Oakmont, LLC v. Dept. of Rev.

Oakmont LLC owned an apartment complex built in 1996. Oakmont appealed the assessed value for the 2009-10 tax year for that complex on the ground that structural damages resulting from construction defects had substantially reduced the property’s value. In 2011, the county assessor and Oakmont agreed to reduce the assessed value of the complex from over $21 million to $8.5 million for the 2009-10 tax year. Because the time for appealing the valuation for the 2008-09 tax year had passed, the taxpayer asked the Department of Revenue to exercise its supervisory jurisdiction to correct a “likely error” in the 2008-09 assessment. The department concluded that it had no jurisdiction to consider Oakmont’s request, and the Tax Court reversed. Both the county and the department appealed. After review, the Oregon Supreme Court found the Tax Court correctly held that the department had supervisory jurisdiction over Oakmont’s petition to reduce the assessed value of the property for the 2008-09 tax year. Oakmont had no remaining statutory right of appeal, and the parties to the petition agreed to facts indicating a likely error on the tax rolls. It follows that the department had supervisory jurisdiction to consider whether there was in fact an error on the tax rolls and whether, if there was, the department should exercise its discretion to correct any error. The department did not reach those issues, and the Supreme Court agreed with the Tax Court that the case should have been remanded to the department to consider those issues in the first instance. View "Oakmont, LLC v. Dept. of Rev." on Justia Law