Talking Points

⟴  107 acres of Designated Forestland in the city limits of Bend (area code 1001)

⟴  Designated Forestland in Eastern Oregon is all assessed at a 2017-18 value of $77.07 per acre regardless of location.  Within the city of Bend or 40 miles outside Burns.  2016-17 per acre assessment value was $74.88

⟴  Real Market Value of Designated Forestland in Bend =  $15,489,530.00.

⟴  Assessed Value = $8,012.00.

⟴  Tax paid to Deschutes County Assessor = ?  Not much on $15 million.

⟴  Bend Development Code (BDC) Title 1, Chapter 1.2 defines "Timber Agriculture" as a "Farming
      or Farming Use".

⟴  Owners of 107 acres of Designated Farmland in Bend have declared to the county assessor under       penalties of false swearing: "..the predominant purpose of this land to grow and harvest trees of a
      marketable species".and include this statement to be signed by the applicant:

As owner of the above described land, I indicate by my signature that I am aware of the potential tax liability involved when the land ceases to be designated as forestland. I declare under the penalties of false swearing [ORS 305.990(4)] that I have examined this application (and any accompanying documents), and to the best of my knowledge, it is true, correct, and complete.

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⟴  BDC Title 2.0 classifies Land Use Districts

⟴  BDC Title 2.0 Chapter 2.1.200 defines Residential Permitted Land Use.

⟴  BDC Title 2.0 Chapter 2.1, 2.1.200 "Farm Use, Agriculture" is a non-permitted land use under
      "Miscellaneous Use " in all Residential Use zoned areas except SR 2-1/2 and UGM.

⟴  There are 14 Designated Forestland  use properties totaling 48.97 acres in a residential RL Urban
       Low Density and RS Standard Density zone that violate the city non- permitted land use.

⟴  Total assessed value of 14 Designated Farmland properties in violation: $3,666.00

⟴  Estimated Real Market Value of these same properties: $6 million dollars or more.

⟴  Required Action:  Owners of these properties be notified that they are in violation of Bend
      Zoning Code in accordance with BDC

⟴  Remedy:  Residents in violation be required to submit withdrawal from Forestland Designation
      to the county assessor for their Forestland related acerage in accordance with their right to
      withdraw stated in their original Application For Designation of Land as Forestland.

⟴  The 14 identified properties totaling 48.97 acres are only those that have been discovered out of a
      total 107 acres of Designated Forestland within the city limits of Bend.  There
      remain 58 unidentified acres of Designated Forestland within the city that may be in violation
      of allowed residential (or other) zoned land use.  The city must find these properties and acreage
      qualified as Designated Forestland by the Deschutes County Assessor and if they are in violation
      of zoning allowed use then take action as appropriate.

⟴  City rules must be revised as necessary to clearly prohibit any zoned property or any portion of
      a zoned property land use within the city limits to be used for: "..the predominant purpose of this
      land to grow and harvest trees of a marketable species".

⟴  It is contended that the Deschutes County Assessor may approve the request any applicant in the
      county for Designation of Land as Forestland. That approval for land use and its associated
      property assessment may not obviate nor supersede City of Bend authority to determine zoned
      allowed land use and prohibit what the county assessor may allow in conjunction with the
      assessors authority to grant property assessment classifications.

⟴  These 3 properties identified by an attachment in a residential RL zoned area are not only an
      example of a non-permitted land use violation but also a single example of 2016/17 tax revenue
      lost to the county and consequently to the city.
                                        Real Market Value:                        $2,308,200.00
                                        Assessed Value:                                       $615.00
                                         Total 2016/17 tax:    $                              $65.63
      Probable Assessed Value w/o Forestland Designation    $1,124,183.00
      Probable 2016/17 Tax w/o Forestland Designation:             $16,400.00

⟴  Note: Whenever in the future any property with a Forestland Designation is terminated for
      various reasons there is a tax liability due computed at the Non-Forestland assessment and rate
      only for previous 5 years.  Any number of years prior to that time that the property may have been
      in violation of zoning restrictions and receiving a Designated Forestland method of tax
      computation would seem to be a matter for legal review...?
      the previous 5 years.

⟴  Finally, what is the intent of the Oregon Forestland Program?
 "The 1999 Legislature established the forestland program as a special tax assessment. Landowners  in this program have a reduced property tax assessment that’s intended to recognize the importance of forestland to Oregon's economy and respond to the growing pressures that urban growth was putting on natural resource lands."

Perhaps the best way to respond to growing pressures that urban growth is putting on natural resource lands is Designated Forestland in the city.  The Mill is gone but Bend is still in the timber business!  The money to be made is not in in the trees but the tax avoidance they provide!