OAR 150-308-1140: Qualified Specially Assessed Homesite Valuation

(1) Definitions: (a) “Parcel” is a quantity of land that is capable of being described in a single description by a closed traverse, or as one of a number of subsections or sections in a township(s), or as lots, blocks, or tracts in a subdivision. A “parcel” may consist of one or more tax lots. (b) “Contiguous” means having a common boundary to some extent greater than a point. Parcels are contiguous if separated by public or county roads, state highways, or non-navigable streams or rivers. Parcels are not contiguous if they are separated by interstate freeways, or navigable streams or rivers, except where there is direct connecting access, such as an underpass, for property separated by an interstate freeway. (c) “Site Developments” has the same meaning as in OAR 150-307-0010. (d) “Land Improvements” is synonymous with “site developments.” (e) “Same Ownership” — to be considered the “same ownership,” separate land accounts (tax lots) must have a common name in the property title. For example, a parcel owned by one person in his or her name is under the same ownership as a parcel owned jointly by spouses in a marriage. Properties do not have the “same ownership” if one parcel is owned by spouses in a marriage and the other parcel is owned by a corporation even though the corporation is owned by the spouses. (f) “MSAV” means maximum assessed value for property subject to special assessment (maximum specially assessed value). (2) Land comprising homesites for dwellings being used in conjunction with farm use in EFU zones, qualifying homesites outside the EFU zones, and qualified forest homesites must be valued at the special value provided by ORS 308A.256. Land comprising a non-qualifying homesite must be assessed at its real market value as defined in 308.205 pursuant to 308A.259. (3) The method for determining the value for a qualified homesite is the same whether the homesite is located within an exclusive farm use (EFU) zone, an area not zoned for exclusive farm use (non-EFU), or for forest homesites as defined in ORS 308A.253(1). (a) The first step in valuing a qualified homesite is to determine the total number of acres of the “parcel” and contiguous acres under the same ownership. (b) The second step is to determine the bare land average per acre real market value (RMV) of the parcel. To do this: (A) First, determine the total bare land RMV (including riverfront, view, etc.) for the parcel and contiguous acres under the same ownership on which the homesite is located. (B) Second, divide the total bare land RMV of the parcel and contiguous acres under the same ownership by the total number of acres in the parcel and contiguous acres under the same ownership. (C) The result is the average RMV for one acre of the parcel and contiguous acres under the same ownership. (c) The third step is to determine the specially assessed value (SAV) of the “land improvements.” The SAV of land improvements are to be valued at $4,000, or the depreciated replacement cost of the items that make up the land improvements, whichever is less. (d) The average RMV of one acre of the land plus the land improvement SAV equals the total “homesite” SAV. However, the land improvement value must be carried as a separate item on the land record as specified in OAR 150-307-0010. (4) Calculation of homesite MSAV. (a) For the 1997–98 tax year, the MSAV on homesites qualified for the 1995–96 tax year and before equals the homesite’s SAV for the 1995–96 tax year reduced by 10 percent. (b) For the 1997–98 and subsequent tax years, the MSAV of any newly qualified homesite equals the product of the residential rural property class 4-X-X changed property ratio multiplied by the farm or forest homesite SAV. The MSAV for a homesite first qualified for the 1996–97 tax year is calculated under this subsection for the 1997–98 tax year. (c) Once the MSAV of a homesite has been established by subsection (a) or (b) above, the MSAV increases 3% each year thereafter. (5) The assessed value of a qualified farm or forest homesite equals the lesser of the homesite’s SAV or the homesite’s MSAV.