308A.050
Legislative intent.
The Legislative Assembly recognizes that
agriculture and related land uses contribute
significantly to Oregon’s character and
economy. The Legislative Assembly finds that
providing the means for agriculture to continue
and prosper is in the interest of all citizens
of this state, who benefit directly or
indirectly from agricultural production and
stewardship of farmlands and ranchlands.
Valuation of farm properties based upon market
data from sales for investment or other purposes
not connected with bona fide farm use encourages
the conversion of agricultural land to other
uses. The identification of agricultural land
for farm use, as provided by law, substantially
limits alternative uses of such land and
justifies the valuation of that land based on
its agricultural production capability.
Therefore, it is the declared intent of the
Legislative Assembly that bona fide farm
properties be assessed for ad valorem property
tax purposes at a value that is exclusive of
values attributable to urban influences or
speculative purposes. [1999 c.314 §1]
(Qualification
for Farm Use Assessment)
308A.053
Definitions for ORS 308A.050 to 308A.128.
As used in ORS 308A.050 to 308A.128:
(1)
"Exclusive farm use zone" means a
zoning district established by a county or a
city under the authority granted by ORS chapter
215 or 227 that is consistent with the farm use
zone provisions set forth in ORS 215.203 to
215.311, 215.438, 215.448, 215.452, 215.455,
215.700 to 215.780 or 215.800 to 215.808.
(2)
"Exclusive farm use zone farmland"
means land that qualifies for special assessment
under ORS 308A.062.
(3) "Homesite"
means the land, including all tangible
improvements to the land under and adjacent to a
dwelling and other structures, if any, that are
customarily provided in conjunction with a
dwelling.
(4)
"Nonexclusive farm use zone farmland"
means land that is not within an exclusive farm
use zone but that qualifies for farm use special
assessment under ORS 308A.068. [1999 c.314 §2]
308A.056
Definition of "farm use."
(1) As used in ORS 308A.050 to 308A.128,
"farm use" means the current
employment of land for the primary purpose of
obtaining a profit in money by:
(a) Raising,
harvesting and selling crops;
(b) Feeding,
breeding, managing or selling livestock,
poultry, fur-bearing animals or honeybees or the
produce thereof;
(c) Dairying
and selling dairy products;
(d) Stabling or
training equines, including but not limited to
providing riding lessons, training clinics and
schooling shows;
(e)
Propagating, cultivating, maintaining or
harvesting aquatic species and bird and animal
species to the extent allowed by the rules
adopted by the State Fish and Wildlife
Commission;
(f) On-site
constructing and maintaining equipment and
facilities used for the activities described in
this subsection;
(g) Preparing,
storing or disposing of, by marketing or
otherwise, the products or by-products raised
for human or animal use on land described in
this section; or
(h) Using land
described in this section for any other
agricultural or horticultural use or animal
husbandry or any combination thereof.
(2) "Farm
use" does not include the use of land
subject to timber and forestland taxation under
ORS chapter 321, except land used exclusively
for growing cultured Christmas trees or land
described in ORS 321.267 (1)(e) or 321.415 (5)
(relating to land used to grow certain hardwood
timber, including hybrid cottonwood).
(3) For
purposes of this section, land is currently
employed for farm use if the land is:
(a) Farmland,
the operation or use of which is subject to any
farm-related government program;
(b) Land lying
fallow for one year as a normal and regular
requirement of good agricultural husbandry;
(c) Land
planted in orchards or other perennials, other
than land specified in paragraph (d) of this
subsection, prior to maturity;
(d) Land not in
an exclusive farm use zone that has not been
eligible for assessment at special farm use
value in the year prior to planting the current
crop and has been planted in orchards, cultured
Christmas trees or vineyards for at least three
years;
(e) Wasteland,
in an exclusive farm use zone, dry or covered
with water, neither economically tillable nor
grazeable, lying in or adjacent to and in common
ownership with farm use land and that is not
currently being used for any economic farm use;
(f) Except for
land under a single family dwelling, land under
buildings supporting accepted farming practices,
including the processing facilities allowed by
ORS 215.213 (1)(x) and 215.283 (1)(u);
(g) Water
impoundments lying in or adjacent to and in
common ownership with farm use land;
(h) Any land
constituting a woodlot, not to exceed 20 acres,
contiguous to and owned by the owner of land
specially valued for farm use even if the land
constituting the woodlot is not utilized in
conjunction with farm use;
(i) Land lying
idle for no more than one year when the absence
of farming activity is the result of the illness
of the farmer or a member of the farmer’s
immediate family, including injury or infirmity,
regardless of whether the illness results in
death;
(j) Land
described under ORS 321.267 (1)(e) or 321.415
(5) (relating to land used to grow certain
hardwood timber, including hybrid cottonwood);
or
(k) Land used
for the primary purpose of obtaining a profit in
money by breeding, raising, kenneling or
training greyhounds for racing.
(4) As used in
this section:
(a)
"Accepted farming practice" means a
mode of operation that is common to farms of a
similar nature, necessary for the operation of
these similar farms to obtain a profit in money
and customarily utilized in conjunction with
farm use.
(b)
"Cultured Christmas trees" means
trees:
(A) Grown on
lands used exclusively for that purpose, capable
of preparation by intensive cultivation methods
such as plowing or turning over the soil;
(B) Of a
marketable species;
(C) Managed to
produce trees meeting U.S. No. 2 or better
standards for Christmas trees as specified by
the Agricultural Marketing Service of the United
States Department of Agriculture; and
(D) Evidencing
periodic maintenance practices of shearing for
Douglas fir and pine species, weed and brush
control and one or more of the following
practices:
(i) Basal
pruning;
(ii)
Fertilizing;
(iii) Insect
and disease control;
(iv) Stump
culture;
(v) Soil
cultivation; or
(vi)
Irrigation. [1999 c.314 §3; 2001 c.613 §21]
308A.059 Farm
use definition rulemaking.
