Or. Admin. Code § 150-308-0160

Current through Register Vol. 63, No. 12, December 1, 2024

Section 150-308-0160 - Minor Construction

(1) Definition: "Minor construction" is an improvement to real property that results in an addition to real market value (RMV), but does not qualify as an addition to maximum assessed value (MAV) due to a value threshold. The value threshold causing an addition to MAV for an improvement or improvements is an RMV increase of more than $18,200 in any one assessment year or more than $45,000 for all cumulative additions made over five assessment years, as adjusted upward based on any increase in the Consumer Price Index (CPI) as described in section (2) of this rule.

(2) For each assessment year beginning on or after January 1, 2025, the department shall adjust the threshold dollar amounts in section (1) of this rule as follows:

(a) Divide the average CPI for All Urban Consumers, West Region, for the prior calendar year by the average CPI for All Urban Consumers, West Region, for 2024.

(b) Recompute the RMV thresholds under section (1) of this rule by multiplying $18,200 and $45,000 by any positive increase in the CPI determined under subsection (a) of this section.

(3) Minor construction does not include general ongoing maintenance and repairs.

(4) When testing the threshold for all cumulative additions made over five assessment years, use the cumulative RMV of all minor construction and major additions over a period not to exceed five consecutive assessment years.

(a) Minor construction and major addition values are not market trended.

(b) Values for retirements are not considered in the threshold test.

(c) Values for minor construction items that are removed or destroyed prior to being an adjustment to MAV are subtracted from the minor construction cumulative RMV.

(5) Once the threshold for all cumulative additions made over five assessment years is met, use the following steps to calculate the MAV adjustment:

(a) Use minor construction values that are not market trended.

(b) Make adjustments for any retirements from the prior assessment year. The net value of additions and retirements may not go below zero.

(c) Apply the changed property ratio (CPR) from the year the cumulative RMV becomes an addition to MAV.

(d) Reset the cumulative RMV for minor construction to zero and restart the five-year period.

Or. Admin. Code § 150-308-0160

REV 8-1998, f. 11-13-98, cert. ef. 12-31-98; REV 8-2000, f. & cert. ef. 8-3-00; REV 7-2014, f. 12-23-14, cert. ef. 1-1-15; Renumbered from 150-308.149(6), REV 58-2016, f. 8-13-16, cert. ef. 9/1/2016; REV 5-2024, amend filed 01/31/2024, effective 2/1/2024

Examples referenced are available from the agency. #REV 7-2016, f. 8-10-16, cert. ef. #.

Statutory/Other Authority: ORS 305.100

Statutes/Other Implemented: ORS 308.149