OAR 150-308-1040: Assessment of Farmlands Outside of Exclusive Farm Use (EFU) Zones

(1)(a) To qualify for assessment at its farm use value, land not within an exclusive farm use zone: (A) Must be currently employed in a qualifying farm use; (B) Must have been used for farm use for the two years preceding the current assessment year; (C) Must have met the income requirement for three out of the last five years and; (D) Must have an application filed with the assessor meeting the requirements of ORS 308A.077. (b) Real market value is the basis for the assessment of farmland not qualified to be specially assessed at farm use value. Real market value is defined in ORS 308.205. (2) Qualification and Disqualification Dates: (a) To be entitled to farm use assessment, land must be qualified as of January 1 each year. Most land is not farmed during the winter months including January 1. If land is not employed in farm use on January 1, the assessor may look at the prior year’s usage of the land to determine qualification for January 1. (b) All farm use disqualification takes effect July 1 following the disqualification. (3) Effect of lease or option to buy surface rights. If any owner of land outside an EFU zone grants and has outstanding a lease or option to buy surface rights of such land that permits other than farm use of all or a portion of the land, that land subject to such other use is not qualified for special farm use assessment under ORS Ch. 308A. Leases for hunting, fishing, camping or other recreational use or the exploration of geothermal, mineral or other subsurface resources will not disqualify the land if the exploration, use, or possession does not interfere with the farm use of the farmland. The income derived from such leases will not be included for the income test. (4) Appeal on the question of qualification for special assessment as farm use land: An appeal from a decision of the assessor concerning qualification for special farm use assessment under ORS Ch. 308A is made directly to the Magistrate Division of the Tax Court under 305.275(1) (also see 305.280). It is not made through an appeal to the county Property Value Appeals Board.