Boardman Acquisition, LLC v. Department of Revenue
361 Or. 440
| Or. | 2017Background
- Property: Two lots owned by Port of Morrow, leased to a taxable tenant and specially assessed as nonexclusive farm use farmland for at least five years.
- Events: Port terminated the lease effective August 6, 2012, notified the county assessor on August 7, 2012, and sold the property to Boardman Acquisition on August 10, 2012.
- Assessment action: Assessor processed disqualification for the 2013 assessment year (effective January 1, 2013); assessor later added an "additional tax" (taxes avoided while under special assessment) to the 2013–14 tax roll.
- Contract: Port agreed in the sale contract to pay any additional taxes resulting from the lease termination; Port paid $127,270.61 and sought a refund.
- Procedural posture: Tax Court granted summary judgment for the Department of Revenue; Supreme Court reviewed statutory interpretation and affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| What does "the date the disqualification is taken into account on the assessment and tax roll" mean in ORS 308A.709(5)? | The date the assessor receives notice of the disqualification (assessor's knowledge) should control. | It means the date the disqualification becomes effective on the assessment/tax roll (i.e., the roll's effective date). | Court held it means the date the disqualification becomes effective on the assessment/tax roll. |
| Did ORS 308A.709(5) bar the additional tax here? | Port: On the operative date the land was still public property (Port owned it), so the statutory exception applies and additional tax is barred. | Dept.: On the operative effective date the land was owned by Boardman (private), so the exception does not apply and additional tax is proper. | Court held exception did not apply because the disqualification became effective Jan 1, 2013, when Boardman already owned the land. |
Key Cases Cited
- Dept. of Rev. v. River’s Edge Investments, LLC, 359 Or 822 (discussing real market value baseline for property taxation)
- Fifth Avenue Corp. v. Washington County, 282 Or 591 (amendatory acts with material language changes imply material changes in meaning)