McKee v. Dept of Revenue

The taxpayer leased the disputed property for cattle grazing. The cattle grazing ceased, however, when elk broke through the fence. Upon the cessation of the cattle grazing, the property ceased to be qualified as farm use property. The taxpayer testified that the property was of only marginal benefit to him.

The questions presented on appeal were what was the real market value for the property for the tax year in questions and was the taxpayer entitled to attorney fees. The tax court found an appraisal by a certified appraiser to be credible. The tax court found that a conservation easement had a very significant impact on this property, an impact that the county's appraiser ignored.

The appraisal report and testimony were fully supportive of the tax court's conclusion that the real market value of the subject property was $25,000 for the year in question. As to the award of attorney fees, the tax court noted that the statutory responsibility of the department under Or. Rev. Stat. § 305.490 to pay fee and expense awards was absolute. On the merits of whether taxpayer should recover fees and expenses under § 305.490, the parties agreed to a supplemental hearing on that issue for cattle grazing.