(1) The Department of Revenue shall provide by
rule for a more detailed definition of farm use,
consistent with the general definition in ORS
308A.056, to be used by county assessors in
determining qualification for special assessment
under ORS 308A.068. The rules shall not be
designed to exclude from the special assessment
those lands that are in farm use as defined in
ORS 308A.056 for which tax relief is intended.
(2) In
determining qualification for special assessment
under ORS 308A.068, the county assessor shall
consider the use of the land by the owner,
renter or operator thereof together with any
other lands that are a part of one farming unit
being operated by the owner, renter or operator.
[Formerly 308.380]
308A.062
Qualification of exclusive farm use zone
farmland.
(1) Any land that is within an exclusive farm
use zone and that is used exclusively for farm
use shall qualify for farm use special
assessment under ORS 308A.050 to 308A.128,
unless disqualified under other provisions of
law.
(2) Whether
farmland qualifies for special assessment under
this section shall be determined as of January 1
of the assessment year. However, if land so
qualified becomes disqualified prior to July 1
of the same assessment year, the land shall be
valued under ORS 308.232, at its real market
value as defined by law without regard to this
section, and shall be assessed at its assessed
value under ORS 308.146 or as otherwise provided
by law. If the land becomes disqualified on or
after July 1, the land shall continue to qualify
for special assessment as provided in this
section for the current tax year. [1999 c.314 §5]
308A.065 County
counsel review of exclusive farm use zoning
ordinances; notice upon determination of
unqualified land; assessment pending zone
requalification.
(1) Upon written request of the county assessor
or county governing body, the county counsel
shall review the zoning ordinances of the county
that purport to establish exclusive farm use
zones to determine if any zone mentioned in the
ordinance is not an exclusive farm use zone. If
the county counsel is in doubt as to whether a
zone is an exclusive farm use zone, the county
counsel shall request the assistance of the
Department of Revenue under ORS 305.110. The
county counsel shall promptly notify the county
assessor and county governing body by letter of
the findings of the county counsel.
(2) If the
assessor discovers any land that has been
granted farm use special assessment under ORS
308A.062 that is not qualified for such
assessment because the zone is not an exclusive
farm use zone, the assessor shall immediately
notify the county governing body of this fact.
(3) Within six
months from the date the county governing body
receives notice from the assessor or from the
Land Conservation and Development Commission
that a farm use zone is not an exclusive farm
use zone, the county governing body shall
qualify the zone as an exclusive farm use zone
within the meaning of ORS 308A.062. The assessor
shall continue to assess the land at the special
assessment provided in ORS 308A.107 until the
county governing body qualifies the zone or the
land is disqualified under ORS 308A.113.
(4) Subsections
(1) to (3) of this section shall provide the
exclusive procedure for correcting the erroneous
granting of farm use special assessment as
exclusive farm use zone farmland when the zone
does not meet the definition of an exclusive
farm use zone under ORS 308A.053. [Formerly
308.403]
308A.068
Qualification of nonexclusive farm use zone
farmland.
(1) Any land that is not within an exclusive
farm use zone but that is being used, and has
been used for the preceding two years,
exclusively for farm use shall qualify for farm
use special assessment:
(a) If the land
meets the income requirements set forth in ORS
308A.071; and
(b) Upon
compliance with the application requirements set
forth in ORS 308A.077.
(2)(a) The
provisions of this section shall not apply to
any land with respect to which the owner has
granted, and has outstanding, any lease or
option to buy the surface rights for other than
farm use.
(b) This
subsection does not apply in the case of a lease
or option to buy surface rights:
(A)(i) For the
exploration of geothermal resources, as defined
by ORS 522.005, mineral resources or other
subsurface resources; or
(ii) For the
use of land for hunting, fishing, camping or
other recreational use; and
(B) If the
exploration, use or possession engaged in
pursuant to the lease or option to buy does not
interfere with the farm use of the farmland.
(3) Whether
farmland qualifies for special assessment under
this section shall be determined as of January 1
of the assessment year. However, if land so
qualified becomes disqualified prior to July 1
of the same assessment year, the land shall be
valued under ORS 308.232, at its real market
value as defined by law without regard to this
section, and shall be assessed at its assessed
value under ORS 308.146 or as otherwise provided
by law. If the land becomes disqualified on or
after July 1, the land shall continue to qualify
for special assessment as provided in this
section for the current tax year. [1999 c.314 §7]
308A.071 Income
requirements for nonexclusive farm use zone
farmland.
(1) For purposes of ORS 308A.050 to 308A.128,
farmland or a farm parcel that is not within an
area zoned for exclusive farm use is not used
exclusively for farm use unless all of the
prerequisites of subsections (2) to (5) of this
section are met.
(2)(a) Except
as provided in subsection (6) of this section,
in three out of the five full calendar years
immediately preceding the assessment date, the
farmland or farm parcel was operated as a part
of a farm unit that has produced a gross income
from farm uses in the following amount for a
calendar year:
(A) If the farm
unit consists of six acres or less, the gross
income from farm use shall be at least $650.
(B) If the farm
unit consists of more than six acres but less
than 30 acres, the gross income from farm use
shall be at least equal to the product of $100
times the number of acres and any fraction of an
acre of land included.
(C) If the farm
unit consists of 30 acres or more, the gross
income from farm use shall be at least $3,000.
(b) For
purposes of determining the number of acres to
be considered under paragraph (a) of this
subsection, the land described in ORS 308A.056
(3) and the land, not exceeding one acre, used
as a homestead shall not be included.
(c) If a farm
parcel is operated as part of a farm unit and
the farmland of the farm unit is not all under
the same ownership, the gross income
requirements applicable to the farm parcel shall
be as provided under paragraph (a) of this
subsection. In addition, the gross income from
farm use of a farm parcel described under this
paragraph must be at least:
(A) One-half of
the gross income requirements described under
paragraph (a) of this subsection that would be
required if the farm parcel were the only
farmland of the farm unit; or
(B) A cash or
net share crop rental of one-quarter of the
gross income requirements described under
paragraph (a) of this subsection that would be
required if the farm parcel were the only
farmland of the farm unit. For purposes of this
subparagraph, "net share crop rental"
means the value of any crop received by the
owner of the farm parcel less any costs borne by
the owner of the farm parcel.
