OAR 150-308-1050
Gross Income Requirement

(1)

Income From Consumed Products. For purposes of the income requirement for farmland or a farm parcel outside an exclusive farm use zone, gross income includes the value of any crop or livestock used by the owner personally or in the farming operation. The owner must keep records accurately reflecting both the value and the use of the crop or livestock in a manner consistent with generally accepted accounting practices. The value of any crop or livestock used by the owner personally or in the farming operation is the amount of money the product would have been sold for in the normal marketing of the crop or livestock by the taxpayer. However, the value of products consumed, by the owner personally or in the farming operation, must constitute no more than 49 percent of gross income as required under ORS 308A.071 (Income requirements for nonexclusive farm use zone farmland).

(2)

Adjusted Gross Income From Livestock. In determining gross income from livestock, the purchase cost must be deducted from the gross sales price.

(3)

Burden of Proving Income. The burden of proving that property that is not within an exclusive farm use zone meets the gross income requirements of ORS 308A.071 (Income requirements for nonexclusive farm use zone farmland) is upon the owner or person claiming special assessment. This burden l is met if information establishing sufficient gross income is supplied to the county assessor as provided below. A failure to provide the required income information to the county assessor constitutes grounds for disqualification under 308A.116 (Disqualification of nonexclusive farm use zone farmland)(1)(c).

(4)

Income Information. The following procedures apply if the assessor lacks sufficient information on March 1 to support a determination that land not in an EFU zone qualifies for special farm use assessment.

(a)

On or before March 1, the assessor must send notice to the owner or person claiming special assessment of the need to provide income information for property subject to special assessment. The assessor must include an income information questionnaire with the notice. The property owner must use the questionnaire to provide income information to the county assessor. The property owner must provide the income information to the county assessor no later than April 15.

(b)

The assessor must send the notice and the questionnaire to the last known address of record of the owner or person claiming special assessment for the subject property. The notice and questionnaire must be in a form approved by the Department of Revenue.

(c)

If the information provided to the county assessor is sufficient to determine whether or not the subject property is qualified for special assessment, the assessor must take the appropriate action.

(d)

If the information provided to the county assessor is insufficient to make a determination as to the qualification of the subject property for special assessment, or if no information is provided, the assessor must send a notice to the last known address of record for the owner or person claiming special assessment. The notice must be in a form approved by the Department of Revenue and must include:

(A)

A statement of the assessor’s intent to disqualify the subject property; and

(B)

A statement that within 30 days after the date of the mailing of the notice, the owner or person claiming special assessment may appear and show cause why the property should not be disqualified.

(e)

In determining whether the subject property qualifies for special assessment, the assessor must take into consideration information obtained through the income information questionnaire, the show cause hearing and the county assessor’s records.

(f)

If property is disqualified from special assessment solely because no income information was provided by April 15, or within the 30 days of assessor’s notice of intent to disqualify, the property owner may file an appeal with the Magistrate Division of the Tax Court.

(A)

“Good and sufficient cause” has the meaning given in OAR 150-307-0500 (Hardship Situations). The failure of the county assessor to provide the notice required in subsection (a) of this rule on or before March 1 constitutes good and sufficient cause for the owner’s failure to provide timely income information.

(B)

The procedural requirements contained in this rule are in addition to the requirements of ORS 308A.718 (Assessor to send notice upon disqualification or forestland change in use).

(C)

Nothing contained in this rule alters the right of a person claiming special assessment to deferral and abatement of additional tax, pursuant to ORS 308A.119 (Abatement).

(D)

Nothing contained in this rule precludes the assessor from continuing special assessment on farmland if the assessor determines that the property meets the qualifications.

(5)

The assessor may send a copy of the income information received by the assessor under subsection (3) of this rule to the Department of Revenue.

(6)

Examples: Satisfying income requirements:

(a)

A ten acre parcel in an area not zoned EFU has never been used for farm purposes. For this parcel to qualify for special farm use assessment, the owner must develop an income history from farm uses of the parcel. The parcel will meet the income requirements of ORS 308A.071 (Income requirements for nonexclusive farm use zone farmland)(2)(a) if it produces at least $1,000 gross income in each of the last three consecutive years or in any three of the last five consecutive years.

(b)

A ten acre parcel was segregated from a larger farm one year ago. The land was not farmed during the year following segregation. In order to qualify for farm use assessment, the parcel must be farmed for two successive years (ORS 308A.068 (Qualification of nonexclusive farm use zone farmland)(1)) and meet the income requirement of at least $1,000 in one of the two years (assuming the large farm met the income requirement before the ten acre parcel was segregated).

(c)

A four acre parcel in an area not zoned EFU has been farmed continually. The income has never exceeded $300. In order to qualify for special farm use assessment, the parcel must produce at least $650 in gross income per year for any three years during any consecutive five year period.

(d)

A twenty two acre parcel in an area not zoned EFU includes a ten acre farm woodlot, four and one-half acres of three year old cherry trees, five acres of pasture, two acres of wasteland and a one-half acre non-farm homesite. The five acres of pasture must have produced at least $650 gross income in one of the last three years (assuming the property met the income requirement in the two years preceding the planting of the cherry trees) to remain qualified for special assessment. The one-half acre non-farm homesite (at market), the immature cherry orchard (see ORS 308A.056 (Definition of “farm use”)(3)(c)), the farm woodlot (see 308A.056 (Definition of “farm use”)(3)(h), and the wasteland (see 308A.074 (Wasteland qualifications))) are not counted in determining the number of acres to be considered under 308A.071 (Income requirements for nonexclusive farm use zone farmland)(2)(a). The wasteland in a non-EFU zone does not qualify because it is not currently employed under 308A.056 (Definition of “farm use”)(3), and should not be in the calculation for the income test.
NOTE: In order for the two acres of wasteland to be assessed at its farm use value under ORS 308A.074 (Wasteland qualifications), and the homesite to be valued under ORS 308A.256 (Maximum assessed value and assessed value of homesites), the owners must meet an adjusted gross income test and file an annual application.

(7)

The farmland owner or the operator of the farm unit must file the required excise or income tax returns including a Schedule F or a schedule showing rental income or expenses of each farmland owner or the operator of the farm unit.

(a)

The assessor may require the farmland owner or farm unit operator provide a copy of the income tax returns and schedules showing farm income. Failure to provide required income information including copies of the required tax returns and schedules is grounds for disqualification.

(b)

Copies of income tax returns and schedules of farm income are confidential and must be safeguarded in accordance with OAR 150-192-0500 (Department Records Exempt from Disclosure).

Source: Rule 150-308-1050 — Gross Income Requirement, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=150-308-1050.

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. 24, 2021

Rule 150-308-1050’s source at or​.us