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A woodland scene
Helping fund wildfire protection
Surcharge on improved lots
Quote Box:  We think of wildfire as a powerful force of Nature. While this is true, many wildfires that threaten the urban fringe, or
When a fire burns in the forest, chances are it poses a threat to homes as well as trees. Traditional wildland fire suppression techniques are compromised in the presence of improvements, and this drives up the cost of firefighting.
 
To help cover the added expense, Oregon places a surcharge on improved lots in the state’s forest protection districts. Homeowners benefit from the protection provided to forestland. In the course of fighting wildfires to minimize damage to the forest resource, the Oregon Department of Forestry also works to keep the fires from encroaching on developed areas within the forest.
 


Frequently asked questions about the surcharge
Q: Are forest landowners and improved lot owners within forestland assessed differently for wildfire protection?
A: No. Forest landowners pay a per-acre assessment for wildfire protection on their lands. The rate varies according to the region of the state and the type of land. The minimum assessment is $18.75. Because their lots are typically small in size, many improved lot owners are required to pay the minimum assessment. Owners of improved lots (land with structures or other improvements, such as landscaping and fencing) also pay a surcharge of $47.50. This is chiefly because an improved lot is more difficult to protect from wildfire, since traditional wildland firefighting techniques are compromised in these settings.
 
Q: Has there always been a surcharge on improved lots?
A: No. It was imposed in 1989 by the Oregon Legislature. Fighting forest fires had become increasingly expensive, in part because population expansion into forested areas was causing an increase in wildfires.
 
Q: How do you determine whether a lot is “improved”?
A: The criteria for an improved lot vary from county to county and are established by the county assessor. But generally, the presence of structures is key to the determination.
 
Q: I own several improved lots. Can I get a financial break on the assessment?
A: Possibly. In some cases a landowner who owns multiple lots can combine certain contiguous lots for the purpose of fire patrol assessments, even if there are structures present. Where there is one single-family dwelling, the combined lot may not exceed 20 acres. Contact your local Oregon Department of Forestry office for specific analysis of your situation to determine the options available to you.
 
Q: I am paying the improved lot surcharge. Does that mean my house and other buildings areprotected from fire?
A: No. The Oregon Department of Forestry does not fight structure fires. ODF firefighters work to keep wildfires from spreading to structures, and also to keep structure fires from spreading to the forest. But protecting houses and other structures is the job of municipal and rural fire departments.
 
Q: Where does the surcharge money go?
A: The $47.50 surcharge goes to the Oregon Forest Land Protection Fund (OFLPF). This forest
landowner-financed emergency fund pays the extra costs of fighting major wildfires, such as air
tankers and contract fire crews.
 
Q: Where does the surcharge assessment show up?
A: On your annual property tax statement.
 
Q: Does the assessment switch on and off?
A: Yes. When the OFLPF reaches a $22.5 million ceiling, the surcharge to improved lot owners drops to 50 percent ($23.75). When the OFLPF reaches a $30 million ceiling, the surcharge and assessments by statute may not be collected. When major wildfires draw down the fund’s balance below $22.5 million, the surcharge is activated again.
 
Graphic diagram of Oregon Department of Forestry Protection From Fire Funding Structure: Fiscal Year 2008 [PDF; 1 page; 120 KB]
 
Q: Where can I obtain more information?
A: Contact the nearest Oregon Department of Forestry office.
 
Q: What are my options for appeal?
A: You are being assessed the $47.50 surcharge because your lot lies within a forest protection district boundary, and because it is listed as an improved lot on the assessment rolls of your county. If you feel that you have been inaccurately assessed the surcharge, you can contact your county assessor or your local Oregon Department of Forestry office.
 
 

Development drives up firefighting costs
Quote Box: Protecting houses, barns, and other outbuildings from wildfire presents a big challenge - one that requires close coordination between structural and wildland fire agencies.
The cost of fighting wildfires has been climbing for decades. Some of the increase comes from rising equipment and labor rates. Another major factor is expanding development. Whenever a wildfire threatens improvements, the cost of fighting it goes up sharply. In the absence of structures and other improvements, the Oregon Department of Forestry is able to employ tactics that minimize the acres burned and hold down costs. Bulldozers, for example, can build fire line more quickly and at less expense than hand crews. But the use of heavy equipment is inappropriate in urban areas, and so fire managers must resort to additional personnel and fire engines, and, in many situations, aircraft.

Funding shortfall triggers one-time raise in assessment, lot surcharge
This is a picture of a wildland-urban interface area near Sisters, Oregon
Wildland-urban interface area near Sisters
Severe wildfire seasons and high firefighting costs led to a $6 million deficit this year in the Oregon Forest Land Protection Fund (OFLPF). The OFLPF pays for suppression of large fires on state, county and private forestlands. This prompted the fund managers to borrow $5 million from the State Treasury in June 2008 to cover most of the shortfall. By law, the loan must be repaid within the next fiscal year (July 1, 2008 – June 30, 2009). To cover it, the Oregon Board of Forestry approved increases in the:
  1. surcharge on improved lots in forest protection districts
  2. minimum lot assessment
  3. wildfire assessment on forestland
  4. harvest tax on timber
 
The increases in Nos. 1-3 will appear on the property tax statements being mailed out this fall. These are one-time increases to pay back the $5 million loan.

What caused the deficit?
Over the past three fire seasons, the Oregon Department of Forestry battled 14 large wildfires that ran to more than a million dollars each to put out. During that period, it cost an average of $11.8 million per season to fight wildfires on lands protected by the department. Meanwhile, the OFLPF, which covers the extra costs of fighting large wildfires, was taking in only about $8 million annually.
 

 Charges  FY 2008 Rates  FY 2009 Rates  FY 2009 + Loan Payback
 Improved lot surcharge  $38.00  $47.50  $71.47
 Minimum lot assessment  $18.00  $18.75  $20.64
 Timber assessment–W. OR  $  0.04/acre  $  0.05/acre  $  0.0752/acre
 Timber assessment–E. OR  $  0.06/acre  $  0.075/acre  $  0.1128/acre
 
A new law passed by the 2007 Oregon Legislature (House Bill 3044A) increased the surcharge on improved lots and the assessment on forestlands to help pay for wildfire protection, effective in Fiscal Year (FY) 2008. This raised the rates to forest landowners and property owners in Oregon’s forestland protection districts to the amounts listed in the table under “FY 2009 rates.”
 
Final tally
Then, when the loan to the Oregon Forest Land Protection Fund was received this spring, additional increases to cover payback of the loan were added. The final totals appear under the heading, “FY2009 + loan payback.” The surcharge and rates listed in this column are what property and forest owners will pay on the property tax statements that they receive this fall.

Learn more
For more information on on this or other wildfire funding issues, contact your local Oregon Department of Forestry office or:
 
Rod Nichols, Public Affairs Representative
Oregon Department of Forestry
2600 State Street
Salem, OR  97310
PH: 503-945-7425
FAX: 503-945-7212
e-mail: rnichols@odf.state.or.us

 
Page updated: October 03, 2008

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