(3) Excise or
income tax returns are filed with the Department
of Revenue for purposes of ORS chapter 316, 317
or 318 by the farmland owner or the operator of
the farm unit that include a Schedule F and, if
applicable, by the owner of a farm parcel that
include a schedule or schedules showing rental
income received by the owner of the farm parcel,
during the years to which the income
requirements of this section apply.
(4) Upon
request, a copy of the returns or the schedules
of the returns showing the gross income received
from farm use is furnished by the taxpayer to
the county assessor.
(5) The burden
of proving the gross income of the farm unit for
the years described in subsection (2) of this
section is upon the person claiming special
assessment for the land.
(6) The failure
of a farm unit to produce the amount of gross
income required by subsection (2) of this
section shall not prevent the farm unit from
meeting the qualifications of this section if:
(a) The failure
is 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 to 536.780; and
(b) The farm
unit produces the required amount of gross
income in three out of the last five nonflood or
nondrought years.
(7) As used in
this section:
(a) "Farm
parcel" means the contiguous land under the
same ownership, whether assessed as one or more
than one tax lot.
(b)
"Owner" or "ownership" means
any person described under ORS 308A.077 (2)(b)(A),
(B), (D) or (E) and spouse or other person who
is also an owner as tenant in common or other
joint ownership interest.
(c) "Gross
income" includes the value of any crop or
livestock that is used by the owner personally
or in the farming operation of the owner, but
does not include:
(A) The value
of any crop or livestock so used unless records
accurately reflecting both value and use of the
crop or livestock are kept by the owner in a
manner consistent with generally accepted
accounting principles; and
(B) The
purchase cost of livestock. [Formerly 308.372]
308A.074
Wasteland qualifications; annual application.
(1) Wasteland, dry or covered with water,
neither economically tillable nor grazeable,
lying in or adjacent to and in common ownership
with nonexclusive farm use zone farmland
described in ORS 308A.068, and that is not
currently being used for any economic farm use
shall qualify for farm use special assessment
under ORS 308A.068 if the farmland was operated
as part of a farm unit that produced more than
one-half of the adjusted gross income of the
owner or owners in the year prior to the year an
application is filed under this section.
(2)(a) An owner
of wasteland shall make annual application to
qualify the wasteland as nonexclusive farm use
zone farmland under ORS 308A.068.
(b) The
application shall be filed with the county
assessor on or before April 15 of each year
qualification is desired. The application shall
be made on forms prepared by the Department of
Revenue and supplied by the county assessor and
shall include any information as may be
reasonably required to determine qualification,
including copies of applicable state income tax
returns. All information provided, including
determinations made under administrative and
court proceedings relating to the assessment of
the wasteland, shall be confidential information
of the assessor’s office and shall be used
only for purposes of ORS 308A.050 to 308A.128.
(c) There shall
be attached to each application an affidavit or
affirmation from the applicant providing that
the statements contained in the application are
true.
(3) For
purposes of this section, "owner" or
"owners" means the person or persons
entitled to file for special assessment under
ORS 308A.077 (2)(b). [1999 c.314 §9]
308A.077
Application to qualify nonexclusive farm use
zone farmland.
(1) Any owner of nonexclusive farm use zone
farmland entitled to special assessment under
ORS 308A.068 must, to secure the assessment,
make application therefor to the county assessor
on or before April 1 of the first year in which
the assessment is desired.
(2)(a) The
application shall be made upon forms prepared by
the Department of Revenue and supplied by the
county assessor and shall include any
information as may reasonably be required to
determine the entitlement of the applicant.
(b) The
application may be signed by any one of the
following:
(A) The owner
of the farmland who holds an estate therein in
fee simple or for life.
(B) Any one of
tenants in common or tenants by the entirety,
holding an estate in the farmland in fee simple
or for life.
(C) Any person
of legal age, duly authorized in writing to sign
an application on behalf of any person described
in subparagraph (A) or (B) of this paragraph.
(D) The
guardian or conservator of an owner, or the
executor or administrator of an owner’s
estate.
(E) The
purchaser of the fee simple or life estate of an
owner under a contract of sale.
(c) The
assessor or the deputy of the assessor shall not
approve an application signed by a person whose
authority to sign is not a matter of public
record unless there is filed with the assessor a
true copy of the deed, contract of sale, power
of attorney or other appropriate instrument
evidencing the signer’s interest or authority.
When filed with the assessor only, such
instrument shall not constitute a public record.
(3) There shall
be annexed to each application the affidavit or
affirmation of the applicant that the statements
contained therein are true. [Formerly 308.375]
308A.080
Acquired land qualifications.
(1) Acquired land shall qualify for farm use
special assessment if:
(a) The
acquired land:
(A) Is not in
an exclusive farm use zone;
(B) Is,
immediately upon acquisition, put into farm use;
and
(C) Is operated
as part of the total farming unit with the
original land; and
(b) The
original land:
(A) Is owned by
the purchaser of the acquired land;
(B) Is in farm
use;
(C) Is assessed
under ORS 308A.107; and
(D) Produced
gross income of at least $10,000 in the calendar
year prior to acquisition.
(2) Land that
qualifies for farm use special assessment under
subsection (1) of this section shall, for
purposes of the gross income requirement under
ORS 308A.071, be added to and treated as a part
of the entire farming unit upon acquisition.
(3) In order
for acquired land described in this section to
qualify under ORS 308A.068, an application must
be filed under ORS 308A.077 on or before April 1
of the first year following acquisition in which
farm use special assessment is sought for the
acquired land. [Formerly 308.374]
308A.083 Effect
of qualification generally.
