Designated Forestland Property Portion Extending To Assessed Value Of Residence Acerage

https://www.oregonlaws.org/ors/308A.253

https://catalog.extension.oregonstate.edu/sites/catalog/files/project/pdf/ec1151.pdf 

Mr. Langton,

Your reply to one question I asked appears to extend the benefit of the Designated Forestland assessment  of $74.83 per acre for 6.9 acres on that portion of the property to the computation of the assessed value of the 1.09 acres that the two residences sit on.  

"Please tell me the Assessed Value of 1.09 acres associated with the residences and the tax rate applied to that value.  The total land MAV was $176,555 (~$22,100/acre), resulting in the 1.09 acres MAV equaling $24,110.  The tax rate was 0.0152409.  $24,100 x 0.0152409 = $367.31.”

I had expected that the 1.09 acres would be assessed totally independent of the Designated Forestland assessment.  Assessed as if it was only 1.09 acres and had not associated Designated Forestland.

However it appears that the Designated Forestland acreage valued at $74.83 

( 74.83 X 6.9 acres = $516.00) was added to the assessed value of 1.09 acres 

(by deduction the MAV of 1.09 acres is $176,555.00 - $516.00 = $176.039)

and an average MAV per acres for the entire property 7.99 acres was then computed.

(176,555 divided by 7.99 acres = $24,100 - approx.)

Application of the tax rate to $24,100 MAV for 1.09 acres on which two residences sit equals $367.31.

I am surprised by that method of computation that extends the tax benefit of the Designated Forestland to the 1.09 acres that the two residences are on!

Is that true?

If, for example, the two residences were on 1.09 acres of land alone as a single property with no associated Designated Forestland then what would the assessed value of the 1.09 acres be?

Is it really possible that simply having a portion of a land property under Designated Forestland assessment extends to a reduction in the assessed value of the land property associated with the portion the residence is on by virtue of an averaging of the two portions?

It seems to defy reason and logic.  

Please explain this to me.  It is probably an extremely simple explanation or an error in your computation method but I do not see it.

Assessed value of an acre of bare land in the same vicinity appears to be around at least $100,000.00

https://dial.deschutes.org/Real/Index/208367 2016 tax paid on that property (.08 acre) was $1,497.58.

On Jul 10, 2017, at 4:53 PM, Scot Langton <Scot.Langton@deschutes.org> wrote:

Mr.

I’ve inserted responses below

Scot

Sent: Thursday, July 6, 2017 11:23 AM
To: Scot Langton <Scot.Langton@deschutes.org>
Subject: Designated Forestland Property Assessment

Mr, Langton,

All  properties located on Bachelor View Rd assessed as Designated Forestland were the subject of prior emails.  Two properties were chosen only as representative examples of the assessment process and the resulting tax related to the acres specified to be designated Forestland.  One was bare land.  It is a straightforward example.   The other is also Designated Forestland acreage but land is associated with residences exclusive of Forestland Designation portion.  It is identified by this link:

https://dial.deschutes.org/Real/TaxInformation/117550

The Assessed Value for that property link is a combination of non-designated acreage associated with the residences and 6.9 Designated Forestland assessed at $74.88 per acre.  This is correct, the 2016 specially assessed values of Oregon Forestland for Eastern Oregon was $74.83.

Please tell me the Assessed Value of 1.09 acres associated with the residences and the tax rate applied to that value.  The total land MAV was $176,555 (~$22,100/acre), resulting in the 1.09 acres MAV equaling $24,110.  The tax rate was 0.0152409.  $24,100 x 0.0152409 = $367.31.

It appears that the Designated Forestland classification of this property has applied since 2003.  Is that correct?  Yes, this is correct.

The overhead view shows that there are few mature trees on the property indicating that a management plan was required.  Do you have an application for designation as Forestland on file?  Was it submitted and signed by the current owner?  Was a management plan submitted with that application?  a Forest Management Plan was submitted in 2003.  The forest management plan was prepared for the property owner by a forestry consultant.

Thank you for your attention to this request for information.  It is intended to be used as a representative explanatory example of the general relationship of all Designated Forestland properties on Bachelor View Rd. to their property tax assessment as well as other properties in the city that I have identified to also have a Designated Forestland classification.