The State of Oregon has tax incentive programs to help rural Oregonians keep their land in farm and/or forest production. Bigleaf maple and other trees used to create food for people can be managed for either agriculture (e.g., sap for maple syrup, sugar, and soda, spring blossoms) or forest products (firewood, hardwood flooring). This factsheet lists a few potential tax opportunities to consider. The USDA considers maple and other edible tree saps as crops. In general, agricultural land tax incentives are greater in Oregon than forest land tax incentives, but keep in mind that every landowner is unique and there is no one-size fits all approach. Get expert advice to help you understand the best tax scenarios for your near and long-term land-use goals.

You can request an assessor from your county to make a site visit. This Oregon Dept. of Revenue webpage has links to all Oregon county tax departments. To prepare for an assessment, find or create a map of your property, make a list of different agricultural and forest products you are producing, or want to produce, on each acre. If you can, include revenue estimates or goals for each product.

Special assessment programs that are available to most landowners

Farmland in an Exclusive Farm-Use Zone
www.oregon.gov/DOR/forms/FormsPubs/assessment-farmland-zone_303-644.pdf
www.oregon.gov/dor/forms/FormsPubs/farm-use-manual_303-422.pdf

Farmland Not in an Exclusive Farm-Use Zone
www.oregon.gov/DOR/forms/FormsPubs/assessment-farmland-not-zone_303-645.pdf
www.oregon.gov/dor/forms/FormsPubs/farm-use-manual_303-422.pdf

Forestland Program
www.oregon.gov/dor/programs/property/Pages/timber-forestland-tax.aspx
www.oregon.gov/dor/forms/FormsPubs/understanding-timber-tax_441-409.pdf

Small Tract Forestland Program
www.oregon.gov/dor/programs/property/Pages/timber-stf.aspx

Wildlife Habitat Conservation Management Program
www.dfw.state.or.us/lands/whcmp/brochure.pdf
www.dfw.state.or.us/lands/whcmp/map_participants.pdf (participating counties)

Conservation Easement
www.oregon.gov/dor/forms/FormsPubs/303-087.pdf

Open Space
www.oregon.gov/DOR/forms/FormsPubs/application-open-space-land_310-106.pdf

A few key points to consider...

• All counties follow the same farm use statutes defined under ORS 308A. Two programs exist for Farm use special assessment and carry their own requirements; EFU zone – ORS 308A.062 (Qualification of Exclusive Farm Use Zone Farmland) and Non-EFU zones – ORS 308A.068 (Qualification of Nonexclusive Farm Use Zone Farmland);

• Each county sets their own zones & valuation tables (real market value, special assessed values, and maximum special assessed values) for farm special assessment; For forestland, the county sets the real market values, and the Oregon Dept. of Revenue sets the special assessed value and maximum special assessed values;

• Each individual county is responsible for the approval of farm use special assessment since they are the appraisers with “boots on the ground”

• Any section/portion of land may qualify for a special assessment, but there are certain circumstances that may prohibit a property to qualify for special assessment (ORS 215.236). In other words, each piece of land will be different, therefore it may be determined by the state that not all parcels of land qualify for this type of farm use special assessment;

• A property may have different types of assessments on different specific portions but cannot have different assessments that apply to the same specific portion. If you have multiple products produced on a specific portion (e.g., timber, sap for syrup), it’s likely you will want to choose the program that offers the largest tax savings incentive;

• Different assessment types have different burdens of proof. For example, the Non-Exclusive Farm-Use special assessment program currently requires the gross income of $100 an acre, minimum $650, maximum $3,000 (ORS 308A.071). For example, a tract with 2 acres will need to generate $650 gross income every 3 out of 5 years, while a tract with 40 acres will have a gross income of $3,000 every 3 out of 5 years. The requirements vary by acreages, years, and other factors such as the period of maturation for perennial crops. Tree saps for food meet the definition of a perennial crop. In the event income requirements are not met in the non-EFU program, the landowner may be disqualified from the program and an additional tax (up to 5 years) may be calculated. In an EFU program there is no income requirement, but the land could be disqualified from the program and an additional tax (up to 10 years) assessed if product production stops;
  
  

• Sales of maple food products may be used to meet the income requirements of the non-EFU program, but firewood and timber cannot.

Other relevant statutes include:

·   OAR 150-307-0460 Definition of Farm Processing

·   OAR 150-307-0460 Personal Property Used for Placing Farm Crops in Storage