Unit Valuation of Centrally Assessed Properties

# (1)

(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 150-308-0690.

# (2)

(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)

(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)

(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.

NOTE: 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).