Or. Admin. Code § 629-607-0500

Current through Register Vol. 63, No. 12, December 1, 2024

Section 629-607-0500 - Forest Conservation Tax Credit - Stumpage Value Certification

(1) For the purposes of this rule only, "professional forester" means a person that is engaged in the business of appraising or valuing timber or forestland as described in ORS 674.100.

(2) To determine the value of the tax credit, the small forestland owner shall use one of the following methods using standard measuring techniques of professional foresters:

(a) Conversion return method;

(b) Actual comparison method; or,

(c) Cash flow modeling method.

(3) Small forestland owners shall submit documentation for the conversion method or actual comparison method to the Small Forestland Owners Assistance Office to be eligible for the forest conservation tax credit that includes all the following:

(a) The cruising measurements of merchantable volume of timber by:

(A) Tree species; and,

(B) Log grades (based on size and log quality).

(b) The value of logs, by species and grade, delivered to a milling operation, shown by:

(A) A statement from a milling operation with their current payout for delivered logs by species and grade;

(B) Log value summaries prepared by professional organizations; or,

(C) Other commonly accepted methods of determining log values.

(c) The costs of delivery, determined by either:

(A) Estimated cost of all activities required to harvest trees and deliver them to a milling operation. Costs may include activities such as timber falling, yarding, and transportation to a mill, and other miscellaneous costs such as a harvest tax; or,

(B) Actual costs per MBF associated with adjacent harvested area when the timber in the forest conservation area is similar to the timber harvested.

(d) Stumpage values equal to the total delivered log values less than the costs associated with delivery.

(e) Verification of any appraisal costs to determine stumpage value.

(f) Other documentation as requested by the Small Forestland Owner Assistance Office to verify calculations and values.

(4) Small forestland owners shall submit documentation for the cash flow modeling method to the Small Forestland Owners Assistance Office to be eligible for the forest conservation tax credit to include the following:

(a) For pre-merchantable stands: age of stand, site index, species, trees per acre, harvest rotation age, estimated harvest costs, and a timber appraisal which includes cruise information and sampling methodology, growth and yield value used; log pond values, and value determination methodology;

(b) For merchantable stands:

(A) Merchantable volume of timber by grade, sort, and species; and,

(B) Log Pond values, by species and grade, delivered to a milling operation, as shown by:

(i) A statement from a milling operation with their current payout for delivered logs by species and grade;

(ii) Log value summaries (mill pond value queries) prepared by professional organizations; or,

(iii) Other commonly accepted methods of determining log values.

(C) Estimated harvest costs.

(c) Verification of any appraisal costs to determine cash flow modeling values; and,

d) Other documentation as requested by the Small Forestland Owner Assistance Office to verify calculations and values.

(5) After receiving the documentation of stumpage values, the Small Forestland Owner Assistance Office shall review and request additional information, if necessary.

(6) The Small Forestland Owner Assistance Office shall certify the amount of the forest conservation tax credit and provide the small forestland owner with an eligibility certificate.

Or. Admin. Code § 629-607-0500

DOF 7-2022, adopt filed 11/21/2022, effective 1/1/2024

Statutory/Other Authority: ORS 527.710, Section 2(11), Chapter 34, Oregon Laws 2022

Statutes/Other Implemented: Section 3, Chapter 34, Oregon Laws 2022