OAR 150-308-0240
Real Property Valuation for Tax Purposes


(1) For purposes of this rule, these words and phrases have the following meanings:
(a) “Unit of property” means the item, structure, plant, or integrated complex as it physically exists on the assessment date.
(b) “Real property” means the real estate (physical land and appurtenances, including structures, and machinery and equipment, that comprise an integral part of the property or manufacturing operation) and all interests, benefits, and rights inherent in the ownership of the physical real estate.
(c) “Rural lands” means those lands with property classification 400, 401, 500, 501, 600, 601, 800, and 801 as defined by OAR 150-308-0310 (Real Market Value and Property Classification as Part of Assessment Roll). They are distinguished from platted land as acreages in varying sizes and are either improved or unimproved.
(d) “Utility” means the quality or property of being useful, which may either add to or subtract from real market value.
(e) “Highest and best use” means the reasonably probable use of vacant land or an improved property that is legally permissible, physically possible, financially feasible, and maximally productive, which results in the highest real market value.
(f) “Just compensation to the owner” means the amount of compensation for a property that an owner would expect for the taking through condemnation of their property. Just compensation is the real market value of the property at its highest and best use.
(2) Methods and Procedures for Determining Real Market Value:
(a) For the valuation of real property all three approaches, sales comparison approach, cost approach, and income approach, must be considered. For a particular property, it may be that not all three approaches are applicable. However, each approach must be investigated for its merit in each appraisal.
(b) The real market value of a unit of property may not be determined from the market price of its component parts, such as wood, glass, concrete, furnaces, elevators, etc., each priced separately as an item of property, without regard to its being integrated into the total unit.
(c) In utilizing the sales comparison approach, only actual market transactions of property comparable to the subject, or adjusted to be comparable, may be used. All transactions utilized in the sales comparison approach must be verified to ensure they reflect arms-length market transactions. When non-typical market conditions of sale are involved in a transaction (duress, death, foreclosures, interrelated corporations or persons, etc.), the transaction may not be used in the sales comparison approach unless market-based adjustments can be made for the non-typical market condition.
(d) If there are no market transactions of property comparable to the subject, then it is still appropriate to use market value indications derived by the cost and income approaches.
(e) Sales on the basis of disposal at salvage or scrap levels are indicators of market value only when on the assessment date such disposal of the subject property is imminent, or has actually taken place.
(f) The cost approach must use the reproduction, replacement or used equipment technique. However, original historical cost may be used when appraising property under ORS 308.505 (Definitions for ORS 308.505 to 308.674) to 308.730. The value estimate must include all costs required to assemble and construct the unit of property.
(g) The income to be used in the income approach must be the economic rent that the property would most probably command in the open market as indicated by current rents being paid, and asked, for comparable space. Income from the operation of the property may be utilized for property types, such as industrial plants, that are not typically leased or rented.
(h) The real market value for rural lands is based on an average price per acre for each size of parcel. Adjustments to the value must be made to those acres with more or less utility. For improved parcels, the value of the site developments as defined by OAR 150-307-0010 (Real Property) must be added.
(i) Determining highest and best use for the unit of property is necessary for establishing real market value. This determination of highest and best use may include, among others, all possible uses that might result from retaining, altering, or ceasing the integrated nature of the unit of property.
(3) Valuation of Special Purpose Property:
(a) Special purpose property is property specially designed, equipped, and used for a specific operation or use. This may occur because the special purpose property is part of a larger total operation or because of the specific nature of the operation or use.
(b) Some, but not all, special purpose property may be designed without concern for marketability.
(c) Market sales data for the property at its highest and best use may not exist for a special purpose property, which is what is meant by the phrase “no immediate market value” in ORS 308.205 (Real market value defined)(2)(c). Where there is no immediate market value, real market value is determined by estimating just compensation for loss to the owner of the unit of property through either the cost or income approaches, whichever is applicable, or a combination of both.
(4) Real market value for all personal property must be determined as of the date of assessment and must take into account the location and place in the level of trade of items of property in the hands of manufacturers, producers, wholesalers, distributors, retailers, users, and others.

