Assessment of Property for Taxation

ORS 308.490
Determining value of homes for elderly persons


(1)

The Legislative Assembly finds that ordinary methods of determining the assessed value of real property, particularly by consideration of the cost of replacing a structure with a similar and comparable one of equivalent utility, are not appropriate with respect to property of nonprofit homes for elderly persons, operated by corporations described in ORS 307.375 (Type of corporation to which exemption under ORS 307.370 applicable). The Legislative Assembly declares that the benefits inherent in operation of these homes, especially in the housing and care furnished to elderly persons for whom this state and its political subdivisions otherwise might be responsible, justifies the use of criteria set out in subsection (2) of this section.

(2)

In determining the assessed value of the property of a nonprofit home for elderly persons, operated by a corporation described in ORS 307.375 (Type of corporation to which exemption under ORS 307.370 applicable), the county assessor shall not take into account considerations of replacement cost, but shall consider:

(a)

The amount of money or money’s worth for which the property may be exchanged within a reasonable period of time under conditions in which both parties to the exchange are able, willing and reasonably well informed.

(b)

The gross income that reasonably could be expected from the property if leased or rented to the public generally, less annual operating expenses, reserves for replacements and insurance, depreciation and taxes.

(c)

The relative supply and demand for similar properties.

(d)

The relative value of the location of the property. [1969 c.587 §8; 1981 c.624 §12; 1983 s.s. c.5 §7; 1991 c.459 §138; 1997 c.541 §202]

Notes of Decisions

Where property value is determined using income approach that deducts for depreciation, no adjustment should be made for effect government use restrictions have on property value. Gangle v. Dept. of Rev., 13 OTR 343 (1995)

Requirement that in lieu of replacement value county assessor "shall consider" listed evaluation methods made use of evaluation method optional, but did not make inclusion of identified deductions optional when method was used. Gangle v. Dept. of Revenue, 320 Or 494 887 P2d 784 (1995)

Special assessment is available without regard to financial means of elderly persons served by home. Polk County v. Dept. of Revenue, 14 OTR 476 (1998)

Determination of income that could reasonably be expected if building is leased or rented to general public requires consideration of rent that building could obtain in open market without regard to fact property is devoted to housing elderly. St. Catherine's Residence, Inc. v. Dept. of Revenue, 14 OTR 500 (1998); Hope Village, Inc. v. Dept. of Revenue, 17 OTR 370 (2004)

Legislative declaration that ordinary valuation methods are inappropriate with respect to homes for elderly indicates that income approach to valuation should be given substantially greater weight than sales comparison approach. Polk County v. Dept. of Revenue, 14 OTR 566 (1999)

Determination of amount for which property may be exchanged requires ordinary sales approach with sales of comparable elderly housing properties used where available. Hope Village, Inc. v. Dept. of Revenue, 17 OTR 370 (2004)

To determine gross income, deduction for annual operating expenses, reserves for replacement and insurance and depreciation are allowed only if related to hypothetical rental of housing to public generally. Hope Village, Inc. v. Dept. of Revenue, 17 OTR 370 (2004)

Market-derived capitalization rate to be used in determining expected gross income is rate for general housing properties, with property taxes included as element in rate. Hope Village, Inc. v. Dept. of Revenue, 17 OTR 370 (2004)

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