308A.706 Circumstances
when additional taxes are deferred; exceptions; potential additional tax
liability. (1)
Notwithstanding that land is disqualified from special assessment, the
additional taxes described under ORS 308A.703 may not be imposed and shall
remain a potential tax liability if, as of the date the disqualification is
taken into account on the assessment and tax roll, the land is any of the
following:
(a) Disqualified
exclusive farm use zone farmland or nonexclusive farm use zone farmland that:
(A) Is not being
used as farmland; and
(B) Is not being
used for industrial, commercial, residential or other use that is incompatible
with a purpose to return the land to farm use.
(b) Acquired by a
governmental agency or body as a result of an exchange of the land for land of
approximately equal value held by the governmental agency or body.
(c) Acquired and
used for natural heritage purposes and all of the following additional
requirements are met:
(A) The land is
registered under ORS 273.581 as a state natural area;
(B) The land is
acquired by a private nonprofit corporation;
(C) The land is
retained by the corporation, or transferred to the state by the corporation,
for the purpose of educational, scientific and passive recreational use
consistent with conservation of the ecological values and natural heritage
resources of the area;
(D) If the land
is retained by the corporation, it remains open to the public without charge
for the uses described in subparagraph (C) of this paragraph; and
(E) The land is
managed pursuant to a voluntary management agreement under ORS 273.581 (5).
(d) Qualified for
special assessment under:
(A) ORS 308A.062,
relating to farm use special assessment of land in an exclusive farm use zone;
(B) ORS 308A.068,
relating to farm use special assessment of nonexclusive farm use zone farmland;
(C) ORS 321.358,
relating to classification as designated forestland in western Oregon;
(D) ORS 321.839,
relating to classification as designated forestland in eastern Oregon;
(E) ORS 321.709,
relating to qualification as small tract forestland;
(F) ORS 308A.424,
relating to wildlife habitat special assessment; or
(G) ORS 308A.456,
relating to conservation easement special assessment.
(e) Disqualified
nonexclusive farm use zone farmland, to the extent the additional taxes are
deferred or abated as provided in ORS 308A.119.
(2) This section
does not apply to the additional taxes imposed under:
(a) ORS 308A.703
(4)(a) for the number of years during which farm use special assessment was
granted pursuant to a remediation plan as defined in ORS 308A.053.
(b) ORS 308A.117.
(3) In any case
where the additional tax is deferred under the provisions of this section but
may subsequently be imposed under ORS 308A.712, the county assessor shall
continue to enter the notation “potential additional tax liability” on the
assessment and tax roll. [1999 c.314 §35; 2003 c.454 §§27,29; 2003 c.539 §17;
2003 c.621 §86; 2007 c.809 §11; 2009 c.217 §9; 2009 c.776 §6; 2011 c.319 §17;
2025 c.533 §4]
Notes of Decisions
Cited in
20
cases (
3 in the last 5 years), 2001–2025 · leading case:
Gray v. Dept. of Rev., 23 Or. Tax 220 (Or. T.C. 2018).
Gray v. Dept. of Rev., 23 Or. Tax 220 (Or. T.C. 2018).
“119 (requir- ing assessor to abate deferred additional taxes, subject to certain conditions, for disqualified nonexclusive farm use zone farmland); ORS 308A.706(3) (requiring the assessor to continue the “potential additional tax liability” notation on the rolls for property…”
Clifford Parsons, Tr. v. Dept. of Rev., 21 Or. Tax 331 (Or. T.C. 2013).
““(5)(a) When any land has been granted special assess- ment under any of the special assessment laws listed in sub- section (1) of this section and the land is disqualified from such special assessment, the county assessor shall furnish the owner with a written explanation…”
Lindquist Holdings LLC v. Yamhill Cnty. Assessor (Or. T.C. 2022).
· cites it 14× “However, in its Motion for Summary Judgment, Defendant stated that “in accordance with ORS 308A.706 the additional ORDER DISMISSING COMPLAINT TC-MD 210226G 3 of 8 taxes calculated by the County are not imposed and will remain on the account as a potential additional tax…”
Holmes Fam. Trust v. Multnomah Cnty. Assessor (Or. T.C. 2025).
· cites it 5× “If Defendant disqualified the subject property for a lack of qualifying farm use, ORS 308A.706(1)(a)(A) would apply.5 It appears Defendant originally disqualified the subject property for failure to meet income requirements.”
Crew v. Clackamas Cnty. Assessor (Or. T.C. 2013).
· cites it 8× “When land is disqualified under ORS 308A.706, an application may be submitted for another program within 30 days of the date on the notice.”
PeaceHealth v. Lane Cnty. Assessor & Dept. of Rev. (Or. T.C. 2017).
· cites it 3× “Where the land disqualified from special assessment meets any of a series of conditions, ORS 308A.706(1) forbids the imposition of the “additional taxes described under ORS 308A.”
Phillips v. Deschutes Cnty. Assessor (Or. T.C. 2018).
· cites it 2× “) The June 28, 2016 letter provides additional tax information including: summaries of ORS 308A.706(1)(d) and ORS 308A.724; the dollar amount of potential additional taxes due to the disqualification; and appeal rights to the Oregon Tax Court.”
Pippenger v. Lane Cnty. Assessor, Tc-Md 100141d (or.tax 8-19-2010) (Or. T.C. 2010).
