(2) The owner of a plant may elect to have the plant appraised and valued for ad valorem property tax purposes excluding the income approach to valuation. An owner making an election under this subsection must further determine which of the following paragraphs is applicable to the election:
(a) If this paragraph applies to the election, the owner may not be required to provide any itemization of income or expense of the industrial plant for use in making an appraisal of the plant for ad valorem property tax purposes; or
(b) If this paragraph applies to the election, the owner may not be required to provide any itemization of income of the industrial plant for use in making an appraisal of the plant for ad valorem property tax purposes, but may be required to provide an itemization of operating expenses of the industrial plant for use in measuring functional obsolescence in a market data approach or cost approach to valuation.
(3) Not less than 30 days prior to the making of a physical appraisal or reappraisal of an industrial plant by the Department of Revenue or by a county assessor, the department or assessor shall notify the owner of the plant by mail, return receipt requested, of the intention to physically appraise the plant. The notice shall inform the owner of the date the appraisal is to commence. In commencing the appraisal and to aid the owner in making an election under subsection (2) of this section, the department’s or assessor’s appraisers first shall make a preliminary survey of the plant as to the methods and approaches to the valuation of the plant to be used in the appraisal. The owner or owner’s representative shall immediately thereafter meet with the appraisers, and within two days after the meeting may give written notice to the appraisers that the owner elects to have the plant valued in accordance with subsection (2) of this section. The written notice shall state which paragraph of subsection (2) of this section is applicable to the election. Failure to make the election precludes the owner from making the election for the tax year in which the valuation determined by the physical appraisal is first used on the assessment and tax rolls of the county.
(4) If an owner does not make an election under subsection (2) of this section, the owner shall make available to the assessor or department all information requested by the assessor or department needed to determine the real market value for the plant. At the request of the owner, the information shall be made the confidential records of the office of the assessor or of the department, subject to the provisions of ORS 305.420 and 305.430.
(5) If an owner makes an election under subsection (2) of this section, the owner may not in any proceedings involving the assessment of the industrial plant for the tax year for which the election was made, before the county board of property tax appeals or the Oregon Tax Court, be entitled to introduce evidence relating to the use of the income approach to valuation of the plant or introduce any information protected under the election.
(6)(a) On or before December 31 of the tax year in which the election under subsection (2) of this section first applies to an assessment and tax roll, or on or before December 31 of any subsequent tax year, if the owner is dissatisfied with the election under subsection (2) of this section, the owner may revoke or revise the election.
(b) If the election is revoked, the owner may request the Department of Revenue or the county assessor, whichever is applicable, to revalue the plant for the next tax year using the appraisal methods set forth in subsection (1) of this section.
(c) If the election is revised, the paragraph of subsection (2) of this section that was not applicable to the election shall become applicable to the election in lieu of the paragraph applicable before revision. If the election is revised, the owner may request the Department of Revenue or the county assessor, whichever is applicable, to revalue the plant for the next tax year in accordance with the revised election.
(d) If a revocation or revision of an election is sought, the owner shall demonstrate that the determination of real market value requires taking into consideration the utilization of the income approach to valuation or the measurement of functional obsolescence using operating expense information. Thereafter, at the request of the department or the assessor, the owner shall make available to the department or the assessor all information requested by the department or the assessor as provided in subsection (4) of this section within 30 days following the department’s or the assessor’s request. If the owner fails to provide the information and a revocation had been sought, the election under subsection (2) of this section shall continue. If the owner fails to provide the information and a revision had been sought, the paragraph of subsection (2) that applied prior to the attempted revision shall continue to apply to the election. Under either circumstance, in any proceedings involving the assessment of the industrial plant for subsequent tax years, before the county board of property tax appeals or the Oregon Tax Court, the owner may not introduce evidence relating to the income approach to valuation or introduce any information protected under the election. If the department or assessor makes such a redetermination of the valuation as may, in their opinion, be necessary, the department or assessor shall furnish to the owner prior to the following May 1 a statement of the value of the plant as redetermined by the department or the assessor, with an explanation of the adjustments made.
(7) After any physical appraisal of an industrial plant or after the appraisal is updated for use on the assessment and tax rolls for a subsequent year, but in any event prior to May 1 of the assessment year for which the appraisal or update applies, the owner may request a conference with the department or with the assessor concerning the determination of real market value under the physical appraisal or updating of the appraisal. If the request for a conference is made, the department or the assessor shall give written notice to the owner of the time and place for the conference for an informal discussion of the valuation.
(8) Except as provided in this section, no owner of an industrial plant shall be required to make available to the assessor or department, any itemization of income and expense of the industrial plant for use in an income approach to valuation in making an appraisal of an industrial plant for purposes of ad valorem property taxation. However, information furnished pursuant to subsection (4) of this section is available to the county assessor and to the department for purposes of preparing valuations of other industrial plants, subject to the provisions of ORS 308.413.
(9) Nothing in this section shall preclude the request for and use of information from an owner of an industrial plant concerning cost items, whether materials, labor or otherwise, for use in the reproduction cost approach to the valuation of the plant. In no event shall the application of subsection (2) of this section operate to value an industrial plant below its real market value for ad valorem property tax purposes under ORS 308.232. The election of an owner under subsection (2) of this section to forgo the consideration of the income approach to valuation shall constitute an irrevocable waiver of any subsequent claim that the failure of the assessor or the department to consider the income approach resulted in a valuation in excess of the real market value of the plant under ORS 308.232.
