Home Buying in 97045>Question Details

matp1989, Home Buyer in Oregon City, OR

What does it mean to purchase a farm or forest deferral property? We are looking for land to buy and build our dream home on in Clackamas Co., Oregon.

Asked by matp1989, Oregon City, OR Wed Aug 28, 2013

Most properties we are finding farm/forest deferral. Is that something that can be changed? Or is it fairly easy to handle and build on?

Help the community by answering this question:


It means the taxes are substancially less for now and the rest are are deffered until the timber is cut. Then you pay taxes on the sale of the timber. When you build on this type of property, 1 acre will be taxed as a home site (full tax rate) and the rest is timber deferred. For example I have 76 acres for sale. It is now $493 per year taxes (tbr deffered). When a home is built 75 acres will be TBR deffered and the taxes on the 1 acre homesite will have full tax rate on it.
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1 vote Thank Flag Link Mon Aug 18, 2014
In simple terms this means the property taxes have been reduced because the current owner and even past owners received income from products produced from the land. This could be wool, or beef, hay or any number of things. If you do not continue to produce the required income then the property loses that status and you can be responsible for the taxes that have been deferred depending on how the offer is written. The best thing you can do is find an agent in your area who has experience in selling properties that have acreage. You can also contact a real estate attorney and/or a tax attorney.
1 vote Thank Flag Link Wed Aug 28, 2013
It really depends on why your asking?

Yes farm deferral can save you alot in property taxes but it can also keep you from building on the property. Which is why you've probably posted this question.

If the acreage property has been re-zoned over the last 10 years by the state. Then their real strict about "lot of record dwellings" on the property.

I know of several pieces of vacant land that I've researched where they have been re-zoned for "exclusive farm use" and there can only be one lot of record dwelling on the property. You'll see this where the state is trying to protect the farmland from being built on. If you find some vacant land that had a home on it at one time then your at the counties mercy for being able to build on the property. If you can prove that there was a home on the property in the past then they will usually provide you a permit to build.

You just have to know what your looking for and I'm sure you'll be able to find an opportunity.
0 votes Thank Flag Link Mon Sep 2, 2013
Having recently sold a property that was eligible for tax deferred but it wasn't taken advantage, my buyer checked with the county to see what would be required to receive the deferment. Very little, it turns out, the property is in Clackamas county. If the seller of the property has received just $600 in revenue from the property over 3 years, this 7 acre property could qualify for deferral. The county examines applications and documentation in January so the seller of the place my buyer is purchasing would have to be willing to write a letter demonstrating the property meets the criteria or if the seller couldn't do that my buyer can establish this revenue stream over the next 3 years and get the deferral at the end of 3 years. The difference in property taxes is very substantial, several $1,000's of dollars in this case... Before discontinuing a farm or forest deferral I'd do my homework, if you can continue it with minimal effort the benefits can be big.

All the best!
Robin Weisgerber, Principal Broker
Premiere Property Group/Lake Oswego Office
0 votes Thank Flag Link Thu Aug 29, 2013
You don't necessarily want to change the farm/forest deferral status of a property as it can help save on property taxes. If the property is buildable, that deferral can sometimes be kept in place. Getting your questions answered by the county prior to purchase is key.

If you need assistance with the buying process and getting your questions answered, feel free to contact me. I'm in Clackamas County and familiar with OC and surrounding areas.

David Peck
Realtor - Oregon First
Phone: 503-516-2013

Multi-Million Dollar Producer
HUD & FACS Certified
0 votes Thank Flag Link Thu Aug 29, 2013
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