Assessment of Property for Taxation

ORS 308.146
Determination of maximum assessed value and assessed value

  • reduction in maximum assessed value following property destruction
  • effect of conservation or highway scenic preservation easement

(1)

The maximum assessed value of property equals 103 percent of the property’s assessed value from the prior year or 100 percent of the property’s maximum assessed value from the prior year, whichever is greater.

(2)

Except as provided in subsections (3) and (4) of this section, the assessed value of property to which this section applies equals the lesser of:

(a)

The property’s maximum assessed value; or

(b)

The property’s real market value.

(3)

Notwithstanding subsections (1) and (2) of this section, the maximum assessed value and assessed value of property must be determined as provided in ORS 308.149 (Definitions for ORS 308.149 to 308.166) to 308.166 (Ordering provisions when property is subject to multiple special determinations of value) if:

(a)

The property is new property or new improvements to property;

(b)

The property is partitioned or subdivided;

(c)

The property is rezoned and used consistently with the rezoning;

(d)

The property is first taken into account as omitted property;

(e)

The property becomes disqualified from exemption, partial exemption or special assessment; or

(f)

A lot line adjustment is made with respect to the property, except that the total assessed value of all property affected by a lot line adjustment may not exceed the total maximum assessed value of the affected property under subsection (1) of this section.

(4)

Notwithstanding subsections (1) and (2) of this section, if property is subject to partial exemption or special assessment, the property’s maximum assessed value and assessed value must be determined as provided under the provisions of law governing the partial exemption or special assessment.

(5)

(a) Notwithstanding subsection (1) of this section, when a portion of property is destroyed or damaged due to fire or act of God, for the year in which the destruction or damage is reflected by a reduction in real market value, the maximum assessed value of the property must be reduced to reflect the loss from fire or act of God.

(b)

This subsection does not apply:

(A)

To any property that is assessed under ORS 308.505 (Definitions for ORS 308.505 to 308.674) to 308.674 (Exemption equal to difference between real market value of company’s centrally assessable property and 130 percent of cost of company’s centrally assessable real and tangible personal property).

(B)

If the damaged or destroyed property is property that, when added to the assessment and tax roll, constituted minor construction for which no adjustment to maximum assessed value was made.

(c)

As used in this subsection, “minor construction” has the meaning given that term in ORS 308.149 (Definitions for ORS 308.149 to 308.166).

(6)

(a) If, during the period beginning on January 1 and ending on July 1 of an assessment year, any real or personal property is destroyed or damaged, the owner or purchaser under a recorded instrument of sale in the case of real property, or the person assessed, person in possession or owner in the case of personal property, may apply to the county assessor to have the real market value and assessed value of the property determined as of July 1 of the current assessment year.

(b)

The person described in paragraph (a) of this subsection must file the application for assessment under this section with the county assessor on or before the later of:

(A)

August 1 of the current year; or

(B)

The 60th day following the date on which the property was damaged or destroyed.

(c)

Notwithstanding paragraph (b) of this subsection, an application may be filed under this subsection on or before December 31 of the current assessment year, if the application is accompanied by a late filing fee of the greater of $200 or one-tenth of one percent of the real market value as of the most recent assessment date of the property to which the application relates. The county assessor shall deposit a late filing fee collected under this paragraph in the county general fund.

(d)

If the conditions described in this subsection are applicable to the property, then notwithstanding ORS 308.210 (Assessing property), the property must be assessed as of July 1, at 1:00 a.m. of the assessment year, in the manner otherwise provided by law.

(7)

(a) Paragraph (b) of this subsection applies if:

(A)

A conservation easement or highway scenic preservation easement is in effect on the assessment date;

(B)

The tax year is the first tax year in which the conservation easement or highway scenic preservation easement is taken into account in determining the property’s assessed value; and

(C)

A report has been issued by the county assessor under ORS 271.729 (Report on effect of conservation or highway scenic preservation easement on property value) within 12 months preceding or following the date the easement was recorded.

(b)

The assessed value of the property must be as determined in the report issued under ORS 271.729 (Report on effect of conservation or highway scenic preservation easement on property value), but may be further adjusted by changes in value as a result of any of the factors described in ORS 309.115 (Term of order correcting real market value) (2), to the extent adjustments do not cause the assessed value of the property to exceed the property’s maximum assessed value.

(8)

(a) Notwithstanding subsection (1) of this section, when a building is demolished or removed from property, for the year in which the demolition or removal of the building is reflected by a reduction in real market value, the maximum assessed value of the property may be reduced to reflect the demolition or removal of the building.

(b)

This subsection does not apply:

(A)

To any property that is assessed under ORS 308.505 (Definitions for ORS 308.505 to 308.674) to 308.674 (Exemption equal to difference between real market value of company’s centrally assessable property and 130 percent of cost of company’s centrally assessable real and tangible personal property).

(B)

If the demolished or removed property is property that, when added to the assessment and tax roll, constituted minor construction for which no adjustment to maximum assessed value was made.

(c)

To receive the reduction in maximum assessed value of the property under this subsection, the property owner must file an application with the county assessor after the demolition or removal and on or before December 31 following the assessment date if the demolition or removal occurred:

(A)

Before the January 1 assessment date; or

(B)

During the period beginning January 1 and ending on the July 1 assessment date if the property owner has applied to have the real market value and assessed value of the property determined under subsection (6) of this section.

(d)

As used in this subsection:

(A)

“Minor construction” has the meaning given that term in ORS 308.149 (Definitions for ORS 308.149 to 308.166).

(B)

“Property owner” means an owner or purchaser under a recorded instrument of sale in the case of real property, or the person assessed, person in possession or owner in the case of personal property. [1997 c.541 §6; 1999 c.1003 §1; 2001 c.925 §12; 2003 c.46 §15; 2003 c.169 §7; 2007 c.450 §1; 2007 c.516 §1; 2009 c.443 §1; 2015 c.92 §1; 2015 c.480 §1]

Notes of Decisions

To determine assessed value of property, lesser of maximum assessed value or real market value for land must be added to lesser of assessed value or real market value for improvements. Taylor v. Clackamas County Assessor, 14 OTR 581 (1999)

To be added as new improvements or new property to tax roll for current assessment year, improvements made by taxpayer must have come into existence during assessment year immediately preceding current assessment year. Douglas County Assessor v. Crawford, 21 OTR 6 (2012)

Chapter 308

Notes of Decisions

Programs administered by Department of Revenue that allow preferential assessment for farm and forestland are not "programs affecting land use" and are not subject to requirement of statewide goal and local comprehensive plan compliance under ORS 197.180. Springer v. LCDC, 111 Or App 262, 826 P2d 54 (1992), Sup Ct review denied

Atty. Gen. Opinions

Application of Article XI, section 11b of Oregon Constitution to this chapter, (1990) Vol 46, p 388

Law Review Citations

5 EL 516 (1975)

Source

Last accessed
Jun. 26, 2021

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