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OAR 150-358-0500

Determining Value of Historic Property Qualified for Special Assessment

## (1)

For purposes of this rule,### (a)

“Assessed Value” (AV) is defined in ORS 308.146 (Determination of maximum assessed value and assessed value).### (b)

“Maximum Assessed Value” (MAV) is defined in ORS 308.146 (Determination of maximum assessed value and assessed value) without application of ORS 308.146 (Determination of maximum assessed value and assessed value)(4).### (c)

“Changed Property Ratio” (CPR) is the ratio described in OAR 150-308-0170 (Establishing a Changed Property Ratio)### (d)

“Internal ratio” (IR) is the quotient of MAV/RMV for an individual property, as if the property is not specially assessed. The ratio cannot be more than 1.0.### (e)

“Maximum Specially Assessed Value” (MSAV) means maximum assessed value for property subject to special assessment.### (f)

“Real Market Value” (RMV) is defined in ORS 308.205 (Real market value defined)(1).## (2)

This rule applies to initial and second qualifying periods beginning on or after July 1, 2010, with application being made on or after September 28, 2009.## (3)

When a property is subject to historic property special assessment, the county assessor must:### (a)

Include a “Historic property — potential additional tax” notation on the tax roll.### (b)

Maintain the RMV and a MAV as if the property were not specially assessed. The RMV and MAV as if the property were not specially assessed must be adjusted to include any changes in value as addressed in ORS 308.146 (Determination of maximum assessed value and assessed value), 308.149 (Definitions for ORS 308.149 to 308.166), 308.153 (New property and new improvements to property), 308.156 (Subdivision or partition), and 308.159 (Lot line adjustments) (commonly referred to as exception value).### (c)

Calculate MSAV of the property annually while the property remains in the program.## (4)

Calculate first period values for SAV, MSAV and AV.### (a)

Step 1: Calculate the property’s SAV to be used throughout the entire first 10 year period of historic property special assessment.#### (A)

The SAV equals the AV of the property on the tax roll at the time the application is submitted pursuant to ORS 358.487 (Application for classification and special assessment as historic property).#### (B)

If the property is specially assessed or exempt in the tax year during which an application is made, SAV equals the RMV on the tax roll at the time the application is submitted pursuant to ORS 358.487 (Application for classification and special assessment as historic property) multiplied by the CPR for that tax year.### (b)

Step 2: Calculate MSAV for the first year of special assessment by multiplying the SAV by the IR. The MSAV is recalculated in the second and subsequent years and equals the greater of:#### (A)

The AV for the prior year multiplied by 103 percent;**or**

#### (B)

The MSAV for the prior year### (c)

Step 3: Calculate the AV, which is the lesser of the:#### (A)

SAV calculated in step 1;#### (B)

MSAV calculated in step 2;**or**

#### (C)

The RMV.### (a)

Step 1: Calculate the SAV. SAV = AV in the tax year the application is submitted = $302,380### (b)

Step 2: Calculate MSAV for first year of special assessment.#### (A)

2010-11 MAV = AV x 1.03, $302.380 x 1.03 = $311,451#### (B)

IR = MAV / RMV, $311,451 / $416,000 = 0.749#### (C)

MSAV = SAV * IR, $302,380 * 0.749 = $226,482### (c)

Step 3: Calculate the AV for the current year. It is the lesser of SAV ($302,380), MSAV ($226,482) or RMV ($416,000). AV = $226,482.### (a)

Step 1: Calculate MAV for 2010-11 pursuant to ORS 308.156 (Subdivision or partition) as a result of disqualification from exemption.#### (A)

MAV = RMV x CPR, $295,000 x 0.650 = $191,750### (b)

Step 2: Calculate SAV#### (A)

SAV = RMV x CPR from the tax year of application, $300,000 x 0.656 = $196,800### (c)

Step 3: Calculate MSAV for first year of special assessment#### (A)

MSAV = SAV x IR, $196,800 x ($191,750 / $295,000) = $127,920### (d)

Step 4: Calculate AV#### (A)

AV = lesser of SAV (step 2) or MSAV (step 3) or RMV. AV = $127,920.## (5)

Calculate Second period values for SAV, MSAV and AV.### (a)

Step 1: Calculate SAV for the first year of a second qualifying period.#### (A)

The SAV equals the RMV of the property for the assessment year in which the application is made.#### (B)

The SAV will remain constant throughout the second ten-year period of special assessment.### (b)

Step 2: Calculate the MSAV for the first year of the second qualifying period of special assessment by multiplying the SAV by the internal ratio. The MSAV is recalculated in the second and subsequent years and equals the greater of:#### (A)

The AV for the prior year multiplied by 103 percent;**or**

#### (B)

The MSAV for the prior year### (c)

Step 3: Calculate the AV, which is the lesser of the:#### (A)

SAV calculated in step 1;#### (B)

MSAV calculated in step 2;**or**

#### (C)

The RMV.### (a)

Step 1: Calculate SAV. SAV = RMV for assessment year in which application made. SAV = $825,000### (b)

Step 2: Calculate MSAV for the first year of special assessment. MSAV = SAV x IR, $825,000 x ($509,850 / $825,000) = $509,850### (c)

AV = lesser of SAV (step 1), MSAV (step 2), or RMV. AV = $509,850.## (6)

When a building that is certified for historic property special assessment is divided into condominium units:### (a)

The original account is deleted and each condominium becomes a new account.### (b)

Each new account is appraised to establish a new RMV and calculate a new MAV.### (c)

SAV and MSAV of the original account are apportioned between the new accounts but the total SAV and MSAV does not change as a result of the conversion to condominiums.### (d)

The initial sale of each condominium unit by the developer disqualifies that unit from special assessment.### (e)

Upon disqualification, the condominium unit is immediately requalified without further application for the remaining term of the original building’s current 10 year period of historic property special assessment.### (f)

Upon requalification, the SAV of the condominium unit equals its RMV for the tax year in which the sale of the unit occurred multiplied by the CPR for that tax year.### (g)

The MSAV for the condominium unit for the first year after initial sale are calculated as described in step 3, using the MAV and RMV of the unit to determine the IR.### (h)

The AV for the condominium unit for the first year after initial sale is calculated based on the lower of the SAV, MSAV, or RMV of the unit for that year.## (7)

This rule is effective January 1, 2016.
*Source:*
*Rule 150-358-0500 — Determining Value of Historic Property Qualified for Special Assessment*,` https://secure.sos.state.or.us/oard/view.action?ruleNumber=150-358-0500`

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