Current through Register Vol. 61, No. 4, April 1, 2022
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.
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.
Minor and major construction values are not market trended.
(b) Values for retirements are not considered
in the threshold test.
for minor construction items that are removed or destroyed prior to being an
adjustment to MAV are subtracted from the minor construction cumulative RMV.
Once the over
$25,000 threshold is met, use the following steps to calculate the MAV
(a) Use minor construction values
that are not market trended.
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.
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.
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.]
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.]
Admin. R. 150-308-0160
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),
58-2016, f. 8-13-16, cert. ef.
Examples referenced are available from the agency.
7-2016, f. 8-10-16, cert. ef.
Stat. Auth.: ORS
Stats. Implemented: ORS