How in the world can I bring the subject of this blog entry down to earth?
Deschutes County is on the map. The technology of mapping has come a
long ways since
John C. Fremont camped in
Shevlin Park. He was an exploring
Pathfinder who
has his name linked to many of the places he mapped. Near the end he
mapped out his own life looking back on the paths he had followed and the linked steps that made the path. His story is full of a wide range of fascinating things in which he was first and foremost on the various paths he traveled.
He was the first candidate of the Republican Party for the office of President of the United States.
Since Fremont camped here hundreds of thousands followed some kind of map using some mode of travel to get to this County. They made their mark on its map in different ways. A more recent
County Map links a name to land ownership entitlement.
Mapping technology
has come a long way over time. This more recent
County Tax Map is an
old school way to find a path to a real place. An
old school way to
get from point A to point B but it is a
fundmental building block in the structure of mapping technology today. That entire structure is all founded on the uniqueness of a granular level
precise positioning coordinate system .over the entire two dimensional surface of the earth that was the launch point into a third dimension
that took us to the moon and is taking us conceptually much farther than beyond the moon.
A
geographic map is a human conceptual representation of the real world we live in and a tool to find our way in it. A month ago I saw Salmon leaping up a stream to a destination by direct physical sensing of present position linked to direction.
They smell their way to an ultimate destination. Real salmon don't ask for directions they just follow them naturally. The same way I
follow my nose to a donut shop when I am bike touring.
Maybe John C. Fremont just had a better sense of nose direction than the rest of us and followed it. A guy who never asked for directions.
Deschutes County Property Tax is collected from taxlot defined owners. That becomes revenue to geographically over lapping tax revenue recipients. Tax payers in the city of Bend have a stakeholder interests in Deschutes County tax assessment beyond the city limits.
What follows is a taxlot example comparison of tax paid on two City properties that become revenue to tax money recipients whose taxing district is outside the City of Bend and Covers County areas as well. One taxlotin the city has a Forestland Classification the other does not
Proceeding from the following example the next example examines the contribution to the same Education and Bonding districts made my example tablets outside the City. One taxlot has a Forestland Classification. The other does not.
I paid my property tax today on a
bare land lot adjoining my home in Bend. It does not matter that I have chosen my bare land lot for an example instead of my home next to it.
My Tax Statement property values and tax:
Property Class 100 - Residential - City Zoned
Real Market Value: $227,080 .25 acres residential
Assessed Value: $58,750
Property Tax:
$911
Rule of thumb tax test: $15 tax per $thousand = $881.250
That is ballpark OK the specific rate varies. I think I am paying the fair ball park tax on my property value that everyone else probably pays on my street.
This are two categories of where my tax payment goes as revenue to the public benefit: Nice to know.
EDUCATION
SCHOOL DISTRICT #1 $276.65
HIGH DESERT ESD $5.60
C O C C $36.03
EDUCATION TOTAL: $318.28
BONDS
CITY OF BEND BOND $9.90
BEND METRO PARK AND REC BOND $9.26
SCHOOL #1 BOND 2007 $42.91
SCHOOL #1 BOND 2013 $41.59
SCHOOL #1 BOND 2017 $27.38
C O C C BOND $6.54
BONDS - OTHER TOTAL: $137.58
For example comparison purposes, these are values and tax on another bare lot property in Bend:
https://dial.deschutes.org/Real/Index/241568
Property Class: 640 - Forest 3.23 acres
Real Market Value: $868,110 3.23 acres
Assessed Value. $256
Property Tax
$3.98
Where that tax payment goes:
EDUCATION:
SCHOOL DISTRICT #1 $1.21
HIGH DESERT ESD 0.02 cents
C O C C 0.16 cents
EDUCATION TOTAL: $1.39
BONDS;
CITY OF BEND BOND 0.04 cents
BEND METRO PARK AND REC BOND 0.04
SCHOOL #1 BOND 2007 0.19
SCHOOL #1 BOND 2013 0.18
SCHOOL #1 BOND 2017 0.12
C O C C BOND 0.03
BONDS - OTHER TOTAL: 0.60 cents
Big Difference!
The difference between my property tax and the example property tax is due to a Deschutes County Assessor approval of the property owner
Application for Designated Forestland. Approval of this
Application results in the assignment of
"Property Class: 640 - Forestland" to the property tax record. Every taxlot property in Deschutes County with this
Special Assessment for Forestland Program receives a Forestland
Special Assessment in either of two Program categories. These categories are Forestland and Small Tract Forestland. Each has a different Special Assessment value for computation of property tax.
"Annual property tax: Land under the forestland
special assessment program is assessed at a value
based on the typical price paid for forestland."
That assessment value per acre for Forestland in Eastern Oregon is is official set annually
For 2018-19 it is $79.38 per acre.
The property tax computation for
Property Class: 640 - Forestland is therefore simple. It is not the function of RMV. AV. MAV, Measure 5 or any other factor.
The tax computation is 3.23 acres X $79.38 Special Assessment per acre = $256.40 property value assessment.
