Chapter 809
AN ACT
SB 514
Relating to special assessments; creating new provisions; and amending
ORS 215.236, 271.785, 308A.253, 308A.318, 308A.703, 308A.706, 308A.707,
308A.712, 308A.718, 308A.724, 308A.733, 308A.743 and 321.716.
Be It Enacted by the People of
the State of
SECTION 1. Sections
2 to 7 of this 2007 Act are added to and made a part of ORS chapter 308A.
SECTION 2. As
used in sections 2 to 7 of this 2007 Act:
(1) “Conservation
easement” has the meaning given that term in ORS 271.715.
(2) “Holder” has the
meaning given that term in ORS 271.715.
(3) “Internal Revenue
Code” means the federal Internal Revenue Code as amended and in effect on
December 31, 2006.
(4) “
(5) “Parcel” has the
meaning given that term in ORS 92.010, as further modified by ORS 215.010.
SECTION 3. (1)
Land subject to a conservation easement that is held by one or more holders and
that is managed in compliance with the terms of the easement, shall receive
conservation easement special assessment for ad valorem property tax purposes.
(2) In order for land to
be subject to assessment under sections 2 to 7 of this 2007 Act:
(a) The terms of the
conservation easement must be capable of meeting the requirements for being
considered exclusively for conservation purposes under section 170(h) of the
Internal Revenue Code if the land or easement were ever to be the subject of a
contribution;
(b) The conservation
easement must be recorded in the records of the clerk of the county in which
the land is located; and
(c) A written
certification must be filed with the county assessor stating that the
conservation easement satisfies the requirements of paragraph (a) of this
subsection. The certification must be filed by:
(A) The owner of the
land, if a deduction has been claimed for federal income tax purposes under
section 170 of the Internal Revenue Code for a qualified conservation
contribution with respect to the conservation easement; or
(B) The holder, in all
cases that are not described in subparagraph (A) of this paragraph.
SECTION 4. (1) Upon satisfying the requirements of
section 3 of this 2007 Act, the owner of land subject to a conservation
easement may apply to the county assessor to receive conservation easement
special assessment.
(2) Application shall be
made to the county assessor on forms prepared by the Department of Revenue and
supplied by the county assessor.
(3) Applications for
conservation easement special assessment shall be made to the county assessor
on or before April 1 of the first assessment year for which the assessment is
desired. The application shall include:
(a) A copy of the
conservation easement along with the property tax account number for the land.
(b) Contact information
for the landowner and the holder or holders of the conservation easement.
(c) Representations,
along with supporting documentation, that the requirements of section 3 of this
2007 Act have been satisfied.
(d) A statement that the
applicant is aware of the potential tax liability that arises under ORS
308A.700 to 308A.733 upon disqualification from conservation easement special
assessment.
(e) An affirmation that
the statements contained in the application are true.
(f) An application fee
in the amount of $250.
(4) The county assessor
shall approve an application that includes all documents listed in subsection
(3) of this section. The assessor shall notify the landowner and the
holder of the assessor’s decision to approve or wholly or partially deny an
application.
(5) Whether land subject
to a conservation easement qualifies for special assessment under this section
shall be determined as of January 1 of the assessment year. If land so
qualified becomes disqualified prior to July 1 of the same assessment year, the
land shall be valued under ORS 308.232 at its real market value as defined by
law without regard to this section and shall be assessed at its assessed value
under ORS 308.156 or as otherwise provided by law. If the land becomes disqualified
on or after July 1, the land shall continue to qualify for special assessment
as provided in this section for the current tax year.
(6) Application fees
collected under this section shall be deposited in the county general fund to
the credit of the county assessor.
SECTION 5. (1) The county assessor shall value land for
conservation easement special assessment in accordance with this section.
(2) For property that
was specially assessed during the previous assessment year under a special
assessment law listed in ORS 308A.706 (1)(d), the property shall have a
specially assessed value, a maximum assessed value and an assessed value
determined under whichever of the following was an applicable method of
valuation for the previous assessment year:
(a) ORS 308A.050 to
308A.128; or
(b) ORS 321.354 or
321.833.
(3) For property that
was not specially assessed during the previous assessment year, the property
shall have a specially assessed value, a maximum assessed value and an assessed
value:
(a) Determined under ORS
321.354 or 321.833 if, at the time of application, the land has growing upon it
trees of a marketable species and in numbers sufficient to meet requirements
for designated forestland under ORS 321.358 or 321.839; or
(b) If the criteria set
forth in paragraph (a) of this subsection are not satisfied, determined under
ORS 308A.050 to 308A.128.
(4) For property subject
to conservation easement special assessment, the county assessor shall enter on
the assessment and tax roll the notation “potential additional tax liability”
until the land is disqualified under section 7 of this 2007 Act.
SECTION 6. Subject to the terms of the applicable
conservation easement, new and existing dwellings may be allowed on a lot or
parcel subject to conservation easement special assessment as follows:
(1) Lawfully existing
dwellings, pursuant to ORS 215.130 (5) to (11), may remain.
