ORS 308.411
Appraisal and real market valuation of industrial plants

  • rules

(1)

Except as limited by subsections (2) to (9) of this section, the real market value of an industrial plant shall be determined for ad valorem tax purposes under ORS 308.205 (Real market value defined), 308.232 (Property to be valued at 100 percent real market value and assessed at assessed value) and 308.235 (Valuation of real property) utilizing the market data approach (sales of comparable properties), the cost approach (reproduction or replacement cost of the plant) or the income approach (capitalization of income) or by two or more approaches. The assessed value of an industrial plant shall be determined under ORS 308.146 (Determination of maximum assessed value and assessed value).

(2)

The owner of a plant may elect to have the plant appraised and valued for ad valorem property tax purposes excluding the income approach to valuation. An owner making an election under this subsection must further determine which of the following paragraphs is applicable to the election:

(a)

If this paragraph applies to the election, the owner may not be required to provide any itemization of income or expense of the industrial plant for use in making an appraisal of the plant for ad valorem property tax purposes; or

(b)

If this paragraph applies to the election, the owner may not be required to provide any itemization of income of the industrial plant for use in making an appraisal of the plant for ad valorem property tax purposes, but may be required to provide an itemization of operating expenses of the industrial plant for use in measuring functional obsolescence in a market data approach or cost approach to valuation.

(3)

Not less than 30 days prior to the making of a physical appraisal or reappraisal of an industrial plant by the Department of Revenue or by a county assessor, the department or assessor shall notify the owner of the plant by mail, return receipt requested, of the intention to physically appraise the plant. The notice shall inform the owner of the date the appraisal is to commence. In commencing the appraisal and to aid the owner in making an election under subsection (2) of this section, the department’s or assessor’s appraisers first shall make a preliminary survey of the plant as to the methods and approaches to the valuation of the plant to be used in the appraisal. The owner or owner’s representative shall immediately thereafter meet with the appraisers, and within two days after the meeting may give written notice to the appraisers that the owner elects to have the plant valued in accordance with subsection (2) of this section. The written notice shall state which paragraph of subsection (2) of this section is applicable to the election. Failure to make the election precludes the owner from making the election for the tax year in which the valuation determined by the physical appraisal is first used on the assessment and tax rolls of the county.

(4)

If an owner does not make an election under subsection (2) of this section, the owner shall make available to the assessor or department all information requested by the assessor or department needed to determine the real market value for the plant. At the request of the owner, the information shall be made the confidential records of the office of the assessor or of the department, subject to the provisions of ORS 305.420 (Issuance of subpoenas) and 305.430 (Hearings to be open to public).

(5)

If an owner makes an election under subsection (2) of this section, the owner may not in any proceedings involving the assessment of the industrial plant for the tax year for which the election was made, before the county board of property tax appeals or the Oregon Tax Court, be entitled to introduce evidence relating to the use of the income approach to valuation of the plant or introduce any information protected under the election.

(6)

Intentionally left blank —Ed.

(a)

On or before December 31 of the tax year in which the election under subsection (2) of this section first applies to an assessment and tax roll, or on or before December 31 of any subsequent tax year, if the owner is dissatisfied with the election under subsection (2) of this section, the owner may revoke or revise the election.

(b)

If the election is revoked, the owner may request the Department of Revenue or the county assessor, whichever is applicable, to revalue the plant for the next tax year using the appraisal methods set forth in subsection (1) of this section.

(c)

If the election is revised, the paragraph of subsection (2) of this section that was not applicable to the election shall become applicable to the election in lieu of the paragraph applicable before revision. If the election is revised, the owner may request the Department of Revenue or the county assessor, whichever is applicable, to revalue the plant for the next tax year in accordance with the revised election.

