RenditionAndDiscoveryToFacilitateValuingPersonalProperty
Taxassessorsfirstmustlearnwhatpropertyyouownbeforetheycanattempttovalueit.Most stateshaveaprocessrequiringpropertyownerstoself-reportthepersonalpropertytheyown. Thetaxassessors’objectiveistoobtaininformationinaconsistentformatsotheymayvalue theproperty.Thisisunderstandablesincethereareonly2,850personalpropertyappraisersat appraisaldistrictstovalue$3.5trillionofpersonalpropertyannually,basedonourestimate.
Thefirststepsintherenditionprocessaretounderstand:1)whatistaxable,2)what exemptions,ifany,areavailable,3)therequirementstorender,4)theoptionsforrenderingand 5)thepenaltyfornotrendering.
ThepurposeofincludingtheStateofOregondiscoveryprocessistodocumenthowappraisaldistrictsarediligentlyattemptingto locateandtaxpersonalproperty.Theyhavemanysourcestoobtaininformation,includingothergovernmentoffices
OregonPropertyDiscoveryInstructions
Appraisaldistrictshavemanyoptionsfordiscoveringpropertythatisnotreported,asindicatedbythefollowingexcerptonhowto locateanddiscoverpersonalpropertyfromMethodsforValuingPersonalPropertypublishedbythestateofOregon: https://www.oregon.gov/DOR/forms/FormsPubs/methods-valuing-personal-property_303-450.pdf
“AlltaxablepersonalpropertyisassessedasoftheJanuary1assessmentdateinthecountywhereit’slocated.Taxablepersonal propertyistobereportedbyMarch15eachyear
Thisincludesmachinery,furniture,equipment,etc.,usedpreviouslyorpresentlyinabusiness,includingitemsthathavebeenfully depreciatedorexpensedforincometaxpurposes.Individuals,partnerships,firms,andcorporationsthatfailtofileareturnaresubject toassessmentthroughthediscoveryprocess.
Completediscoverydependsuponcountyfunding,cooperationofthetaxpayer(owner,lessee,orlessor),andtheresourcesavailable. Basicofficepoliciesandproceduresshouldbedevelopedthatgovernthediscoveryofpersonalproperty.Twoofthemostcommon methodsofdiscoveringpersonalpropertyaretheself-reportingbythetaxpayerandfieldresearchbycountystaffmembers.
Ataxpayerwhohastaxablepersonalpropertymustreportittothecountyinwhichthepropertyhassitus.Situsisitslocationonthe assessmentdate(January1ofanyyear).Thepropertyistaxablefortheentireyearatitssitus.Ascountystaffdoesappraisalsinthe field,theyshouldwatchfornewbusinessesandrelaythatinformationtothepersonalpropertypersonnel.Thefollowinglistsarethe mostusableandprovenmethods;however,thislistisn’tinclusive.Atthelocallevel,informationmaybeobtainedfromnumerous sources.
Aerialphotographs:Aerialphotos,ifavailable,canshowthelocationofequipmentandnewbusinessconstruction.
Buildingpermits:Localcitiesandcountiescanoftenprovidelistsofpermitsfornewcommercialconstructionandremodeling.
Bulletinboardsinstores,cafes,andotherplacesofbusiness:Bulletinboardscanbeagoodsourceofinformationon“repair,” “maintenance,”and“personalservices”typesofcompanies.
Businessdirectories:Commerciallyproduceddirectoriescanprovidelistingsofbusinessesbyaddress,businessname, telephonenumber,and“doingbusinessas”(dba).Areversetelephonedirectoryalsocanbeuseful.
Businessvehicles:Businessnamesandtelephonenumbersonvehiclescanbeastartingpointfordiscoveringnewbusinesses.
Chambersofcommerce:Localchambersofcommercecansupplynamesofmemberbusinessesorprovidemembership listingsforaspecificgeographiclocation.
Cityandcountybusinesslicenselistings:Localbusinesslicenselistingsareoneofthemostefficientandeffectivewaystofind newbusinesses.
Localnewspapers:Inadditiontonewsstories,somepaperspublishlistsofnewbusinessesandcommercialleases.Whenyou scanthenewspaperadvertisements,playspecialattentionto“GrandOpening”salesandotherindicatorsofchange.
Publichealthdepartment:Amunicipalhealthdepartmentmayhavelistsofregisteredrestaurants,hotels/motels,adultfoster carehomes,anddaycarecenterswiththecurrentoperators.
Publications:Phonebooks,newspapersads,television,tradejournals,andtheContractor’sBoarddirectoryprovideuseful
Smallbusinessassociations:Likechambersofcommerceandbusinessassociationsmaybeabletoprovidelistsofmember businesses.