Source: Rule 150-308-0240 — Real Property Valuation for Tax Purposes, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=150-308-0240.

150‑308‑0010
Continuing Education Requirements for Registered Appraisers, Waiver of those Requirements, and Revocation of Registrations
150‑308‑0020
Revocation of Appraiser Registration
150‑308‑0030
Appraiser Trainee Program
150‑308‑0040
Standards for Imposition, Waiver, and Reduction of Penalty on Utilities and Designated Companies Assessed by the Department. Imposition of Penalty for Failure to File a Timely or Complete Return
150‑308‑0050
Continuing Education Requirements for Assessors
150‑308‑0060
Continuing Education Requirement for Appraisal Managers in County Assessment Offices
150‑308‑0070
Qualifications of Managerial Employees of the Assessor’s Office
150‑308‑0080
Taxable Personal Property Whose Temporary Situs Is in the State of Oregon
150‑308‑0090
Billboards as Real Property
150‑308‑0100
Determining Maximum Assessed Value when the Property Class is Changed
150‑308‑0110
Reduction of Maximum Assessed Value (MAV) for Property Destroyed or Damaged by Fire or Act of God
150‑308‑0120
Reduction of Maximum Assessed Value (MAV) When a Building is Demolished or Removed
150‑308‑0130
Definitions
150‑308‑0140
Computation of Changed Property Ratio for Centrally Assessed Property
150‑308‑0150
Net Capitalized Additions
150‑308‑0160
Minor Construction
150‑308‑0170
Establishing a Changed Property Ratio
150‑308‑0180
Definition of Affected
150‑308‑0190
Subdivided and Partitioned Property MAV
150‑308‑0200
Rezoned Property — Calculating Maximum Assessed Value (MAV)
150‑308‑0210
Omitted Property—Allocating Maximum Assessed Value (MAV)
150‑308‑0220
Exemption, Partial Exemption or Special Assessment Disqualification — Allocating MAV
150‑308‑0230
Calculation of Maximum Assessed Value (MAV) for Lot Line Adjustments
150‑308‑0240
Real Property Valuation for Tax Purposes
150‑308‑0245
Partial Exemptions and Special Assessments of Land
150‑308‑0250
Derivation of Capital Structure and Discount Rates for Valuing Industrial Properties and Department-Assessed Properties
150‑308‑0260
Industrial Property Valuation for Tax Purposes
150‑308‑0270
Valuation of Contaminated Property
150‑308‑0280
Measuring Functional Obsolescence in Industrial Property
150‑308‑0290
Effective Tax Rate
150‑308‑0300
Valuation Review of State-appraised Industrial Property.
150‑308‑0310
Real Market Value and Property Classification as Part of Assessment Roll
150‑308‑0320
Property With Multiple Leases Assessed as One Parcel
150‑308‑0330
Contents of Assessment Roll for Condominiums
150‑308‑0340
Printout or Microfiche Required When Assessment and Tax Rolls do not Constitute a Written Record
150‑308‑0350
Filing Requirements for Certain Delayed Annexations by Cities
150‑308‑0355
Filing Requirements for Boundary Changes
150‑308‑0360
Appraisals of Real Property by Registered Appraisers
150‑308‑0370
Determining Taxable Value for Assessment Charges on Property Exempt from Taxation
150‑308‑0380
Appraisal of Real Property
150‑308‑0390
Agricultural Land Devoted to Agricultural Purposes
150‑308‑0400
Stipulation Procedures
150‑308‑0410
Cancellation of Personal Property Assessments
150‑308‑0420
Exemption of Watercraft Undergoing Repairs
150‑308‑0430
Valuation of New Construction
150‑308‑0440
Confidentiality — Returns of Taxable Property
150‑308‑0450
Industrial Property Returns — Incomplete Returns and Late Filing Penalties
150‑308‑0470
County Contractors Having Access to Confidential Records
150‑308‑0480
Confidentiality of Property Tax Information for Centrally Assessed Companies
