(1) "Adjudicated value" means a real market
value that has been corrected by a final order of the Department of Revenue,
the property value appeals board, the tax court or other court, and is adjusted
only as allowed under ORS
309.115 for the subsequent five
tax years.
(2) A single trend or
index applied to all properties of a certain class in a market area shall be
applied in the same manner to adjudicated values in the same property class and
market area. For purposes of this rule, a market area may be identified to
exist within a county or include properties in multiple counties. This section
applies, but is not limited, to ratio studies conducted under ORS
309.200 and economic studies
conducted for industrial properties appraised by the Department of Revenue
under 306.126.
(3) Assessors may
develop valuation models to determine the real market value of property in the
same property class and in the same defined market area that rely on applying
trending, indexing, and depreciation factors to multiple, identifiable property
characteristics on file.
(4) The
assessor shall apply the same adjustments to adjudicated values as those
applied to values of other properties in the same property class in the same
defined market area where valuation modeling for multiple property
characteristics is used to calculate real market value.
(5) The adjudicated value in section (4) must
be calculated using the method in either subsection (a) or (b) of this section.
The methods in subsections (a) and (b) in this section are mathematically
equivalent, although differences due to rounding may occur. Such differences
are de minimus.
(a) Adjust the prior year's
adjudicated value proportionately to the change in value produced by the
valuation model.
(A) Calculate the ratio of
the real market value produced by the valuation model in the current year to
the real market value produced by the valuation model in the prior
year.
(B) Apply the ratio in
paragraph (A) to the prior year's adjudicated value.
Example 1: Real property is originally listed on the 2013-14
tax roll with an RMV of $100,000. The county property value appeals board
reduces the RMV to $85,000. The county applies a valuation model, which is
recalculated each year, to all like properties in the market area. The table
below shows the real market values produced by the valuation model, the ratio
to the real market value produced by the valuation model for the prior year to
those values, and the result of multiplying the prior year's adjudicated value
by the ratio for each tax year. [Table not included. See ED. NOTE.]
(b) Adjust the real
market value produced by the valuation model for the current year
proportionately to the correction ordered in the first year of adjudication.
(A) Calculate the ratio of the adjudicated
value to the real market value produced by the valuation model in the first
year of adjudication,
(B) Apply the
ratio to the real market value produced by the valuation model for the current
year.
Example 2: The facts are the same as for Example 1. The table
below shows the real market values produced by the valuation model, the ratio
of the adjudicated value to the original real market value produced by the
valuation model in the first year of adjudication, and the result of
multiplying the real market value produced by the valuation model by the ratio
for each tax year. [Table not included. See ED. NOTE.]
(6) Notwithstanding
section (5), if the adjudicated value is the result of correcting a specific
error in the description of property characteristics used in the valuation
model, the real market value produced by the valuation model for the corrected
property characteristics is the adjudicated value for the subsequent five
years.
Example 3: The Department of Revenue reduces the real market
value of a home based on evidence that the square footage is less than the
square footage shown on the architectural plans as used by the assessor. The
real market value found by the department is based upon a price per square foot
used by the assessor in the valuation model multiplied by the corrected square
footage. The adjudicated value in subsequent years is the price per square foot
determined by that year's valuation model multiplied by the corrected square
footage ordered by the department.
Notes
Or. Admin. Code §
150-309-0210
RD
9-1989, f. 12-18-89, cert. ef. 12-31-89; Renumbered from 150-309.115(2)(b) by
REV 7-2014, f. 12-23-14, cert. ef. 1-1-15; Renumbered from 150-309.115(2),
REV
26-2016, f. 8-12-16, cert. ef.
9/1/2016;
REV
39-2024, minor correction filed 06/25/2024, effective
6/25/2024
Tables referenced are available from the agency.
To view attachments referenced in rule text, click here to
view rule.
To view attachments referenced in rule text,
click here to view
rule.
Statutory/Other Authority: ORS
305.100
Statutes/Other Implemented: ORS
309.115