(2) For a lot or parcel
without an existing dwelling, dwellings may be allowed if each dwelling for
which the landowner seeks approval complies with all applicable requirements
under the county’s acknowledged zoning ordinance.
SECTION 7. (1) Land that is receiving conservation
easement special assessment shall be inspected by a holder periodically to
ensure that:
(a) The land is managed
in accordance with the terms of the conservation easement to which the land is
subject;
(b) The conservation
easement continues to meet the requirements of section 3 (2)(a) of this 2007
Act; and
(c) The holder complies
with subsection (2) of this section.
(2)(a) Every three
years, or more frequently if requested in writing by the county assessor, the
holder shall provide written certification to the county assessor that the land
is being managed in accordance with the terms of the conservation easement to
which the land is subject and that the conservation easement continues to meet
the requirements of section 3 (2)(a) of this 2007 Act.
(b) If, upon inspection,
the holder determines that the land is not being managed in accordance with the
terms of the conservation easement to which the land is subject or that the
conservation easement no longer meets the requirements of section 3 (2)(a) of
this 2007 Act, the holder shall notify the landowner and require compliance
measures to be taken within six months or a reasonable shorter period if
permitted by the terms of the conservation easement. If the plan is still not
being implemented as required by the holder at the end of the six-month period
or applicable shorter period, the holder shall notify the county assessor that
the land is not being managed in accordance with the terms of the conservation
easement to which the land is subject.
(3) If the landowner has
claimed a federal income tax deduction under section 170 of the Internal
Revenue Code and the claim is disallowed because the contribution on which the
claim is based is not a qualified conservation contribution under section
170(h) of the Internal Revenue Code, the landowner and holder shall immediately
notify the county assessor of the disallowance.
(4) The county assessor
shall disqualify the land from conservation easement special assessment upon:
(a) Failure of the
holder to provide the certification described in subsection (2)(a) of this
section within 90 days following the close of the three-year period or the date
of the written request, whichever is earlier;
(b) Notice from the
holder as described in subsection (2)(b) of this section;
(c) Notice from the
landowner or holder as described in subsection (3) of this section;
(d) Notice of request
for withdrawal by the landowner of the land from conservation easement special
assessment;
(e)
(f) The land qualifying
for another special assessment listed in ORS 308A.706 (1)(d); or
(g) The act of recording
a subdivision plat under ORS chapter 92.
(5) If, pursuant to
subsection (4)(g) of this section, the county assessor disqualifies land for
conservation easement special assessment upon the act of recording a
subdivision plat, the land may requalify for conservation easement special
assessment upon:
(a) Payment of all
additional tax and interest that remain due and owing as a result of the
disqualification;
(b) Compliance with
sections 2 to 7 of this 2007 Act; and
(c) Submission of an
application for conservation easement special assessment under section 4 of
this 2007 Act and approval of the application by the county assessor.
(6) Upon
disqualification, the county assessor shall compute an additional tax under ORS
308A.700 to 308A.733.
SECTION 8.
ORS 308A.253 is amended to read:
308A.253. (1) Land under
a dwelling that is used in conjunction with the activities customarily carried
on in the management and operation of forestland held or used for the
predominant purpose of growing and harvesting trees of a marketable species
shall qualify for special assessment under ORS 308A.256.
(2) Land under dwellings
located within an exclusive farm use zone and used in conjunction with farm use
shall qualify for special assessment under ORS 308A.256.
(3) Land under dwellings
used in conjunction with the farm use of nonexclusive farm use zone farmland
shall qualify for special assessment under ORS 308A.256 if the farmland was
operated as a part of a farm unit that produced more than one-half of the
adjusted gross income of the owner or owners in the year prior to the year an
application is filed under this section.
(4) Land under a
dwelling on a lot or parcel that is specially assessed under ORS 308A.403 to
308A.430 or sections 2 to 7 of this 2007 Act shall qualify for special
assessment under ORS 308A.256 if the land associated with the homesite:
(a) Was the subject of
an application for wildlife habitat special assessment under ORS 308A.424 or
conservation easement special assessment under section 4 of this 2007 Act
and includes an existing homesite that was specially assessed under one of the
special assessments listed in ORS 308A.703 (1) during the assessment year prior
to application; or
(b)(A) Is zoned in the
comprehensive plan for exclusive farm use, forest use or farm and forest use;
and
(B) The parcel has a
minimum of 10 acres that meet the stocking and species requirements of land
specially assessed under ORS 321.354 or 321.833.
