Land Special Assessments

ORS 308A.092
Determining value for farm use

  • procedure

(1)

This section applies to:

(a)

Exclusive farm use zone farmland that qualifies for special assessment under ORS 308A.062 (Qualification of exclusive farm use zone farmland); and

(b)

Nonexclusive farm use zone farmland that qualifies for special assessment under ORS 308A.068 (Qualification of nonexclusive farm use zone farmland).

(2)

The values for farm use of farmland shall be determined utilizing an income approach. In utilizing the income approach, the capitalization rate shall be the effective rate of interest charged in Oregon by the Federal Farm Credit Bank system at the time of closing on loans for farm properties estimated as an average over the past five reported calendar years, plus a component for the local tax rate. The Department of Revenue annually shall determine and specify the rate according to the best information available, and shall certify the rate to the county assessors.

(3)

The county assessors shall develop tables for each assessment year that reflect, for each class and area, the values determined under this section and that express the values as values per acre. [Formerly 308.345; 2011 c.193 §2]
§§ 308A.300 to 308A.330

(formerly 308.740 to 308.790)

Atty. Gen. Opinions

Criteria to apply in classifying land as open space, (1972) Vol 35, p 1273; golf course as open space land, (1980) Vol 40, p 288

(formerly 308.345)

Notes of Decisions

Where market data approach to valuation of cow/calf grazing operation was impracticable because of lack of comparable sales, income approach to value under this section was used. Aspen Valley Ranch v. Dept. of Rev., 8 OTR 332 (1980)

Income test of this section for appraising farmland requires information concerning land comparable to that at issue and method of appraisal of farm use value of orchard land, using bare farmland leases, was faulty because bare farmland is not comparable to orchard land. Benton v. Dept. of Rev., 300 Or 547, 715 P2d 489 (1986)

Agricultural land income approach is valid only if interest rates used in calculating imputed income and capitalization rate are identical. Blanco Bogs, Inc. v. Department of Revenue, 14 OTR 1 (1996)

Law Review Citations

53 OLR 120-122, 125 (1974); 10 WLJ 443, 457 (1974)

Source

Last accessed
Jun. 26, 2021

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