Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 308 - ASSESSMENT OF PROPERTY FOR TAXATION › Section 150-308-1050 - Gross Income Requirement

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 Income From Consumed Products. For purposes of the income requirement for
			 farmland or a farm parcel outside an exclusive farm use zone, gross income
			 includes the value of any crop or livestock used by the owner personally or in
			 the farming operation. The owner must keep records accurately reflecting both
			 the value and the use of the crop or livestock in a manner consistent with
			 generally accepted accounting practices. The value of any crop or livestock
			 used by the owner personally or in the farming operation is the amount of money
			 the product would have been sold for in the normal marketing of the crop or
			 livestock by the taxpayer. However, the value of products consumed, by the
			 owner personally or in the farming operation, must constitute no more than 49
			 percent of gross income as required under ORS
			 308A.071.
(2) Adjusted Gross Income From Livestock. In
			 determining gross income from livestock, the purchase cost must be deducted
			 from the gross sales price.
(3)
			 Burden of Proving Income. The burden of proving that property that is not
			 within an exclusive farm use zone meets the gross income requirements of ORS
			 308A.071 is upon the owner or
			 person claiming special assessment. This burden is met if information
			 establishing sufficient gross income is supplied to the county assessor as
			 provided below. A failure to provide the required income information to the
			 county assessor constitutes grounds for disqualification under
			 308A.116(1)(c).
(4) Income
			 Information. The following procedures apply if the assessor lacks sufficient
			 information on March 1 to support a determination that land not in an EFU zone
			 qualifies for special farm use assessment.
(a)
			 On or before March 1, the assessor must send notice to the owner or person
			 claiming special assessment of the need to provide income information for
			 property subject to special assessment. The assessor must include an income
			 information questionnaire with the notice. The property owner must use the
			 questionnaire to provide income information to the county assessor. The
			 property owner must provide the income information to the county assessor no
			 later than April 15.
(b) The
			 assessor must send the notice and the questionnaire to the last known address
			 of record of the owner or person claiming special assessment for the subject
			 property. The notice and questionnaire must be in a form approved by the
			 Department of Revenue.
(c) If the
			 information provided to the county assessor is sufficient to determine whether
			 or not the subject property is qualified for special assessment, the assessor
			 must take the appropriate action.
(d) If the information provided to the county
			 assessor is insufficient to make a determination as to the qualification of the
			 subject property for special assessment, or if no information is provided, the
			 assessor must send a notice to the last known address of record for the owner
			 or person claiming special assessment. The notice must be in a form approved by
			 the Department of Revenue and must include:
(A) A statement of the assessor's intent to
			 disqualify the subject property; and
(B) A statement that within 30 days after the
			 date of the mailing of the notice, the owner or person claiming special
			 assessment may appear and show cause why the property should not be
			 disqualified.
(e) In
			 determining whether the subject property qualifies for special assessment, the
			 assessor must take into consideration information obtained through the income
			 information questionnaire, the show cause hearing and the county assessor's
			 records.
(f) If property is
			 disqualified from special assessment solely because no income information was
			 provided by April 15, or within the 30 days of assessor's notice of intent to
			 disqualify, the property owner may file an appeal with the Magistrate Division
			 of the Tax Court.
(A) "Good and sufficient
			 cause" has the meaning given in OAR 150-307-0500. The failure of the county
			 assessor to provide the notice required in subsection (a) of this rule on or
			 before March 1 constitutes good and sufficient cause for the owner's failure to
			 provide timely income information.
(B) The procedural requirements contained in
			 this rule are in addition to the requirements of ORS
			 308A.718.
(C) Nothing contained in this rule alters the
			 right of a person claiming special assessment to deferral and abatement of
			 additional tax, pursuant to ORS
			 308A.119.
(D) Nothing contained in this rule precludes
			 the assessor from continuing special assessment on farmland if the assessor
			 determines that the property meets the qualifications.