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About The independent. (Vernonia, Or.) 1986-current | View Entire Issue (May 2, 2002)
Page 4 The INDEPENDENT, May 2, 2002 Business Notes Small woodland owners will discuss tax options at local meeting The Oregon Department of Forestry (ODF) and the Tax W orking G roup (TW G) are seeking public comment on a draft agreement of a slate of property tax options for small woodland owners, those with less than 5,000 acres. Two years ago, the system of valuation for large landown ers, known as the Large Landow ner D efault System, was im plem ented fo r all landowners with m ore than 5,000 acres. This system cov ers industrial forestland opera tions. Smaller tracts remained in the Privilege Tax Program. Be cause sm all, non-industrial woodland owners operate at a com petitive disadvantage, compared to large landowners, the TWG has been meeting to develop a system that address es the special needs of smaller operations. W hile a parcel of land of up to 5,000 acres may not seem small, such lands are small when compared to the holdings of the m ulti-national tim ber companies. The small wood lands are often family farms that can’t achieve the econo mies of scale utilized by big companies, and have higher relative operating costs. Other considerations of the TWG in clude regulations which may have a greater relative impact on owners of small tracts, es tate taxes, difficulty in access ing markets, and that some owners harvest infrequently, or not at all, during their lifetimes. The draft proposal includes three options: Option A: Large Landowner Default Tax System Unless another tax option is adopted, all forestland owners will be included in this system on July 1, 2003. Under this plan, landowners pay an annu al tax based on the Specially Assessed Forestland Values (SAFV) set by the legislature approximately two years ago. The special assessment lowers Associate joins Fuiten, Rose & Hoyt Hector De Los Santos Hector De Los Santos has joined the staff of Fuiten, Rose & Hoyt Funeral Homes in For est Grove and Vernonia, and Forest Grove Memorial Chapel. A native of South Texas, he was born in Brownsville and raised in San Benito, Texas. De Los Santos is a graduate of Dallas Institute of Funeral Service, where he earned an Associate of Science degree in 1983. He and his wife, Mona, recently relocated from south ern Arizona to Forest Grove. the tax burden as an incentive to maintain forestland. These values are protected under Bal lot Measure 50. All forestland owners with less than 10 acres will be included in this program. No additional tax would be re quired regardless of the amount of timber harvested. Option B: Reduced Land Value -A nnual Tax This plan reduces the annu al tax, again based upon the SAFV, by a percentage yet to be determined. The target is 50 percent and, according to Paul Nys, Oregon Small Woodlands Association (OSWA) Vice Pres ident and a member of the TWG, there has not been any suggestion to change the tar geted figure. To qualify for this tax program a landowner would provide ODF with a plan that meets landowner management objectives approved by ODF, to promote higher investment in good forest management than the stewardship standards of the Forest Protection Act. Ac cording to Nys, the rationale for this option is based on the greater proportionate costs as sociated with managing small woodlands and that longer ro tational periods used on these tracts are preferred by the pub lic and include a number of as sociated public values with cor responding costs. This option could be selected by those ownerships from 10 to 5,000 acres. Option C: Streamline Cur rent Forestland and Privilege (20 - 80) Deferral According to Nys, this plan is Business Expo provides excellent public exposure The community is invited to enjoy the second annual Ver nonia Business Expo, to be held May 11, from 10:00 a.m. to 4:00 p.m., in the Washington Grade School gymnasium Sponsored by Vernonia Cares, the expo is free to the public and provides businesses and organizations in the area with a forum to show the com munity what is available here. Raffle items, free samples and helpful information will be pre sented at the vendors’ tables. The Expo is expected to have some items for sale, as well. Food vendors have already ex pressed their intention to be a pari of the Expo. “This is a wonderful chance for all of these businesses to show their wares. It also allows local churches, organizations and the arts com m unity to reach out to Vernonia," said project chairperson Sandy Welch. Table space is limited. Ven dors should contact Vernonia A Cares immediately to reserve a space. The $25 registration fee is tax deductible. For more information and registration forms, call Vernonia Cares Food Bank at 503-429- 1414 or email: cares®vernon ia.com , or write to P.O. Box 126, Vernonia, OR 97064. out on Limb Mother’s Day Gifts i r o/ S a v e o p t o JL) /O OPEN: Tue-Wed-Thu-Sat, 10-6 • Fri, Noon-6 • Sun, Noon-4 58650 N ehalem H wy . S., V ernonia (N ext to S torage , T oo ) essentially sim ilar to the exist ing Privilege Tax Program . Most local sm all forestland owners would be covered un der this program. The major dif ference in the new proposal is that the tax would be based upon volume (board feet) at the time of harvest. Landowners would still be required to pay 20 percent of the tax annually, as the current program requires. The remaining 80 percent of the “deferred” tax would be paid when the trees are har vested. There is significant doubt w hether this program would be protected under Bal lot Measure 50, writes Nys in the OSWA newsletter. The rate for this tax is yet to be deter mined, said Nys, though it will be similar to the “eastside” and “westside” averages now used. N ys’ article explains that stipulations may apply on mov ing from one program to anoth er, and “ roll back” fees plus in terest could be required. Landowners may also be dis qualified in some instances, if unable to meet conditions re quired of the selected program. Public comment on the plan is encouraged and should be sent in writing to Gail Barnhart, ODF Forestry Association Pro gram, 2600 State St., Salem OR 97310, email: gbarn hart@ odf.state.or.us. The next m eeting of the TWG, June 17 from 9:00 a.m. to 4:00 p.m., will be open to the public. It will be held at ODF Protection Conference Room, Bldg.2, 2600 State Street, Salem. Q uestions about the pro gram may be directed to Paul Nys, 503-556-8800 or the TWG chair Dave Schmidt, 503-979- 7523, em ail: dschm idt@ sm t- net.com . The tax plan will be dis cussed at a meeting of the OSWA in Vernonia, May 7, at the New Hong Kong Restau rant. The public is invited. If you would like to eat with the group, RSVP to Lynn Nichols, 503- 556-8208 or Rod Nastrom 503- 397-5997 by May 3rd. The Oh Fudge! GOURMET C A N D Y SHOP S w eet *faeat&. fab M o th e r & jb a y Fudge... Chocolate-W alnut Peanut B utter Divinity Swedish Berries • Dutch Mints Rock Pebbles • Orange Slices Boxed Chocolates Assorted Jelly Beans B rittles - 7 Types Old-Fashioned Candy Sticks Oregon S a ltw ate r Taffy 170 Flavors! Trailblazer Preserves Local Honey & More!!! B ridge S tre e t M a ll 9OZ Bridge St., Vernonia 505-4X9-8603 VERNONIA INN Enjoy a quiet weekend with us. FULL SIZE, IN ROOM $55" HOT TUBS $80“ REG. 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