2017 ORS 308.115¹
Minerals, coal, oil, gas or other severable interests owned separately from realty not subject to tax
  • exception for actively mined interests
  • separately owned improvements separately assessed

(1) Whenever any mineral, coal, oil, gas or other severable interest in or part of real property is owned separately and apart from the rights and interests owned in the surface ground of the real property, such minerals, coal, oil, gas or other interest or parts shall not be assessed and taxed.

(2) Notwithstanding subsection (1) of this section, if the property is actively being mined as of the assessment date, the severable interest described in subsection (1) of this section shall be assessed and taxed as real or personal property in accordance with existing law in the name of the owner, separately from the surface rights and interests in the real property and may be sold for taxes in the same manner and with the same effect as other interests in real property are sold for taxes.

(3) Whenever any building, structure, improvement, machinery or equipment is owned separately and apart from the land or real property on which it stands or to which it is affixed, such building, structure, improvement, machinery or equipment shall be assessed and taxed in the name of the owner.

(4) Nothing in this section alters the tax-exempt status of a mining claim described in ORS 307.080 (Mining claims). [Amended by 1979 c.689 §9; 1997 c.819 §9; 2012 c.30 §3]

Notes of Decisions

Improve­ments to real prop­erty made by a tenant pursuant to a “shell and allowance” agree­ment are to be assessed to the tenant rather than the landlord. Shields v. Dept. of Rev., 5 OTR 160 (1972), as modified by 266 Or 461, 513 P2d 784 (1973)

Improve­ments to real prop­erty made by a tenant are not “owned separately and apart from the land” unless the parties agree that the improve­ments may remain the prop­erty of the tenant and be removable by him. Shields v. Dept. of Rev., 266 Or 461, 513 P2d 784 (1973)

Separate assess­ments of seg­ments of real prop­erty which are not separately owned are not authorized under statutory scheme. Bear Creek Plaza v. Dept. of Rev., 12 OTR 272 (1992)

Chapter 308

Notes of Decisions

Programs administered by Depart­ment of Revenue that allow preferential assess­ment for farm and forestland are not “programs affecting land use” and are not subject to require­ment of statewide goal and local comprehensive plan compliance under ORS 197.180 (State agency planning responsibilities). Springer v. LCDC, 111 Or App 262, 826 P2d 54 (1992), Sup Ct review denied

Atty. Gen. Opinions

Applica­tion of Article XI, sec­tion 11b of Oregon Constitu­tion to this chapter, (1990) Vol 46, p 388

Law Review Cita­tions

5 EL 516 (1975)

1 Legislative Counsel Committee, CHAPTER 308—Assessment of Property for Taxation, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors308.­html (2017) (last ac­cessed Mar. 30, 2018).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 308, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano308.­html (2017) (last ac­cessed Mar. 30, 2018).
 
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.