Or. Admin. Code § 629-607-0400
Current through Register Vol. 63, No. 12, December 1, 2024
Section 629-607-0400 - Forest Conservation Tax Credit - Process for Determining Eligibility(1) To be eligible to apply for a forest conservation tax credit, a small forestland owner shall: (a) Certify that they meet the definition and criteria of a small forestland owner as described in OAR 629-600-0100 and the criteria for this tax credit under chapter 34, section (2), Oregon Laws 2022. The State Forester may require additional information for program participation as outlined in OAR 629-607-0200(1)(b).(b) Submit a notification of operation for a timber harvest type 1, type 2, or type 3 to the State Forester as required by ORS 527.670(6) to harvest timber adjacent to riparian areas, as described in OAR 629-643-0100 through 629-643-0135. The harvest area must be greater than or equal to the portion of area the small forestland owner elects not to harvest.(c) Elect to follow the standard practice vegetation retention requirements as described in OAR 629-643-0100 through 629-643-0135.(d) Indicate at the time of submitting the notification of operation the intent to apply for a forest conservation tax credit.(2) After filing the notification of operation, but no later than three months after completing the timber harvest, the small forestland owner shall submit documentation of the stumpage values and costs of appraisal to the Small Forestland Owner Assistance Office.(3) After receiving the notification of operation, documentation of stumpage values and costs associated with appraisal, and filing a deed restriction from the small forestland owner, the Small Forestland Owner Assistance Office shall evaluate and approve the stumpage value or request additional documentation as needed. Once stumpage values are approved, the office shall issue a certificate of eligibility to both the small forestland owner and the Department of Revenue.(4) After receiving certification, a small forestland owner shall sign and record the deed restriction, in the county where the eligible forest conservation area is located, which prohibits the owner and the owner's successors in interest from conducting a harvest or otherwise removing trees within the forest conservation area.(5) If the small forestland owner is taxed as a trust, partnership, or S corporation, the entity can distribute the forest conservation tax credit to owners or beneficiaries, as allowed by law.(6) A nonresident small forestland owner shall follow the same process as a resident of this state for obtaining eligibility for the forest conservation tax credit.(7) Type 4 harvests are not eligible to claim a forest conservation tax credit.(8) In addition to all other requirements of administrative rule promulgated under the Forest Practices Act, small forestland owners shall comply with the requirements under chapter 34, Oregon Laws 2022.(9) If a future legislature cancels the forest conservation tax credit, the State Forester will remove all restrictions on using the small forestland owner minimum option within a fifth field watershed for riparian areas where a credit has not been issued, though the department will continue to track the frequency of harvests under the small forestland owner minimum option. If a future legislature reinstates the forest conservation tax credit, the State Forester will renew the system.Or. Admin. Code § 629-607-0400
DOF 7-2022, adopt filed 11/21/2022, effective 1/1/2024; DOF 1-2024, amend filed 01/03/2024, effective 1/3/2024Statutory/Other Authority: ORS 527.710 & Section 2(11), Chapter 34, Oregon Laws 2022
Statutes/Other Implemented: Section 3, Chapter 34, Oregon Laws 2022