(5) For purposes of ORS
308A.250 to 308A.259, the use of a dwelling “in conjunction with the activities
customarily carried on in the management and operation of forestland” includes
but is not limited to use of the dwelling under circumstances as follows:
(a) The dwelling is
owned and occupied by a person who is engaged in the operation of the
forestland, is occupied by an employee of the owner of forestland who is
employed in connection with the forest operation or is occupied by a person who
is involved in the forest operation; or
(b) The dwelling is
owned and occupied by a person who is no longer engaged in the forest operation
but:
(A) Whose principal
source of income is derived from the harvest of timber from the forestland on
which the dwelling is located;
(B) Who owned and
occupied the dwelling, and was engaged in the forest operation, during the five
consecutive tax years before the tax year in which engagement in the forest
operation ended; and
(C) Who has owned and
occupied the dwelling continuously during the period since engagement in the
forest operation ended. For purposes of this subparagraph, “continuous”
includes any period in which the dwelling is unoccupied because of health,
vacation or other reason, if during the period the dwelling is not leased or
rented to another person.
(6) For purposes of ORS
308A.250 to 308A.259, the use of a dwelling “in conjunction with farm use” of
farm use land includes but is not limited to use of the dwelling under
circumstances as follows:
(a) The dwelling is
owned and occupied by a person who is engaged in the operation of the farm use
land, is occupied by an employee of the owner of farm use land who is employed
in connection with the farming operation or is occupied by a person who is
involved in the farming operation; or
(b) The dwelling is
owned and occupied by a person who is no longer engaged in the farm operation
on the farm use land but:
(A) Whose principal
source of income is from the farm operation on the farm use land on which the
dwelling is located;
(B) Who owned and
occupied the dwelling, and was engaged in the farm operation, during the five
consecutive tax years before the tax year in which engagement in the farm
operation ended; and
(C) Who has owned and
occupied the dwelling continuously during the period since engagement in the
farm operation ended. For purposes of this subparagraph, “continuous” includes
any period in which the dwelling is unoccupied because of health, vacation or
other reason, if during the period the dwelling is not leased or rented to
another person.
(7)(a) In order for land
described in subsection (3) of this section to qualify for assessment under ORS
308A.250 to 308A.259, the owner or owners shall file an application with the
county assessor on or before April 15 of each year the assessment is desired.
The application shall be made on forms prepared by the Department of Revenue
and supplied by the assessor and shall include any information as may be
reasonably required to determine the entitlement of the applicant, including
copies of applicable state income tax returns. All information provided,
including determinations made under administrative and court proceedings where
entitlement is in issue, shall be confidential information of the assessor’s
office and shall be used only for purposes of this subsection.
(b) There shall be
attached to each application an affidavit or affirmation from the applicant
providing that the statements contained in the application are true.
SECTION 9.
ORS 308A.318 is amended to read:
308A.318. (1) When land
has once been classified under ORS 308A.300 to 308A.330, it shall remain under
such classification and it shall not be applied to any other use than as open
space unless withdrawn from classification as provided in subsection (2) of
this section, except that if the use as open space land changes from one open
space use to another open space use, such as a change from park purposes to
golf course land, the owner shall notify the assessor of such change prior to
the next January 1 assessment date.
(2) During any year
after classification, notice of request for withdrawal may be given by the
owner to the county assessor or assessors of the county or counties in which
such land is situated. The county assessor or assessors, as the case may be, shall
withdraw such land from such classification, and immediately shall give written
notice of the withdrawal to the granting authority that classified the land;
and additional real property taxes shall be collected on such land in an amount
equal to the total amount of potential additional taxes computed under ORS
308A.312 (3) during each year in which the land was classified, together with
interest at the rate of two-thirds of one percent a month, or fraction of a
month, from the dates on which such additional taxes would have been payable
had the land not been so classified, limited to a total amount not in excess of
the dollar difference in the value of the land as open space land for the last
year of classification and the real market value under ORS 308.205 for the year
of withdrawal.
(3) If the owner fails
to give the notice required under subsection (1) of this section during the
period of classification, upon withdrawal under subsection (2) of this section,
the assessor shall add to the tax extended against the land previously
classified, an amount, if any, equal to the additional taxes that would have
been collected had the assessor valued the classified land on the basis of the
changed open space use, together with interest at the rate of two-thirds of one
percent a month, or fraction of a month, from the dates on which such
additional taxes would have been payable.
(4) Notwithstanding
subsection (2) of this section, open space lands that qualify for wildlife
habitat special assessment under ORS 308A.403 to 308A.430 or conservation
easement special assessment under sections 2 to 7 of this 2007 Act may be
disqualified from open space special assessment and qualified for wildlife
habitat special assessment or conservation easement special assessment without
payment of any additional tax under this section.
(a) The additional tax
as determined under subsection (2) of this section shall remain a potential
liability notated on the assessment and tax roll, separate from and in addition
to the wildlife habitat potential additional tax described in ORS 308A.427
or the conservation easement potential additional tax described in section 5 of
this 2007 Act.
(b) The interest as
described in subsection (2) of this section shall be frozen for as long as the
land remains in wildlife habitat special assessment or conservation easement
special assessment.
(c) If the land is
disqualified from wildlife habitat special assessment or conservation
easement special assessment and again becomes qualified for open space special
assessment, the open space potential tax calculation shall resume as of the
date of the renewed open space use special assessment qualification.
SECTION 10.
