9 Ore on Department of Revenue 955 Center St NE pees Salem, OR 97301-2555 www.oregon.gov dor November 20, 2015 Randy Walruff, Director Division of Assessment, Recording & Taxation Multnomah County 501 SE Hawthorne Blvd, Room 175 Portland, OR 97214 Dear Randy: ‘This letter summarizes discussions we've had with your office over the past few days. The Department of Revenue has concluded that the allowance of detached accessory dwelling units (ADUs) on most residential lots in Portland constituted rezoning under ORS 308.156(2}. The subsequent construction of detached ADUs on residential lots is use consistent with the rezoning. In calculating the maximum assessed value (MAV) of properties with newly built detached ADUs consistent with this rezoning, we advise that the land and new improvements be considered the affected portion of the property under OAR 150-308.156(5)-(8). The pre-existing residence is unaffected property not subject to an adjustment to its MAV. The department concludes that you have the discretion under ORS 311.205(1)(b)(C) to correct the MAV on the 2015-16 tax roll for the appropriate properties as corrections to the roll not involving valuation judgment, When exercising that discretion, for those few properties where the MAV would increase due to the correction, the department concludes that you're required under ORS 311.205(4) to follow the notification procedures prescribed for omitted property, However, an argument may be made that if you make a correction to increase MAV prior to December 1, the provisions of ORS 311.208 may apply instead of, or in addition to, the requirements in ORS 311.205(4). Given this possible conflict, it may be best to wait until after December 1 to make these corrections. To address any confusion around interpreting these statutes and the constitutional provisions governing. MAY adjustments, the department will explore whether there’s a need to adopt administrative rules to provide clarity for all property similarly-situated, Sincerely, a Gary Humphrey, Administrator Property Tax Division 180-800-075 (Rev. 08-15) S