OREGON 
Severance Tax.! 
Mandatory. Enacted 1947. Amended 1953, 1957, 
1959, 1961, 1963, and 1967. 
Revised Statutes, Secs. 321.005 to .225. 
Persons subject to tax 
Persons owning forest products at time of 
harvesting, or acquiring title thereto by virtue of 
harvesting and payment therefor. The grantor of 
Rate of tax 
Merchantable forest lands (all forest lands con- 
taining merchantable timber) 
Protected west side forest lands (such of the above 
“merchantable forest lands” as are located west 
of Wasco, Jefferson, Deschutes and Klamath 
counties and which are subject to fire protection 
by the State Forester, the United States or 
forest protective agencies under contract with 
the State or the United States\) 1.2.2.0... 
The basic 5 cent rate is reduced by 50 percent in 
fiscal years following those in which the Forest 
Research and Experiment Account exceeds 
$400,000. 
The additional 4 cent rate is reduced by 50 
percent in fiscal years following those in which the 
Forest Emergency Fire Cost Account rises above 
$750,000; when the account rises above $2 million 
the levy is inoperative. The tax is re-imposed at 50 
percent of the full rate when the account falls below 
$1,500,000 and is not less than $750,000.3 
Tax administration 
Reports. Taxpayers must make quarterly reports 
to the State Tax Commission showing the amount 
of tax payable and other information. If a taxpayer 
neglects to make a return, the Commission may 
determine the tax due based upon such information 
as is available. 
Collection. Taxes are payable to the State Tax 
1 Known as the “Forest Products Harvest Tax’ (formerly 
“Forest Research and Experiment Tax’). See also the 
Eastern Oregon Severance Tax classified in this Digest as a 
forest yield tax. 
2 The rate of tax was increased by 14 cent per M.B.F. for 
fiscal years beginning July 1, 1967 and July 1, 1968 to finance 
air and water pollution research as related to the forest pro- 
ducts industries. 
3 Effective July 1, 1968. 
forest products who reacquires such products after 
harvesting shall be deemed the taxpayer. 
Exemption 
The first 25,000 board feet harvested annually 
by any taxpayer are exempt. 
Bs re Aya ANON hay ea 5 cents per 1,000 board feet log scale on all 
merchantable forest products harvested.” 
4 cents additional per 1,000 board feet log scale on 
all merchantable forest products harvested. 
Commission when rendering the quarterly reports. 
Use of revenue 
After provision for payment of refunds, costs of 
collection and administration, revenues from the 
tax on “merchantable forest lands” are devoted to 
research and experimentation to develop the 
maximum yield from forest lands of the State and 
to obtain the fullest utilization of the forest 
resource. For the above purposes a forest research 
laboratory is maintained at Oregon State 
University. 
Revenues from ‘‘protected west side forest 
lands” are credited to the Forest Emergency Fire 
Cost Account and are used for equalizing emer- 
gency fire suppression costs and safeguarding 
interests of forest owners in western Oregon. 
Note: For comparable severance tax provisions 
relating to equalization of emergency fire suppres- 
sion costs on eastern Oregon forest lands see 
Revised Statutes 477.810 to .960 as amended by 
Chap. 429, Laws of 1967. A tax of 2 cents per 
1,000 board feet is levied on all merchantable 
forest products harvested on ‘“‘protected east side 
forest lands’”’ as defined. The levy is inoperative 
when the East Side Emergency Fire Cost Fund 
exceeds $250,000. 