In the case of exclusive farm use zone farmland
that qualifies for special assessment under ORS
308A.062 or nonexclusive farm use zone farmland
that qualifies for special assessment under ORS
308A.068, the county assessor shall enter on the
assessment and tax roll the notation
"potential additional tax liability"
until the land is disqualified under ORS
308A.113 or 308A.116. [1999 c.314 §12]
308A.086
Requalification generally.
(1) Any land that has been disqualified from
farm use special assessment under ORS 308A.050
to 308A.128 may requalify for special assessment
under ORS 308A.050 to 308A.128 at the same time
and in the same manner and under the same
provisions of law as land initially qualifies
for farm use special assessment under ORS
308A.050 to 308A.128.
(2) Land that
requalifies under this section must meet
applicable qualification requirements as of the
assessment date for the tax year for which
special assessment of the requalified land under
ORS 308A.050 to 308A.128 is sought.
(3) This
section does not apply to the requalification of
land that was disqualified and that is
described:
(a) In the case
of land in an exclusive farm use zone, under ORS
215.236 (relating to nonfarm dwellings) and ORS
308A.706 (1)(a) (relating to compatible nonuse);
(b) In the case
of nonexclusive farm use zone farmland, under
ORS 308A.089 (relating to requalification during
first year of disqualification), 308A.116 (4)
(relating to subdivision), 308A.122 (relating to
abatement for failure to meet income
requirements) or 308A.706 (1)(a) (relating to
compatible nonuse); and
(c) Under ORS
308A.706 (1)(d) (relating to change in special
assessment). [1999 c.314 §13]
308A.089
Requalification of disqualified nonexclusive
farm use zone farmland; fee.
(1) Notwithstanding ORS 308A.724, land that was
nonexclusive farm use zone farmland and that has
been disqualified by the county assessor from
farm use special assessment for the reason that
the land is no longer in farm use as described
under ORS 308A.116 (1)(c) may be requalified for
farm use special assessment for the first year
in which the disqualification is in effect.
(2)
Disqualified farmland may requalify for special
assessment under this section upon compliance
with the following:
(a) The owner
shall make application for requalification to
the county assessor on or before December 15 of
the tax year for which the disqualification is
first in effect.
(b) The
application shall be made upon forms prepared by
the Department of Revenue and supplied by the
county assessor.
(c) The
application shall contain the information
necessary to determine that the property meets
the requirements of ORS 308A.071 and the other
requirements for property to receive a farm use
special assessment under ORS 308A.050 to
308A.128.
(d) The
application shall be signed by the owner and
shall be accompanied by a filing fee of:
(A) $1 for each
$1,000 (or fraction of $1,000) of real market
value of the property as determined under ORS
308.232.
(B) Not less
than $10 or more than $250.
(e) There shall
be annexed to each application for
requalification the affidavit or affirmation of
the applicant that the statements contained
therein are true.
(3) Upon
receipt of the application, the county assessor
shall determine if the property meets the
requirements of ORS 308A.071 and the other
requirements for farm use special assessment
under ORS 308A.050 to 308A.128 for the year in
which the disqualification is first in effect.
(4) Upon
approval of the application the county assessor
shall notify the officer in charge of the
assessment and tax roll of the requalification
for special assessment under ORS 308A.068. The
officer shall correct the current assessment and
tax roll to reflect the special assessment, as
provided under ORS 311.205 (1)(e).
(5) Upon
disapproval of the application, the county
assessor shall notify the owner of the
application’s disapproval and the land’s
continued disqualification. If notice of
disapproval is not mailed prior to April 15 of
the tax year, the application shall be
considered approved.
(6) As used in
this section, "owner" means the person
or persons entitled to file for special
assessment under ORS 308A.077 (2)(b). [Formerly
308.392]
(Valuation)
308A.092
Establishing value for farm use; procedure.
(1) This section and ORS 308A.095 set forth the
procedures by which the values for farm use are
established for both:
(a) Exclusive
farm use zone farmland that qualifies for
special assessment under ORS 308A.062; and
(b)
Nonexclusive farm use zone farmland that
qualifies for special assessment under ORS
308A.068.
(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]
308A.095 County
board of review to advise assessor on
income-approach factors.
(1) Income-approach factors being utilized by a
county assessor in arriving at the values for
farm use of farmland under ORS 308A.092 shall be
submitted by the county assessor to a county
board of review. The board of review shall
advise the county assessor as to whether the
factors being so utilized are proper under ORS
308A.092.
(2) The county
board of review shall consist of:
(a) Two members
appointed by the county court sitting for the
transaction of county business, board of county
commissioners or other county governing body of
the county.
(b) Two members
appointed by the county assessor.
(c) One member
appointed by the four members appointed as
provided in paragraphs (a) and (b) of this
subsection, who shall serve for a term of one
year.
(3) Each member
of the county board of review appointed under
subsection (2)(a) and (b) of this section shall
serve for a term ending two years after the date
of the expiration of the term for which the
predecessor of the member was appointed, except
that a person appointed to fill a vacancy
occurring prior to the expiration of the term
shall be appointed for the remainder of the
term.
(4) Members of
the county board of review must be persons
knowledgeable and experienced in farmland
values.
(5) Members of
the county board of review shall be reimbursed
by the county for their actual and necessary
expenses incurred in the performance of their
functions as members. [Formerly 308.350]
308A.098 County
board of property tax appeals use of
assessor’s data.
Data utilized by a county assessor in arriving
at the values for farm use of farmland under ORS
308A.092 shall be made available by the county
assessor to the county board of property tax
appeals in the event of any consideration of a
petition involving the assessed value of
farmland by the board of property tax appeals
under ORS 309.100. [Formerly 308.355]
308A.101
Department of Revenue declaratory rulings;
judicial review.
Any group or organization representing owners of
farm properties may petition the Department of
Revenue under ORS 305.105 for a declaratory
ruling with respect to rules promulgated under
ORS 308A.092 and 308A.095 and may obtain
judicial review of the declaratory ruling in the
manner provided by ORS 305.445. [Formerly
308.360]
308A.104
Construction of provisions governing value for
farm use.
