OAR 150-308-0310: Real Market Value and Property Classification as Part of Assessment Roll

(1) In addition to the assessed value of property, the assessment roll must show: (a) The real market value (RMV) of the land, excluding all buildings, structures, and improvements thereon; (b) The RMV of all buildings, structures, and improvements; and (c) The total RMV for each parcel of real property not required to be assessed as a unit. (d) For properties subject to ORS Chapter 100, for example, condominiums and time shares that are required to be assessed as a unit, the assessment roll must show the RMV as well as the assessed value of each unit. (2) The assessment roll must include the property classification code number for each parcel of real property in the county, except for those properties assessed by the department under ORS 308.505 to 308.605. The assessor must classify and assign a property classification code number to each parcel as provided in section (8) of this rule. (3) The assessor must maintain the proper classification on each parcel of property. (4) A county must separately identify and adjust land and improvement values for each property class for each market area to bring real property to RMV. These adjustments to value must be developed from market studies or by any other method approved by the department as provided under ORS 309.200. (5) The class code numbers that this rule establishes must be used for computing the real property class ratios required by ORS 309.200. (6) An assessor must obtain written approval from the Department of Revenue before deviating from the basic property classes defined in section (8) of this rule. (7)(a) All classification must be based upon highest and best use of the property. The term “highest and best use” is defined in OAR 150-308-0240. The class associated with the property may or may not be its current use. (b) Unique properties can be classified under the “miscellaneous” category in section (8). The “miscellaneous” category can also be used for property requiring a separate trend. (c) The property classification system must not be used to categorize market data that is more accurately described by other characteristics, such as the quality class of the improvements, market areas, or neighborhoods. (d) The property class for mixed-use or transitional properties will be assigned based upon the use that contributes the most to the real market value on the current assessment date. (A) A mixed-use property is one in which different parts of the property are used differently, such as a commercial use on one part, and a residential use on another part. (B) A transitional use property is one in which the real market value on the current assessment date, at its current highest and best use, is being influenced in the market by an anticipated change in future use, such as residential property that is likely to sell for a commercial use in the future, but is not in commercial use on the assessment date. (8) DEFINITIONS FOR PROPERTY CLASSIFICATION SYSTEM. [See PDF link below.] [ED. NOTE: To view attachments referenced in rule text, click here to view rule.]