OAR 150-308-1500: Additional Tax Calculation and When to Impose Additional Tax

(1) For the purpose of this rule “lookback period” means the period established by ORS 308A.703(3). (2) Effective August 15, 2018, to calculate the maximum assessed value (MAV) for the computation of the additional tax, multiply the real market value (RMV) of the special assessed land being disqualified for the earliest year in the lookback period by that year’s appropriate change property ratio (CPR) for the classification of the disqualified property as if it would not have been specially assessed. For each subsequent year, calculate the MAV as if the property had not been specially assessed per ORS 308.146. (3) Under certain circumstances, farm use special assessment may be disqualified after July 1 and advance collection of additional taxes made. Disqualifications made under these circumstances are for the next tax year, therefore, the property will remain at its value for farm use on the tax roll until the following July 1. The collection of the additional tax is provided for in section (4). The specific circumstances for this type of disqualification are as follows: (a) For non-exclusive farm use (Non-EFU) zoned farmland: (A) Subdivision plats under Chapter 92; (B) At the owner’s request. (b) For exclusive farm use (EFU) zoned farmland, a non-farm dwelling under ORS 215.236. (4)(a) Collection of Additional Tax: Advance collections of the additional tax made under the provisions of ORS 311.370 are entitled to the discount allowed by ORS 311.505 if the assessor can compute the exact amount of the additional tax at the time the taxes are paid. If the assessor is unable to determine the exact amount due, the discount is allowed when final settlement is made at the time taxes are regularly due, as provided by ORS 311.370. (b) Any additional tax entered on the tax roll becomes part of the tax extended against the property and is collected in the same manner as other real property taxes. ORS 311.505 governs whether a discount is allowed or interest is charged. (5) Distribution of Additional Tax: The total amount of the additional tax added to the tax roll must be apportioned between the taxing districts in which the property is located. (a) The apportionment must be based on the ratio that the billing tax rate of each district bears to the total billing tax rates on the property, as shown on the tax roll on which the additional tax is entered. (b) In preparing the certificate of the tax roll under ORS 311.105, the assessor must add the additional tax due to each taxing district to the total amount to be raised for each district under ORS 311.105. The amount of additional tax due to each taxing district must be included in the percentage distribution schedule computed by the tax collector under ORS 311.390.