Multnomah County Property Tax Appeals

The news is out. It seems like Multnomah County is taking advantage of the accessory dwelling unit (ADU) situation in Portland. In 2010 the city decided to waive systems development charges (SDC) on new ADU creation whether that be converting a garage, carving space out of a basement or building a brand new structure. This was great as it enabled the building of thousands of permitted ADUs.

(cue impending music)

Now that we have a bajillion ADUs in the city Multnomah county decided to strike. Obfuscating state code they have interpreted a re-use as a re-zone and have JACKED property taxes up on many properties with newly built ADUs. The problem is that they are not only reassessing the improved value of the ADU itself but pretending as if the house is brand new construction as well. Even if it was built in 1924! The net effect is that Multnomah County is shooting themselves in the foot by killing the detached ADU industry.

The Oregon State Department of Revenue has said that Multnomah County is probably doing it wrong but they aren't enforcing or overruling any judgements yet.

Plenty has been written on this already and developments are appearing. The point of this brief is to not dig into more detail but to offer some solutions:

• Read the main article at http://accessorydwellings.org/2015/10/22/the-death-of-detached-adus-in-portland-and-what-to-do-about-it/ and subscribe to comments to learn about the latest developments. Kol Peterson is pursuing this very hard.

• Contact the county staffer about this:

Dave Austin
503-803-8616
david.austin@multco.us

• It's possible that a class action suit may arise.

• Or appeal the taxes on your own. I hope you're smart!

• There are several exemptions you can file for including active military service, veterans, elderly, disabled, enterprise zones and non-profits. From personal experience it is not terribly difficult to become a non-profit. Doing the paperwork yourself is fairly cheap and you don't necessarily need 501(c)(3) status to be a state non-profit. But be sure that your non-profit use is accurate and that you are not the sole beneficiary. If you are housing your elderly folks, maybe you could set yourself up as a care home?

• You may also be able to revert your taxes by connecting your ADU to your main house. Some restrictions may apply. The County may or may not reassess backwards. Contact us for a free assessment of your options.

Good luck! Hopefully we can just get this reversed and tar and feather those in charge.

Installing Solar Now Even Cheaper

The City of Portland, OR recently announced that they have been able to streamline their solar application process.  This means that they were also able to reduce the fees on a solar permit.  Press release follows:

July 1, 2014.  Effective immediately, the City of Portland Bureau of Development Services will be reducing the building permit fees for Prescriptive Residential Solar Permits from $554 to $263, a 52% reduction.  In an effort to be responsive to the Solar Industry concerns about existing fees and the City’s goal of encouraging more sustainable energy sources, the Bureau worked with Solar Industry representatives in an assessment of the current fees and associated solar permitting and inspection process.  This evaluation realized efficiencies in the permitting process, allowing the building permit fees associated with solar projects to be reduced.  Separate electrical trade permits continue to be required and their associated fees remain the same.

“We are hopeful that the reduction in building permit fees for solar installations on residential structures will encourage more homeowners to adopt this sustainable energy source, helping the City to meet sustainability goals,” stated Commissioner Amanda Fritz.  Bureau Director Paul L. Scarlett added “This is a great example of where we were able to work with industry partners to realize permit fee savings, while maintaining cost recovery on the important life safety and livability services the City provides through the building inspection process.”

Overall, the Prescriptive Residential Solar Permit fee retains cost recovery levels for the Bureau, while achieving a level of review and inspections that ensures compliance with applicable building, electrical and land use codes.  Field inspections will verify installations adhere to approved plans, assuring safety and code compliance at the time of panel installation.

For more information, please contact Ross Caron, BDS Public Information Officer at ross.caron@portlandoregon.gov or (503) 823-4268.

End release.

Interested in installing solar?  Check that little blurb to the right and see if you could get solar installed on your home for little to no upfront cost.  We had solar installed via a lease option and have been pleased with the results.