Or. Admin. Code § 150-308-0245

Current through Register Vol. 63, No. 11, November 1, 2024

Section 150-308-0245 - Partial Exemptions and Special Assessments of Land

(1) Valuation of Land Under Improvements Having Only Partial Exemption. This rule does not apply to those cases where land is not eligible for inclusion in the exemption.

(a) The land under an improvement, when part of the improvement is receiving an exemption, is exempt in an amount of value that is proportional to the exempted and taxable portions of the improvement based on the real market value of each portion.

Example 1: There is a one-story building of which a part representing 80 percent of total value is under exemption and the remaining part is taxable and consists of new construction representing 20 percent of the total value. The value of the land under the building would be apportioned 80 percent to the exemption and 20 percent to the taxable or market value each year.

Example 2: There is a two-story building which occupies a 100' x 100' lot in its entirety. The first story is under exemption, and the value carried on the roll represents 60 percent of the total improvement value. The second story, valued at market, represents 40 percent of the total improvement value. The value of the land under the building must be apportioned 60 percent to the exemption and 40 percent to the property valued at market.

(b) Where an improvement does not fully occupy the land and where only a portion of the improvement and land are used for an exempt purpose, any portion of the land or improvement that is not used or developed, or that is being held for future expansion, is fully taxable.

Example 3: Assume a parcel that measures 200' by 200', a building measuring 100' x 100', paved parking measuring 100' x 100', and unimproved land measuring 200' x 100'. One-half or 50 percent of the building and parking are used by an exempt entity. One-half (50 percent) or 5,000 square feet of the building is exempt, one-half (50 percent) of the parking is exempt. The remainder of the building, the parking lot, and unimproved land are fully taxable.

Example 4: There is a building measuring 100' x 100' located on one-fourth of a 200' x 200' lot. The remaining portion of the lot is a parking area. The taxable portion of the building rents or leases a 100' x 100' parking area and has exclusive use. The remaining 100' x 200' area of the lot is exempted only to the extent it is used as a parking area for the exempt entity. If 100' x 100' of this 100' x 200' parking area is used for parking and the remainder is held by the exempt entity for future expansion, the area held for expansion is fully taxable.

(c) When an improvement is partially exempted and that improvement contains common areas (i.e., hallways, restrooms, conference rooms, etc.), the percentage of the total area of these common areas that receives exemption shall be the same as the percentage of the total net rentable area occupied by the exempt entity.

(2) Valuation of Land Under Improvements Having Only Partial Special Assessment: The procedures described in section (1) of this rule also apply to properties receiving a partial special assessment, such as a partial historical designation.

Or. Admin. Code § 150-308-0245

REV 15-2018, adopt filed 06/26/2018, effective 7/1/2018

Statutory/Other Authority: ORS 305.100 & 308.205

Statutes/Other Implemented: ORS 308.205