Or. Admin. R. 150-306-0100 - Determination of Responsibility for the Appraisal of Industrial Property

Current through Register Vol. 61, No. 4, April 1, 2022

(1) Definitions for purposes of this rule:
(a) "Industrial property" means a facility or property engaged in manufacturing or processing which includes, but is not limited to sawmills, plywood and veneer plants, paper and pulp mills, food processing facilities, bakeries, flour mills, chemical processing operations refineries, breweries, wineries bottling operations, machine shops, metal rolling mills, metal fabrication facilities, smelters, printing and publishing operations, seed processing operations, permanent sand and gravel operations, and electronic and high technology manufacturing operations.
(b) "State-appraised industrial property" means industrial property that had real market value for improvements of more than $1 million for the preceding year and whose appraisal responsibility has not been delegated by the department to the county.
(c) "Improvements" or "real property improvements", for determining responsibility for property of more than $1 million, means improvements erected upon, above or affixed to the land but not the land itself. Improvements include, but are not limited to: yard improvements, buildings, structures, and real property machinery and equipment. Improvements do not include site development and personal property.
(A) "Yard improvements" include but are not limited to on-site: paving, exterior lighting, log ponds, underground fire systems, fences, access roads and roadways and railroad sidings.
(B) "Site developments" are defined in OAR 150-307.010(1).
(d) "Integrated" and "integral" means directly involved in the production of a new product.
(e) "Processing" means the treatment of materials to produce a new product.
(f) "Unit of industrial property" means, for appraisal purposes, a single facility or an integrated complex currently engaged in manufacturing or processing operations and may include one or more accounts.
(2) The purpose of this rule is to determine the responsibility for the appraisal of industrial property between the Oregon Department of Revenue and the thirty-six Oregon county assessors' offices. Property classification for all purposes other than assigning appraisal responsibility is determined by OAR 150-308.215(1)-(A).
(3) The department is responsible for the appraisal of industrial property that meets the definition of "state-appraised industrial property". The county is responsible for the appraisal of all land, including that for state responsibility industrial accounts.
(4) Property other than industrial property that is at the same location as the manufacturing or processing operation may be appraised as part of the unit of industrial property.
(5) The procedure for determining the appraisal responsibility for industrial property is as follows:
(a) On or before August 1 of each year, the department will provide each county a list of all industrial property accounts within their jurisdiction for which the state was responsible for appraising in the preceding year. The list will include the owner's name, the account number, and the real market value.
(b) The county will review the list, and all other industrial property accounts, to determine if there are any units of industrial property that have moved above or below the $1 million threshold.
(A) Units of industrial property that have gone below the threshold will be placed on a list to be transferred to the county.
(B) Units of industrial property that have gone above the threshold will be placed on a list to be transferred to the department.
(C) Construction of a new industrial facility that will result in a real market value of more than $1 million for the real property improvements will be placed on a list of properties recommended for transfer to the department. If construction has begun or is expected to begin by January 1 of the current tax year it will also be placed on the list to be transferred.
(c) By October 1, the county will submit a list of accounts recommended to become state responsibility.
(d) By November 15, the department will make a final determination of appraisal responsibility for all industrial property and provide this information to the county.
(6) For state-appraised industrial property in which the real property improvements are not all at the same location, the department and the county will evaluate each account to determine if the account should be appraised by the department. The criteria that will be used are:
(a) The combined value of the real property improvements from all locations is more than $1 million, and
(b) The real property improvements are integral to the same manufacturing or processing operation.
(7) The party that valued the property will be responsible for defending any appeals. In all cases, the county is responsible for the defense of the land valuation.
(8) The department may return to the county the appraisal responsibility for any property that no longer qualifies as state responsibility industrial property. The department will forward to the county a copy of all appraisal material on file at the department and a copy of all industrial property returns filed by the taxpayer.
(9) This rule is effective January 1, 2016.

Notes

Or. Admin. R. 150-306-0100
12-55; 3-58; 11-59; 8-65; 1-66; 3-70; TC 10-1978, f. 12-5-78, cert. ef. 12-31-78; RD 9-1984, f. 12-5-84, cert. ef. 12-31-84; RD 3-1989, f. 12-18-89, cert. ef. 12-31-89; RD 8-1991, f. 12-30-91, cert. ef. 12-31-91; RD 8-1992, f. 12-29-92, cert. ef. 12-31-92; RD 1-1995, f. 12-29-95, cert. ef. 12-31-95; RD 9-1997, f. & cert. ef. 12-31-97, Renumbered from 150-306.126(1)-(A); REV 8-1998, f. 11-13-98, & cert. ef. 12-31-98; REV 3-2001, f. 7-31-01, cert. ef. 8-1-01; REV 7-2008, f. 8-29-08, cert. ef. 8-31-08; Renumbered from 150-306.126(1), REV 4-2015, f. 12-23-15, cert. ef. 1-1-16; Renumbered from 150-306.126, REV 43-2016, f. 8-12-16, cert. ef. 9/1/2016

Stat. Auth.: ORS 305.100, 306.126

Stats. Implemented: ORS 306.126

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