Tax Incentives & Obligations

There may be tax incentive programs or financial assistance to help you accomplish certain projects on your woodland property.

Financial incentive programs are aimed at encouraging and assisting land owners.

Since more than 44% of land in Oregon is privately owned, financial incentive programs are aimed at encouraging and assisting landowners in managing their resources and meeting their objectives. Typical forestry projects can be aimed at protecting the landowner’s resources/investment from fire or insect and disease infestation, to increasing its monetary and environmental value in the future.

Financial Incentives for Private Forestland Owners (through the Oregon Department of Forestry) is a good place to start looking for financial incentive programs aimed at protecting other rural land resources such as fish and wildlife habitat.

The USDA also has Forest Incentive Programs for Non-Industrial Private Forest Owners in Oregon

Tax Obligations

Property that is classed under the Forestland Program is taxed at a lower rate than the rate for otherwise unclassed property. There are also some special property tax programs for land classed under the Small Tract Forestland Option.

Depending on how your property is classed, there may be additional taxes whenever timber is harvested, including a Forest Products Harvest Tax. For the current tax rate information, see Oregon’s Timber Tax Forest Products Harvest Tax.

Check with your accountant to explore the best options for your situation and to evaluate any potential tax liability should you decide to harvest any of your timber.


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