Douglas County v. Department of Revenue

In this case, we construe statutes regarding real property taxation. We hold that the “roll-back penalty” of ORS 308.3991 may not be imposed under the facts of this case because, here, farmland was converted to a statutorily-exempt “homesite.” Therefore, the judgment of the Tax Court is affirmed.

The parties do not dispute the facts as stated by the Tax Court:

“In 1988, the owner of a 144-acre farm in Douglas County needed assistance in operating the farm. The owner applied to the [Douglas] County Planning Director for permission to establish a second single-family dwelling. The application was…