Prior Designated Forestland Correspondence
Mr. Matthew Frison, Timber Appraiser Analyst, DOR
Thank you for your invitation that came to me via the Deschutes County Assessor to discuss application requirements and continuing qualifications for DOR Forestland designation.
While researching some Bend, Oregon taxlot properties for another purpose I noted their forestland designation and learned of their associated assessment rules by which the Deschutes County Assessor computes property taxes.
For reference I have attached to this email the taxlot properties I examined.
My research concluded that these properties should not have been qualified for Forestland assessment. My email to the Deschutes County Assessor which he referred to you contended that while 2 acres are explicitly specified as a minimum requirement for application meeting the follow on description of 20 % acreage stocking requirements over a given period of time is not possible in the case of the attached properties. If true then the existing Forestland assessment should be disqualified.
In reply to the Deschutes County Assessor referral of my email to you for review you stated belief that the Forestland was likely being assessed appropriately based on minimum size requirements. (2 acres).
A 2 acre minimum requirement is necessary for Forestland application. I continue to contend that the additional descriptive stocking requirements objective over a period of successive years which were stated after the 2 Year minimum requirement are not reachable for the attached properties I cited. They do not have sufficient total property acreage to meet requirements.
Is it possible, for example, that an owner in the attached list with 2.5 acres of approved designated Forestland on a taxlot property totaling 3.5 acres (1 acre and residence on the same taxlot) continue to be assessed at a rate applicable to the Forestland 2.5 acres without ever any increase in designated Forestland acreage subsequent to the first year of qualification for Forestland designation? Taxed at the Forestland rate until specific rules for ending the Forestland designation like sale or harvesting are applicable?
In other words: For the preceding example of 2.5 acres Forestland is all that was necessary to qualify for Forestland designation was to have a minimum of 2 acres of qualified Forestland and no associated stocking plan beyond 2.5 acres? Note that the total taxlot acreage is 3.5 acres and the house sits on 1 acre. There is no additional land to stock. How long will that Forestland assessment rate on 2.5 acres apply?
I’ll continue to research this matter. It is a complicated one. I’ll start with the 2017 Forest Manual ODR pub 150-303-424 (Rev 04-17) which is an informational presentation and explanation of the law and work into related ORS and OAR laws as necessary to continue my examination. Your future assistance in this effort will be appreciated. I believe there are broader purpose and intent issues involved in this matter potentially worthy of examination.
I will use western Oregon Rules as a basis of my investigation https://www.oregon.gov/DOR/about/Rules/150-321-0340Tha
Tim Lester
2098 NW Trenton Ave.
Bend,OR
Tax Lot Properties Forestland Acres Residence Acres
https://dial.deschutes.org/Real/Index/117550 2.89 and 4.01 1.09
https://dial.deschutes.org/Real/Index/117551 1.56 and 2.80 1
https://dial.deschutes.org/Real/Index/117569 3.72 1 Urban lot no building
Note the first three properties belong to Charlie Potatoes. Totals for these combined properties:
RMV: $2,308,200.00
Assessed Value: $615.00
Tax 2016: $65.63
Begin forwarded message:
From: Scot Langton <Scot.Langton@deschutes.org>Subject: FW: Forestland Special Assessment Program - Deschutes CountyDate: May 24, 2017 at 9:24:32 AM PDTTo: "'timlester@me.com'" <timlester@me.com>Cc: Eric Sexton <Eric.Sexton@deschutes.org>
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
Deschutes County Assessor’s Ofice
1300 NW Wall St Suite 204 | Bend, Oregon 97703PO Box 6005 | Bend, Oregon 97708
Tel: (541) 388-6513
Sent: Tuesday, May 23, 2017 1:53 PM
To: Eric Sexton
Cc: BLESSING Toni * DOR; FRAKES Lester * DOR
Subject: RE: Forestland Special Assessment Program - Deschutes CountyHi Eric,The circular might be a little too simplified and a bit vague or ambiguous. I would refer the taxpayer to the Oregon Administrative Rule that is more specific and hopefully can offer a bit more clarity (OAR 150-321-0810 – See Below). The rule was recently amended (effective January 1, 2017) to remove some of the ambiguity around the minimum 2 acres of forestland.In short, I believe the forestland is likely being assessed appropriately base on minimum size requirements. Mr. Lester has some confusion around the stocking plan under the OAR and seems to be mixing together separate provisions under the rules and statutes.The planting plan under paragraph (3) relates to the establishment of trees on an area under application for forestland that doesn’t currently meet stocking requirements…But, could support sufficient stocking. It should be interpreted as follows; in order to qualify, the landowner must have planted at least 20% or 2 acres minimum (whichever is greater) by December 31 of the first assessment year. And, subsequently at least 20% of the total acreage each year following. The whole area must be planted within 5 years.