(d)

If a revocation or revision of an election is sought, the owner shall demonstrate that the determination of real market value requires taking into consideration the utilization of the income approach to valuation or the measurement of functional obsolescence using operating expense information. Thereafter, at the request of the department or the assessor, the owner shall make available to the department or the assessor all information requested by the department or the assessor as provided in subsection (4) of this section within 30 days following the department’s or the assessor’s request. If the owner fails to provide the information and a revocation had been sought, the election under subsection (2) of this section shall continue. If the owner fails to provide the information and a revision had been sought, the paragraph of subsection (2) that applied prior to the attempted revision shall continue to apply to the election. Under either circumstance, in any proceedings involving the assessment of the industrial plant for subsequent tax years, before the county board of property tax appeals or the Oregon Tax Court, the owner may not introduce evidence relating to the income approach to valuation or introduce any information protected under the election. If the department or assessor makes such a redetermination of the valuation as may, in their opinion, be necessary, the department or assessor shall furnish to the owner prior to the following May 1 a statement of the value of the plant as redetermined by the department or the assessor, with an explanation of the adjustments made.

(7)

After any physical appraisal of an industrial plant or after the appraisal is updated for use on the assessment and tax rolls for a subsequent year, but in any event prior to May 1 of the assessment year for which the appraisal or update applies, the owner may request a conference with the department or with the assessor concerning the determination of real market value under the physical appraisal or updating of the appraisal. If the request for a conference is made, the department or the assessor shall give written notice to the owner of the time and place for the conference for an informal discussion of the valuation.

(8)

Except as provided in this section, no owner of an industrial plant shall be required to make available to the assessor or department, any itemization of income and expense of the industrial plant for use in an income approach to valuation in making an appraisal of an industrial plant for purposes of ad valorem property taxation. However, information furnished pursuant to subsection (4) of this section is available to the county assessor and to the department for purposes of preparing valuations of other industrial plants, subject to the provisions of ORS 308.413 (Confidential information furnished under ORS 308.411).

(9)

Nothing in this section shall preclude the request for and use of information from an owner of an industrial plant concerning cost items, whether materials, labor or otherwise, for use in the reproduction cost approach to the valuation of the plant. In no event shall the application of subsection (2) of this section operate to value an industrial plant below its real market value for ad valorem property tax purposes under ORS 308.232 (Property to be valued at 100 percent real market value and assessed at assessed value). The election of an owner under subsection (2) of this section to forgo the consideration of the income approach to valuation shall constitute an irrevocable waiver of any subsequent claim that the failure of the assessor or the department to consider the income approach resulted in a valuation in excess of the real market value of the plant under ORS 308.232 (Property to be valued at 100 percent real market value and assessed at assessed value).

(10)

If the owner of an industrial plant has made an election under subsection (2) of this section, a subpoena for the production of information for the industrial plant that is protected by the election may not be issued while that election is in effect.

(11)

Notwithstanding subsection (3) of this section concerning the time for making an election under subsection (2) of this section, if the owner of an industrial plant receives notice under ORS 305.392 (Process for limiting scope of third-party subpoena) that a subpoena will be issued for income or expense information for the industrial plant, and the owner has not previously made an election under subsection (2) of this section that is in effect, the owner may make the election allowed under subsection (2) of this section within the 60-day period specified in ORS 305.392 (Process for limiting scope of third-party subpoena). Any owner making an election under this subsection may not revoke or revise that election until after the industrial plant is next assessed for ad valorem tax purposes.

(12)

Notwithstanding subsection (2) of this section, nothing in this section is intended to exclude the capitalization of market rents from the appraisal of buildings.

(13)

The department may adopt any rules necessary to carry out the purposes of this section. [1981 c.139 §2; 1991 c.459 §132; 1993 c.270 §33; 1993 c.353 §8; 1995 c.79 §129; 1995 c.650 §88; 1995 c.724 §1; 1997 c.541 §§193,194; 1999 c.579 §30]
Note: See note under 308.408 (“Industrial plant” defined).

Source: Section 308.411 — Appraisal and real market valuation of industrial plants; rules, https://www.­oregonlegislature.­gov/bills_laws/ors/ors308.­html.