ORS 308A.092 and 308A.095 shall be construed
liberally to effectuate their intended purpose.
However, except as expressly provided and to the
extent necessary to carry out their terms,
nothing contained in ORS 308A.092 and 308A.095
shall be construed to alter or modify, by
implication or otherwise, any of the tax laws of
this state. [Formerly 308.365]
308A.107
Maximum assessed value and assessed value of
farmland.
(1) The value for farm use, maximum assessed
value and assessed value shall be determined
under this section for both:
(a) Exclusive
farm use zone farmland that qualifies for
special assessment under ORS 308A.062; and
(b)
Nonexclusive farm use zone farmland that
qualifies for special assessment under ORS
308A.068.
(2) The value
for farm use for each property subject to
special assessment under this section shall
equal the applicable value derived from the
tables created pursuant to ORS 308A.092 for the
tax year multiplied by the acreage of the
property within the applicable class and area.
(3)(a) The
maximum assessed value for property subject to
special assessment under this section shall be
determined as provided in this subsection.
(b) The county
assessor shall develop tables for each tax year
that provide, for each class and area, a maximum
assessed value per acre that is equal to 103
percent of the assessed value per acre for the
preceding tax year or 100 percent of the maximum
assessed value per acre for the preceding tax
year, whichever is greater.
(4) Property
subject to special assessment under this section
shall have an assessed value for the tax year
equal to the lesser of the value per acre
applicable to the property under subsection (2)
of this section or under subsection (3) of this
section and multiplying the value by the acreage
of the property within the applicable class and
area.
(5) If property
subject to special assessment under this section
consists of different classes, the assessed
value of the property shall be the sum of the
assessed values computed for each applicable
class under subsection (4) of this section.
(6) Property
that newly qualifies for farm use special
assessment shall, for the first tax year for
which the special assessment applies, have:
(a) A value for
farm use as determined under subsection (2) of
this section;
(b) A maximum
assessed value as determined under the tables
developed under subsection (3) of this section;
and
(c) An assessed
value as determined under subsections (4) and
(5) of this section. [1999 c.314 §20; 2001
c.912 §5]
Note:
Section 6, chapter 912, Oregon Laws 2001,
provides:
Sec. 6.
The amendments to ORS 308A.107 by section 5 of
this 2001 Act apply to tax years beginning on or
after July 1, 2002. [2001 c.912 §6]
308A.110 Real
property improvements and machinery not subject
to farm use assessment.
Except for property that is exempt or specially
assessed under other provisions of law, real
property improvements and machinery or other
personal property on, attached to or in any
other respect connected with property subject to
assessment under ORS 308A.050 to 308A.128,
including property used in operations that
constitute farm use operations, shall have an
assessed value determined under ORS 308.146.
Real property improvements and machinery and
personal property may not be assessed as
provided in ORS 308A.050 to 308A.128. [1999
c.314 §21]
(Disqualification)
308A.113
Disqualification of exclusive farm use zone
farmland.
(1) Land within an exclusive farm use zone shall
be disqualified from special assessment under
ORS 308A.062 by:
(a) Removal of
the special assessment by the assessor upon the
discovery that the land is no longer being used
as farmland;
(b) Removal of
the land from any exclusive farm use zone; or
(c)
Establishing a nonfarm dwelling on the land
under ORS 215.236.
(2)
Notwithstanding subsection (1)(a) of this
section, 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 to 536.780.
(3)(a)
Notwithstanding ORS 308.210, 308A.062, 311.405
or 311.410, 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 is mailed by the county assessor prior
to August 15 of the tax year for which the
disqualification of the land is asserted.
(4) Upon
disqualification, additional taxes shall be
determined as provided in ORS 308A.700 to
308A.733. [Formerly 308.397]
308A.116
Disqualification of nonexclusive farm use zone
farmland.
(1) Nonexclusive farm use zone farmland
qualified for special assessment under ORS
308A.068 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 or is no longer in farm use;
or
(d) The act of
recording a subdivision plat under the
provisions of ORS chapter 92.
(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;
(c) Meeting all
of the qualifications for farm use special
assessment under ORS 308A.068; 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 to 536.780.
(6)(a)
Notwithstanding ORS 308.210, 308A.068, 311.405
or 311.410, 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 is mailed by the county assessor prior
to August 15 of the tax year for which the
disqualification of the land is asserted.
(7) Upon
disqualification, additional taxes shall be
determined as provided in ORS 308A.700 to
308A.733. [Formerly 308.390]
308A.119
Abatement; termination of abatement.
(1) If on January 1 of any year any farmland
assessed under ORS 308A.068 has become
disqualified for farm use special assessment
because of any gross income or other requirement
of ORS 308A.071, the collection of the
additional taxes under ORS 308A.700 to 308A.733
shall be deferred, but only if each year for a
period of five consecutive years (or such lesser
number of years in which farm use assessment was
in effect prior to disqualification) beginning
on January 1 of the first year the land became
so disqualified, the land is used as farmland
(including, for the purposes of this section,
the growing of forest products). As the limited
use is continued and completed each year,
additional taxes are abated on the basis of an
abatement of one year’s additional tax for
each year of limited use beginning with the
oldest year for which additional taxes are due
for up to five years (or the number of years for
which farm use assessment was in effect,
whichever is less). Beginning on the January 1
the land became so disqualified the land shall
be assessed at its assessed value under ORS
308.146 or as otherwise provided by law without
regard to any special assessment laws.
(2) If at any
time prior to the expiration of the five-year
(or lesser) period specified in subsection (1)
of this section the land is used for a higher
and better use than farmland, the abatement
process shall terminate, and there shall be
added to the tax extended against the land on
the next general property tax roll, (to be
collected and distributed in the same manner as
the remainder of the real property tax) the
additional taxes that still remain deferred and
unabated under subsection (1) of this section.
