ORS 308A.092¹
Establishing value for farm use
  • procedure

(1) This section and ORS 308A.095 (County board of review to advise assessor on income-approach factors) 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 (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]

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

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)

Notes of Decisions

The purpose of this legisla­tion is to defeat effect on bona fide farmer of increased assess­ments growing out of highest and best use require­ment. Hulburt v. Dept. of Rev., 4 OTR 475 (1971)

1 Legislative Counsel Committee, CHAPTER 308A—Land Special Assessments, https://­www.­oregonlegislature.­gov/­bills_laws/­Archive/­2007ors308A.­pdf (2007) (last ac­cessed Feb. 12, 2009).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 308A, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­308aano.­htm (2007) (last ac­cessed Feb. 12, 2009).
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information