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| Ethanol Update |
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by Shanne Johnson, appraiser analyst 3, Valuation
It’s been about six months since an article was written in the Grapevine about ethanol and its expanded use in Oregon. At that time, two multi-million dollar ethanol plants were under construction in Oregon. These have now been completed and are in full production.
Also over the last six months there have been many articles in the media regarding ethanol’s benefits and shortcomings. As concerns grew over the environment, global warming, rising gas prices, and our reliance on foreign oil, the Oregon Legislature decided take steps to help in these areas. In 2007, House Bill 2210 was passed. Although the bill is about 34 pages long, a detailed summary of the bill follows.
House Bill 2210, passed by the 74th Oregon Legislative Assembly and signed into law by Governor Kulongoski, provides a package of measures to encourage greater development, distribution and use of agricultural and forest material for biofuels, for electricity, and for other forms of biomass energy use. The bill expands property tax incentives for biofuel and certain fuel additive production facilities, establishes a new tax credit for producers and collectors of biofuel raw materials, based on Btu content of feedstock, and creates an income tax credit for consumer use of biofuel.
House Bill 2210 also establishes a Renewable Fuel Standard for biodiesel and ethanol based on in-state production, prohibits the sale of gasoline that contains MTBE and certain other additives, provides a mandate on State agencies regarding biodiesel for backup power generation, modifies the site certificate exemption criteria for ethanol and biodiesel production facilities to preclude coal-fueled facilities, and allows certain farm biofuel production facilities on land zone for exclusive farm use (EFU).
This Administrative Rulemaking pertains only to the Biofuel Consumer Income Tax Credits in Sections 26, 27 and 28. For consumer tax credits, the bill applies to purchase and use of qualified Oregon biofuel after January 1, 2007.
This summary and the entire text of HB2210 can be found here.
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| County Corner—Tom Green, OSACA President |
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| Tom Green, OSACA president |
by Philip McClellan, CDOT
Tom Green is the Crook County assessor and the current President of the Oregon State Association of County Assessors (OSACA). His term runs from August 2007 to August 2008. Tom replaced outgoing President Scot Langton, the Deschutes County assessor. Tom has been working for Crook County since 1972; first, as an appraiser and then chief appraiser for 10 years before becoming the county assessor in 1985.
As president of OSACA, Tom is the point of contact for the Association when dealing with other associations, state agencies, or other businesses. He will be responsible for the business of OSACA, which includes keeping the county assessors informed about legislative actions or bills and updates from the funding committee. The president is also responsible for establishing committees for legislation, education, appraisal standards, and putting together the two annual meetings.
Tom’s top priority during his term is to secure solid, long-term funding for A&T in 2008 and into the future. The past problems with the federal “O&C Funding” and the prospect of the loss of any future funding from the federal government, there is a strong need to secure a reliable funding source for the A&T process and other county functions. Tom is going to be closely monitoring any legislative packages in the 2008 session, ascertaining who the contacts are, and coordinating efforts in support of funding packages. This would include making sure the proper people are available to testify and to attend meetings. Tom is also committed to providing speakers who will provide good, timely information and who may help resolve issues and problems around the state.
Tom Green with panel of recently retired assessors at the January 2008 OSACA conference. Jerry Hanson, Jim Gangle, Ray Erland, at Tom's request, participated in a ‘debriefing’ panel discussion aimed at passing on their past experience with difficult times to the conference attendees.
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| Karen's Korner |
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by Karen Gregory, PTD Administrator
Happy New Year, all!! What does the world of property tax hold for 2008?
First of all, you have an excellent new administrator, Jim Bucholz! Jim has been in the Property Tax Division for many years and has worked in every section of the division. He knows the business, understands all the issues, is an excellent problem solver, and is great at building and maintaining the relationships we have today. He will be a dynamite leader for the division and has a proven track record of working very cooperatively with each county assessor and tax collector and their commissioners. Congratulations, Jim!!!
Second, we will have a short legislative session in 2008 during the month of February. One topic that may be discussed during the session is the potential loss of the federal funding dollars for counties.