(10) If the owner of an industrial plant has made an election under subsection (2) of this section, a subpoena for the production of information for the industrial plant that is protected by the election may not be issued while that election is in effect.
(11) Notwithstanding subsection (3) of this section concerning the time for making an election under subsection (2) of this section, if the owner of an industrial plant receives notice under ORS 305.392 that a subpoena will be issued for income or expense information for the industrial plant, and the owner has not previously made an election under subsection (2) of this section that is in effect, the owner may make the election allowed under subsection (2) of this section within the 60-day period specified in ORS 305.392. Any owner making an election under this subsection may not revoke or revise that election until after the industrial plant is next assessed for ad valorem tax purposes.
(12) Notwithstanding subsection (2) of this section, nothing in this section is intended to exclude the capitalization of market rents from the appraisal of buildings.
(13) The department may adopt any rules necessary to carry out the purposes of this section. [1981 c.139 §2; 1991 c.459 §132; 1993 c.270 §33; 1993 c.353 §8; 1995 c.79 §129; 1995 c.650 §88; 1995 c.724 §1; 1997 c.541 §§193,194; 1999 c.579 §30]
Note: See note under 308.408.
Structure 2021 Oregon Revised Statutes
Volume : 08 - Revenue and Taxation
Chapter 308 - Assessment of Property for Taxation
Section 308.007 - Definitions.
Section 308.010 - Registered appraiser requirements; revocation; continuing education; rules.
Section 308.015 - Alternate qualifications for registered appraisers.
Section 308.105 - Personal property.
Section 308.125 - Undivided interest; assessment; ownership of less than one forty-eighth interest.
Section 308.142 - "Property" and "property tax account" defined.
Section 308.149 - Definitions for ORS 308.149 to 308.166.
Section 308.153 - New property and new improvements to property.
Section 308.162 - Property tax account modifications.
Section 308.205 - Real market value defined; rules.
Section 308.207 - Computation of real market value for taxing or bonding limitations.
Section 308.212 - Requirement for property owner to file address.
Section 308.215 - Contents of assessment roll; rules.
Section 308.217 - Form of assessment and tax rolls; obtaining descriptions of property.
Section 308.219 - Assessment and tax rolls; preparation; contents; availability to public; rules.
Section 308.225 - Boundary changes; procedure.
Section 308.233 - Use of sales data for physical appraisal.
Section 308.235 - Valuation of real property.
Section 308.245 - Maps; taxpayers’ index.
Section 308.275 - Use of reproduction cost or prices and costs in determining assessed values.
Section 308.320 - Oath of assessor upon completion of assessment roll.
Section 308.330 - Duty of assessor to assess properly.
Section 308.408 - "Industrial plant" defined.
Section 308.411 - Appraisal and real market valuation of industrial plants; rules.
Section 308.412 - Effect of election to exclude income approach to value under prior law.
Section 308.413 - Confidential information furnished under ORS 308.411; exception; rules.
Section 308.450 - Definitions for ORS 308.450 to 308.481.
Section 308.457 - Determining boundaries of distressed areas; rules; limitation.
Section 308.462 - Qualifications for limited assessment.
Section 308.490 - Determining value of homes for elderly persons.
Section 308.505 - Definitions for ORS 308.505 to 308.674.
Section 308.510 - Real and personal property classified for ORS 308.505 to 308.674.
Section 308.515 - Department to make annual assessment of designated utilities and companies.
Section 308.516 - Certain exceptions to ORS 308.515.
Section 308.517 - To whom property assessed; certain property not to be assessed.
Section 308.519 - Local assessment of data center property.
Section 308.524 - Companies to file statements.
Section 308.525 - Contents of statement.
Section 308.550 - Valuing property of company operating both within and without state.
Section 308.560 - Assessment roll; description of property; effect of mistake.
Section 308.565 - Apportionment of assessment among counties.
Section 308.570 - Determining value per mile of main and branch lines of companies using rail lines.
Section 308.582 - Notice of tentative assessment.
Section 308.584 - Request for conference to modify tentative assessment; appeal.
Section 308.590 - Review and correction of tentative assessment roll; apportionment to county.
Section 308.605 - Entry of corrections and changes; record of meetings.
Section 308.624 - Correction of certified roll.
Section 308.628 - Omitted property subject to assessment.
Section 308.632 - Notice of intention to add omitted property to assessment roll.
Section 308.636 - Correction of assessment roll to reflect omitted property; appeal.
Section 308.665 - Railroad car exemption.
Section 308.671 - Elective exemption of certain communication-related property.
Section 308.701 - Definitions for ORS 308.701 to 308.724.
Section 308.707 - Valuation of multiunit rental property subject to special assessment.
Section 308.807 - Amount of tax.
Section 308.810 - Association to file statement; payment of tax.
Section 308.815 - Examination of return by department; distribution of tax.
Section 308.820 - Tax as a lien; delinquency date; action to collect.
Section 308.865 - Notice and payment of taxes before movement of mobile modular unit.
Section 308.866 - Definition of "mobile modular unit"; statement of value; receipt.