ORS 308A.703 is amended to read:
308A.703. (1) This
section applies to land upon the land’s disqualification from special
assessment under any of the following sections:
(a) Exclusive farm use
zone farmland under ORS 308A.113;
(b) Nonexclusive farm
use zone farmland under ORS 308A.116;
(c)
(d) Eastern
(e) Wildlife habitat
special assessment under ORS 308A.430[.];
or
(f) Conservation
easement special assessment under section 7 of this 2007 Act.
(2) Following a
disqualification listed in subsection (1) of this section, an additional tax
shall be added to the tax extended against the land on the next assessment and
tax roll, to be collected and distributed in the same manner as other ad
valorem property tax moneys. The additional tax shall be equal to the
difference between the taxes assessed against the land and the taxes that would
otherwise have been assessed against the land, for each of the number of years
determined under subsection (3) of this section.
(3) The number of years
for which additional taxes shall be calculated shall equal the lesser of the
number of consecutive years the land had qualified for the special assessment
program for which disqualification has occurred or:
(a) Ten years, in the
case of exclusive farm use zone farmland, but only if the land, immediately
following disqualification, remains outside an urban growth boundary;
(b) Ten years, in the
case of wildlife habitat special assessment land within an exclusive farm use
zone, but only if the land, immediately following disqualification, remains
outside an urban growth boundary; [or]
(c) Ten years, in the
case of conservation easement special assessment land within an exclusive farm
use zone, but only if the land, immediately following disqualification, remains
outside an urban growth boundary; or
[(c)] (d) Five years, in the case of:
(A) Nonexclusive farm
use zone farmland;
(B) Western Oregon
designated forestland;
(C) Eastern
(D) Exclusive farm use
zone farmland that is not described in paragraph (a) of this subsection; [or]
(E) Wildlife habitat
special assessment land that is not described in paragraph (b) of this
subsection[.]; or
(F) Conservation
easement special assessment land that is not described in paragraph (c) of this
subsection.
(4) The additional taxes
described in this section shall be deemed assessed and imposed in the year to
which the additional taxes relate.
(5) If the
disqualification of the land is the result of the sale or transfer of the land
to an ownership making the land exempt from ad valorem property taxation, the
lien for additional taxes shall attach as of the day preceding the sale or
transfer.
(6) The amount
determined to be due under this section may be paid to the tax collector prior
to the time of the next general property tax roll, pursuant to the provisions
of ORS 311.370.
SECTION 11.
ORS 308A.706 is amended to read:
308A.706. (1)
Notwithstanding that land may have been disqualified from special assessment,
the additional taxes described under ORS 308A.703 shall not be imposed and
shall remain a potential tax liability if, as of the date the disqualification
is taken into account on the assessment and tax roll, the land is any of the
following:
(a) Disqualified
exclusive farm use zone farmland or nonexclusive farm use zone farmland that:
(A) Is not being used as
farmland; and
(B) Is not being used
for industrial, commercial, residential or other use that is incompatible with
a purpose to return the land to farm use.
(b) Acquired by a
governmental agency or body as a result of an exchange of the land for land of
approximately equal value held by the governmental agency or body.
(c) Acquired and used
for natural heritage purposes and all of the following additional requirements
are met:
(A) The land is
registered under ORS 273.581 as a natural heritage conservation area;
(B) The land is acquired
by a private nonprofit corporation;
(C) The land is retained
by the corporation, or transferred to the state by the corporation, for the purpose
of educational, scientific and passive recreational use consistent with
conservation of the ecological values and natural heritage elements of the
area;
(D) If the land is
retained by the corporation, it remains open to the public without charge for
the uses described in subparagraph (C) of this paragraph; and
(E) The land is managed
pursuant to a voluntary management agreement under ORS 273.581 (5).
(d) Qualified for
special assessment under:
(A) ORS 308A.062,
relating to farm use special assessment of land in an exclusive farm use zone;
(B) ORS 308A.068,
relating to farm use special assessment of nonexclusive farm use zone farmland;
(C) ORS 321.358,
relating to classification as designated forestland in western
(D) ORS 321.839, relating
to classification as designated forestland in eastern
(E) ORS 321.709,
relating to qualification as small tract forestland; [or]
(F) ORS 308A.424,
relating to wildlife habitat special assessment[.] or
(G) Section 4 of this
2007 Act, relating to conservation easement special assessment.
(e) Disqualified
nonexclusive farm use zone farmland, to the extent the additional taxes are
deferred or abated as provided in ORS 308A.119.
(2) In any case where
the additional tax is deferred under the provisions of this section but may
subsequently be imposed under ORS 308A.712, the county assessor shall continue
to enter the notation “potential additional tax liability” on the assessment
and tax roll.
SECTION 12.
ORS 308A.718 is amended to read:
308A.718. (1) The county
assessor shall send notice as provided in this section if land is disqualified
under any of the following special assessment programs:
(a) Farm use special
assessment under ORS 308A.050 to 308A.128.
(b) Farm or forest
homesite special assessment under ORS 308A.250 to 308A.259.
