HB 3940 Overall Changes
- Imposes a tax on the distribution of oral nicotine products with money directed towards the Landscape Resiliency Fund and the Community Risk Reduction Fund
- Transfers General Fund interest to the Landscape Resiliency Fund, the Community Risk Reduction Fund, and the Oregon Rainy Day Fund
- Increases the Forest Products Harvest Tax
- Establishes the State Forestry Dept Large Wildfire Fund for wildfire mitigation and suppression
- Amends State forest protection district costs, sets new minimums, and for costs to be adjusted annually for inflation
- Modifies the Emergency Fire Cost Committee, including to number of members, representation, and term
- Makes changes related to the Oregon Forest Land Protection Fund
- Expands types of land classified as forestland in Rural Fire Protection Districts
- Authorizes the State Forestry Dept or the Dept of the State Fire Marshal to borrow from the State Treasurer to pay for wildfire suppression costs
- Dept of the State Fire Marshal to establish and implement a grant program called the Wildfire Prepared Structure Program to help with retrofitting of dwellings to protect against wildfire
Fire Protection Changes
Oregon law requires certain properties to pay for fire protection services, including wildfire prevention, suppression, and local fire response. House Bill 3940 (HB 3940), passed in 2025, changes how some of these charges are applied.
Fire Protection Charges That Affect Property Taxes
HB 3940 does not create new taxing districts. It changes how existing properties are assessed. Some properties are located within a forest protection district, managed by the Oregon Dept of Forestry. If your property is in one of these areas, you may see fire-related charges on your tax statement such as “Fire Patrol-Northwest,” or “Fire Patrol Surcharge.”
Some properties in a forest protection district are also in a rural fire district such as “Tualatin Valley Fire & Rescue” or “Scappoose Fire District.”
Fire protection charges are assessed as follows:
Rural Fire District (district rates)
- Funds local fire departments (structure fires, emergency response, etc.)
- Based on Assessed Value
- Shown under the General Government section
State Fire Patrol (special assessment)
- Funds wildfire protection for forestlands
- Based on acreage
- Current minimum charge is $20.80 (can be adjusted annually)
State Fire Patrol (surcharge)
- Applies to properties with structures
- Current minimum flat fee of $60.32 (can be adjusted annually)
Effective 2026-27 tax year - The changes below only apply to properties that are:
- Within a forest protection district;
- Already paying State fire patrol charges; AND
- Located within a rural fire district.
Changes include:
- Increased rural fire district taxes for improved properties
- Previously applied to structures and first 5 acres
- Now applies to structures and first 10 acres
- Increased rural fire district taxes for vacant land
- Vacant land 10 acres or less is now subject to rural fire district taxes
- Increased rural fire district taxes in city limits
- Previously applied to structures and first 5 acres on improved tax lots
- Now applies to structures and all acres on both vacant and improved tax lots
Because every property is different, the exact impact will vary.
Implementation
The Assessor’s Office was required to implement these changes starting in the 2026–2027 tax year. There may be additional accounts that need review, which may extend the project into the 2027-2028 tax year.
Contact Information
For background on House Bill 3940, please contact one of the following:
- Oregon Dept of Forestry at 503-945-7200 or the local ODF office
- Oregon Dept of the State Fire Marshal at 503-378-3473
For assessment and taxation questions, please contact:
- Multnomah County Special Programs at dart.special.programs@multco.us or 503‑988‑3278
Information Links
Oregon House Bill 3940 (2025) – Overview
Oregon House Bill 3940 (2025) – Enrolled Bill