Prior Correspondence Director, Bend Community Development Department
Mr Langton;
My primarily interest is in designated forestland property assessments within the city limits of Bend. Your explanations related to state/county levels were very valuable in understanding how they apply at the city level.
My email, copy to you, (attached) addressed to Russell Grayson brought to his attention the matter of designated forestland within the city as a dis-allowed land use and therefore a code violation. He has not yet responded.
If and when it is in fact found to be a code violation then the obvious remedy is your revocation of the forestland designation?
That is something I would like to discuss with you, at your convenience, as well as some other matters regarding designated forestland land assessments within the city of Bend. I am available at any time for that discussion.
Tim Lester
…………………………………………………………….On May 24, 2017, at 9:24 AM, Scot Langton <Scot.Langton@deschutes.org> wrote:
Mr. LesterThank you for your inquiry into Forestland Special Assessment. Oregon has a complex Statewide property tax system based on Oregon Revised Statutes as adopted by the State Legislature. The Legislature has also given oversight authority to the Oregon Department of Revenue in order to insure equal administration of this system among the 36 individual counties. Therefore we forwarded your questions and concerns to the Dept of Revenue for their review to make sure at the local level we are administering this program correctly.Below is a detail response further explaining this program and your questions. Hopefully this addresses your concerns.I would be happy to meet with you to discuss this, or other property tax questions if you’d likeSincerelyScot
Mr. Russell Grayson 6/5/17
Director, Bend Community Development Department
The attached email identified properties in a RL Zone in the city of Bend that are assessed as Forestland and noted that “Farm use, agriculture” was not a permitted use in an RL zone.
Please review my prior email as well as additional information in this email and tell me if these properties are in violation of RL/RM zoning restrictions.
Bend Development Code Definitions 1.2 defined the terms “Farming or farm use” to include Timber Agriculture. The form: "Application for Designation of Land as Forestland” submitted to the county assessor includes as question #2 "Is the predominant purpose of this land to grow and harvest trees of marketable species? Yes… or …No". If the answer is no then the county assessor must deny the application in accordance with ORS 321.839 (4) If the answer is yes the applicant attests under penalty that the land is being used predominantly to grow and harvest marketable trees. Obviously a commercial predominant purpose intent of residential zoned land use.
Within the context of the nature and use of these urban residential multi-million dollar properties I question the financial intent to grow and harvest trees for sale when the return on investment in the property, most having an associated dwelling, is far greater as a result of tax reduction over a long period of ownership of the property. That is a matter for the assessor to evaluate regarding “predominant purpose” in a broader analysis but it is also a matter relating to lost tax revenue accruing to the city of Bend.
Tim Lester
2098 NW Trenton Ave.
Bend, Oregon 97703
On May 25, 2017, at 1:38 PM, Timothy Lester <timlester@me.com> wrote:
Director, Bend Community Development Department:There are RL zoned properties in the city of Bend that the Deschutes County Assessor assesses on their forestland values. This results in substantial reduction in tax. Taxes are collected on harvested timber or when the classification of designated forestland is no longer applicable. Designated as well as Highest and Best Use Forestland in rural forest land areas is one thing. Designated Forestland with commercial harvesting intent in an urban residential zone is another matter.The Deschutes County Assessor submits Forestland Valuation Tax Year 2016-17 in this report:The first line of the report is for County Code Area Number 1001 which is the city of Bend.There are 107 acres of Designated Forestland in the city of Bend.http://www.codepublishing.com/OR/Bend/2.1.200 Permitted Land Use for RL zoned land "Miscellaneous uses" does not allow "Farm use, agriculture”.I provide examples as an attachment to this email citing designated forestland taxlots within a city zoned RL area. They constitute 40% of the total 107 acres the Deschutes Assessor reports to be in the city of Bend. The examples are clustered in a single area. I do not have any information where the remaining acreage is located.It is a perplexing situation with many significant issues related to permitted land use, intent and equitable taxation. I think the perplexity is self evident with numerous aspects. I submit it to you to be examined and evaluated.For background, I found this analysis to be interesting. Oregon Private Timberland Owners Not Paying Fair Share of County Property Taxes.Tim Lester2098 NW TrentonBend, OregonAttachement:Taxlot properties located in an RL zoned area that have a Designated Forestland assessment.The first three taxlot properties in the list of examples have a single owner.Total Forestland acres: 8.24 acresTotal RMV: $2,308,200.00Assessed Value: $615.00Tax 2016: $65.63Deferred taxes are due in accordance with a computation when the properties are sold or for other reasons. New owners may apply for the same forestland enrollment. Long term tax advantages are significant and likely to be far less than would otherwise be paid.Properties with residences on them have a similar tax per acre on the forestland acreage portion but it is not as readily evident because only the total tax due is given.Tax Lot Properties Forestland Acres Residence Acreshttps://dial.deschutes.org/Real/Index/1175502.89 and 4.01 1.09https://dial.deschutes.org/Real/Index/1175511.56 and 2.80 1https://dial.deschutes.org/Real/Index/1175693.72 1 Urban lot no building
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