OAR 150-308-0520
Valuation of Nonprofit Homes for the Elderly

(1)

Comparable Facilities includes both nonprofit and for-profit facilities with similar:

(a)

Levels of care:

(A)

Retirement living only: no meals are included in the rent; similar to apartment or condominium living.

(B)

Retirement living: monthly rent can include meals; laundry; utilities; housekeeping; and, assistance with daily living activities.

(C)

Retirement living: includes all of (B), and nursing services.

(b)

Age, quality, and building condition.

(c)

Functional considerations: For example; ADA requirements; room mix; and, size.

(d)

Locational considerations.

(2)

Qualified Operating Gross Income is income that meets the 95 percent test outlined in ORS 307.375 (Type of corporation to which exemption under ORS 307.370 applicable), and tenant rent is competitive with other comparable facilities. If the tenant rent is not at market rent, then stabilized market rent is to be used. Periodic donations made solely to keep the facility solvent are excluded from the 95 percent test.

(3)

Qualified Operating Gross Income includes the income generated from the following sources:

(a)

Meals;

(b)

Amortized entrance fees. The present worth of amortized entrance fees is based on both life expectancy and level of care provided according to GAAP. The interest rate is the same as calculated in (6).

(c)

Monthly tenant rent;

(d)

Pharmacy fees;

(e)

Nursing fees;

(f)

Income or fees received for space rent from vendors who provide social services, such as a bank, beauty parlor, gift shop, or post office.

(g)

Recreational facility income from the publics participation and use of the facility.

(h)

Service income from rented storage space, laundry machines, concessions, etc.

(4)

Investment Income earnings from invested entry fees or other invested revenues is specifically excluded from the Qualified Operating Gross Income calculation ORS 307.375 (Type of corporation to which exemption under ORS 307.370 applicable)(2).

(5)

For the purpose of determining net operating income, income and expenses must be adjusted to typical market levels for comparable facilities. If actual expenses are at typical market levels for comparable facilities, they may be used to calculate the net operating income. Expenses may include, but are not limited to, the following:

(a)

Real Estate Taxes. If real estate taxes are a line item expense, they may not be included in the overall rate.

(b)

Repairs and Maintenance. Charges may not include accounted for replacement reserves.

(c)

Real Estate Insurance;

(d)

Landscaping Maintenance;

(e)

Replacement Reserve is based on current replacement costs. Items in this category are short lived and may include built-in appliances, carpeting, roofing, heating, air conditioning, elevator machinery, plumbing fixtures, and electrical fixtures. Reserves to replace personal property may be included in this category;

(f)

Payroll;

(g)

Management not included in payroll;

(h)

Food;

(i)

Supplies;

(j)

Phones;

(k)

Utilities such as gas, electricity, water, sewer, garbage;

(l)

Housekeeping not included in payroll;

(m)

Advertising. Does not include start-up costs;

(n)

Publication and membership dues;

(o)

Purchased Services other than those accounted for in listed categories;

(p)

Nursing Services not included in payroll;

(q)

Liability Insurance;

(r)

Security;

(s)

Other miscellaneous operating costs.

(6)

Overall Rate. The appropriate overall rate is selected from the analysis of sales of comparable for-profit facilities. The overall rate includes the appropriate tax component.

(7)

Additional Depreciation. Additional depreciation shall be calculated using age life tables and current cost information from commercial cost publications for the type and quality of structure being appraised. The amount of additional annual depreciation will be capitalized using the rate calculated in (6). This amount is deducted from the estimated real market value.

(8)

Personal Property. The current assessed value of personal property is deducted from the estimated value. If there is no personal property account for the facility being appraised, no deduction shall be made.

Source: Rule 150-308-0520 — Valuation of Nonprofit Homes for the Elderly, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=150-308-0520.

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 150-308-0520’s source at or​.us