Chapter 503 Oregon Laws 1999

Session Law

AN ACT

SB 586

Relating to farmland inside an urban growth boundary; creating new provisions; and amending ORS 215.808 and 308.755.

Be It Enacted by the People of the State of Oregon:

SECTION 1. (1) A local government may approve an application to remove a lot or parcel from within an urban growth boundary if:

(a) The application is submitted by the owner of the lot or parcel;

(b)(A) The lot or parcel is adjacent to the edge of the urban growth boundary; or

(B) The lot or parcel is adjacent to another lot or parcel that is removed under this section;

(c) The lot or parcel is assessed under ORS 308.370 or 308.372 for its value for farm use;

(d) The lot or parcel is not within the boundaries of a city; and

(e) The lot or parcel is not included in an area identified for urban services under section 3 of this 1999 Act.

(2) A local government, in deciding whether to approve an application under subsection (1) of this section, shall consider:

(a) The projected costs and other consequences of extending urban services to the affected lot or parcel;

(b) The potential value in the investment of providing urban services to the affected lot or parcel;

(c) Any requirement for expanding the urban growth boundary in other areas to compensate for any loss in buildable lands; and

(d) The projected costs and other consequences of providing urban services to other areas brought in under an expanded urban growth boundary.

(3)(a) Land that is removed from within an urban growth boundary pursuant to an application approved under this section shall be removed from any inventory of buildable lands maintained by the local government.

(b) A local government that approves an application under this section shall either expand the urban growth boundary to compensate for any resulting reduction in available buildable lands or increase the development capacity of the remaining supply of buildable lands.

SECTION 2. (1) A decision of a local government to expand an urban growth boundary shall comply with the provisions of ORS 197.296.

(2) A decision of a local government under section 1 (1) of this 1999 Act is a land use decision.

SECTION 3. (1) A local government may identify land inside an urban growth boundary for which the local government intends to provide urban services within the next five to seven years. The local government may evidence its intent by adopting a capital improvement plan reasonably designed to provide the urban services.

(2) A local government that identifies an area for planned urban services and adopts a capital improvement plan may zone the area for urban uses. A city that identifies land that is outside the city's boundary but inside the urban growth boundary shall coordinate with the appropriate county to zone the area for urban uses.

(3)(a) Land in an area zoned for urban uses under this section shall not be subject to ORS 308.399 if the land ceases to be used for farm use within the five years following the date the area is zoned for urban uses.

(b) A lot or parcel in an area zoned for urban use under subsection (2) of this section shall not be assessed at its value for farm use under ORS 308.370 or 308.372 unless the lot or parcel was receiving the farm use assessment at the time the area was zoned for urban uses.

SECTION 4. ORS 308.755 is amended to read:

308.755. (1) Within 10 days of filing in the office of the assessor, the assessor shall refer each application for classification to the planning commission, if any, of the governing body and to the granting authority, which shall be the county governing body, if the land is in an unincorporated area, or the city legislative body, if it is in an incorporated area. An application shall be acted upon in a city or county with a comprehensive plan in the same manner in which an amendment to the comprehensive plan is processed. [by such city or county, and by a city or county without a comprehensive plan after a public hearing and after notice of the hearing shall have been given by three consecutive weekly advertisements in a newspaper of general circulation in the city or county, the third published at least 10 days before the hearing. Each advertisement for one or more hearings shall be no smaller than three column by five inches in size.] In determining whether an application made for classification under ORS 308.740 (1)(b) should be approved or disapproved, the granting authority shall weigh: [the benefits to the general welfare of preserving the current use of the property which is the subject of application against the potential loss in revenue which may result from granting the application.]

(a) The projected costs and other consequences of extending urban services to the affected lot or parcel;

(b) The value of preserving the lot or parcel as open space;

(c) The projected costs and other consequences of extending urban services beyond the affected lot or parcel; and

(d) The projected costs and other consequences, including the projected costs of extending urban services, of expanding the urban growth boundary in other areas if necessary to compensate for any reduction in available buildable lands.

(2) The granting authority shall not deny the application solely because of the potential loss in revenue that may result from granting the application if the granting authority [in so weighing shall determine] determines that preservation of the current use of the land will:

(a) Conserve or enhance natural or scenic resources;

(b) Protect air or streams or water supplies;

(c) Promote conservation of soils, wetlands, beaches or tidal marshes;

(d) Conserve landscaped areas, such as public or private golf courses, which enhance the value of abutting or neighboring property;

(e) Enhance the value to the public of abutting or neighboring parks, forests, wildlife preserves, nature reservations, sanctuaries, or other open spaces;

(f) Enhance recreation opportunities;

(g) Preserve historic sites;

(h) Promote orderly urban or suburban development; or

(i) Affect any other factors relevant to the general welfare of preserving the current use of the property[;].

