Oakmont, LLC v. Dept. of Rev.

Summary

The Oregon Supreme Court affirmed the Tax Court’s judgment concerning the Department of Revenue’s supervisory jurisdiction to correct a likely valuation error on a prior property-tax roll. The court held that the taxpayer and county assessor agreed to facts indicating a likely error when they substantially reduced the property’s valuation for a subsequent tax year. It further held that the Department may consider later agreements and facts learned after the assessment date if those facts were reasonably discoverable as of that date.

Holdings

1. The Department of Revenue erred in concluding that the parties had not agreed to facts indicating a likely error. The county's agreement to reduce the property's value by approximately 60 percent for the following tax year, based on construction defects, necessarily indicated a likely error in the preceding year's valuation.
2. In determining whether the parties agreed to facts indicating a likely error, the department may consider an agreement made after the assessment date concerning facts learned after that date, provided the facts were reasonably discoverable as of the assessment date.

Questions Presented

1. Whether the parties agreed to facts indicating a likely error on the 2008-09 tax roll, thereby satisfying the jurisdictional prerequisite under OAR 150-306.115(4)(b)(A).
2. Whether facts discovered or agreed upon after the assessment date may be considered when determining whether a property-tax valuation likely was erroneous, if those facts were reasonably discoverable as of the assessment date.
3. Whether the Department of Revenue had supervisory jurisdiction to consider, in the first instance, whether the 2008-09 assessment contained an actual error and whether to exercise its discretion to correct it.

Disposition

affirmed