Tax bill resolves two Oregon forestry issues

The taxes are levied on all timber cut in Oregon, including federal lands. The first 25,000 board-feet from a producer is exempt.

A new tax will be levied to raise $5 million every two years, matched with $10 million by state government, to pay for a habitat conservation plan once it is approved by the federal government. The plan is the heart of an agreement, known as the Private Forest Accord, mediated by Gov. Kate Brown and others between the timber industry and environmental advocates. It will apply to the 10 million acres of forests in private ownership.

The bill sets an overall ceiling of $250 million for the plan.

The bill also sets harvest tax rates for a couple of programs that got caught in a political crossfire between the House and Senate at the close of the 2021 regular session. The new rates, which are retroactive to the start of this year, cover funding for Department of Forestry enforcement of the Oregon Forest Practices Act and professional education by the College of Forestry at Oregon State University.

There are separate harvest tax rates to support fire suppression, the Forest Research Laboratory at OSU, and the Oregon Forest Research Institute.

Two other bills pending in the Senate are part of the accord. Senate Bill 1501 requires the state Board of Forestry to carry out the accord in a single rulemaking process by Nov. 30. Senate Bill 1502 provides for a tax credit, subtracted directly from taxes owed, for owners of small woodlands.