Designated Forestland in the City of Bend Special Assessment $79.38
I am talking to several people interested in the 2018-19 Designated Forestland Assessment of $79.38 per acre applicable to 71 acres of Forestland within Bend city Limits I need to reduce a very complex issue to simplicity. At least 12 owners of some of these taxlots that are mostly clustered in a single area are probably aware of my research. Most likely the Neighborhood Association member of NLA is also.
I would like to resolve the matter internally. Quietly, without public drama. These are our city neighbors.
The bigger problem is in the UGB and beyond. That is where the shifting of Tax burden to city tax payers is substantial over a long period of time. In my opinion it is private gain at public expense. I will wait for strenuous objectors to that statement to identify themselves then present evidence.
All blue highlighted are live links.
I value your judgment and comments. I feel it is a delicate issue to be resolved diplomatically. Property owners have the option to withdraw from this classification. When the broader scope of Forestland Special Assessment is examined I expect contention. The numbers in that examination are at the bottom of this Sal Report table 2a.
I informed various city officials and two counselors of this situation within the City and proposed a solution a year ago. It was rejected by the City. I have the correspondence but I do not necessarily want to present that. Just move forward from here.
Bottom Line is this regarding City tax lots valuation and tax based on a Forestland Classification.
There are 71 acres of Designated Forestland within the city limits of Bend (County Code Area 1001) that have been granted a Special Assessment of $79.38 per acre for computation of property tax by the Office of Deschutes County Assessor. The Assessor Office is the approving and granting authority of a property owner Application For Designation of Land as Forestland. Approved applications are given a Property Class 640 - Forest.
Acres: 71
Maximum Specially Assessed Value: $6,293
Specially Assessed Value (Measure 5 Value): $10,309
Taxable Assessed Value: $6,293
Real Market Value: $12,721,970
Forestland Special Assessment value per acre $79.38 X 71 acres = $5,635.98. I know there is difference but the relative magnitude is negligible.
Taxable Assessed Value $6,293 X $15 per thousand rule of thumb tax rate = $!00 tax (rounded) on 71 acres in Bend.
Unbelievable! But true.
This is a representative sample from 12 taxlots that I have identified that comprise about half of the 71 acres Forestland Classification in the City. The other 12 taxlots are in the same area. The same tax computation algorithm applies to Designated Forestland portion of all of them.
Single taxlot Designated Forestland example of Special Assessment based property tax:
Taxlot overhead property view: https://dial.deschutes.org/Real/InteractiveMap/241568
Property acres: 3.23 Designated Forestland
2018-19 Property tax: $3.98
Tax collected = Revenue to Taxing authorities. This is how $3.98 property tax is distributed
Revue Distribution
SCHOOL DISTRICT #1 1.21
HIGH DESERT ESD 0.02
C O C C 0.16
EDUCATION TOTAL: $1.39
DESCHUTES COUNTY 0.31
COUNTY LIBRARY. 0.14
COUNTY LAW Enf 0.27
COUNTY EXT/4H 0.01
9-1-1 0.09
CITY OF BEND 0.71
Bend OPTION 2014 0.05
BEND J RIDGE RNL. 0.03
MURPHY CROSSING 0.01
BEND PARK & REC 0.37
GEN GOVT TOTAL: 1.99
Bonds -Other
CITY OF BEND BOND 0.04
BEND PARK-REC BOND 0.04
SCHOOL #1 BOND 2007 0.19
SCHOOL #1 BOND 2013 0.18
TOTAL 0.45
TOTAL REVENUE DISTRIB. $3.83
The Forestland Special Assessment intent was to prevent urban encroachment.
(School District # 1 is a taxing district that encompasses both Bend and a large portion of the county.) The reduced amount of property tax paid siubstantially reduces revenue to Schools that voters in the city approved. Everyone should pay equally based on property value before the Special Assessment for Forestland is applied?). Does that make sense? Fair?
Dial Map
https://dial.deschutes.org/Real/InteractiveMap
Apply school overlay
A probable objection is that a tax deferred obligation applies.. Yes, absolutely! Property Tax avoided prior to the rolling 5 Year tax liability is money in the bank. This taxlot has had an annual tax of approx $20 since 2005.
Note: A 5 year back tax liability is collected upon termination of the Designated Forestland Classification.
This sample example taxlot history shows a property tax annual payment of approx. $20 back to 2005 that included a Forest Patrol charge that was terminated this year for this property and approximately 8,000 other taxlot properties in the city as a result of a Department of Forestry review and revision of a 40 year old Dept. of Forestry Forestland Fire Protection boundary map. An approx $14 fee no longer applies to this tax lot in the computation of 2018-19 tax. About 8,000 city property owners collectively paid about $450,000 less in tax this year as a result. I discussed this with Asst Fire Chief Bob Madden. That is a different matter that deserves attention but I am confident that he is on it.
This link describes the general Rule: How Property Tax Works in Oregon
Oregon Property Tax Statistics compile state wide tax data and explain them.
