Wildlife Habitat Tax Breaks

This is a Wildlife Habitat 80 acre farm property in Deschutes County D6: DRY GROUND - SOIL CLASS 6 :  https://dial.deschutes.org/Real/InteractiveMap/131400

http://www.oregonlive.com/environment/index.ssf/2011/03/some_property_owners_abusing_w.html

A 2011 report that focuses on the good intentions of the Wildlife Habitat Conservation and Managment Program (WHCP) in Deschutes County and abuse of the program.  It looks at abuse as a result of failure to regulate its application and operation.

"The Wildlife Habitat Conservation and Management Program (WHCMP) is a cooperative effort involving state and local governments and other partners to incentivize private landowners to voluntarily conserve native wildlife habitat. The Oregon Legislature created the WHCMP to offer a property tax incentive to private landowners who want to provide wildlife habitat on their properties instead of, or in addition to, farming, growing timber or other land uses. Under the WHCMP, land subject to an approved wildlife habitat conservation and management plan receives a wildlife habitat special assessment, where property taxes are assessed at the relatively low value that would apply if the land were being farmed or used for commercial forestry."

"The objective of the WHCMP is to preserve, enhance or improve the composition, structure or function of habitat for native wildlife species. The WHCMP supports the efforts of Oregon’s Conservation Strategy, whose primary focus is on improving and expanding voluntary conservation efforts. Tax incentive programs aimed at improving wildlife habitat are tools used to promote and support voluntary conservation actions taken by landowners."

1. "Develop a habitat plan 
   • The landowner, in conjunction with a cooperating agency must develop a wildlife habitat conservation and management plan that specifies the conservation and management practices that will be conducted to protect and restore native habitat and native wildlife species. Cooperating agencies include the Oregon Department of Fish and Wildlife, U.S. Fish and Wildlife Service, Natural Resource Conservation Service, Oregon State University extension service, soil and water conservation district, or qualified contractor. A site visit is usually required prior to drafting a plan. 
   • An example of a complete WHCMP plan can be found here: Sample WHCMP Plan. Please refer to the Landowner Guide for a complete list of information required in a habitat plan.
2. Submit plan for review 
• The landowner must submit the completed habitat plan to ODFW and to the county or city planning department for review. ODFW will notify the landowner in writing if there are recommended changes to the plan, the plan is approved, or if the plan is rejected.  If the plan is approved, ODFW will send a copy of the final approved plan to the local county or city planning department. 
3. Apply for wildlife habitat special assessment
   • To apply for wildlife habitat special assessment the landowner must submit the appropriate application to their local county assessor. Please contact your local city or county planning office for the application form.  Applications must be submitted by April 1 for the tax year for which special assessment is desired, for a habitat plan that was approved prior to January 1. 
   • The application for habitat special assessment must include a copy of the approved habitat plan, a copy of ODFW’s notification of the plan’s approval, and a copy of the certification of eligibility. 
4. Continue to implement the approved habitat plan 
   • Begin the habitat restoration and conservation activities as directed in the approved WHCMP plan.
   • Submit an Annual Status Report to your local ODFW district office.   
   • ODFW will periodically monitor the property to ensure compliance with the management plan. Non-compliance may result in disqualification from the program and the landowner may be liable for back taxes (ORS 308A.703). "

The WHCMP model is that the Oregon Department of Fish and Wildlife (ODFW) is a cooperative program involving state and local governments as well as other partners sponsored and enforced by ODFW.

Compared to the Designated Forestland Program which also requires a management plan the plan goes to ODFW and county and city planning departments for review.  The Designated Forestland Program goes directly to the county assessor for review and approval.  The Oregon Department of Forestry does not monitor the Designated Forestland Program.  That is a county assessor responsibility.

The two plans are different.  Or are they?  Both have mutual and inter-related conservation objectives.  The Designated Forestland program has a taxed revenue from commercial sale of the object of its conservation objective that the WHCP does not have.  The application for Designated Forestland requires the applicant to state that the purpose is to grow trees of a commercial species for sale.  To that extent that they both incentivize voluntary participation by private land owners for conservation purposes in return for tax reduction they are the same.

Tax on the sale of timber from private Designated Forestland is not due on the first 25,000 board feet of timber harvested.  How many board feet in a tree?  How many board feet are there in an acre of trees.  Well, it all depends!  A fully stocked acre with 50 year old ponerosa pine by contain 25,000 to 50,000 board feet per acre.

The key thing is in the estimated value based on board feet of the trees harvested on Designated Forestland.  The timing of harvest for estimated board feet minimum of 25,000 board feet of timber for tax payment is an economic decision.

It would seem to be true that if there is no possibility of trees grown on Designated Forestland to meet and exceed 25,000 board feet at time of harvest then there is no potential tax due to the county assessor.  Is the assessed value of Designated Forestland in Eastern Oregon of approx $74.00 per acre on the bare land that is required to be stocked with trees a tax incentive?

What is the nature of the Designated Forestland assessment?  Simply a tax incentive to grow trees for conservation as well as commercial sale with possible tax revenue to the county?

It would seem that like the Wildlife Habitat Tax Break it is not the county assessor that should approve and monitor compliance with  the Designated Forestland plan but the ODF.

In the absence of monitoring compliance with the plan by a responsible agency there will be abuse of the incentive.

The Deschutes County Resource Management Plan:
https://www.deschutes.org/sites/default/files/fileattachments/community_development/page/730/chapter_2_resource_management.pdf