Appraisal of Real Property
(1)Industrial property. In the case of industrial properties, appraisals must conform with the following conditions:
(a)Basic data and supplemental data for an appraisal must be the same as required in ORS 308.290 (Returns) and 308.411 (Appraisal and real market valuation of industrial plants). Valid data in any previous appraisal such as property descriptions, inventory listing, maps, etc., may be used in the appraisal.
(b)An appraisal as provided by the industrial property return process is not an appraisal contemplated under ORS 308.234 (Record of last appraisal).
(c)A valuation review as provided in OAR 150-308-0300 (Valuation Review of State-appraised Industrial Property.) is an appraisal as contemplated under ORS 308.234 (Record of last appraisal), if the valuation review meets the requirements of 308.411 (Appraisal and real market valuation of industrial plants).
(d)Nothing in this rule is intended to invalidate any assessment that appears on the assessment roll.
(2)All other real property. Real property must be valued at its real market value (RMV) using methods approved by the department and the results must meet the performance standards required by this rule.
(a)The following definitions apply for the purposes of this rule:
(A)“Coefficient of dispersion” (COD) is the average absolute deviation of a group of numbers from the median expressed as a percentage of the median. In ratio studies, it refers to the average absolute deviation from the median ratio, expressed as a percent of the median ratio.
(B)“Homogeneous” describes a market area where the properties have a high degree of similarity in one or more of the following: type, use, quality, or condition.
(C)“Market area” is defined as a group of properties that share important characteristics affecting their value. It may be defined along physical/geographical or abstract boundaries or, as in the case of commercial property, according to use. Properties included in a market area do not have to be contiguous.
(D)“Nonhomogeneous” means market areas that do not meet the definition of “homogeneous.”
(b)ORS 308.232 (Property to be valued at 100 percent real market value and assessed at assessed value) requires that all real property be valued at 100 percent of its RMV. Achieving and maintaining RMV is measured by the ratio study. Ratios must be computed for each market area, where possible. In market areas where the amount of sales data is insufficient for statistical analysis, one or more of the following actions should be taken to provide adequate data:
(A)A two-year sales sample may be used;
(B)Comparable market areas may be combined; or
(C)Appraisal ratio data may be included.
(c)Criteria for results-based valuation standards:
(A)RMV at 100 percent.
(B)COD standards for measuring equity of RMV: [Formula not included. See ED. NOTE.]
(C)Exceptions to COD standards. When a market area does not meet the standards because of a market anomaly, the correction may be delayed until the following year, waived, or have alternate standards applied, as approved by the Department of Revenue.
(d)The department will determine compliance with standards of this rule by annual reviews of the results determined by the county.
(A)If compliance deficiencies are found, the department must make written notification to the assessor of the deficiencies and identify appropriate corrective action. Within 30 days of notification of the deficiencies, the assessor must respond in writing to the department as to the action to be taken to correct the identified deficiencies.
(B)In the event an assessor’s program has been found to be deficient and the assessor does not take action to correct the deficiencies as outlined in the department’s written notification, the department will take action as required by ORS 308.062 (Action by department when appraisals not being conducted as provided by law).
Rule 150-308-0380 — Appraisal of Real Property,