(3) When land
described in this section is used for a higher
and better use than farmland during the
five-year (or lesser) period described in
subsection (1) of this section, the owner shall
notify the county assessor before the following
January 1 of the change in use.
(4) The amount
determined to be due under this section may be
paid to the tax collector prior to the
completion of the next general property tax
roll, pursuant to ORS 311.370. [Formerly
308.404]
308A.122 Effect
of requalification on abated taxes.
If during the period specified in ORS 308A.119,
the farmland again meets the gross income or
other requirements of ORS 308A.071, the owner
may apply to the assessor on or before April 1
of the next calendar year, in the manner
provided in ORS 308A.077, for farm use special
assessment. If satisfied that the requirements
of ORS 308A.071 have been met, the assessor
shall restore farm use special assessment to the
land. The potential additional taxes for all
years not already abated under ORS 308A.119
shall continue as a potential liability against
the land under ORS 308A.119 and 308A.706, except
that each oldest year of potential liability
shall abate as the total of all other years of
potential additional tax liability for prior
years reaches five. [Formerly 308.406]
308A.125
Historic cemeteries within exclusive farm use
zones; partition; effect of disqualification.
Any land that has received special assessment as
exclusive farm use zone farmland, has been used
as a cemetery at any time between 1810 to 1950,
contains fewer than 50 marked graves, is less
than one acre in size and was issued a patent,
whether recorded or unrecorded, before 1900 may
be partitioned from a parcel that shall continue
to qualify for special assessment. The parcel
that continues in special assessment and the
partitioned cemetery shall not be subject to the
provisions of ORS 308A.703 as a result of
partitioning under this section. [Formerly
308.400]
308A.128
Certain district assessments inapplicable to
exclusive farm use zone farmland.
(1) Except as otherwise provided in subsection
(2) of this section, the assessments and levies
of the following taxing units and special
districts shall not be imposed while land is
qualified for special assessment as exclusive
farm use zone farmland under ORS 308A.062:
(a) Sanitary
districts formed under ORS 450.005 to 450.245.
(b) Domestic
water supply districts formed under ORS chapter
264.
(c) Water
authorities, sanitary authorities or joint water
and sanitary authorities formed under ORS
450.600 to 450.989.
(2) Subsection
(1) of this section does not apply to:
(a) Benefit
assessments or special ad valorem tax levies
imposed upon homesites situated within a parcel
of farm use land. As used in this paragraph,
"homesite" means not more than one
acre of land upon which are constructed nonfarm
dwellings and appurtenances; or
(b) Benefit
assessments or special ad valorem tax levies
imposed subsequent to disqualification of lands
for farm use special assessment under ORS
308A.062. [Formerly 308.401]
FARM AND FOREST
HOMESITES
308A.250
Definitions for ORS 308A.250 to 308A.259.
As used in ORS 308A.250 to 308A.259:
(1)
"Exclusive farm use zone" has the
meaning given that term in ORS 308A.053.
(2)
"Forestland" means forestland that is
a parcel of land of more than 10 acres that has
been zoned in the comprehensive plan for
exclusive farm use, forest use or farm and
forest use and that is, as of the assessment
date for which value for the forest homesite is
being determined:
(a) Land that
has as its highest and best use the growing and
harvesting of trees of a marketable species;
(b) Land that
has been designated as forestland under ORS
321.257 to 321.390 or 321.805 to 321.825; or
(c) Land that
has been classified under ORS 321.705 to
321.765.
(3) "Homesite"
means land described in ORS 308A.253, including
all tangible improvements to the land under and
adjacent to a dwelling and other structures, if
any, that are customarily provided in
conjunction with the dwelling.
(4)
"Nonexclusive farm use zone farmland"
has the meaning given that term in ORS 308A.053.
(5)
"Owner" or "owners" means:
(a) The person
who holds an estate in the homesite in fee
simple or for life.
(b) Any one of
tenants in common or tenants by the entirety,
holding an estate in the homesite in fee simple
or for life.
(c) Any person
of legal age, duly authorized in writing to act
on behalf of any person described in paragraph
(a) or (b) of this subsection in filing an
application for special assessment of
nonexclusive farm use zone farmland.
(d) The
guardian or conservator of an owner, or the
executor or administrator of an owner’s
estate.
(e) The
purchaser of the fee simple or life estate of an
owner under a contract of sale. [1999 c.314 §29]
308A.253
Qualification of homesites.
(1) Land under a dwelling that is used in
conjunction with the activities customarily
carried on in the management and operation of
forestland held or used for the predominant
purpose of growing and harvesting trees of a
marketable species shall qualify for special
assessment under ORS 308A.256.
(2) Land under
dwellings located within an exclusive farm use
zone and used in conjunction with farm use shall
qualify for special assessment under ORS
308A.256.
(3) Land under
dwellings used in conjunction with the farm use
of nonexclusive farm use zone farmland shall
qualify for special assessment under ORS
308A.256 if the farmland was operated as a part
of a farm unit that produced more than one-half
of the adjusted gross income of the owner or
owners in the year prior to the year an
application is filed under this section.
(4) For
purposes of ORS 308A.250 to 308A.259, the use of
a dwelling "in conjunction with the
activities customarily carried on in the
management and operation of forestland"
includes but is not limited to use of the
dwelling under circumstances as follows:
(a) The
dwelling is owned and occupied by a person who
is engaged in the operation of the forestland,
is occupied by an employee of the owner of
forestland who is employed in connection with
the forest operation or is occupied by a person
who is involved in the forest operation; or
(b) The
dwelling is owned and occupied by a person who
is no longer engaged in the forest operation
but:
(A) Whose
principal source of income is derived from the
harvest of timber from the forestland on which
the dwelling is located;
(B) Who owned
and occupied the dwelling, and was engaged in
the forest operation, during the five
consecutive tax years before the tax year in
which engagement in the forest operation ended;
and
(C) Who has
owned and occupied the dwelling continuously
during the period since engagement in the forest
operation ended. For purposes of this
subparagraph, "continuous" includes
any period in which the dwelling is unoccupied
because of health, vacation or other reason, if
during the period the dwelling is not leased or
rented to another person.