· Example 1: A farmer plans to stop farming a portion of his land and wants to convert 5 acres (20% = 1 acre) into forestland. Note: the farmer has no other land in forestland. The farmer submits an application to the assessor on March 1, 2017 for the 5 acres along with a planting plan. All 5 acres may be approved and qualified for the 2017 tax year if the landowner complies with the following planting plan:o Year 1: Establishes 2 acres of trees before December 31, 2017. (20% of the total acres to be planted or a minimum of 2 acres…whichever is greater)o Year 2: Plants 1 acre (at least 20% of the area)o Year 3: Plants 1 acre (at least 20% of the area)o Year 4: Plants 1 acre (at least 20% of the area) – Completes planting of the total 5 acres area.o Year 5: No planting required if all trees are still growing and healthy. If all trees survive then all planting must be completed within 4 years on an area of 5 acres.· Example 2: Same scenario as Example 1…except, the total acres on the application is now 25 acres.o Year 1: Establishes 5 acres of trees before December 31, 2017. (20% of the total acres to be planted or a minimum of 2 acres…whichever is greater)o Year 2: Plants 5 acre (at least 20% of the area)o Year 3: Plants 5 acre (at least 20% of the area)o Year 4: Plants 5 acre (at least 20% of the area)o Year 5: Plants 5 acre (at least 20% of the area)· Example3: The farmer has 20 acres of forestland and 20 acres of farm. The farmer wants to convert 2 acres of the farm to forestland and submits an application on March 1, 2017. The 2 acres may qualify for forestland if the farmer complies with the following planting plan:o Year 1: Establishes 2 acres of trees before December 31, 2017. (20% of the total acres to be planted or a minimum of 2 acres…whichever is greater)o Years 2 through 5: No planting required. All two acres must be established within the first year under paragraph (3)(d) of the rule. Unless, the planting or a portion of the planting fails and further planting is necessary to meet stocking requirements…in which case, an extension may be granted.An additional counter point to what Mr. Lester was stating is that the rule does in fact directly state the minimum acreage requirement (2 acres) for designation as forestland under paragraph (6).There are further scenarios which can complicate matters even more and are difficult to understand. If you want, forward along my phone number or email to Mr. Lester. I would be happy to have a discussion with him about this subject.Thanks!!!Matthew R. FrisonOregon Department of RevenueProperty Tax DivisionTimber - Auditor/AppraiserOregon Administrative Rule (OAR) 150-321-0810Minimum Stocking and Acreage Requirements for Designation as Forestland in Eastern Oregon(1) “Contiguous acres” means acres touching along a boundary or at a point.(a) Includes acres separated by a public or county road, state highway or any stream other than a large stream as identified by the state forester using the water classification system in OAR 629-635-0200.(b) Does not include acres separated by an interstate highway or large stream.(2) To qualify, the land must have growing upon it at least the number of established trees per acre set by the state forester in OAR 629-610-0020. The established trees must be of a marketable species acceptable to the state forester as described or set forth in OAR 629-610-0050.(3) If the land does not meet the minimum requirements of section (1) of this rule, the owner must give the assessor a written management plan for establishing trees to meet the minimum stocking requirements. The plan must contain and meet the following requirements:(a) A description of the area that states the location, number of acres, ground cover, present stocking, steepness of slope, and aspect (the direction the slope faces).(b) A list of needed site preparation requirements prior to planting. Examples include brush or grass removal, rodent eradication, disease and insect problem resolution, slash disposal, protection from grazing or browsing animals, and tillage of soil.(c) Planting information that lists the species to be planted, time of year that planting will take place, number of trees per acre to be planted, and method of planting.(d) At least 20 percent, but not less than two acres, of the area in the plan must be planted by December 31 of the first assessment year that the land is designated as forestland. Each additional year thereafter, a minimum of 20 percent of the area must be planted. At the end of the fifth year after the assessor approves the designation, 100 percent of the area in the plan must be planted. The assessor may grant extensions to planting requirements if a loss of planted stock occurs due to conditions beyond the control of the landowner.