HB 3489 would replace Oregon’s existing forest products harvest tax structure with a new severance tax on timber harvested from public or private forestland. The tax would be imposed on the owner of timber at harvest, calculated as a percentage of the timber’s pond value, with rates that vary based on the acreage held in common ownership. The bill also provides reduced rates for forestland certified by the Forest Stewardship Council and excludes the first 25,000 board feet harvested annually by a taxpayer from the tax base.
The measure would repeal the current forest products harvest taxes and eliminate the lot surcharge, while also abolishing the Emergency Fire Cost Committee and the Oregon Forest Land Protection Fund. In their place, it creates a Wildfire Management Fund and redirects revenue into a new distribution formula: 40 percent to wildfire management, 40 percent to county general funds, 10 percent to the State Forestry Department Account, 5 percent to forest research and education, and 5 percent to watershed conservation. It also revises multiple statutes governing timber harvest notification, tax administration, penalties, confidentiality, and fire-protection assessments in forest protection districts.
HB 3489 would significantly alter Oregon’s forestry tax and fire-protection financing laws. It amends or repeals numerous provisions in the Oregon Revised Statutes related to forest taxation, forestland assessment, timber harvest reporting, and collection enforcement, and it updates cross-references in transportation and land-use statutes that rely on the old forest products tax definitions. The bill is set to become operative on January 1, 2027, and it would transfer any remaining unspent money from the Oregon Forest Land Protection Fund into the new Wildfire Management Fund.
The bill’s overall sentiment appears to be policy-driven and reform-oriented, but the available record does not include committee testimony, amendments, or recorded votes to show direct support or opposition. Because it is a revenue-raising measure and is referred to the people for approval at the next general election, the proposal likely anticipates public scrutiny and debate over its tax burden and revenue distribution. The bill text itself suggests an emphasis on wildfire funding, forest management, and replacing older tax mechanisms with a new statewide system.
The main points of contention are likely to center on who pays and how much: the new severance tax applies at different rates depending on acreage, with higher rates for larger holdings, and it distinguishes between certified and non-certified forest management. Another likely issue is the redistribution of revenue away from the existing forest tax framework toward counties, wildfire suppression, research, and watershed programs. Timber owners, forestland operators, county governments, and wildfire/fiscal stakeholders are the most directly affected parties.
HB 3489 would overhaul Oregon’s forest taxation and fire-protection funding framework by repealing the existing forest products harvest taxes and replacing them with a new severance tax on harvested timber. It would amend a broad set of statutes in the tax, forestry, land-use, and transportation codes to align with the new tax structure, update enforcement and confidentiality provisions, and redirect revenue into a new Wildfire Management Fund and related accounts. It would also eliminate the Oregon Forest Land Protection Fund, the Emergency Fire Cost Committee, and the lot surcharge, while revising forest protection district assessment rules and related fire-cost provisions.
No committee transcripts or recorded votes are available in the provided material, so there is no direct legislative record of debate or formal support/opposition. Based on the bill text, the measure appears to be framed as a major forestry and wildfire-funding reform, with an emphasis on replacing older tax mechanisms and increasing dedicated wildfire resources. Because it is referred to the voters and raises revenue, the measure is likely to generate mixed reactions from timber interests, counties, and wildfire funding advocates.
The most likely areas of contention are the new severance tax rates, especially the higher rates for larger forestland holdings, and the bill’s shift from the existing harvest-tax system to a new revenue distribution model. Timber owners and forest industry stakeholders may object to the tax burden and the acreage-based brackets, while counties and wildfire agencies may focus on whether the new fund allocations adequately replace current funding streams. The bill’s treatment of Forest Stewardship Council certification, the repeal of the lot surcharge, and the elimination of long-standing forestry funding entities are also likely to be debated.