(c) Western
(d) Eastern
(e) Small tract
forestland special assessment under ORS 321.700 to 321.754.
(f) Wildlife habitat
special assessment under ORS 308A.403 to 308A.430.
(g) Conservation
easement special assessment under sections 2 to 7 of this 2007 Act.
(2) Notwithstanding that
a change in use described in this section is not a disqualification, the
assessor shall send notice as provided in this section when the highest and
best use of land changes from forestland to a different highest and best use.
(3) Within 30 days after
the date that land is disqualified from special assessment, the assessor shall
notify the taxpayer in writing of the disqualification and shall state the
reason for the disqualification.
(4) Following receipt of
the notification, the taxpayer may appeal the assessor’s determination to the
Oregon Tax Court within the time and in the manner provided in ORS 305.404 to
305.560.
(5)(a) When any land has
been granted special assessment under any of the special assessment laws listed
in subsection (1) of this section and the land is disqualified from such
special assessment, the county assessor shall furnish the owner with a written
explanation summarizing:
(A) ORS 308A.706 (1)(d)
(relating to change in special assessment);
(B) ORS 308A.727
(relating to change in use to open space use special assessment for certain
golf courses);
(C) The administrative
act necessary under ORS 308A.724 to change the property to another
classification described in this paragraph; and
(D) The imposition of
any penalties that would result from the disqualification if no requalification
or reclassification is made under one of the other special assessment laws
listed in this paragraph.
(b) The written
explanation required by this subsection shall be given in conjunction either
with the notice of disqualification required under this section or with an
order or notice of disqualification otherwise provided by law.
(c)(A) If no notice of
disqualification is required to be made by this section or other provision of
law, the written explanation required by this subsection shall be made by the
county assessor.
(B) A written
explanation made under this paragraph shall be made by the assessor within 30
days of the effective date of the disqualification.
(6) Subsections (1) to
(5) of this section do not apply if the reason for the disqualification is:
(a) The result of a
request for disqualification by the property owner; or
(b) Because the property
is being acquired by a government or tax-exempt entity.
SECTION 13.
ORS 215.236 is amended to read:
215.236. (1) As used in
this section, “dwelling” means a single-family residential dwelling not
provided in conjunction with farm use.
(2) The governing body
or its designee may not grant final approval of an application made under ORS
215.213 (3) or 215.284 (1), (2), (3), (4) or (7) for the establishment of a
dwelling on a lot or parcel in an exclusive farm use zone that is, or has been,
receiving special assessment without evidence that the lot or parcel upon which
the dwelling is proposed has been disqualified for special assessment at value
for farm use under ORS 308A.050 to 308A.128 or other special assessment under
ORS 308A.315, 321.257 to 321.390, 321.700 to 321.754 or 321.805 to 321.855 and
any additional tax imposed as the result of disqualification has been paid.
(3) The governing body
or its designee may grant tentative approval of an application made under ORS
215.213 (3) or 215.284 (1), (2), (3), (4) or (7) for the establishment of a
dwelling on a lot or parcel in an exclusive farm use zone that is specially assessed
at value for farm use under ORS 308A.050 to 308A.128 upon making the findings
required by ORS 215.213 (3) or 215.284 (1), (2), (3), (4) or (7). An
application for the establishment of a dwelling that has been tentatively
approved shall be given final approval by the governing body or its designee
upon receipt of evidence that the lot or parcel upon which establishment of the
dwelling is proposed has been disqualified for special assessment at value for
farm use under ORS 308A.050 to 308A.128 or other special assessment under
ORS 308A.315, 321.257 to 321.390, 321.700 to 321.754 or 321.805 to 321.855 and
any additional tax imposed as the result of disqualification has been paid.
(4) The owner of a lot
or parcel upon which the establishment of a dwelling has been tentatively
approved as provided by subsection (3) of this section shall, before final
approval, simultaneously:
(a) Notify the county
assessor that the lot or parcel is no longer being used as farmland or for
other specially assessed uses described in subsection (2) or (3) of this
section;
(b) Request that the
county assessor disqualify the lot or parcel from special assessment under ORS
308A.050 to 308A.128, 308A.315, 321.257 to 321.390, 321.700 to 321.754 or
321.805 to 321.855; and
(c) Pay any additional
tax imposed upon disqualification from special assessment.
(5) Except as provided
in subsection (6) of this section, a lot or parcel that has been disqualified
pursuant to subsection (4) of this section may not requalify for special
assessment unless, when combined with another contiguous lot or parcel, it
constitutes a qualifying parcel.
(6)(a) A lot or parcel
that has been disqualified pursuant to subsection (4) of this section may
requalify for wildlife habitat special assessment under ORS 308A.403 to
308A.430 or conservation easement special assessment under sections 2 to 7
of this 2007 Act without satisfying the requirements of subsection (5) of
this section.
(b) Upon
disqualification from wildlife habitat special assessment under ORS 308A.430
or disqualification from conservation easement special assessment under section
7 of this 2007 Act, the lot or parcel shall be subject to the requirements
of subsection (5) of this section.
