OAR 150-309-0190: Adjudicated Value Calculation for Centrally Assessed Property

Properties assessed under ORS 308.505 to 308.660 (centrally assessed property), which have adjudicated values, must be adjusted during the subsequent five year period to reflect changes in value due to additions, retirements, and economic trends. (1) Because of the complex interactions of the numerous variables involved in the unitary appraisal of centrally assessed properties, the adjustment due to additions, retirements, and economic trends will be determined in the following manner: (a) An appraisal of the property will be made by the department for the year for which the adjudicated value was established and for each of the subsequent years, following the methods and procedures used to develop the adjudicated value at the trial or hearing where the adjudicated value was determined. (b) If no method or procedure was developed in reaching the adjudicated value, the methodology used should be consistent with that used for all similar properties. The value determined by the department’s appraisal for the current assessment year will be divided by the value determined by the department’s appraisal (not adjudicated value) for the assessment year immediately prior. This ratio will be applied to the “adjudicated” value of the prior assessment year to develop the “adjudicated” value for the current year’s assessment. (2)(a) If no method or procedure was developed in reaching the adjudicated value, an alternate procedure will be used for closely regulated public utility properties. The properties to which this alternate procedure applies must meet both the following conditions: (A) The property must be used to provide or distribute electricity, natural gas, or local telephone exchange service to the public; and (B) Rates charged and revenues received by the property owners are regulated by an Oregon regulatory agency based on depreciated historical cost. (b) The alternate procedure for determining the current year adjudicated value for the properties described in (a) is as follows: (A) The book value of the unit of property, both within and outside Oregon, will be determined by the department for the year in which the adjudicated value was established and for each of the subsequent years. (B) The book value for the current year will be divided by the book value for the prior year. (C) The ratio determined above will be multiplied by the prior year adjudicated value (system basis) to develop the current year adjudicated value (system basis). (D) The current year adjudicated value (system basis) will be allocated to Oregon using the department’s allocation methods used for similar properties. (E) Adjustments will be made to the allocated value by adding taxable property not included in the system value or by subtracting noncentrally assessable property included in the system value. Adjustments must be made at the same percentage of book value as found for the current year adjudicated value (system basis).