severance tax

Let’s stop playing games here and go back to what we used to have in the ’90s, which was a real severance tax.

While the severance tax was eliminated for all but small landowners in 1999, timber companies continued to pay a harvest tax on the volume of trees they logged.

Gross said he did not forecast any significant financial effect on the companies if lawmakers reinstated a severance tax of 5%, which would be assessed based on the value of trees at the time they’re cut down.

A severance tax would reduce Oregon’s competitiveness with other timber-producing regions and “on the margin lead to less production,” Goodnow said, particularly if the market for lumber weakens.

For decades, private timber owners in Oregon paid a severance tax.

“He tried to do a severance tax on the energy industry,” said Zawistowski.