(7) When the owner of a
lot or parcel upon which the establishment of a dwelling has been tentatively
approved notifies the county assessor that the lot or parcel is no longer being
used as farmland and requests disqualification of the lot or parcel for special
assessment at value for farm use, the county assessor shall:
(a) Disqualify the lot
or parcel for special assessment at value for farm use under ORS 308A.050 to
308A.128 or other special assessment by removing the special assessment;
(b) Provide the owner of
the lot or parcel with written notice of the disqualification; and
(c) Impose the
additional tax, if any, provided by statute upon disqualification.
(8) The Department of
Consumer and Business Services, a building official, as defined in ORS 455.715
(1), or any other agency or official responsible for the administration and
enforcement of the state building code, as defined in ORS 455.010, may not
issue a building permit for the construction of a dwelling on a lot or parcel
in an exclusive farm use zone without evidence that the owner of the lot or parcel
upon which the dwelling is proposed to be constructed has paid the additional
tax, if any, imposed by the county assessor under subsection (7)(c) of this
section.
SECTION 14.
ORS 308A.724 is amended to read:
308A.724. (1)(a) In
order for additional taxes imposed under ORS 308A.703 to be deferred under ORS
308A.706 (1)(d) (relating to change in special assessment), the owner must file
an application or claim for classification under another special assessment
law.
(b) If the
disqualification is effective prior to July 1 in any year, the owner shall file
the required claim or application on or before August 1 of that year.
(c) If the
disqualification is effective on or after July 1 in any year, the county taxing
authorities shall continue the classification on the current assessment and tax
rolls, and the owner shall file the required claim or application in the next
calendar year in accordance with the laws governing the particular special
assessment program.
(2) If an owner of land
disqualified under one of the special assessment laws listed in ORS 308A.706
(1)(d) seeks to qualify for farm use special assessment of nonexclusive farm
use zone farmland under ORS 308A.068, the owner shall have five years,
beginning with the first year in which application is made under this section,
to qualify for the two-year farm use requirement of ORS 308A.068 and the income
requirement under ORS 308A.071.
(3) Notwithstanding
subsection (1) of this section, an owner may make application under this
section at any time within 30 days of the date notice of disqualification is
sent by the assessor under ORS 308A.718.
(4) Notwithstanding
subsections (1) to (3) of this section[,]:
(a) An owner of land disqualified from wildlife
habitat special assessment under ORS 308A.430 that was previously subject to
ORS 215.236 (5), except for conservation easement special assessment,
may not apply for another special assessment under this section without first
satisfying the requirements of ORS 215.236 (5)[.]; and
(b) An owner of land
disqualified from conservation easement special assessment under section 7 of
this 2007 Act, except for wildlife habitat special assessment, may not apply
for another special assessment under this section without first satisfying the
requirements of ORS 215.236 (5).
SECTION 15.
ORS 308A.743 is amended to read:
308A.743. (1) Land that
is specially assessed under ORS 308A.050 to 308A.128, 308A.300 to 308A.330,
308A.403 to 308A.430, 321.257 to 321.390, 321.700 to 321.754 or 321.805 to
321.855 or sections 2 to 7 of this 2007 Act, or land that is exempt from
property tax under ORS 308A.350 to 308A.383, may not be disqualified from the
special assessment or exemption, and may not be subject to additional taxes
under ORS 308A.700 to 308A.733 or other law, if the property owner has:
(a) Entered into a
wildlife habitat conservation and management plan, as described in ORS 308A.403
to 308A.430, approved by the State Department of Fish and Wildlife; or
(b) Executed a
conservation easement, as defined in ORS 271.715, or a deed restriction and the
land:
(A) Is managed in
compliance with the conservation easement or deed restriction; and
(B) Continues to meet
the requirements for special assessment or exemption. The existence of the
conservation easement or deed restriction may not cause the disqualification of
the land from special assessment or exemption or preclude the disqualification
of the land from special assessment or exemption for some other reason.
(2) A property owner who
executes a conservation easement may convey the easement to a land trust or
other qualified entity without a loss of benefits under this section.
(3) In order for land to
be subject to this section:
(a) The conservation
easement, deed restriction or wildlife habitat conservation and management plan
must be recorded in the records of the clerk of the county in which the land is
located; and
(b) A copy of the
conservation easement, deed restriction or wildlife habitat conservation and
management plan, along with the property tax account number for the land, must
be sent to the county assessor.
SECTION 16.
ORS 308A.712 is amended to read:
308A.712. (1) If the
disqualification of land from special assessment results in the deferral of
additional taxes under ORS 308A.706:
(a) The amount of
deferred additional taxes shall be determined as provided for in this section
in lieu of ORS 308A.703; and
(b) The deferred
additional taxes shall be added to the assessment and tax roll for the year in
which the event described in subsections (2) to (6) of this section is first
taken into account for property tax purposes, to be collected and distributed
in the same manner as other ad valorem property taxes.