Notes of Decisions

Where electric generating facility was determined to be separate property subject to central assessment as utility and not part of integrated industrial plant, election not to disclose income was unavailable. D.R. Johnson Lumber Co. v. Dept. of Rev., 12 OTR 429 (1993), aff’d 318 Or 330, 866 P2d 1227 (1994)

Election to have plant appraised excluding consideration of functional and economic obsolescence precludes only use of income approach to valuation. J.R. Simplot v. Dept. of Rev., 321 Or 253, 897 P2d 316 (1995)

Election to have plant appraised excluding consideration of functional and economic obsolescence does not require that valuation be in excess of true cash value. J.R. Simplot v. Dept. of Rev., 321 Or 253, 897 P2d 316 (1995)

Taxpayer electing plant valuation without consideration of functional and economic obsolescence may introduce evidence relating to obsolescence for purpose of proving that obsolescence was not weighed in arriving at valuation. J.R. Simplot v. Dept. of Rev., 321 Or 253, 897 P2d 316 (1995)

Where taxpayer elects to have property valued without income approach, market data approach cannot be used unless appraiser can identify and add back that portion of market depreciation that is due to functional and economic obsolescence. Grant County v. Dept. of Revenue, 14 OTR 324 (1998)

308.005
“Assessor” includes deputy
308.007
Definitions
308.010
Registered appraiser requirements
308.015
Alternate qualifications for registered appraisers
308.030
Penalty for failure to file certain statements within time limits
308.050
Assessor’s annual report on property appraisal program
308.055
Special assessor appointed if assessor fails to act
308.057
Continuing education of county assessors required
308.059
Qualifications of managerial employees of assessor
308.062
Action by department when appraisals not being conducted as provided by law
308.065
Administering of oaths by assessors and deputies
308.105
Personal property
308.115
Minerals, coal, oil, gas or other severable interests owned separately from realty not subject to tax
308.120
Partnership property
308.125
Undivided interest
308.130
Undivided estate of decedent
308.135
Trustee or personal representative separately assessed
308.142
“Property” and “property tax account” defined
308.146
Determination of maximum assessed value and assessed value
308.149
Definitions for ORS 308.149 to 308.166
308.151
Certain cities authorized to define “area” as city by ordinance or resolution
308.153
New property and new improvements to property
308.156
Subdivision or partition
308.159
Lot line adjustments
308.162
Property tax account modifications
308.166
Ordering provisions when property is subject to multiple special determinations of value
308.205
Real market value defined
308.207
Computation of real market value for taxing or bonding limitations
308.210
Assessing property
308.212
Requirement for property owner to file address
308.215
Contents of assessment roll
308.217
Form of assessment and tax rolls
308.219
Assessment and tax rolls
308.225
Boundary changes
308.231
Only registered appraisers to appraise real property
308.232
Property to be valued at 100 percent real market value and assessed at assessed value
308.233
Use of sales data for physical appraisal
308.234
Record of last appraisal
308.235
Valuation of real property
308.236
Land values to reflect presence of roads
308.240
Description of real property
308.242
Assessor’s authority to change roll after September 25 limited
308.245
Maps
308.250
Valuation and assessment of personal property
308.256
Assessment, taxation and exemption of watercraft and materials of shipyards, ship repair facilities and offshore drilling rigs
308.260
Watercraft used for reduction or processing of deep-sea fish
308.270
Public lands sold or contracted to be sold to be placed on assessment roll
308.275
Use of reproduction cost or prices and costs in determining assessed values
308.285
Requiring taxpayer to furnish list of taxable property
308.290
Returns
308.295
Penalties for failure to file real property or combined return on time
308.296
Penalty for failure to file return reporting only personal property
308.297
Personal property returns to note penalty for delinquency
308.300
Penalty for neglecting to file real property or combined return with intent to evade taxation
308.302
Disposition of penalties
308.310
When list of persons issued electrical permits supplied
308.316
Examining witnesses, books and records
308.320
Oath of assessor upon completion of assessment roll
308.330
Duty of assessor to assess properly
308.335
Department testing work of county assessors
308.408
“Industrial plant” defined
308.411