150‑308‑0490
Appraisal and Valuation of Industrial Plants
150‑308‑0500
Confidentiality of Industrial Plant Information
150‑308‑0510
Definition of Destroyed or Damaged
150‑308‑0520
Valuation of Nonprofit Homes for the Elderly
150‑308‑0530
Defining “Communication Services”
150‑308‑0540
Assessment of Properties of Designated Utilities and Companies by Department of Revenue
150‑308‑0550
Property Used for Guide Service
150‑308‑0560
Confidentiality of Appraisals of Designated Utilities and Companies by Department of Revenue
150‑308‑0570
Computation of Changed Property Ratio for Centrally Assessed Property
150‑308‑0580
Allocation of Mobile Aircraft Property Value
150‑308‑0585
Procedure for Determining Oregon Property Value for Private Railroad Car Companies
150‑308‑0590
Allocation of Centrally Assessed Electric Company Property Value
150‑308‑0595
Allocation of Centrally Assessed Gas Distribution Company Property Value
150‑308‑0600
Allocation of Centrally Assessed Pipeline Company Property Value
150‑308‑0605
Allocation of Centrally Assessed Railroad Company Property Value
150‑308‑0610
Allocation of Centrally Assessed Communication Company Property Value
150‑308‑0615
Allocation of Centrally Assessed Water Transportation Company Property Value
150‑308‑0660
Unit Valuation of Centrally Assessed Properties
150‑308‑0670
Contents of the Utility Assessment Roll
150‑308‑0680
Contents of Department’s Journal
150‑308‑0690
Centrally Assessed Property — Appraisal Guidelines
150‑308‑0695
Removal of Certain Elected Exempt Property from Correlated System Real Market Value of Centrally Assessed Property
150‑308‑0700
Qualification of Property for Special Assessment as Government Restricted Multiunit Rental Housing
150‑308‑0710
Application and Election Process for Government Restricted Multiunit Rental Housing
150‑308‑0720
Special Assessment of Government Restricted Multiunit Rental Housing Property
150‑308‑0730
Special Assessment Disqualification Process
150‑308‑0740
Process for Voluntary Disqualification from Special Assessment Program and Subsequent Application
150‑308‑0750
Payment of Taxes on Manufactured Structure That Allows Change from Real Property to Personal Property Status
150‑308‑0760
Manufactured Structure Classified as Real or Personal Property
150‑308‑0770
Real and Personal Manufactured Dwellings to be Assessed in Like Manner
150‑308‑1010
Farm Use Definitions, Inactivity Due to Illness, and Description of Lands in Non-Exclusive Farm Use
150‑308‑1020
Disposal by donation to a local food bank or school
150‑308‑1030
Assessment of Farmlands Within Exclusive Farm Use (EFU) Zones
150‑308‑1040
Assessment of Farmlands Outside of Exclusive Farm Use (EFU) Zones
150‑308‑1050
Gross Income Requirement
150‑308‑1060
Wasteland
150‑308‑1070
Acquired Land as Part of Farming Unit
150‑308‑1080
Valuation of Certain Agricultural Land to Reflect Value for Farm Use Only
150‑308‑1090
Calculation of MSAV When SAV Soil Classification is Changed
150‑308‑1100
Disqualification of Exclusive Farm Use Farmland
150‑308‑1110
Disqualification of Non-Exclusive Farm Use (Non-EFU) Farmland
150‑308‑1120
Definition of Specially Assessed Homesites
150‑308‑1130
Application for Specially Assessed Homesite
150‑308‑1140
Qualified Specially Assessed Homesite Valuation
150‑308‑1150
Ratio Calculation for Open Space Lands
150‑308‑1500
Additional Tax Calculation and When to Impose Additional Tax
150‑308‑1510
No Additional Tax
150‑308‑1520
Deferred Additional Tax (ORS 308A.706)
150‑308‑1530
Disqualification Notification Procedures
Last Updated

Jun. 8, 2021

Rule 150-308-0240’s source at or​.us