Some properties are eligible for partially-deferred property taxes through either farm or forest special assessments. Program requirements differ and some are influenced by the zoning of your property. Here are the highlights of our most common programs:“Zoned” Farm Deferral (for EFU, SA, FT and UT zoning) – The land must be used primarily to make a profit from farming. No application is necessary to put your property into the program, and there is no minimum annual income requirement. “Un-Zoned” Farm Deferral (for all other zoning) – The land must be used primarily to make a profit from farming. An application is necessary to put your property into the program. To qualify initially, the land must be currently used, and have been used, for the two previous years exclusively for farm use. In addition, the land must meet an income requirement in three of the five previous years. Once on the program, ongoing income reporting requirements apply. Designated Forestland – The land must be used primarily to grow and harvest timber. An application is necessary to put your property into the program. You must own a minimum of two contiguous acres (in addition to your homesite) to qualify. All land in the program must meet stocking requirements and species standards. Small Tract Forestland – The land must be used primarily to grow and harvest timber. An application is necessary to put your property into the program. You must own a minimum of ten contiguous acres (in addition to your homesite) to qualify. All land in the program must meet stocking requirements and species standards.
RMV is the Assessor’s determination of the real market value of your property. If your property is receiving special use, only the specially assessed land value is added into the AV, not the actual market value of the land receiving special use. For the actual RMV, add the Improvements + RMV Land.AV is the value used to calculate your taxes. Typically it is the 1995 RMV minus 10% that became the 1997 Measure 50 (M50) assessed value. Each year this amount is subject to a 3% increase, plus any exception value that arises from changes to your property improvements.Property taxes are calculated on the lesser of these two values.
On specially assessed property we not only maintain the two basic values (RMV and AV, as explained above), but we are also required to record the SAV (Specially Assessed Value) and the MSAV (Maximum Specially Assessed Value) for each land segment that is specially assessed. The SAV is determined by a “capitalization of income approach” for each soil productivity type based on studies of farmland rents. The MSAV is based on applying the Measure 50 rules to the SAV from 1995 (see AV as explained above). The tax assessed value of specially assessed land is the lesser of SAV or MSAV. On the "Free Property Records" page, only the RMV is shown for land and improvements. For land, this is the total RMV of all land components – homesites, onsite developments (well, septic, other utilities, landscaping), specially assessed land, and non-specially assessed land.The values are shown differently on the tax statement: Land-RMV is only for land not receiving special assessment; Land-Spec is the total assessed value for all specially assessed land components; Improvements are all buildings and structures, and the value is always RMV; Total Value is a confusing summation of all the RMV and the Land-Spec assessed value (The tax statement is not formatted to do a good job of representing the complexity of values on specially assessed accounts); Assessed value is the total of the AV on the non-specially assessed components plus the AV on the specially assessed components.
This flag is placed on properties with billed liens, properties in foreclosure or bankruptcy, and properties that have received special use. When a change of use occurs, due to removal from special assessment use by owner request or from lack of use, the property is either billed for the use change or the Potential Additional Tax flag is added to the account. A property with the Potential Additional Tax flag will retain the flag until the lien is paid or the property returns to a qualifying use. Liens are calculated for up to either 5 or 10 years depending on the zoning and the length of time the property has received the benefit.
This statement identifies all properties that are receiving a special assessment on their land, farm or forest. The flag informs the owner that, if the land use changes from special use, there is the possibility of an additional tax to the property. This notation is also helpful to title companies, realtors and potential buyers. In some cases, properties could be flagged for some sewer liens or road district liens.
Proration of your property taxes may be possible. According to ORS 308.425:If during any tax year, any real or personal property is destroyed or damaged by fire of "act of God," the owner or purchaser under a recorded instrument of sale in the case of real peroperty, or the person assessed, person in possession or owner in the case of personal property, may apply to the tax collector for proration of the taxes imposed on the property for the tax year. Application for proration of taxes shall be made no later than the end of the tax year or 60 days after the date the property was destroyed or damaged, whichever is later.For property that is damaged, the tax collector shall collect only one-twelfth of the taxes imposed on the property for the tax year, for each month or fraction of a month that preceded the month during which the property was damaged.For the month in which the property was damaged, and for each month of the tax year thereafter in which the property remains damaged, the tax collector shall collect that percentage of one-twelfth of the taxes imposed on the property that the real market value or the assessed value of the property after the damage (whichever is less) bears to the assessed value of the property before the damage. For property that is totally destroyed, the tax collector shall collect only one-twelfth of the taxes imposed on the property for the tax year, for each month or fraction of a month that the property was in existence during the tax year. The tax collector shall cancel the remainder of the taxes imposed on the property for the tax year.The portion of the property that is damaged and is subsequently repaired is considered new property or new improvements to property under ORS 308.153 (New property and new improvements to property) for the assessment year in which the repairs or replacements are first taken into account.Note:
Partial value reduction formula is unconstitutional because under Article XI, section 11b, assessed value must be reduced to minimum value during tax year. Shatzer v. Dept. of Revenue, 13 OTR 436 (1996), aff'd on other grounds, 325 Or 211, 934 P2d 1119 (1997).
"Act of God" excludes all circumstances produced by human agency, including lack of due care or foresight. Clark v. Multnomah County Assessor, 17 OTR 72 (2003)
308.440 no relief shall be given to any person who is convicted of arson with regard to the property for which relief is sought.