General taxation rules are expressed in law and reduced to algorithmic computation by formulas encoded in computer applications that produce a taxpayer’s specific tax payment due amount.
What is true in the process of applying the tax computation formula to a single Designated Forestland acreage example is normally true of all acreage in the same Forestland Special Assessment classification.
The Designated Forestland Special Assessments intends to protect Foresland from urban encroachment.
What protects residential zoned areas within the City of Bend from Forestland Special Assessment encroachment?
What owners of Designated Forestland within Bend don't pay in taxes.....who does?
Has this never been examined before? Am I the first to examine it. Why hasn’t it been examined?
Oregon Live Report 28 Nov. 2018
"SALEM — Gov. Kate Brown issued her policy and fiscal agenda for the next two years on Wednesday, saying she expects to focus in the next six months on negotiating a massive tax increase to improve public schools.
Hiring internal auditors across multiple agencies and at the state’s central Department of Administrative Services. Those auditors can help the government deliver services efficiently, but an audit by the Secretary of State’s office earlier this year found agencies were increasingly leaving the jobs unfilled even when the Legislature approved funding."
I have data on Forestland Special Assessed acreage in the state. At least for Eastern Oregon it should be analyzed to discover what various increased levels of Assessments above $79.38 per acre would produce. Of course that cannot be done because of the property tax increase cap.
Who is responsible and accountable for that?
Unbelievable but true. Voters.
Facts:
1. Forestland is divided into Eastern Oregon and Western Oregon for property assessment purposes.
2. Deschutes County is in Eastern Oregon
3. The purpose of ORS 321.805 is:
(1)To impose with respect to forestland in eastern Oregon a special assessment program whereby the assessed value of forestland is determined as prescribed in ORS 321.201(Definition of “forestland” for ORS 321.201 to 321.222) to 321.222 (Jurisdiction of board of property tax appeals).
(2) To establish a special assessment program as a means of:
(a) Recognizing the findings in ORS 321.817 (Legislative findings) without discriminating in favor of either eastern or western Oregon.
(b) Recognizing the long-term nature of the forest crop and fostering the public policy of Oregon to encourage the growing and harvesting of timber.
(c) Protecting the public welfare by assuring that the people of this state and future generations shall have the benefits to be derived from the continuous production of forest products from private forestland.
(d) Promoting this state’s policy of encouraging forestry and the restocking of forestland to provide present and future benefits by enhancing the water supply, preventing erosion, providing habitat for wildlife, providing scenic and recreational opportunities and providing for needed products. [Formerly 321.408; 2017 c.315 §29]
(1)To impose with respect to forestland in eastern Oregon a special assessment program whereby the assessed value of forestland is determined as prescribed in ORS 321.201(Definition of “forestland” for ORS 321.201 to 321.222)
3. ORS 321.204
The Legislative Assembly finds that an accurate system of annually determining forestland values in this state is vital to achieving a fair and equitable system of taxing the forest resources of this state. The Legislative Assembly declares that an annual determination of forestland values is the process that best achieves an accurate assessment of forestland in this state. [2001 c.860 §14]
4. ORS 321.207 The Department of Revenue by rule shall develop valuation models to be used to value forestland in western Oregon and eastern Oregon.
4. (1) On or before June 1 of each assessment year, the Department of Revenue shall adopt specially assessed values of forestland, as of the assessment date for that year. The department shall certify the specially assessed values of forestland in eastern Oregon to the county assessors of eastern Oregon and the specially assessed values of forestland in western Oregon to the county assessors of western Oregon.
(2)The certified specially assessed values constitute:
(a)The department’s determination of the real market value, as of the assessment date for the tax year, of highest and best use forestland in the land class for which the certification is being made; and
(b)The specially assessed values, as of the assessment date for the tax year, of designated forestland that is assessed under ORS 321.354 (Common ownership minimum acreage requirements) and 321.833 (Common ownership minimum acreage requirements) in the land class for which the certification is being made.
(3)Upon receipt of the certified values, the county assessors shall develop tables for each assessment year that reflect, for each class and area, the values determined under this section and that express the values as values per acre. [2001 c.860 §18]
5. The 1999 Legislature established the forestland program as a special tax assessment. Landowners in this program have a reduced property tax assessment that’s intended to recognize the importance of forestland to Oregon's economy and respond to the growing pressures that urban growth was putting on natural resource lands. Forestland classified as "highest and best use" and "designated" qualifies for special assessment under the forestland program. The land is assessed at a special rate based on the typical price paid for land managed for the production of harvestable timber. This value is often less than the real market value used for taxing other properties.
6. These certified specially assessed values constitute the specially assessed values, as of the assessment date for the tax year, of designated forestland that is assessed under either ORS 321.354 in the land class for which the certification is being made for western Oregon or ORS 321.833 (formerly 321.812) for eastern Oregon.
Eastern Oregon Forestland Values for July 2018 - June 30, 2019 Maximum Specially Assessed Value: $79.38 per acre.
Comments
Post a Comment