(5) For
purposes of ORS 308A.250 to 308A.259, the use of
a dwelling "in conjunction with farm
use" of farm use land includes but is not
limited to use of the dwelling under
circumstances as follows:
(a) The
dwelling is owned and occupied by a person who
is engaged in the operation of the farm use
land, is occupied by an employee of the owner of
farm use land who is employed in connection with
the farming operation or is occupied by a person
who is involved in the farming operation; or
(b) The
dwelling is owned and occupied by a person who
is no longer engaged in the farm operation on
the farm use land but:
(A) Whose
principal source of income is from the farm
operation on the farm use land on which the
dwelling is located;
(B) Who owned
and occupied the dwelling, and was engaged in
the farm operation, during the five consecutive
tax years before the tax year in which
engagement in the farm operation ended; and
(C) Who has
owned and occupied the dwelling continuously
during the period since engagement in the farm
operation ended. For purposes of this
subparagraph, "continuous" includes
any period in which the dwelling is unoccupied
because of health, vacation or other reason, if
during the period the dwelling is not leased or
rented to another person.
(6)(a) In order
for land described in subsection (3) of this
section to qualify for assessment under ORS
308A.250 to 308A.259, the owner or owners shall
file an application with the county assessor on
or before April 15 of each year the assessment
is desired. The application shall be made on
forms prepared by the Department of Revenue and
supplied by the assessor and shall include any
information as may be reasonably required to
determine the entitlement of the applicant,
including copies of applicable state income tax
returns. All information provided, including
determinations made under administrative and
court proceedings where entitlement is in issue,
shall be confidential information of the
assessor’s office and shall be used only for
purposes of this subsection.
(b) There shall
be attached to each application an affidavit or
affirmation from the applicant providing that
the statements contained in the application are
true. [Formerly 308.376]
308A.256
Maximum assessed value and assessed value of
homesites.
(1) The maximum assessed value and assessed
value of a homesite shall be determined as
provided in this section.
(2) A homesite
shall have an assessed value for ad valorem
property tax purposes for the assessment year
equal to the lesser of the homesite’s maximum
assessed value or homesite value.
(3) The
homesite value for purposes of ORS 308A.250 to
308A.259 shall equal the real market value of
the bare land of the total parcel and contiguous
acres under same ownership, as determined under
ORS 308.205, divided by the number of acres in
the total parcel and contiguous acres under the
same ownership, plus the lesser of:
(a) $4,000; or
(b) The
depreciated replacement cost of land
improvements necessary to establish the homesite.
(4) For the
purposes of establishing a homesite value, the
value of one acre of land for each homesite, as
determined in subsection (3) of this section
shall be used.
(5) The
homesite’s maximum assessed value shall equal
103 percent of the property’s maximum assessed
value for the previous assessment year.
(6) For the
first assessment year for which property
constitutes a homesite under this section, the
homesite’s maximum assessed value shall equal
the homesite’s value as determined under
subsection (3) of this section multiplied by the
ratio of average maximum assessed value to real
market value of the residential property class
in the county. [Formerly 308.377]
308A.259
Disqualification of homesite.
(1) A homesite shall be disqualified from
assessment under ORS 308A.256 and shall be
assessed at the assessed value under ORS 308.146
if the dwelling:
(a) Is not
being used in conjunction with the activities
customarily carried on in the management and
operation of forestland held or used for the
predominant purpose of growing and harvesting
trees of a marketable species; or
(b)(A) Is not
being used in conjunction with farm use; and
(B) Is used for
a nonfarm purpose; however, vacancy does not
constitute a change in use.
(2) If a
homesite becomes disqualified from special
assessment under the provisions of subsection
(1) of this section, except for establishing a
nonfarm dwelling pursuant to ORS 215.236, no
additional tax shall be imposed following
disqualification. The remaining qualifying
portion of the parcel shall be valued as
specially assessed.
(3) If the
owner establishes a nonfarm dwelling in an
exclusive farm use zone under ORS 215.236,
additional taxes shall be imposed as provided in
ORS 308A.700 to 308A.733. [Formerly 308.378]
OPEN SPACE
LANDS
308A.300
Definitions for ORS 308A.300 to 308A.330.
As used in ORS 308A.300 to 308A.330, unless a
different meaning is required by the context:
(1) "Open
space land" means:
(a) Any land
area so designated by an official comprehensive
land use plan adopted by any city or county; or
(b) Any land
area, the preservation of which in its present
use would:
(A) Conserve
and enhance natural or scenic resources;
(B) Protect air
or streams or water supply;
(C) Promote
conservation of soils, wetlands, beaches or
tidal marshes;
(D) Conserve
landscaped areas, such as public or private golf
courses, which reduce air pollution and enhance
the value of abutting or neighboring property;
(E) Enhance the
value to the public of abutting or neighboring
parks, forests, wildlife preserves, nature
reservations or sanctuaries or other open space;
(F) Enhance
recreation opportunities;
(G) Preserve
historic sites;
(H) Promote
orderly urban or suburban development; or
(I) Retain in
their natural state tracts of land, on such
conditions as may be reasonably required by the
legislative body granting the open space
classification.
(2)
"Current" or "currently"
means as of next January 1, on which the
property is to be listed and valued by the
county assessor under ORS chapter 308.
(3)
"Owner" means the party or parties
having the fee interest in land, except that
where land is subject to a real estate sales
contract, "owner" shall mean the
contract vendee. [Formerly 308.740]
308A.303
Policy.