(4) Certain lands do not support sufficient stocking requirements; however, when the use of these lands supports sound management practices and the harvest of forest crops on surrounding lands, these lands may be designated as forestland. Examples of such lands include:(a) Roads, landings, and rock pits used for forest roads that are necessary for forest management and the harvest of forest crops.(b) Land that is subject to power transmission and distribution easements or gas line easements that are not centrally assessed under ORS 308.505-308.665 or 308.805-308.820 if the lands would otherwise qualify for designation as forestland if, but for the easement, sufficient stocking of trees would be permitted.(5) To qualify for designation, the land must meet the minimum stocking requirements of sections (2) or (3) of this rule. However, when the circumstances listed in section (4) of this rule are present, and at least 80 percent of the total area applied for meets the minimum stocking requirements, the total area of the application will be assessed as designated forestland.(6) To qualify, the area to be designated must be at least two contiguous acres in common ownership. All other property located within the same county that is owned by the same common owner of at least two contiguous acres may also qualify for forestland designation if it meets the stocking requirements.Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 321.805
Hist.: 11-71; TC 10-1978, f. 12-5-78, cert. ef. 12-31-78; RD 15-1982, f. 12-6-82, cert. ef. 12-31-82; RD 9-1989, f. 12-18-89, cert. ef. 12-31-89; RD 3-1996, f. 12-23-96, cert. ef. 12-31-96; REV 11-2000, f. 12-29-00, cert. ef. 12-31-00; Renumbered from 150-321.805, REV 12-2004, f. 12-29-04, cert. ef. 12-31-04; Renumbered from 150-321.839(4), REV 71-2016, f. 8-15-16, cert. ef. 9-1-16: REV 80-2016, f. 12-28-16, cert. ef. 1-1-17From: Eric Sexton [mailto:Eric.Sexton@deschutes.org]
Sent: Tuesday, May 23, 2017 10:31 AM
To: FRISON Matthew R * DOR <Matthew.R.FRISON@oregon.gov>; BLESSING Toni * DOR <Toni.BLESSING@oregon.gov>
Subject: FW: Forestland Special Assessment Program - Deschutes CountyMatt & Toni,Good morning. Scot Langton, Deschutes County Assessor, has requested that I forward you the following email thread below. Could you please review and comment back to me.Thank you very much for your time.Call or write with any questions.Eric SextonDeschutes County Assessors OfficeProperty AppraiserWork Hours: Mon-Fri 8:00 - 4:30From: Timothy Lester [mailto:timlester@me.com]
Sent: Tuesday, May 23, 2017 9:40 AM
To: Eric Sexton
Cc: Scot Langton
Subject: Forestland Special Assessment Program - Deschutes CountyMr. Sexton:Your response of 22 May, 2017 to my email addressed to the Deschutes County Assessor on 19 May clarified that the accounts were all enrolled in the Forestland Special Assessment program and are not participating in the Small Tract Forestland program. Your reply stated that the Forestland Special Assessment program only requires an ownership size of at least 2 acres.I contend that your reply is ambiguous and incorrectly interprets the minimum acreage land ownership requirements necessary to qualify for the Forestland Special Assessment program. If this contention is correct then there are serious implications regarding assessment and taxation of the cited accounts. Not only the specific accounts that I cited to but all properties in Deschutes county enrolled in the Forestland Special Assessment program that have less than 10 acres of stockable forestland.The attachment you sent me: https://www.oregon.gov/DOR/forms/FormsPubs/special-assessment-programs-forestland_441-649.pdf Contains a brief explanation by the Department of Revenue of the two Special Assessments Programs for Forestland.1. Forestland Program.2 Small Tract Forest Land Program.Regarding how to apply for the Forestland Special Assessment program:“Contact the assessor of the county where your forestland is located to obtain the application. The assessor will determine if your land qualifies as designated forestland.Ownership size: At least two acres.”The ownership size of "at least two acres" is an ambiguous statement. It is not a minimum qualification size required for application. What follows in the document after “Ownership size: At least two acres” explains in detail as follows what clearly upon examination amounts to (but does state) an exact minimum qualification size of 10 acres in order to qualify for the Forestland Special Assessment program."Qualification criteria: There must be enough trees on your land to meet the Oregon Forest Practices Act stocking and species standards. If only a portion of your land meets the standards, you may still qualify if:At least 20 percent (minimum two acres) meets the standards by December 31 of the first assessment year, andYou develop a written management plan to plant enough trees to meet the standard within five