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. ROOM $ 4 5 ”
Queen Beds • Private Bath • Separate Entrance
Cable TV • Phones • Handicapped Access
CONTINENTAL BREAKFAST
FOR RESERVATIONS CALL
I -800-354-9494 / 503-420-4000
GIFT CERTIFICATES AVAILABLE
9 0 0 MADISON AVE., VERNONIA, OR 9 7 0 6 4
Just one block off scenic Nehalem River Hwy. (Oregon 47)