Appraisal and real market valuation of industrial plants
308.412
Effect of election to exclude income approach to value under prior law
308.413
Confidential information furnished under ORS 308.411
308.425
Proration of taxes after destruction or damage
308.440
Relief not allowed in case of arson by property owner
308.450
Definitions for ORS 308.450 to 308.481
308.453
Policy
308.456
Application of ORS 308.450 to 308.481
308.457
Determining boundaries of distressed areas
308.459
Valuation of rehabilitated property not to be increased
308.462
Qualifications for limited assessment
308.466
Processing applications for limited assessment
308.468
Fee for limited assessment applications
308.471
Owner to file statement with governing body when rehabilitation project finished
308.474
Owner to file annual statement regarding rental property transactions if agreement filed under ORS 308.462 (2)
308.477
Termination of limited assessment for incomplete construction or noncompliance
308.479
Termination of limited assessment for change of use
308.481
Extending deadline for completion of rehabilitation project
308.490
Determining value of homes for elderly persons
308.505
Definitions for ORS 308.505 to 308.674
308.510
Real and personal property classified for ORS 308.505 to 308.674
308.515
Department to make annual assessment of designated utilities and companies
308.516
Certain exceptions to ORS 308.515
308.517
To whom property assessed
308.518
Legislative intention with respect to ownership or operation of data centers
308.519
Local assessment of data center property
308.521
Property of cooperative providing steam or hot water heat by combustion of biomass exempt
308.524
Companies to file statements
308.525
Contents of statement
308.530
Company not relieved from making other reports
308.535
Extension of time for making reports or statements
308.540
Department to prepare assessment roll
308.545
Mode of valuing property
308.550
Valuing property of company operating both within and without state
308.555
Unit valuation of property
308.558
Taxation of aircraft
308.560
Assessment roll
308.565
Apportionment of assessment among counties
308.570
Determining value per mile of main and branch lines of companies using rail lines
308.575
Determining value per mile of property of companies using wire, pipe or pole lines or operational routes
308.580
Department to review and correct tentative assessment roll
308.582
Notice of tentative assessment
308.584
Request for conference to modify tentative assessment
308.585
Delivery of tentative assessment roll to director
308.590
Review and correction of tentative assessment roll
308.595
Notice when valuation increased or omitted property placed on tentative assessment roll
308.600
Director’s examination of rolls
308.605
Entry of corrections and changes
308.610
Oath of director upon completion of review
308.615
Keeping roll as public record
308.621
When assessment complete
308.624
Correction of certified roll
308.628
Omitted property subject to assessment
308.632
Notice of intention to add omitted property to assessment roll
308.636
Correction of assessment roll to reflect omitted property
308.640
Assessment and taxation of personal property of small private railcar companies
308.645
Reports by companies of mileage to county assessors
308.650
Companies to maintain principal office and agent within state
308.655
Rules and regulations
308.665
Railroad car exemption
308.671
Elective exemption of certain communication-related property
308.674
Exemption equal to difference between real market value of company’s centrally assessable property and 130 percent of cost of company’s centrally assessable real and tangible personal property
308.701
Definitions for ORS 308.701 to 308.724
308.704
Option of owner to choose special assessment
308.707
Valuation of multiunit rental property subject to special assessment
308.709
Application procedure
308.712
Methods to determine specially assessed value
308.714
Disqualification
308.723
Application of property tax expenditure funding
308.724
Rules
308.805
Mutual and cooperative electric distribution systems subject to tax on gross earnings
308.807
Amount of tax
308.810
Association to file statement
308.815
Examination of return by department
308.820
Tax as a lien
308.865
Notice and payment of taxes before movement of mobile modular unit
308.866
Definition of “mobile modular unit”
308.875
Manufactured structures classified as real or personal property
308.880
Travel or special use trailer eligible for ad valorem taxation upon application of owner
308.885
Determination of real market value of manufactured structure without physical appraisal
308.990
Penalties
Green check means up to date. Up to date