Trending and Indexing an Adjudicated Value
(1)“Adjudicated value” means a real market value that has been corrected by a final order of the Department of Revenue, the board of property tax appeals, the tax court or other court, and is adjusted only as allowed under ORS 309.115 (Term of order correcting real market value) for the subsequent five tax years.
(2)A single trend or index applied to all properties of a certain class in a market area shall be applied in the same manner to adjudicated values in the same property class and market area. For purposes of this rule, a market area may be identified to exist within a county or include properties in multiple counties. This section applies, but is not limited, to ratio studies conducted under ORS 309.200 (Assessor to collect sales data and prepare ratio study) and economic studies conducted for industrial properties appraised by the Department of Revenue under 306.126 (Appraisal of industrial property by department).
(3)Assessors may develop valuation models to determine the real market value of property in the same property class and in the same defined market area that rely on applying trending, indexing, and depreciation factors to multiple, identifiable property characteristics on file.
(4)The assessor shall apply the same adjustments to adjudicated values as those applied to values of other properties in the same property class in the same defined market area where valuation modeling for multiple property characteristics is used to calculate real market value.
(5)The adjudicated value in section (4) must be calculated using the method in either subsection (a) or (b) of this section. The methods in subsections (a) and (b) in this section are mathematically equivalent, although differences due to rounding may occur. Such differences are de minimus.
(a)Adjust the prior year’s adjudicated value proportionately to the change in value produced by the valuation model.
(A)Calculate the ratio of the real market value produced by the valuation model in the current year to the real market value produced by the valuation model in the prior year.
(B)Apply the ratio in paragraph (A) to the prior year’s adjudicated value.
(b)Adjust the real market value produced by the valuation model for the current year proportionately to the correction ordered in the first year of adjudication.
(A)Calculate the ratio of the adjudicated value to the real market value produced by the valuation model in the first year of adjudication,
(B)Apply the ratio to the real market value produced by the valuation model for the current year.
(6)Notwithstanding section (5), if the adjudicated value is the result of correcting a specific error in the description of property characteristics used in the valuation model, the real market value produced by the valuation model for the corrected property characteristics is the adjudicated value for the subsequent five years.
Rule 150-309-0210 — Trending and Indexing an Adjudicated Value,