OREGON 
Modified Assessment Law.! 
Mandatory.? Enacted 1961. Amended 1963, 
1965, and 1967. 
Revised Statutes, Secs. 321.605 to .680. 
Eligibility 
(1) Land situated west of the summit of the 
Cascade Mountains, the highest and best use of 
which is for growing and harvesting trees of market- 
able species (provided such land is not classified 
under the Forest Fee and Yield Tax as “‘Reforesta- 
tion Land” and is not subject to the Western 
Oregon Small Tract Optional Law). , 
(2) Land situated west of the summit of the 
Cascade Mountains being used predominantly 
for the purpose of growing and harvesting trees 
of marketable species but which may be deemed 
to have a higher and better use, if designated as 
forest land as outlined below (provided such land 
is not classified under the Forest Fee and Yield 
Tax as ‘Reforestation Land” and is not subject 
to the Western Oregon Small Tract Optional Law). 
Designation procedure. The owner applies to 
the county assessor furnishing, in part, the 
following information: description of the 
land, date of acquisition, purpose for which 
held or used, whether there is a forest man- 
agement plan and if so how implemented, 
summary of experience and activity in grow- 
ing and harvesting trees, whether the land 
has been subdivided or a plat filed, and 
whether grazing is permitted. 
Applications are deemed to be approved un- 
less denied within three months. Provision is 
made for appeal to the State Tax Commission 
and to the Courts. 
Removal of designation. This may be effected 
(1) if the owner so requests, (2) if the land is 
sold to an owner who does not make new 
application within 60 days of sale or transfer, 
(8) in case of sale to an ownership making the 
land exempt from ad valorem taxation, or 
(4) upon discovery by the assessor that the 
land is no longer eligible for designation. 
Upon removal of designation additional tax 
is payable equal to the sum of the following: 
(1) the amount by which taxes assessed 
against the land would have been increased 
had it not been designated under the Act 
during the 5 preceding years (but without 
any increase for years prior to the tax year 
1968-1969) and (2) interest upon the amounts 
of increased tax at the rate of 6 percent per 
annum. 
Tax treatment 
Land. Forest land that qualifies under para- 
graph (1) above and forest land that has been 
' Known as the “Western Oregon Ad Valorem Tax.” 
? Optional provisions relating to “designated lands” as de- 
fined, first apply to assessments for the tax year 1968-69. 
designated under paragraph (2) above shall be 
valued as forest land and not at a value in con- 
sideration of a higher and better use. 
Timber. 
1. Annual property tax. 
“Reproduction” (defined as trees under 
12 inches d.b.h. outside bark) is exempt. 
“Young growth timber” (defined as 
timber 12 inches or more d.b.h. outside 
bark and not more than 90 years old 
as of the effective date of the Act, Au- 
gust 9, 1961) is valued at 30 percent of 
its “immediate harvest value” (see 
definition of terms below). 
“Old growth timber’ (defined as timber 
more than 90 years old as of August 9, 
1961) is valued at 30 percent of its im- 
mediate harvest value provided, how- 
ever, that for the years 1962-1976 in- 
clusive it is to be valued at 25 percent 
of immediate harvest value in the case 
of ‘tracts’ (see definition of terms 
below) on which the average volume of 
old growth timber harvested annually 
over the preceding 3 years is less than 
one thirtieth of the total old growth 
timber volume on the tract as of the 
first of January, one year prior to the 
assessment date. 
2. Additional tax. 
Beginning in 1968, an additional tax is 
levied on all timber and reproduction 
harvested in the preceding calendar year. 
In the case of timber valued at 30 per- 
cent of immediate harvest value, the 
additional tax is the amount that would 
have been levied against it in the pre- 
ceding year if it had been valued at 70 
percent of immediate harvest value and 
the same tax rate used as was applicable 
in such year. In the case of timber valued 
at 25 percent of immediate harvest value, 
the additional tax is the amount that 
would have been levied against it in the 
preceding year if it had been valued at 
75 percent of immediate harvest value 
and the same tax rate used as was 
applicable in such year. 
In the case of reproduction, the addi- 
tional tax is based upon 100 percent of 
immediate harvest value. 
The State Tax Commission appraises taxable 
timber and forest land and determines immediate 
harvest value in counties west of the summit of 
the Cascade Mountains. 