years.Lands not adequately stocked within five years will be disqualified (explained under “Disqualification or removal below)."The true minimum size qualification for application to enroll in the "Forestland Special Assessment Program" is revealed by deduction and math. A minimum of two acres per year for 5 years is required to meet the unstated (but computed) true requirement to have 10 acres adequately stocked within 5 years.2 acres per year for 5 years equals 10 acres. If the property assessed in this Forestland Special Assessment program does not have a minimum of 10 acres to meet the 5 year requirement in the first place then it most obviously does not qualify for the program.Both the Forestland Program and the Small Tract Forest Land Program therefore have the exact same minimum 10 acre qualification requirement. The former one does not explicitly state it but deductive logic and computation expresses it. The latter one explicitly states it. The qualification is the same. 10 acres. The applicable assessment rate may be different if and when they qualify.and the 2017 Forestland Manual https://www.oregon.gov/DOR/forms/FormsPubs/forestland-manual_303-424.pdf are both Department of Revenue documents intended to inform the public regarding state rules and regulations. The actual rules and regulations underlying these informative documents are a matter of compliance by county assessors.In conclusion: I request that the Deschutes County Assessor investigate the validity of the application of Forestland Assessment rules and regulations to the specific properties cited in my 19 May email that I incorrectly described as being in the Small Tract Forestland category. Each of these property tax lots have less than a total of 10 acres.Please inform me regarding the results of your investigation.r/Tim Lester2098 NW TrentonBend Oregon 97703On May 22, 2017, at 3:37 PM, Eric Sexton <Eric.Sexton@deschutes.org> wrote:Mr. Lester,Please see the attached information flyer about Forestland Special Assessment.The accounts you address are all enrolled in the Forestland Special Assessment program but are not participating in the Small Track Forestland Program. The Forestland Special Assessment Program only requires an ownership size of at least two acres. The account that may be questionable is #200999, I will add it to my list for review.On the DIAL website, accounts in the Forestland Special Assessment Program have a notation that states “FOREST LAND POTENTIAL ADDITIONAL TAX LIABILITY” and under the Land and Structures tab have a Land Description “Designated Forest Land”.On the DIAL website, accounts in the Small Tract Forestland Program have a notation that states “SMALL TRACT FORESTLAND TAX LIABILITY” and under the Land and Structures tab have a Land Description “Small Tract Forestland Option”.In response to your voice mail you left me last week, here is a link to the 2016/17 Tax and Assessment Summary,https://weblink.deschutes.org/public/DocView.aspx?dbid=0&id=89736&page=1&cr=1 . See page 56 for a list of all tax rates for all the tax code areas in Deschutes County.Eric SextonDeschutes County Assessors OfficeProperty AppraiserWork Hours: Mon-Fri 8:00 - 4:30Mr. Scot LangtonDeschutes County AssessorThere are "Small Tract Forestland” designated properties in the city of Bend assessed at rates applicable to that classification but evidently do not qualify for the classification and its associated assessment. They are not qualified for this designation because they are all less than 10 acres as required by 2015 ORS 321.709:a. The owner of the land that is the subject of an application filed under ORS 321.706 (Application for small tract forestland qualification) must own or hold common ownership interest in at least 10 acres of Oregon forestland but less than 5,000 acres of Oregon forestland."b. The land that is the subject of the application must constitute all forestland within a single tax lot and all forestland within contiguous parcels owned or held in common ownership by the owner.If you find that any of the properties I subsequently identify do not in fact meet the qualifications for Small Tract Forestland assessment then ORS 321.716 Disqualification applies:4. Upon disqualification of land under subsection (1) of this section, additional taxes shall be determined as provided in ORS 308A.700 (Definitions for ORS 308A.700 to 308A.733)Please investigate the Small Tract Forestland qualifications of the following properties that have less than 10 acres or 10 contiguous acres designated as Small Tract Forestland and take action as required regarding additional taxes if they are determined to be unqualified. All of these tax lots are within the city of Bend UGB and are located on Bachelor View Rd.Tim Lester2098 NW TrentonBend, Oregon 97703Tax Lot Properties Forestland Acreshttps://dial.deschutes.org/Real/Index/117550 2.89 and 4.01https://dial.deschutes.org/Real/Index/117551 1.56 and 2.80<Forest Deferral info.pdf>
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