(2) If additional taxes
are deferred under ORS 308A.706 (1)(a) (relating to compatible nonuse of
farmland) and subsequently the land is changed to an industrial, commercial,
residential or other use incompatible with a return of the land to farm use,
then:
(a) The amount of
additional tax due for each year to which the additional tax applies shall be
the difference between the taxes assessed against the land and the taxes that
would have been assessed against the land in that year had the land not been in
special assessment; and
(b) The number of years
for which the additional tax shall be collected shall be the total number of
years (whether or not continuous) that the farm use special assessment was in
effect for the land, not to exceed:
(A) In the case of
disqualified exclusive farm use zone farmland located outside an urban growth
boundary, 10 tax years, or such lesser number of years, corresponding to the
number of years of farm use zoning applicable to the property; or
(B) In the case of all
other farmland disqualified from farm use special assessment, five tax years.
(3)(a) If additional
taxes are deferred under ORS 308A.706 (1)(b) (relating to government exchange
of land), additional taxes shall be collected when the land acquired as a
result of the exchange is disqualified from special assessment. The additional
taxes shall equal the total amount of additional taxes under ORS 308A.703 (2)
attributable to the number of years the land transferred to the governmental
agency or body received the special assessment before the exchange plus the
number of years, if any, the land acquired from the governmental agency or body
received a special assessment after the exchange.
(b) The total number of
years taken into account shall not exceed the maximum number of years for which
additional taxes may be collected under the provision of law applicable to
either the exchanged land (immediately before the exchange) or the acquired
land, whichever is greater.
(4) If additional taxes
are deferred under ORS 308A.706 (1)(c) (relating to natural heritage), the
additional taxes that would have been imposed under ORS 308A.703 at the time of
disqualification shall be collected when the land is no longer used as
described in ORS 308A.706 (1)(c).
(5) If additional taxes
are deferred under ORS 308A.706 (1)(d) (relating to change in special
assessment), the additional taxes that would have been collected at the time of
disqualification shall be collected at the time the land is disqualified from
any other special assessment law listed in ORS 308A.706 (1)(d). The total
amount of additional tax shall be calculated as follows:
(a) The amount of the
additional tax due for each year to which the additional tax applies shall be
the difference between the taxes assessed against the land and the taxes that
would have been assessed against the land in that year had the land not been in
special assessment; and
(b) The number of years
for which the additional tax shall be collected shall be the total number of
continuous tax years that a special assessment listed in ORS 308A.706 (1)(d)
was in effect for the land, not to exceed:
(A) Five tax years; or
(B) If the property had,
within the past 10 tax years, been disqualified from a special assessment
program described in ORS 308A.703 (3)(a) [or
(b)] to (c) and had been continuously subject to special assessment,
then 10 tax years. However, the number of continuous preceding years of special
assessment under the special assessment programs listed in ORS 308A.703 [(3)(c)] (3)(d) that may be taken
into consideration for purposes of computing the additional tax may not exceed
five years.
(6) In determining the
additional tax under subsection (5) of this section, the number of continuous
preceding years of special assessment counted shall not include those years in
which the land was specially assessed under any of the special assessment laws
listed in ORS 308A.706 (1)(d) prior to a disqualification of the land for
special assessment as exclusive farm use zone farmland under the conditions
described in ORS 308A.709 (6).
SECTION 17.
ORS 308A.733 is amended to read:
308A.733. (1) Where any
property has been granted special assessment for the purposes of property
taxation under any of the special assessment laws listed in subsection (2) of
this section, and the owner or other qualified person applies for a change in
the classification under another special assessment law, the applicant shall
have 30 days thereafter within which to withdraw the application, by giving
written notice to the public official or agency to whom the applicant applied
for the change in classification. If no notice of withdrawal is given by the
applicant, the application shall be acted upon and the change in classification
made, as otherwise provided by law.
(2) This section applies
to the following special assessment laws:
(a) ORS 308A.050 to
308A.128 (relating to special assessment at value for farm use).
(b) ORS 321.257 to
321.390 (relating to special assessment as designated forestland in western
(c) ORS 321.805 to
321.855 (relating to special assessment as designated forestland in eastern
(d) ORS 321.700 to
321.754 (relating to special assessment as small tract forestland).
(e) ORS 308A.300 to
308A.330 (relating to classification as open space land).
(f) ORS 308A.350 to
308A.383 (relating to designation as riparian land).
(g) ORS 308A.403 to
308A.430 (relating to special assessment as wildlife habitat).
(h) Sections 2 to 7 of
this 2007 Act (relating to special assessment as conservation easement).
SECTION 18.
ORS 271.785 is amended to read:
271.785. For the purpose
of taxation, real property that is subject to [a conservation easement or] a highway scenic preservation easement
shall be assessed on the basis of the real market value of the property less
any reduction in value caused by the [conservation
easement or a] highway scenic preservation easement. Such an easement shall
be exempt from assessment and taxation the same as any other property owned by
the holder.
SECTION 19.
