Land Special Assessments

ORS 308A.116
Disqualification of nonexclusive farm use zone farmland

  • reversal for remediation plan

(1)

Nonexclusive farm use zone farmland qualified for special assessment under ORS 308A.068 (Qualification of nonexclusive farm use zone farmland) shall be disqualified from such special assessment upon:

(a)

Notification by the taxpayer to the assessor to remove the special assessment;

(b)

Sale or transfer to an ownership making it exempt from ad valorem property taxation;

(c)

Removal of the special assessment by the assessor upon the discovery that the land is no longer in farm use for failure to meet the income requirements under ORS 308A.071 (Income requirements for nonexclusive farm use zone farmland) or is no longer in farm use;

(d)

The act of recording a subdivision plat under the provisions of ORS chapter 92; or

(e)

Termination of a lease between a public owner of the farmland and a taxable lessee described in ORS 307.110 (Public property leased or rented by taxable owner).

(2)

The county assessor shall not disqualify the land that has been receiving special assessment upon the sale or transfer to a new owner or transfer by reason of death of a former owner to a new owner if the land continues to be used solely for farm use.

(3)

When, for any reason, the land or any portion thereof ceases to be used solely for farm use, the owner at the time of the change in use shall notify the assessor of the change prior to the next January 1 assessment date.

(4)

If under subsection (1)(d) of this section, the county assessor disqualifies land for special assessment upon the act of platting the land, the land, or a part of the land, may be requalified for special assessment upon:

(a)

Payment of all additional tax, interest or penalty that remains due and owing on the land;

(b)

Submission by the owner of an application for special assessment under ORS 308A.077 (Application to qualify nonexclusive farm use zone farmland);

(c)

Meeting all of the qualifications for farm use special assessment under ORS 308A.068 (Qualification of nonexclusive farm use zone farmland); and

(d)

Meeting the requirements, if any, of applicable local government zoning ordinances with regard to minimum lot or parcel acreage for farm use.

(5)

The county assessor shall not disqualify land that has been receiving special assessment if the land is not being farmed because:

(a)

The effect of flooding substantially precludes normal and reasonable farming during the year; or

(b)

Severe drought conditions are declared under ORS 536.700 (“Drainage basin” defined) to 536.780 (Water conservation or curtailment plan).
(6)(a) Disqualification under subsection (1)(c) of this section is reversed if the taxpayer:

(A)

Notifies the assessor in writing pursuant to ORS 308A.718 (Assessor to send notice upon disqualification or forestland change in use) of the taxpayer’s intention to seek certification for a remediation plan; and

(B)

Files an application for a certified remediation plan with the assessor within one year after the date of disqualification.

(b)

In addition to the grounds for disqualification under subsection (1)(c) of this section, the assessor may disqualify land granted farm use special assessment pursuant to a remediation plan upon:

(A)

Discovery, or notice from an extension agent of the Oregon State University Extension Service, that the plan is not being implemented substantially as certified; or

(B)

Discovery, or notice from the owner, tenant or lessee or from an extension agent of the Oregon State University Extension Service, that the plan as certified is no longer necessary, practicable or effective.
(7)(a) Notwithstanding ORS 308.210 (Assessing property), 308A.068 (Qualification of nonexclusive farm use zone farmland), 311.405 (Tax as lien) or 311.410 (Effect of property transfer or lease termination on lien and on taxability of property), if disqualification occurs as a result of the discovery that the land is no longer in farm use, then, regardless of when during the assessment year discovery is actually made, disqualification by the county assessor shall occur as of the January 1 assessment date of the assessment year in which discovery is made.

(b)

Paragraph (a) of this subsection shall apply only if the notice of disqualification required under ORS 308A.718 (Assessor to send notice upon disqualification or forestland change in use) is mailed by the county assessor prior to August 15 of the tax year for which the disqualification of the land is asserted.

(8)

Upon disqualification, additional taxes shall be determined as provided in ORS 308A.700 (Definitions for ORS 308A) to 308A.733 (Withdrawal of change of special assessment application). [Formerly 308.390; 2009 c.776 §4; 2017 c.275 §2]

Notes of Decisions

Land platted after September 9, 1971, does not qualify for special assessment as farm use land not in an exclusive farm use zone. Kalishman v. Dept. of Revenue, 8 OTR 440 (1980)

Deferred farm use taxes constitute potential liability and do not arise as lien until classification changes; previous bankruptcy sale free and clear of all liens and encumbrances did not relieve buyers of potential liability. Nature Conservancy v. Dept. of Rev., 10 OTR 1 (1985)

Attorney General Opinions

What constitutes “platting the land after September 9, 1971,” under the provisions of ORS chapter 92, (1982) Vol 42, p 241

Source

Last accessed
Mar. 11, 2023

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