[the granting authority shall not deny the application solely because of the potential loss in revenue which may result from granting the application.]

(3) The granting authority may approve the application with respect to only part of the land which is the subject of the application; but if any part of the application is denied, the applicant may withdraw the entire application.

SECTION 5. (1) At periodic review under ORS 197.633 next following approval of an application under ORS 308.755, the local government shall remove any lot or parcel subject to the application from any inventory of buildable lands maintained by the local government. The local government shall compensate for the resulting reduction in available buildable lands either by increasing the development capacity of the remaining supply of buildable lands or by expanding the urban growth boundary.

(2) A landowner who wishes to reapply for current open space use assessment under ORS 308.750 following the end of the assessment period shall reapply with the local government as provided in ORS 308.755.

SECTION 6. (1) Upon the sale of a lot or parcel located inside an urban growth boundary that is assessed at its value for farm use under ORS 308.370 or 308.372, the lot or parcel shall be disqualified for farm use assessment if:

(a) The lot or parcel is in an area identified for urban services under section 3 of this 1999 Act; and

(b) The urban services are available by ordinance for urbanization.

(2) Disqualification under subsection (1) of this section shall not apply to the sale of a lot or parcel to the owner's spouse, parent, stepparent, grandparent, sister, brother, daughter, son, stepchild or grandchild, or sale to a lessee of the owner if the lessee is conducting farm use as defined in ORS 215.203 on the lot or parcel at the time of sale.

SECTION 7. Sections 1, 2, 3, 5 and 6 of this 1999 Act are added to and made a part of ORS chapter 197.

SECTION 8. ORS 215.808 is amended to read:

215.808. (1) The State Department of Fish and Wildlife shall review and approve plans submitted under ORS 215.802 (1) for compliance with the standards set forth in the rules adopted under ORS 215.806.

(2) When a plan is approved by the department and is implemented, the owner of the land subject to the plan may make application to the county assessor for open space use assessment under ORS 308.740 to 308.790 for that land, except that, if approved, the land shall be assessed at its value for farm use under ORS 308.370. Application shall be made as provided in ORS 308.740 to 308.790 except that:

(a) The granting authority shall be the State Department of Fish and Wildlife. The department shall approve the plan relating to the land of the applicant and determine compliance with the plan in accordance with rules adopted under ORS 215.806. [The department shall not conduct the hearing required under ORS 308.755.]

(b) The owner, in lieu of designating the paragraph of ORS 308.740 (1) under which the open space use falls, shall designate the open space use as wildlife habitat conservation and management under ORS 215.800 to 215.808.

(c) Applications for open space use assessment under this section shall be made to the county assessor not later than August 1 in the calendar year preceding the first tax year for which such assessment is requested.

(d) The application shall include a certified copy of the department's declaration that the land described in the application is subject to a wildlife habitat conservation and management plan approved by the department and that the plan is being implemented.

(e) When the application for open space use assessment includes a certified copy of the declaration described in paragraph (d) of this subsection, the county assessor shall not refer the application to the planning commission or to the county governing body under ORS 308.755 (1), but shall assess the land described in the application at its value for farm use under the provisions of ORS 308.370. In each year in which the land is assessed under the provisions of this section, the county assessor shall also enter on the assessment roll, as a notation, the assessed value of the land were it not so assessed.

(3) An approved wildlife habitat conservation and management plan shall be reviewed by the department at least once in each two-year period to determine continued compliance with the plan. If the plan is not being implemented as approved, the department shall notify the owner and require compliance measures to be taken within six months. If the plan is still not being implemented as required by the department at the end of the six-month period, the department shall notify the county assessor of the county in which the affected land is situated. The county assessor shall withdraw the land from open space use classification as provided in ORS 308.775 (1), except that notice of the withdrawal shall be given to the governing body of the county in which the land is situated.

(4) Notwithstanding ORS 308.395, 308.399 and 215.236, land that is assessed under ORS 308.370 shall not be subject to any additional taxes when the land is changed to open space use assessment based on wildlife habitat conservation and management as provided in ORS 215.800 to 215.808 and shall be allowed to return to assessment under ORS 308.370, if otherwise qualified, without payment of any additional taxes. However, the land shall be subject to additional taxes when such land becomes disqualified or declassified from special assessment under ORS 308.370 or open space use assessment based on wildlife habitat in conservation and management as provided in ORS 215.800 to 215.808 and does not become qualified in the next assessment year for assessment under ORS 308.370 or open space use under ORS 308.740 to 308.790. The additional taxes shall be determined and collected as provided in ORS 321.960 (3), (4)(b) to (d), (5), (6) and (7). No other additional tax shall be imposed on such land at the time of disqualification or declassification.

Approved by the Governor July 6, 1999

Filed in the office of Secretary of State July 6, 1999

Effective date October 23, 1999

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