The legislature hereby declares that it is in
the best interest of the state to maintain,
preserve, conserve and otherwise continue in
existence adequate open space lands and the
vegetation thereon to assure continued public
health by counteracting pollutants and to assure
the use and enjoyment of natural resources and
scenic beauty for the economic and social
well-being of the state and its citizens. The
legislature further declares that it is in the
public interest to prevent the forced conversion
of open space land to more intensive uses as the
result of economic pressures caused by the
assessment thereof for purposes of property
taxation at values incompatible with their
preservation as such open space land, and that
assessment practices must be so designed as to
permit the continued availability of open space
lands for these purposes, and it is the intent
of ORS 308A.300 to 308A.330 to so provide.
[Formerly 308.745]
308A.306
Application for open space use assessment;
contents of application; filing; reapplication.
An owner of land desiring current open space use
assessment under ORS 308A.300 to 308A.330 shall
make application to the county assessor upon
forms prepared by the Department of Revenue and
supplied by the county assessor. The owner shall
describe the land for which classification is
requested, the current open space use or uses of
the land, and shall designate the paragraph of
ORS 308A.300 (1) under which each such use
falls. The application shall include such other
information as is reasonably necessary to
properly classify an area of land under ORS
308A.300 to 308A.330 with a verification of the
truth thereof. Applications shall be made to the
county assessor during the calendar year
preceding the first assessment year for which
such classification is requested. If the
ownership of all property included in the
application remains unchanged, a new application
is not required after the first year for which
application was made and approved. [Formerly
308.750]
308A.309
Submission of application for approval of local
granting authority; grounds for denial;
approval; application withdrawal.
(1) Within 10 days of filing in the office of
the assessor, the assessor shall refer each
application for classification to the planning
commission, if any, of the governing body and to
the granting authority, which shall be the
county governing body, if the land is in an
unincorporated area, or the city legislative
body, if it is in an incorporated area. An
application shall be acted upon in a city or
county with a comprehensive plan in the same
manner in which an amendment to the
comprehensive plan is processed. In determining
whether an application made for classification
under ORS 308A.300 (1)(b) should be approved or
disapproved, the granting authority shall weigh:
(a) The
projected costs and other consequences of
extending urban services to the affected lot or
parcel;
(b) The value
of preserving the lot or parcel as open space;
(c) The
projected costs and other consequences of
extending urban services beyond the affected lot
or parcel; and
(d) The
projected costs and other consequences,
including the projected costs of extending urban
services, of expanding the urban growth boundary
in other areas if necessary to compensate for
any reduction in available buildable lands.
(2) The
granting authority shall not deny the
application solely because of the potential loss
in revenue that may result from granting the
application if the granting authority determines
that preservation of the current use of the land
will:
(a) Conserve or
enhance natural or scenic resources;
(b) Protect air
or streams or water supplies;
(c) Promote
conservation of soils, wetlands, beaches or
tidal marshes;
(d) Conserve
landscaped areas, such as public or private golf
courses, which enhance the value of abutting or
neighboring property;
(e) Enhance the
value to the public of abutting or neighboring
parks, forests, wildlife preserves, nature
reservations, sanctuaries, or other open spaces;
(f) Enhance
recreation opportunities;
(g) Preserve
historic sites;
(h) Promote
orderly urban or suburban development; or
(i) Affect any
other factors relevant to the general welfare of
preserving the current use of the property.
(3) The
granting authority may approve the application
with respect to only part of the land which is
the subject of the application; but if any part
of the application is denied, the applicant may
withdraw the entire application. [Formerly
308.755]
308A.312 Notice
to assessor of approval or denial; recording
approval; assessor to record potential
additional taxes on tax roll; appeal from
denial.
(1) The granting authority shall immediately
notify the county assessor and the applicant of
its approval or disapproval which shall in no
event be later than April 1 of the year
following the year of receipt of said
application. An application not denied by April
1 shall be deemed approved, and shall be
considered to be land which qualifies under ORS
308A.300 to 308A.330.
(2) When the
granting authority determines that land
qualifies under ORS 308A.300 to 308A.330, it
shall enter on record its order of approval and
file a copy of the order with the county
assessor within 10 days. The order shall state
the open space use upon which approval was
based. The county assessor shall, as to any such
land, assess on the basis provided in ORS
308A.315, and each year the land is classified
shall also enter on the assessment roll, as a
notation, the assessed value of such land were
it not so classified.
(3) Each year
the assessor shall include in the certificate
made under ORS 311.105 a notation of the amount
of additional taxes which would be due if the
land were not so classified.
(4) The
additional taxes noted under subsection (3) of
this section shall be deemed assessed and
imposed in the year to which the additional
taxes relate.
(5) On approval
of an application filed under ORS 308A.306, for
each year of classification the assessor shall
indicate on the tax roll that the property is
being specially assessed as open space land and
is subject to potential additional taxes as
provided by ORS 308A.318, by adding the notation
"open space land (potential add’l
tax)".
(6) Any owner
whose application for classification has been
denied may appeal to the circuit court in the
county where the land is located, or if located
in more than one county, in that county in which
the major portion is located. [Formerly 308.760]
308A.315
Determination of maximum assessed value and
assessed value of open space lands.
(1) The maximum assessed value and assessed
value of land classified as open space land
under ORS 308A.300 to 308A.330 shall be
determined as provided in this section.
(2) Land
classified as open space land shall have an
assessed value for the assessment year equal to
the lesser of the land’s maximum assessed
value or the land’s open space value
determined under subsection (5) of this section.
(3) The
land’s maximum assessed value shall equal 103
percent of the land’s maximum assessed value
for the previous assessment year.
(4)(a) For the
first assessment year for which the land is
classified as open space land, the land shall
have a maximum assessed value equal to the
land’s open space value determined under
subsection (5) of this section multiplied by the
ratio of the total maximum assessed value of all
open space land within the county over the total
open space value of all open space land in the
county.
(b) If there is
an insufficient amount of land classified as
open space land in a county to permit a
statistically reliable ratio to be determined
under paragraph (a) of this subsection, the
statewide totals of maximum assessed value of
open space land and open space value shall be
used in determining the ratio.
