Current through Register Vol. 63, No. 9, September 1, 2024
(1) ORS
308.555 authorizes the
department to assess property by valuing the entire property as a unit.
Determination of the proper unit of property to be valued is a question of fact
to be decided by the appraiser under rules adopted pursuant to 308.655 and the
guidelines in the WSATA Handbook, adopted in OAR 150-308.655.
(2) For purposes of determining the assessed
value of centrally assessed property appraised as a unit pursuant to ORS
308.505 to
308.665, the following
definitions apply:
(a) "Controlling interest"
means owning or holding more than 50 percent of the voting stock or shares in a
company.
(b) "Holding company"
means a company that is formed to own the stock in other companies,
(A) A holding company usually owns enough
voting stock in another corporation to influence its board of directors and,
therefore, to control its policies and management.
(B) A holding company's operations are the
operations of the companies in which it holds stock.
(c) "Parent Company" means a company that
owns a controlling interest in another company.
(d) "Unit" means all property, real and
personal, tangible and intangible, as described in ORS
308.510, and used or held for
future use by a company in providing the services and commodities listed in ORS
308.515.
(e) "Unit valuation" is the valuation of
integrated assets functioning as an economic unit at their highest and best
use.
(3) The department
may consider a variety of facts to determine what property should be assessed
as a unit. These include, but are not limited to:
(a) Functional integration, determined by
looking at the operation of the property used in the business at its highest
and best use,
(b) Integration of
management, administration, marketing, financing, use of employees and other
resources of the business in which the property is used;
(c) Use of the property that contributes to
the service or business listed in ORS
308.515;
(d) How both stock investors and investors
acquiring all or a portion of the business assets or stock view investment in
the property;
(e) Information in:
(A) Reports filed by publicly traded
companies with the Securities and Exchange Commission;
(B) Filings with other governmental or
nongovernmental agencies or organizations; and
(C) Other documents or materials used by the
business in its service or sales.
(4) When valuing property as a unit:
(a) The department may include property used
or held for future use by a parent company, holding company, subsidiary, or any
other type of legal entity, including but not limited to partnerships, LLCs or
joint ventures, when the department determines that the property of such
business is operationally or financially integrated without regard to the
physical location of the property, whether within or without the United States.
(b) The department will generally
assess the property of each company on the roll (ORS
308.560) in the name of the
parent corporation when the company unit includes more than one corporate
entity.
Publications: The publication referred to or incorporated by
reference in this rule is available from the Department of Revenue pursuant to
ORS 183.360(2) and
183.355(6).
Stat. Auth.: ORS
305.100 &
308.655
Stats. Implemented: ORS
308.555 &
308.515
