
the State Tax Commission, which prepares an 
order making final determination. Copies of the 
order are forwarded to the county assessor, the 
county clerk, the State Forester, and the owner. 
Conditions governing continued classification. 
Lands must be protected as provided by law and 
must be used primarily for forest crop production. 
Declassification 
The State Forester may recommend to the 
Board that lands be declassified, if he finds that 
they were erroneously classified or that conditions 
are not being met. If the Board approves such 
action, it informs the Commission which orders 
declassification. Classified lands transferred to 
exempt ownership or platted under a platting 
registration law are also declassified. Upon de- 
classification for the above reasons, taxes become 
due equal to the excess, if any, of the property 
taxes levied on comparable lands for applicable 
years, over the amount of forest fee and yield tax 
payable during the period of classification. 
The owner may request declassification by 
application to the State Forester. When lands are 
so declassified, taxes. are payable as provided above 
or in an amount equal to 121% percent of the 
1 Known as the “‘Forest Fee and Yield Tax.” 
45 
current market value of the forest crop, which- 
ever is the greater. 
Tax treatment 
Land. Reforestation lands are exempt from ad 
valorem property taxes. In lieu thereof an annual 
specific tax (forest fee) of 10 cents per acre is im- 
posed on lands west of the summit of the Cascade 
Mountains and 5 cents per acre on lands east of 
the summit. 
Buildings, improvements, water and power 
rights, and mineral or other nonforest values are 
subject to the ad valorem property tax. 
Timber. A yield tax of 121% percent is imposed 
upon the stumpage value of forest crops harvested. 
Forest crops are defined as timber, chittam bark, 
Christmas trees and any other marketable growth 
from the forest soil. 
Exemption. No yield tax is payable on forest 
products harvested by the owner for use on the 
premises and if such harvest annually does not 
exceed 10,000 board feet. 
Tax administration 
Reports. A permit must be obtained from the 
Commission before any forest crops are harvested 
or forest growth removed from reforestation 
lands. The permit sets forth the unit value of 
forest crops immediately prior to harvest. Twice 
a year the owner must report to the Commission 
and to the tax collector the number and kinds of 
units harvested during the preceding six months. 
Collection. The forest fee is collected in the same 
manner and at the same time as other taxes. The 
yield tax is payable to the county tax collector 
when submitting the semiannual report of forest 
products harvested. The Commission may require 
permittees to file proof of financial responsibility. 
Use of revenue 
The forest fee is apportioned among taxing 
districts in the proportion that the tax levy of each 
bears to the total tax levy. Special provision is 
made for forest fees collected in counties over 
80,000 population. The yield tax is apportioned 
among taxing districts as provided for the distribu- 
tion of sale proceeds of certain county property 
(Revised Statutes 275.270). 
