What is a forest deferral?

What is a forest deferral?

Many rural properties are eligible for what is called a special assessment or deferral if the property is “used exclusively for farm use” or “used for the predominant purpose of growing and harvesting trees of a marketable species”.

How do I get a farm deferral in Oregon?

Basic Requirements Must have had a commercial farm use prior year. Current and two prior years farm use, and must meet gross income requirements for 3 of last 5 years. Two (2) acres or more of forestland. Held and used for the primary purpose of growing and harvesting trees of a marketable species.

What is designated forest land Oregon?

Forestland classified as “highest and best use” and “designated” qualifies for special assessment under the forestland program. The land is assessed at a special rate based on the typical price paid for land managed for the production of harvestable timber.

What is Oregon timber tax?

The Forest Products Harvest Tax (FPHT) is a tax on timber harvested from any land in Oregon, except most tribal lands. It was established to recover portions of the state’s costs related to forest protection and forest research or to provide funding to improve public understanding of the state’s forest resources.

How does a forest deferral work?

Many rural properties are eligible for a special assessment or deferral if the property is “used for the predominant purpose of growing and harvesting trees of a marketable species.” The purpose of this program is to provide a financial incentive to property owners, in the form of reduced property values, for keeping …

How does a farm deferral work?

California, like every other state, offers property tax breaks for agricultural land. Specifically, farmers are able to take 20 to 75 percent off their property tax bill if they agree not to develop their land for ten years and do so with at least 100 acres.

What is timber tax deferral?

Because, in general, no tax is due until a gain is recognized, timber provides a means of tax deferral because its appreciation in value over time is not recognized until it is harvested. Furthermore, although timber is somewhat illiquid, it can provide a financial reserve to meet emergency cash needs.

What qualifies as a farm in Oregon?

State law requires that for farmers to qualify, they have to gross $100 an acre. If they farm less than 6.5 acres, they must earn $650 in gross—not net—income in three out of every five years. That threshold has not changed in decades and would be more than $3,500 today if adjusted for inflation.

Do farms pay property tax?

Nationally, 1.9 million farms paid $9.4 billion in property taxes, for an average of roughly $4,900 per farm. Five years earlier, 2 million farms paid about $3,800 each. Between 2012 and 2017, property taxes overall increased about 27%.

What can I write off if I have a farm?

A farmer can generally deduct the following types of taxes on line 29 of Schedule F:

1. Real estate and personal property taxes on farm business assets.
2. FICA taxes paid to match the amount withheld for employees.
3. Federal unemployment taxes on farm employees.
4. Federal use taxes paid on highway motor vehicles used for farming.

Can farmers defer income?

This one-year deferral protects farmers from recognizing excessive income in one year when their regular practice would have been to sell the crop in the following tax year. Crop and livestock sales. In 2020, farmers will have income from crop and livestock sales, some of which may have been unplanned.

Is forestry income tax free?

In effect this means that Forest Grants, Forest Premiums, sale of forest thinnings and sale of clearfell are ALL exempt from Income Tax. Dividends paid by companies out of profits in respect of woodland income are exempt.

How to apply for forestland deferral in Oregon?

Additional information is available from the State of Oregon Specially Assessed Forestland website. You may download an Application for Designation of Land as Forestland. If you have questions or wish to file an application, you can contact the Assessor’s Office at (503) 623-8391 and ask for assistance with Forestland Deferral.

What makes a forestland deferral a special assessment?

Forestland Deferrals. Many rural properties are eligible for a special assessment or deferral if the property is “used for the predominant purpose of growing and harvesting trees of a marketable species”. The purpose of this program is to provide a financial incentive to property owners, in the form of reduced property values,…

When did the forestland program start in Oregon?

About the program​ The 1999 Legislature established the forestland program as a special tax assessment. Landowners in this program have a reduced property tax assessment that’s intended to recognize the importance of forestland to Oregon’s economy and respond to the growing pressures that urban growth was putting on natural resource lands.

What is the purpose of a farm deferral?

Farm Deferral. Many rural properties are eligible for special assessment or deferral of some or all of their property if it is “used for a qualifying farm use.” The purpose of this program is to provide a financial incentive to property owners, in the form of reduced property values, for keeping their land in agricultural production.