5 Or. Tax 495 | Or. T.C. | 1974
Decision for plaintiffs rendered April 3, 1974.
Plaintiffs, utilizing the provisions of the Oregon Uniform Declaratory Judgments Act, ORS
Ron Jones Co. is an Oregon corporation, engaged in the development of real property in Marion County. Battlecreek Commons Association is an Oregon nonprofit corporation, an association of owners of housing units in Battlecreek Commons, a "planned unit development," under and pursuant to the City of Salem Planned Unit Development Ordinance.
In the development of Battlecreek Commons, in excess of 88 units had been constructed at the time the complaint was filed in this suit, together with the parks, commons, streets, footways, buildings, structures and utilities designed for the benefit and enjoyment of all of the unit owners. Accordingly, the County Assessor of Marion County has assessed the planned unit development as a condominium, including the water system with the other common features thereof. The defendant, Department of Revenue, acting by and through the supervisor of the Utility Section, has made a demand upon the plaintiff, Battlecreek Commons Association, for statements required by ORS
All real property within this state and all tangible personal property situated within this state, except as otherwise provided by law, are subject to assessment and taxation in equal and ratable proportions. ORS
An exception is provided for the property of nonprofit mutual or cooperative water associations under ORS
ORS
"(1) The assessor shall proceed each year to assess the value of all taxable property within the county, except property that by law is to be otherwise assessed. * * *"
Among the properties "to be otherwise assessed" are those listed in ORS
"(1) The Department of Revenue shall make an annual assessment, upon an assessment roll to be prepared by the department, of the following property having a situs in this state:
"(a) Except as provided in subsection (2) of this section, any property held for or used by any company in performing or maintaining any of the following businesses or services or in selling any of the following commodities, whether in domestic or interstate commerce or both, and whether mutually, or for hire, sale or consumption by other persons: * * * water; * * *.
"* * * * *
"(4) Any corporation included within subsection (1) of this section, to the extent that it actively engages in any business or service not described therein or not incidental to any business or service or sale of a commodity described therein, shall not to that extent be deemed a corporation whose properties are assessed under ORS
308.505 to308.730 ."
Oregon Laws 1963, ch 541, codified as ORS
The "general common elements" are defined in ORS
"Installations of central services such as power, light, gas, hot and cold water, heating, refrigeration, air conditioning, waste disposal and incinerating; * * *."
On the basis of the testimony presented, it appears that the county has modified the Unit Ownership Law, pursuant to ORS
In the opinion of this court, the organization and holding of property rights in Battlecreek Commons gives the unit owner basically the same benefits as contemplated by the Unit Ownership Law, ORS
The provisions of ORS
It is apparent that the "water system" here involved is water supplied by the City of Salem, in connection with a residential development, similar to scores of other "water systems" found in the urban area of Marion County.
A study of the statutes under which the Department of Revenue claims authority, ORS
"All property not assessed by the Department of Revenue shall be assessed in accordance with law by the assessor of the county in which such property is situated."
As in any other area of the law, questions of degree are involved. This is recognized by the department's rule OAR
"The Director of the Department of Revenue has the responsibility and shall make determinations as to which properties of companies whose properties are assessed by the Department are subject to central assessment and which properties are subject to local assessment. From time to time as occasions arise, the Department will advise the county assessor and the taxpayer by written order, property classification memorandum, map, or otherwise of assessment jurisdiction for those properties owned, used or held by centrally assessed companies in order to avoid double assessments or omitted assessments."
A number of valid reasons can be suggested to support the legislative policy of placing in the Department of Revenue the duty to assess certain public utilities and transportation companies for the benefit of the counties. Chief among these reasons would be the better and more efficient assessment of complex companies whose activities go beyond the boundaries of a single county or even of the state. Whatever the reasons, they do not appear to be validly applied to the facts in this suit. *502
[1.] The court, after a study of the Unit Ownership Law and the county's ordinance with respect to such ownerships and to the provisions for "centrally assessed corporations" under ORS