$256.40 X Property assessment rate .01552 =
$3.98 2018-19 Property Tax Due
This Forestland example is land located in the City of Bend.
There are
71 acres of Property Class: 640 - Forestland in the city of Bend
The first line in the above link are values for City of Bend Forestland property in the Forestland Special Assessment program
Maximum Specially Assessed Value: $6,293
Specially Assessed Value (Measure 5 Value): $10,309
Taxable Assessed Value: $6,293
Real Market Value: $12,721,970
All the above values have no relationship to a property tax computation for the example Forestland property in the City of Bend. The same tax computation for the example property applies to the all 71 acres of
Property Class: 640 - Forestland in the City.
71 acres Forestland X $79.38 Special Assessment per acre = $5,639.98. (Difference between the TAV of $6,293 and computed Special Assessment per acre is not significant for this analysis."
The tax due on 71 acres of Forest Classification property in the City of Bend with a total Special Assessment value of $5,639.98 using the nominal rate of $15 per Thousand Assessment is .......
.......
$84.58 ?
Does that figure?
If the Forestland Classification taxlot in the City property tax is $3.98 on 3.23 acres then the total tax on all 71 acres of Forestland in the City is
$3.98 is to 3.23 acres (single tax lot example)
as
$X is to 71 acres of Forestland in the City
then
Solving for X = $87.49
Close enough to validate the fact that taxlot property in the City of
Bend with a Forestland Classification Special Tax Assessment
Real Market Value of
$12,721,970
Pays 2018-19 Property tax of
$87.49
Money does grow on trees!
Without the Forestland Classification a total of 71 acres in the City with
RMV =
$12,721,970
AV = (has to be estimated pick a number maybe half?) Say
$6 million
would pay property tax (using a nominal rate of $15 per $Thousand:) $90,000
The Forestland classification does carry a bow wave liability going forward of 5 years back tax deferral when it is no longer classified as Forestland. These 71 acres have had the classification for a long time beyond 5 years. Cumulative loss of tax revenue to the City is substantial and never recovered.
If property tax is collected to serve as revenue for the public benefit what is not paid based on any and all Special Assessed Value is paid as an equal increment of any and all that do not have a Special Assessed Property Valuation.
There shouldn't be any Forestland Classification with a Special Assessment in the City.
The purpose of the Assessment is to prevent urban encroachment on Forestland. Something that Special Interest groups defend against.
Forestland has encroached on the City!
The bigger issue is Forestland in the County.
The County has 3,545 acres of Designated Forestland ( Highest and Best Use is another category)
RMV: $61,755,130
TAV: $235,799
Total Tax: (est) $3,537
Highest and Best Use Classification is a local government land use planning matter.
Designated Forestland is not a local government planning matter. It is the decision of the Deschutes County Assessor on the submission of a property owner application that results in the same tax assessment per acre as Highest and Best Use land planning.
That is exactly why the City of Bend does not have any Highest and Best Use acreage in the city on the
Assessor County Forestland aggregate acreage and value report.
There is good ORS intent in the low tax on Forestland. Public benefits are broadly economic, and environmental. That intent has unintended consequences in local application
Example 2: County Forestland Classification taxlot outside the City Limits of Bend compared to a County Classified as Tract
Forestand Example:
https://dial.deschutes.org/Real/Index/156157
Map View;
https://dial.deschutes.org/Real/InteractiveMap/156157
71.1 acres
Note: Coincidently another comparison emerges. The acreage of this specific example on the boarder of the City is about equal to the total Forestland acreage in the City
RMV: $1,804,400. (RMV total City Forestland: $12,721,970)
AV: $1,076
Tax: $16.49
Tax Statement:
SCHOOL DISTRICT #1 $5.13
HIGH DESERT ESD 0.10 cents
C O C C 0.67cents
EDUCATION TOTAL: $5.90. (My total: $318.28)
BEND METRO PARK AND REC BOND 0.17 cents
SCHOOL #1 BOND 2007 0.79 cents
SCHOOL #1 BOND 2013 0.76 cents
SCHOOL #1 BOND 2017 0.50 cents
C O C C BOND 0.12 cents
BONDS - OTHER TOTAL: $2.34 (My total: $137.58)
Another comparison emerges! A comparison to where my tax payment goes! All the same recipients as my tax statement except the City of Bend Bond on mine.
I don't understand the reason, logic or tax justice in this situation and the numbers that describe it.
If this taxlot property was taxed without the
Property Class: 640 -- FOREST
What would its tax be it AV?
Much more!
We vote an obligation upon ourselves for a bond to fund schools. We are taxed to support the operation of those schools.
For what reason is a land developer outside the City not paying a fair share tax to support the same schools I support with my taxes?
Because Forestland.
Something is seriously wrong here.
Forestry is no longer big business in Deschutes County. What was forest land is now big business to developers. The trees on the land to be developed are an expense to remove not a profit to harvest.
The old tax breaks to a legacy industry no longer apply.