ORS 308A.707 is amended to read:
308A.707. (1)
Notwithstanding ORS 308A.706, additional taxes shall be imposed on land that is
disqualified from small tract forestland assessment under ORS 321.712 or
321.716. If after disqualification the land remains specially assessed under a
special assessment program described in ORS 308A.706 (1)(d)(A) to (D), [or] (F) or (G), the additional
taxes shall be computed under subsection (2) of this section. If after
disqualification the land is not specially assessed under a program described
in ORS 308A.706 (1)(d)(A) to (D), [or]
(F) or (G), the additional taxes shall be computed under subsection (3)
of this section.
(2)(a) The additional
taxes for disqualified small tract forestland that is qualified for special
assessment under a program described in ORS 308A.706 (1)(d)(A) to (D), [or] (F) or (G) shall be equal to
the difference between the taxes assessed against the land under ORS 321.700 to
321.754 and the taxes that would have been assessed against the land:
(A) Under ORS 321.257 to
321.390, if the land is located in western
(B) Under ORS 321.805 to
321.855, if the land is located in eastern
(b) The number of years
for which additional taxes shall be calculated shall equal the lesser of 10
years or the number of consecutive years the land has been assessed as small
tract forestland.
(3)(a) The additional
taxes for disqualified small tract forestland that is not qualified for special
assessment under a program described in ORS 308A.706 (1)(d)(A) to (D), [or] (F) or (G) shall be equal to
the sum of:
(A) The amount
determined under subsection (2) of this section; and
(B) The difference
between the taxes that would have been assessed against the land under ORS
321.257 to 321.390, if located in western Oregon, or ORS 321.805 to 321.855, if
located in eastern Oregon, and the taxes that would otherwise have been
assessed against the land, for the lesser of the number of consecutive years
the land was forestland or five years.
(b) Notwithstanding
paragraph (a)(B) of this subsection, if any provision of ORS 308A.700 to
308A.733 would cause the deferral or elimination of additional taxes that are
imposed under ORS 308A.703 or 308A.712, that provision shall also cause the
deferral or elimination of the additional taxes imposed under paragraph (a)(B)
of this subsection, under the same terms, requirements and conditions that
additional taxes under ORS 308A.700 to 308A.733 are deferred or eliminated.
(4) The additional taxes
described in this section shall be imposed and collected at the same time and
in the same manner as additional taxes described in ORS 308A.703 are imposed
and collected.
(5) The additional taxes
described in this section shall be deemed assessed and imposed in the year to
which the additional taxes relate.
(6) The amount
determined to be due under this section may be paid to the tax collector prior
to the time of the next general property tax roll, pursuant to the provisions
of ORS 311.370.
(7) As used in this
section, “forestland,” “western
SECTION 20.
ORS 321.716 is amended to read:
321.716. (1) The county
assessor shall disqualify land as small tract forestland upon:
(a)
(b) Discovery by the
assessor that the land is no longer forestland;
(c) The owner’s owning
or holding in common ownership more than 5,000 acres of
(d) The owner’s owning
or holding in common ownership less than 10 acres of
(e) Written notice from
the State Forestry Department that the land no longer meets the stocking and
species requirements applicable to small tract forestland under rules adopted
by the Department of Revenue;
(f) The land’s
qualifying for another special assessment listed in ORS 308A.706 (1)(d)(A), (B),
[or] (F) or (G); or
(g) The recording of a
subdivision plat under ORS chapter 92 that subdivides the land.
(2) If, pursuant to
subsection (1)(g) of this section, the county assessor disqualifies small tract
forestland upon the recording of a subdivision plat, the land may requalify for
small tract forestland assessment upon:
(a) Payment of all
additional tax and interest that remains due and owing as a result of the
disqualification;
(b) Submission of an
application for small tract forestland assessment under ORS 321.706 and
approval of the application by the county assessor; and
(c) Compliance with any
applicable local government zoning ordinances governing minimum lot or parcel
acreage for forest use.
(3)(a) If a sale or
transfer of small tract forestland is the basis for disqualification under
subsection (1)(a) of this section, the land may not be disqualified until 30
days after the county assessor issues a notice of intent to disqualify to the
purchaser or transferee of the small tract forestland. The assessor shall issue
a notice of intent to disqualify within 15 months after the date of the sale or
transfer.
(b) The land shall
automatically qualify for special assessment under ORS 321.257 to 321.390 or
321.805 to 321.855, whichever is applicable, unless the assessor determines
that the land does not constitute forestland.
(4) Upon
disqualification of land under subsection (1) of this section, additional taxes
shall be determined as provided in ORS 308A.700 to 308A.733.
SECTION 21. Sections
2 to 7 of this 2007 Act and the amendments to ORS 215.236, 271.785, 308A.253,
308A.318, 308A.703, 308A.706, 308A.707, 308A.712, 308A.718, 308A.724, 308A.733,
308A.743 and 321.716 by sections 8 to 20 of this 2007 Act apply to tax years
beginning on or after July 1, 2008.
Approved by the Governor July 17, 2007
Filed in the office of Secretary of State July 19, 2007
Effective date January 1, 2008
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