Or. Admin. R. 150-308-0160 - Minor Construction

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

(1) Definition: "Minor construction" is an improvement to real property that results in an addition to real market value (RMV), but does not qualify as an addition to maximum assessed value (MAV) due to a value threshold. The value threshold is an RMV of over $10,000 in any one assessment year, or over $25,000 for all cumulative additions made over five assessment years.

(2) Minor construction does not include general ongoing maintenance and repairs.

(3) When testing the over $25,000 threshold, use the cumulative RMV of all minor and major construction over a period not to exceed five consecutive assessment years.

(a) Minor and major construction values are not market trended.

(b) Values for retirements are not considered in the threshold test.

(c) Values for minor construction items that are removed or destroyed prior to being an adjustment to MAV are subtracted from the minor construction cumulative RMV.

(4) Once the over $25,000 threshold is met, use the following steps to calculate the MAV adjustment:

(a) Use minor construction values that are not market trended.

(b) Make adjustments for any retirements from the prior assessment year. The net value of additions and retirements may not go below zero.

(c) Apply the changed property ratio (CPR) from the year the cumulative RMV becomes an addition to MAV.

(d) Reset the cumulative RMV for minor construction to zero and restart the 5-year period. The following examples demonstrate the over $25,000 threshold. RMVs in the following examples are not market trended and/or depreciated.

Example 1: Over $25,000 Not Met. [Example not included. See ED. NOTE.]

Example 2: Over $25,000 Not Met, Prior Years Drop Off. [Example not included. See ED. NOTE.]

Example 3: Cumulative RMV Reset. [Example not included. See ED. NOTE.]

Example 4: Cumulative RMV Reset. [Example not included. See ED. NOTE.]

Example 5: Individual Year and Cumulative Year Adjustments. [Example not included. See ED. NOTE.]

Example 6: Removal of Destroyed Minor Construction. [Example not included. See ED. NOTE.]

Notes

Or. Admin. R. 150-308-0160

REV 8-1998, f. 11-13-98, cert. ef. 12-31-98; REV 8-2000, f. & cert. ef. 8-3-00; REV 7-2014, f. 12-23-14, cert. ef. 1-1-15; Renumbered from 150-308.149(6), REV 58-2016, f. 8-13-16, cert. ef. 9/1/2016

Examples referenced are available from the agency. #REV 7-2016, f. 8-10-16, cert. ef. #.

Stat. Auth.: ORS 305.100

Stats. Implemented: ORS 308.149