Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 308 - ASSESSMENT OF PROPERTY FOR TAXATION › Section 150-308-0245 - Partial Exemptions and Special Assessments of Land

Current through Register Vol. 63, No. 7, July 1, 2024
(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.