Third, the major property tax topic for the year will be how to shore up assessment and taxation funding so that all taxing districts have long-term revenue certainty. There is a task group made up of taxing districts looking at this very issue. Assessors, tax collectors, and commissioners sit on the group, as do folks from special districts, cities, and schools. The department facilitates the group. We hope to have some suggestions in early 2008 that can be brought forward to the governor’s Task Force on Federal Forest Payments and County Services. That group consists of county commissioners, a city councilor, various agency heads, and the governor’s senior staff. The group focus is on all the shared services that are state and county responsibility; assessment and taxation is one of the pieces. This group hopes to have their analysis completed by spring of 2008.
Finally there is the Revenue Task Force—the legislature created this group to look at the bigger Oregon revenue picture. They met for the first time in late December, so there will be more to come from this group.
Revenue funding is a major topic for us all and is broader that just A&T. I encourage each of you to stay involved in these various conversations, particularly those that are A&T-focused. If your help is needed for testifying or just for moral support, please take the time. These are very important topics for all of us for the long term…there are many of you who always volunteer to do whatever is needed…you frequently heed the call for help and we thank you!! We need all of you to step up and help on this. Together we will find a funding solution!
As you know, I am moving on to be the DOR deputy director so this is my last article for Grapevine. I want to thank all of you for welcoming me into the world of property tax. You helped me understand the complicated nature of the laws, the politics of the issues (and there are many), and how to best go about achieving a positive outcome for the system. You are some of the most dedicated and professional people I have ever had the pleasure of working with. I will miss you!
I wish you all the best in 2008 and the years to come!
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| Feature Focus—The Kirby Kronicles |
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by Tom Clemens, ATS, Bend, OR
Don Kirby is the Assessment and Taxation Standards field team leader in the Property Tax Division’s Pendleton office. Because of his knowledge and historical background, Don is a great resource from which many co-workers, counties, and property tax stakeholders benefit.
Don learned on the job, making mistakes, learning to do things right. “Generally, it’s just been realizing that the value created has an impact on a taxpayer and being responsible for that value,” he says.
Don grew up in Fossil (Wheeler County), where his father managed the 1st National bank branch. “I learned from my dad to admit mistakes and make corrections when necessary,” Don remembers. “More importantly, I learned to take the time to listen to peoples’ concerns and questions—if it was important to them, it had to become important to me.”
After attending school at Mt. Angel Seminary and Eastern Oregon State College, he married Michelle and they worked in Portland for a year. “We both realized we wanted to get back to eastern Oregon to raise a family,” Don says, “so when I learned of a job opening at the Gilliam County assessor's office (located in Condon, just north of Fossil), I applied.” Don remembers, “I didn't even know that people paid property taxes or just exactly what I would be doing.” He was offered and accepted the appraiser's position and was certified within two months.
Being the only appraiser in the office, he was responsible for all the values in the county. Don learned to rely on the department’s field office for help. “People such as Bill Johnson, Bob Fielder, Bob Simon, and Dick Scheibner helped me keep my sanity,” Don says. A few years later he became Gilliam County’s elected assessor and he has done everything from working deeds to printing tax statements for that county.
During his 16 years as the Gilliam county appraiser, and later the assessor, Don realized that he had to balance work and family life. “I had to take the time to be a father and husband,” he states simply. In the spring of 1991, Don accepted an appraiser position in the department’s Pendleton field office.
When asked, “What have been some of the most rewarding things you have done?” Don says, “Helping taxpayers resolve tax problems or get into programs to help them with their taxes,” and “Watching, assisting, and training new appraisers and assessors who become qualified professionals and assets to their communities.”
Don’s approach to accomplishing his job: “Realize that things change, and adapt to and with that change. Keep the balance with home and work. Be patient, listen and remember that you work for all taxpayers no matter how much they own or pay.”
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| A Healthy Property Tax System |
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| Performance Measure 1 chart |
Performance Measure 1—Administrative Efficiency
Grapevine introduced you to a recent department periodical, Health of the Property Tax System (2007). Beginning with this issue, Grapevine will profile the performance measures contained in this report.
