OREGON 
Yield Tax.! 
Mandatory. Enacted 1961. Amended 1963, 1965, and 1967. 
Revised Statutes, Secs. 321.405 to 321.530, Sec. 287.010. 
Classification 
There is no provision for classification since 
application of the law is mandatory. The law 
applies only to timber (see definition of terms) 
situated east of the summit of the Cascade 
Mountains. Timber owners subject to tax are 
those holding title to harvested timber by virtue 
of conveyance, harvesting of timber, or harvesting 
of timber and payment therefore. Land classified 
as Reforestation Land under the optional yield 
tax enacted 1929 (Forest Fee and Yield Tax), 
land of designated utilities and companies assessed 
by the State Tax Commission, and timber thereon 
are not subject to the Act. 
Tax treatment 
Land. Continues to be assessed and taxed under 
the general property tax. Such timberland is ap- 
praised by county assessors. 
Timber. Exempt from payment of property tax. 
At time of harvest a tax is imposed at the rate of 5 
percent of ‘immediate harvest value’ of mer- 
chantable timber. 
“Immediate harvest value’ (See definition of 
terms) is determined annually by the State Tax 
Commission. The Commission determines unit 
values by species and by areas that reflect similar 
growing and marketing conditions. Determination 
of size and location of areas is based on administra- 
tive feasibility and is not subject to review by the 
courts. 
Tax administration 
Reports. Timber owners must file quarterly 
returns showing amount of tax payable. 
Collection. Tax is payable quarterly to the State 
Tax Commission on timber harvested during the 
preceding three months. Timber is considered 
harvested when, in the ordinary course of business, 
the quantity is first definitely determined. Tax 
liability under $5 in any calendar quarter need 
not be paid, but a return must be filed. 
Use of revenue 
Tax receipts, subject to the provision in the 
1 Known as the ‘‘Hastern Oregon Timber Severance Tax.” 
46 
following paragraph, and after allowance for 
expenses incurred in the administration of the 
Act, are credited to eastern Oregon counties in the 
proportion that each county’s total appraised 
timber valuation under the property tax, bears 
to the total appraised timber valuation for eastern 
Oregon. Appraised values as of July 1, 1964, sub- 
ject to adjustment for lands classified or declassi- 
fied under the Forest Fee and Yield Tax, serve 
as the basis for allocation. 
For the fiscal year 1962-3 only 80 percent of 
yield tax revenues otherwise available was 
credited to the counties—this 80 percent being 
known as the ‘“‘base distribution.’’ The remaining 
20 percent was credited to a reserve fund. In 
fiscal year 1963-4 and later years, if the revenues 
available to the counties fall short of the base 
distribution, the deficiency is made up as far as 
possible from the reserve fund. When funds avail- 
able for distribution exceed the base distribution, 
the reserve fund is to be credited; provision is 
made for allocating surplus reserve funds to the 
counties. 
The State Tax Commission furnishes annual 
estimates of expected yield tax distributions to 
county assessors who consider such estimates in 
determining the property tax levy. 
Effect upon borrowing capacity of tax districts 
Timber in eastern Oregon is considered as 
though it remained on the tax rolls for purposes 
of determining borrowing and bonding capacities 
of counties, cities, and taxing districts. 
Definition of terms 
“Timber”? means wood growth, mature or im- 
mature, growing or dead, standing or down in 
Eastern Oregon. 
“Immediate harvest value’? means the amount 
that each species or subclassification of timber 
would sell for at a voluntary sale made in the 
ordinary course of business for immediate harvest. 
Allowance is made for age, size and quality of 
timber, growing conditions, cost of removal, 
accessibility to point of conversion, market con- 
ditions and other factors. 
