Current through Register Vol. 63, No. 9, September 1, 2024
(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.
Statutory/Other Authority: ORS
527.710, Section 2(11), Chapter
34, Oregon Laws 2022
Statutes/Other Implemented: Section 3, Chapter 34, Oregon
Laws 2022
