OAR 199-005-0005: Determining the Value Received by Public Officials

(1) Purpose. The purpose of this rule is to guide public officials, candidates and others in determining the value of items or services received by public officials to ensure accurate reporting in ORS 244.060 and to comply with gift and honoraria limits in 244.025 and 244.042. (2) The fair market value of the merchandise, goods, or services received shall be used to determine benefit or value. Fair market value is the dollar amount goods or services would bring if offered for sale by a person who desired, but was not obligated, to sell and purchased by one who is willing, but not obligated, to buy. (a) In calculating the benefit or value conferred to a public official, any portion of the benefit transferred to an entity that is tax-exempt under section 501(c) of the Internal Revenue Code shall not be included as part of the benefit or value to the public official, if the public official does not claim the charitable contribution on personal tax returns. (b) In calculating the per person cost at receptions or meals, the payer of the public official's admission or meal shall include all costs other than any amount donated to a charity. (c) The following example demonstrates how the value of a charitable dinner would be calculated. A person with a legislative or administrative interest buys a table for a charitable dinner at $100 per person. If the cost of the meal was $25 and the amount donated to charity was $75, the benefit conferred on the public official is $25. This example requires that the public official does not claim the charitable contribution on personal tax returns. (3) For receptions and meals with multiple attendees, but with no price established to attend, the source of the public official's meal or reception shall use reasonable methods to determine the per-person value or benefit conferred. The following examples are deemed reasonable methods of calculating value or benefit conferred: (a) The source divides the amount spent on food, beverage and other costs (other than charitable contributions) by the number of persons whom the payer reasonably expects to attend the reception or dinner; (b) The source divides the amount spent on food, beverage and other costs (other than charitable contributions) by the number of persons who actually attend the reception or dinner; or (c) The source calculates the actual amount spent on the public official. (4) Upon request by the public official, the source shall give notice of the value of the merchandise, goods, or services received. (5) Attendance at receptions that qualify as an exception to the gift definition under ORS 244.020(7)(b)(L) is permitted without regard to the fair market value of the food and beverage provided.