(1) Real property belonging to the United
States leased for summer homes is exempt from taxation. This exemption applies
only to the land. Leased fee and leasehold (or possessory) interests in the
land are exempt. No value for land shall be shown on the assessment roll.
(2) Improvements to the land are
site developments and are taxable. Site developments include such items as
water systems, septic systems, roadways, electrical service, and landscaping.
The value of site developments shall be included on the improvement portion of
the assessment roll.
(3)
Improvements on the land such as buildings and structures are taxable.
(4) Appraisal methods for valuing
these properties will vary depending on available market data. Regardless of
the method used, care and consideration must be taken to avoid taxation of the
land or any interests in the land. Appraisal methods to be used include:
(a) Reproduction or replacement cost new less
allowances for various forms of depreciation.
(b) Sales comparison of summer home
properties which may be owned fee simple. In using this method, care must be
taken to recognize the tenuous nature of Forest Service leases and permits.
Example: Comparison of improvements. Sales of
comparable improved properties owned in fee simple indicate a market value of
$75,000. The land value for these properties is indicated from land sales to be
$15,000. Thus, an indicated value of $60,000 ($75,000-$15,000) is indicated for
the improvements of the subject summer home property. This value may not be
applicable for the summer home property if the lease term (or expected
continuation of the lease) is less than the anticipated life of the
improvements.
Example: Land to property ratio. Sales of
comparable improved properties owned in fee simple indicate a land to property
ratio of 20% and a market value of $75,000 for the subject summer home
property. Thus, the indicated value for the summer home property is $60,000
(80% times $75,000).
(c)
Income capitalization. This approach is generally not applicable to summer home
properties because they are not typically rented on a month-to-month basis.
Also, lease payments made to the U.S. government for use of the land are
usually very favorable to the lessee, making capitalization of this income
stream unreliable as a value indicator.
Notes
Or. Admin. Code §
150-307-0230
RD 9-1992, f.
12-29-92, cert. ef. 12-31-92; Renumbered from 150-307.183,
REV
55-2016, f. 8-13-16, cert. ef.
9/1/2016
Stat. Auth.: ORS
305.100
Stats. Implemented: ORS
307.183
