Timber Harvest Taxes
There are two separate harvest taxes that a taxpayer may owe; Forest Products Harvest tax (FPHT) and, in addition, if they are enrolled in the Small Tract Forestland Program, they will also be subject to a severance tax (STF Severance tax) upon harvesting timber.
Notification of operation (Permit)
Timber harvesting
Anyone planning to harvest timber from any land in Oregon—public or private—must have a notification of operation from the Oregon Department of Forestry (ODF) (ORS 321.005 and 321.550). There's no filing fee.
A notification of operation is valid for the calendar year (January 1 through December 31). Civil penalties may result for logging without notifying ODF [ORS 321.550(3)(a)].
We receive a copy of the notification and use the information for mailing timber tax forms. The timber owner is responsible for filing and paying the taxes.
Forest Products Harvest Tax (FPHT)
About the FPHT tax
The Forest Products Harvest Tax (FPHT) applies to timber harvested from any land in Oregon, except most tribal lands. No distinction is made between timber harvested from private lands or government-owned lands. The first 25,000 board feet (25 MBF) of timber harvested by an owner each year is excluded (subtracted) from the total harvest volume that is reported on the FPHT return. Owners are required to file harvest returns even if the total harvest volume is less than 25 MBF (1,000 board feet) and no tax is owed.
Forest Products Harvest Tax (FPHT) Rates
The Oregon Legislature and the Oregon Forest Resources Institute (OFRI) board of directors develop the FPHT tax rates. These rates are applied to each MBF. To calculate MBF, divide board feet (BF) by 1,000. Example: 12,000 BF/1,000=12 MBF.
Preliminary harvest tax rates
Preliminary values are released in January of the harvest tax year and will be reflected in the current harvest tax rate year after being certified in March of the harvest tax year.
When are estimated payments required on FPHT harvests?
If you expect to owe $1,500 or more for the calendar year, you must make quarterly estimated tax payments by the due dates listed below. Estimated payments must be at least one quarter of your estimated tax for the calendar year regardless of when the actual harvest is scheduled to occur.
Requirements for FPHT
The following forest products are subject to this tax:
- Generally, any logs or chips harvested.
- Logs scaled as utility grade or greater and logs sold by the ton.
- Loads of chips unless they are made from logs that do not meet utility grade or better, and the chips are to be used as "hog fuel."
We mail the forms for the FPHT return in January based on the information provided on the notification of operations filed with the Department of Forestry.
Returns are due by April 15 of the year following the harvest. A 5% penalty is assessed for returns filed between April 16 and July 15. Returns filed after July 15 receive a 25% penalty.
Small Tract Forestland (STF) severance tax
About the STF severance taxes
The small tract forestland (STF) severance tax applies to timber harvested from lands classified under the STF Program (ORS 321.700-754). The severance tax is in addition to the forestland products harvest tax due on harvested timber.
Rates for STF Severance Taxes
The tax rate is applied to each 1,000 board feet (MBF) of timber harvested. Rates for the current year are available after the specially assessed forestland values are certified on or before June 1st. Quarterly payments are not required for STF severance taxes but can be made. However, if you wish to make a quarterly payment, there are no coupons available.
STF Severance Tax Rates for Eastern Oregon
STF Severance Tax Rates for Western Oregon
Requirements for STF Severance Taxes
The following forest products are subject to this tax:
- Generally, any logs or chips harvested.
- Logs scaled as utility grade or greater and logs sold by the ton.
- Loads of chips unless they are made from logs that do not meet utility grade or better, and the chips are to be used as "hog fuel."
Logs scaled as utility grade or lower are exempt from this tax.
We mail STF severance tax forms in January to potential harvesters based on the information provided on the notification of operations filed with the Department of Forestry and STF applications from county assessors.
Returns are due by April 15th of the year following the harvest. Returned filed between April 16th and July 15th will be assessed a 5% penalty and interest. Returns filed after July 15th will be assessed a 25% penalty and interest.
Harvesting Timber and Timber Taxes form 150-441-616 (Rev. 11-19-20)
Understanding Oregon's Timber Tax Programs and How to Complete Forms form 150-441-409 (Rev. 12-04-20)
Forest Products Harvest Tax (FPHT) and distribution (ORS 321.152 and ORS 321.185)
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.
Revenues are distributed quarterly to:
- Administration of the Oregon Forest Practices Act. The Oregon Forest Practices Act encourages forest management that protects resources including soil, air, water, fish, and wildlife. It also helps preserve scenic areas along visually sensitive corridors and reduces the risk of injury or death from landslides directly related to poor forest practices. Currently, the FPHT covers 40 percent of the cost of administering this law. The state's General Fund pays the other 60 percent.
- Forestry research at Oregon State University. Oregon State University provides forestry research through the Oregon Forest Research Laboratory. The FPHT provides approximately 10 percent of the lab's research budget.
- Oregon Forestland Protection Fund. The Oregon Forestland Protection Fund serves as kind of an "insurance policy" for wildfires that can't be handled by local fire districts alone. The FPHT provides 50 percent of the budget for this fund. The state's General Fund pays the other 50 percent.
- The Oregon Forest Resources Institute. The Oregon Forest Resources Institute (OFRI) was created in 1991 to improve public understanding of the state's forest resources. OFRI provides information on Oregon's forest practices and encourages sound forest management. The institute is 100 percent funded by the FPHT.
Small Tract Forestland (STF) Severance Tax (ORS 321.751 and 321.754)
At one time, Oregon taxed timber through the property tax system. The tax system considered timber as real property and taxed it accordingly. The 1993 Legislature determined that timber is more like an agricultural crop than real property and removed the value of standing timber from the property tax value.
Currently, the Small Tract Forestland (STF) Severance Tax is the only timber tax linked to property tax. This tax provides for the repayment of property taxes that were delayed until harvest through the STF program.
The STF Severance Tax receipts are distributed to the State School Fund, the Community College Support Fund, and counties that have lands classified under the program. The State School Fund and Community College Support Fund receipts are distributed by May 15 of each year. Receipts for the counties are distributed by August 15 of each year.