The first measure in the Health of the Property Tax System estimates how efficiently county assessors and the department administer the system. As population and development increases, so does the number of property tax accounts. Each new account must be identified, mapped, valued, and billed before taxes may be collected. The value of each property account must then be updated annually before new statements can be sent to the taxpayer for tax collection. As the number of accounts increases, so does the possibility of taxpayer appeals, omitted property proceedings, subdivisions, segregations, consolidations, special assessments, and other related activities. As a result, additional resources are needed to process the additional work.
As shown in the chart, counties and the department have administered the system during this period in an increasingly cost effective manner. Data through fiscal year 2005-06 reveals a steady increase in statewide property tax accounts, but a gradual decrease in the inflation-adjusted costs to administer them.
In the next edition of Grapevine, we will explore Oregon’s overall assessment program by profiling a measure on the number of property tax accounts within state standards.
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| Court Case Corner |
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by Doug Adair, Assistant Attorney General
Grant Co. v. Hawkeye Mining Co., TC 4776
At issue was the real market value of a 55-acre rural parcel of land with limited amenities and access. The county contended that the highest and best use of the property was recreational and presented two appraisals using sales of comparable recreational properties. The taxpayer claimed that the property had been purchased for mining purposes and should be valued at the 2003 purchase price. The court found that the 2003 sale was not an arm’s length transaction because both the buyer and seller companies had the same ownership, and found in favor of the county, the only party that had met its burden of proof under ORS 305.427.
Westside Community Church v. Benton Co., TC-MD 070727E
The church sought a full exemption for a house that was only partially used for church purposes. The remainder of the house was not used for any purpose. ORS 307.140 provides an exemption for portions of property used solely for an exempt purpose. The court held that only those portions of the property actively used by the church qualified for exempt status.
O’Neill v. Multnomah Co., TC-MD 070542B
The taxpayer tendered a check for his property taxes prior to the November 15 deadline for the 3 percent discount allowed under ORS 311.505(3)(b). The check was refused twice by the taxpayer’s bank for insufficient funds and the taxes were not actually paid until early December. The taxpayer claimed that the county should be estopped from refusing to allow the discount due to alleged misrepresentations made in a post-deadline telephone call. The court found that there was no evidence of misleading conduct by the county and, because the statute required that the taxes be paid by the deadline in order to qualify for the discount, no discount was appropriate due to the late payment.
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| Washington County Courthouse |
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Washington County courthouse in Hillsboro, Oregon.
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| Comings and Goings |
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by Mary Kintner, PTD Administration
New Employees:
Jim Kivley, Cartography
Pam Overhulser, Timber
Michele Pederson, ATS
Steve Frederick, Timber
Shawn Hunt, Valuation
Michael Mills, Valuation
Gene Rhoades, Valuation
Resignations/Separations:
Alisha Macauley, PTD
Jim Olheiser, Valuation
Carolyn Sunderman, Cartography
Promotions and Transfers:
Paul Matich, ATS
Mike Hamilton, Valuation
Jim Bucholz, PTD Administrator
Mark Kinslow, ATS
Tammy Keen, Cartography
Work Out of Class:
Jill Garlough, PTD
Robert Ayers, Cartography
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| Grapevine |
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Grapevine is published by the Oregon Department of Revenue, Property Tax Division.
Editorial Board: Al Gaines; Shanne Johnson; Mary Kintner; John Phillips; Christie Wilson, Lead; Gary Wright; Phil McClellan; and Gordon Tiemeyer.
To be added to the Grapevine mailing list or to submit articles, e-mail Grapevine, or contact us by mail at:
Oregon Department of Revenue
Property Tax Division
955 Center Street NE
Salem OR 97301-2555
Phone: 503-945-8292
Fax: 503-945-8737
TTY: 503-945-8617
In compliance with the Americans With Disabilities Act (ADA), this information is available in alternative formats upon request by calling 503-378-4988.
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