2014 Farm Use Manual www.oregon.gov/dor 150-303-422 (Rev. 09-14) 150-303-422 (Rev. 09-14) Table of contents Introduction .................................................................................................................................................................1-1 Qualification chapter ...............................................................................................................................................2-1 Introduction ..............................................................................................................................................................2-1 Farm use ....................................................................................................................................................................2-1 Zoning and planning statutes .............................................................................................................................. 2-4 Farmland qualification .......................................................................................................................................... 2-6 Non-EFU income requirements .............................................................................................................................2-7 Non-EFU applications ............................................................................................................................................ 2-9 Non-EFU “gross income questionnaires” ..........................................................................................................2-11 Requalification .......................................................................................................................................................2-12 Exempt farm property ..........................................................................................................................................2-13 Homesites ................................................................................................................................................................2-13 Potential additional tax notation .........................................................................................................................2-14 Appeals ...................................................................................................................................................................2-14 Valuation chapter ..................................................................................................................................................... 3-1 Introduction ............................................................................................................................................................. 3-1 Farm use mass appraisal procedures .................................................................................................................. 3-1 Land classification .................................................................................................................................................. 3-1 Value zones .............................................................................................................................................................. 3-1 Land classification and appraisal records........................................................................................................... 3-1 Farm board of review ............................................................................................................................................. 3-3 Income approach to farm use land value ............................................................................................................ 3-3 Net income per acre................................................................................................................................................ 3-3 Capitalization rate .................................................................................................................................................. 3-3 Farm use income approach examples ..................................................................................................................3-4 Other considerations when valuing farm properties .......................................................................................3-11 Valuation of dwellings, rural buildings, and real property improvements ................................................. 3-12 Valuation of farm and rural homesites ...............................................................................................................3-16 Measure 50 MAV limitations ...............................................................................................................................3-18 Disqualification chapter ........................................................................................................................................ 4-1 Before you disqualify ............................................................................................................................................. 4-1 Disqualification and special assessment programs .......................................................................................... 4-1 Types of disqualification ....................................................................................................................................... 4-1 Reviewing an account for disqualification ......................................................................................................... 4-1 Processing a disqualification and Measure 50 requirements .......................................................................... 4-2 Effective date of disqualification .......................................................................................................................... 4-3 Disqualification timing—general rule ................................................................................................................ 4-3 Disqualification timing—special provisions ...................................................................................................... 4-3 No longer in use disqualifications .......................................................................................................................4-4 Removal of land from an EFU zone disqualification ........................................................................................4-6 Non-farm dwelling in an EFU zone disqualification ........................................................................................4-6 150-303-422 (Rev. 09-14) i Disqualification of land zoned for urban uses ................................................................................................... 4-7 Taxpayer request disqualification ........................................................................................................................ 4-7 Non-EFU income disqualification ........................................................................................................................ 4-8 Subdivision disqualifications ..............................................................................................................................4-10 Homesite disqualifications .................................................................................................................................. 4-12 Government exchange of land ............................................................................................................................ 4-12 Conservation management effect on disqualification .....................................................................................4-13 Disqualification notification letter ......................................................................................................................4-13 Appeals ...................................................................................................................................................................4-14 Additional tax chapter ............................................................................................................................................ 5-1 General information ............................................................................................................................................... 5-1 Additional tax upon disqualification .................................................................................................................. 5-1 Additional tax deferred ......................................................................................................................................... 5-2 No additional tax ....................................................................................................................................................5-6 Non-EFU abatement ............................................................................................................................................... 5-7 Appendix ....................................................................................................................................................................... 6-1 Appendix A: Farm use legislation and history .................................................................................................. 6-1 Appendix B: Resource information ....................................................................................................................6-19