Tenantlists:Shoppingmallorcommercialbuildingmanagerscansupplyalistingofthetenants,whenthebusinessesstarted operating,whattheleasecovers,andwhoownswhatfixturesinthebuilding.Theselistingscanbeusedinconjunctionwiththe directoriesinbuildinglobbiesandhallways.Sometimestenantsinsubletspacedon’tappearonthetenantlisting,butare shownonbuildingdirectory
Tradedirectoryandreports:Professionaldirectories,ifavailable,canhelpinidentifyingcertaintypesofbusinesses.
Utilitycompanies:Naturalgas,electric,cabletelevision,andotherutilitiesmayprovidebusinessnames,owners,andaddresses ofbusinesses.
Therearealsoanumberofsourcesatthestatelevel.Manybusinessactivitiesrequirestatelicensingorregistration(seeSection9, Licensing/Registration,page9-1).
Otherdepartmentswithinformationinclude:
ConstructionContractor’sBoard:TheCCBhastelephoneaccessforinformationonbuildersandlandscapers.
ForestryDepartment:TheForestryDepartmentcanprovideinformationontimbersales.Theytellwhothepurchasersareand wheretheloggingoperationsareconductingbusiness.
MarineBoard:TheMarineBoardcanprovidealistofregisteredboats.Informationincludesthenameandaddressofany businessthathasboatsinthestateandadescriptionoftheproperty.TheDepartmentofFishandWildlifecanprovide informationoncommercialfishingvessels.
OregonLiquorControlCommission:TheOLCCcanprovidelicenselistsandownershipinformationforbusinessesoverwhich theyhavejurisdiction.
SecretaryofState’soffice—corporatecharters:NewcorporatechartersarerecordedwiththeSecretaryofState’sofficein Salem.Listsofnewandexistingbusinessesmayberequested.
SecretaryofState’soffice—UniformCommercialCode(UCC)forms:AUCCformisfiledwhenapieceofequipmentis encumberedwithacommerciallien.TheseformsarefiledwiththeSecretaryofState’sofficeinSalem.
StateLottery:TheLotteryofficecantellyouwhatequipmentisbeingleasedandwhoisthelessor.SeetheAppendixforthe namesandaddressesofprovidersofleasedlotteryequipmenttothestate.Thelotteryequipmentleasedbythestatefroma taxableentityistaxable.
Othermethodsofpropertydiscovery:
Drivethecountywithataperecorderdictatingeverybusinessname.Transcribetheinformationandcrosscheckitwiththe assessmentroll.
DexKnows.com.Thissitewilllistalllikebusinesses,includingnames,addresses,andtelephonenumbers.Thiscanalsobe cross-checkedwiththeassessmentroll.Oncethepropertyhasbeendiscoveredandtheownerorpersonwithcontrolidentified, theassessorshouldestablishanaccountforthebusinessandaddtheaccounttotheassessmentroll.Ifthediscoveryoccurs afterthetaxrolliscertifiedinOctober,thepropertyisaddedtotheassessmentandtaxrollsusingthestatutorymethods describedinthesection,“Correctionstotheroll.”Theassessordeterminesthevaluetobeaddedfromthebestavailable information.Underidealconditions,appraiserswouldphysicallylistindividualpersonalpropertyitems.Timeandpersonnel constraints,however,usuallydictatetheuseofareportingsystemonaformcompletedbythetaxpayeroragent,and supplementedbyperiodicaudits.AvastamountofinformationisavailableontheInternet.ThestateofOregonhasawebsite, www.oregon.gov;theavailableinformationisintendedtoinformthepublicaboutstateprogramsandregulationsandmaybe usefulfordiscoverypurposes.Commercialonlineserviceshavebeencreatedtopromotelocalbusinessesandmaybeuseful fordiscovery”
Oregonhasmanyoptionstolearnaboutpersonalpropertyownership.AndOregon,likeotherstates,hasconsequencesfornot rendering.Thepenaltyis5percentofthetaxowedifthereturnisfiledafterMarch15,butonorbeforeJune1.Thepenaltyincreasesto 25percentofthetaxowedifthereturnisfiledafterJune1,butonorbeforeAugust1.AfterAugust1,thepenaltyis50percentofthe taxowed(ORS308.296).
ConsequencesOfPropertyNotRenderedBeingDiscovered
Thediscoveryprocessavailabletomosttaxassessorsorappraisersisextensive,particularlyasdatabecomesmorewidelyavailable. Further,moststatesallowappraisaldistricts(akaassessorsorappraisers)tobackassesspersonalpropertynottaxedfortwotofive years.Inaddition,interestandpenaltiestypicallyapplyifpropertythatwasnotrenderedisdiscovered.