· cites it 3× “) The letter explained that if Plaintiffs did not "submit an application for requalification on or before December 15 of the tax year for which the disqualification is first in effect, * * * the potential additional taxes will be deferred under ORS 308A.706(1)(e) provided the…”
Port of Morrow v. Morrow Cnty. Assessor, Tc-Md 091456d (or.tax 2-28-2011) (Or. T.C. 2011).
· cites it 3× “703 shall not be imposed and shall remain a potential tax liability if, as of the date the disqualification is taken into account on the assessment and tax roll, the land is any of the following: "( a ) Disqualified exclusive farm use zone farmland or nonexclusive farm use zone…”
Vaninetti v. Jackson Cnty. Assessor (Or. T.C. 2012).
· cites it 3× “The notice, which comports with the statutory requirements, indicates that: “[t]he potential additional taxes for farm use disqualifications has been deferred under ORS 308A.706(1)(a), (when farmland becomes idle and does not change to a different special assessment.”
— Or. Rev. Stat. § 308A.706(1) — 3 cases
Lindquist Holdings LLC v. Yamhill Cnty. Assessor (Or. T.C. 2022).
“However, in its Motion for Summary Judgment, Defendant stated that “in accordance with ORS 308A.706 the additional ORDER DISMISSING COMPLAINT TC-MD 210226G 3 of 8 taxes calculated by the County are not imposed and will remain on the account as a potential additional tax…”
Crew v. Clackamas Cnty. Assessor (Or. T.C. 2013).
“When land is disqualified under ORS 308A.706, an application may be submitted for another program within 30 days of the date on the notice.”
— Or. Rev. Stat. § 308A.706(1)(a) — 7 cases
Vaninetti v. Jackson Cnty. Assessor (Or. T.C. 2012).
“The notice, which comports with the statutory requirements, indicates that: “[t]he potential additional taxes for farm use disqualifications has been deferred under ORS 308A.706(1)(a), (when farmland becomes idle and does not change to a different special assessment.”
Lindquist Holdings LLC v. Yamhill Cnty. Assessor (Or. T.C. 2022).
“However, in its Motion for Summary Judgment, Defendant stated that “in accordance with ORS 308A.706 the additional ORDER DISMISSING COMPLAINT TC-MD 210226G 3 of 8 taxes calculated by the County are not imposed and will remain on the account as a potential additional tax…”
— Or. Rev. Stat. § 308A.706(1)(a)(A) — 1 case
Holmes Fam. Trust v. Multnomah Cnty. Assessor (Or. T.C. 2025).
“If Defendant disqualified the subject property for a lack of qualifying farm use, ORS 308A.706(1)(a)(A) would apply.5 It appears Defendant originally disqualified the subject property for failure to meet income requirements.”
— Or. Rev. Stat. § 308A.706(1)(a)(B) — 1 case
— Or. Rev. Stat. § 308A.706(1)(d) — 5 cases
Clifford Parsons, Tr. v. Dept. of Rev., 21 Or. Tax 331 (Or. T.C. 2013).
““(5)(a) When any land has been granted special assess- ment under any of the special assessment laws listed in sub- section (1) of this section and the land is disqualified from such special assessment, the county assessor shall furnish the owner with a written explanation…”
Crew v. Clackamas Cnty. Assessor (Or. T.C. 2013).
“When land is disqualified under ORS 308A.706, an application may be submitted for another program within 30 days of the date on the notice.”
Phillips v. Deschutes Cnty. Assessor (Or. T.C. 2018).
“) The June 28, 2016 letter provides additional tax information including: summaries of ORS 308A.706(1)(d) and ORS 308A.724; the dollar amount of potential additional taxes due to the disqualification; and appeal rights to the Oregon Tax Court.”
— Or. Rev. Stat. § 308A.706(1)(d)(B) — 1 case
— Or. Rev. Stat. § 308A.706(1)(e) — 3 cases
Holmes Fam. Trust v. Multnomah Cnty. Assessor (Or. T.C. 2025).
“If Defendant disqualified the subject property for a lack of qualifying farm use, ORS 308A.706(1)(a)(A) would apply.5 It appears Defendant originally disqualified the subject property for failure to meet income requirements.”
Pippenger v. Lane Cnty. Assessor, Tc-Md 100141d (or.tax 8-19-2010) (Or. T.C. 2010).
“) The letter explained that if Plaintiffs did not "submit an application for requalification on or before December 15 of the tax year for which the disqualification is first in effect, * * * the potential additional taxes will be deferred under ORS 308A.706(1)(e) provided the…”
— Or. Rev. Stat. § 308A.706(3) — 2 cases
Gray v. Dept. of Rev., 23 Or. Tax 220 (Or. T.C. 2018).
“119 (requir- ing assessor to abate deferred additional taxes, subject to certain conditions, for disqualified nonexclusive farm use zone farmland); ORS 308A.706(3) (requiring the assessor to continue the “potential additional tax liability” notation on the rolls for property…”
Lindquist Holdings LLC v. Yamhill Cnty. Assessor (Or. T.C. 2022).
“However, in its Motion for Summary Judgment, Defendant stated that “in accordance with ORS 308A.706 the additional ORDER DISMISSING COMPLAINT TC-MD 210226G 3 of 8 taxes calculated by the County are not imposed and will remain on the account as a potential additional tax…”
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