The Act would extend three taxes on the privilege of harvesting forest products and set the new tax rates.
Extends certain taxes on the privilege of harvesting merchantable forest products on forestlands. Takes effect on the 91st day following adjournment sine die.
The tax helps fund:
• ODF’s fire protection program
• ODF’s administration of the Forest Practices Act
• Oregon State University’s forestry programs
• Oregon Forest Resources Institute
Fire protection and OFRI rates are addressed through other statutes and processes.
The harvest tax is not easy to administer and raises no revenue for either the counties or schools. Instead, the tax benefits the timber industry, much like a commodity commission. Oregon needs a better system of timber taxation than this bill. Past legislatures eliminated the severance tax that supported schools and public services including local fire departments, which has been a detriment to rural counties. Amounts going to the current programs should be frozen and additional amount should go back to county fire and emergency departments and communities.
AMENDED to only raise tax levied as privilege tax upon taxpayers for the privilege of harvesting all merchantable forest products harvested on forestlands in the amount of [253.46] 265.44 cents per thousand feet, board measure, for the purpose of administering the Oregon Forest Practices Act in an amount not to exceed 40 percent of the total expenditures approved by the Legislative Assembly for this purpose, including salary adjustments approved by the Legislative Assembly for fiscal years [2024] 2026 and [2025] 2027.
The amendment was adopted so no public testimony could be submitted. Now it goes to Ways & Means and then to floor votes.
PASSED WAYS & MEANS – FULL COMMITTEE