Obsidian Self Storage LLC v. Deschutes County Assessor

CourtOregon Tax Court
DecidedFebruary 12, 2025
DocketTC-MD 240559N
StatusUnpublished

This text of Obsidian Self Storage LLC v. Deschutes County Assessor (Obsidian Self Storage LLC v. Deschutes County Assessor) is published on Counsel Stack Legal Research, covering Oregon Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Obsidian Self Storage LLC v. Deschutes County Assessor, (Or. Super. Ct. 2025).

Opinion

IN THE OREGON TAX COURT MAGISTRATE DIVISION Property Tax

OBSIDIAN SELF STORAGE LLC, ) and STEVEN SENGER, ) ) Plaintiffs, ) TC-MD 240559N ) v. ) ) DESCHUTES COUNTY ASSESSOR, ) ) Defendant. ) DECISION OF DISMISSAL

This matter came before the court on Defendant’s Motion to Dismiss (Motion), arguing

Plaintiffs’ Complaint should be dismissed because Plaintiffs failed to first appeal to the Board of

Property Tax Appeals (BOPTA)1 and because Plaintiffs’ Complaint does not satisfy any

conditions under ORS 305.288.2 Plaintiffs responded that the assessment of property identified

as Account 205432 (subject property) for the 2023-24 tax year was excessive compared to

similar properties, and that Defendant’s representative discouraged Plaintiffs from appealing.

The Motion is now ready for determination.

I. STATEMENT OF FACTS

On September 6, 2024, Plaintiffs appealed the subject property’s 2023-24 real market

value (RMV), seeking a reduction from $606,790 to $400,000 based on the “assessment[s]” of

similar properties. (Compl at 1-2.) The subject property is a commercial mini storage facility.

(Def’s Mot at 2; see also Compl at 1 (indicating commercial property).) Plaintiffs did not appeal

to BOPTA before appealing to this court. (Decl of Stephanie Marshall at 1.) Plaintiff Steven

1 BOPTA was renamed the Property Value Appeals Board as of July 1, 2024. 2023 Or Law ch 29, sec. 43. 2 References to the Oregon Revised Statutes (ORS) are to 2023.

DECISION OF DISMISSAL TC-MD 240559N 1 Senger explained that when he contacted Defendant’s office in November 2023 to discuss the

assessment, Defendant’s representative stated that the property tax seemed right and “you should

see the long list of people that fight their tax bill and lose.” (Ptfs’ Ltr, Nov 7, 2024.) Senger felt

“discouraged” and “moved on.” (Id.) Defendant disputes that its staff ever made that statement:

“Appraisers in the Assessor’s Office recognize, and do not dissuade taxpayers from exercising,

their right to appeal property tax statements.” (Def’s Reply at 2; see also Decl of Dan Russell at

1 (stating that he took the call and did not discourage Senger from appealing to BOPTA).)

II. ANALYSIS

The first issue is whether this court may hear Plaintiffs’ appeal for the 2023-24 tax year

even though Plaintiffs did not appeal to BOPTA. If not, the second issue is whether Plaintiffs

may appeal under ORS 305.288 despite their failure to appeal to BOPTA. Although Plaintiffs

ultimately bear the burden of proof by a preponderance of the evidence under ORS 305.427, on a

motion to dismiss the court accepts Plaintiffs’ factual allegations as true. See Shevtsov v. Dept.

of Rev., TC 5441 at 1 (Or Deny Def-Inv’s Mot to Dismiss, Oct 28, 2022).

A. BOPTA Appeal and ORS 305.288

As this court has explained, the “primary avenue” for taxpayers to contest the property

value assessed by the county is to file an appeal with BOPTA under ORS 309.100. See, e.g.,

Vollertsen v. Deschutes County Assessor, TC-MD 210060N, 2021 WL 4892288 at *2 (Or Tax M

Div, Oct 20, 2021). When a taxpayer may appeal to BOPTA, “then no appeal may be allowed”

to this court. ORS 305.275(3). Here, there is no dispute that Plaintiffs failed to appeal to

BOPTA, so their appeal may not proceed under ORS 305.275(3).

///

DECISION OF DISMISSAL TC-MD 240559N 2 If a taxpayer fails to appeal to BOPTA, then the taxpayer may appeal to this court if the

appeal satisfies one of the conditions found in ORS 305.288. See also Vollertsen, 2021 WL

4892288 at *2. The first condition, for a value error of at least 20 percent in certain properties

used as a dwelling, does not apply here because the subject property was a commercial storage

facility. See ORS 305.288(1). The second condition for “good and sufficient” cause is not

restricted based on property type, so the court next considers if it applies. See ORS 305.288(3).

B. Good and Sufficient Cause Under ORS 305.288(3)

“The tax court may order a change or correction * * * if, for the year to which the change

or correction is applicable, the * * * taxpayer has no statutory right of appeal remaining and the

tax court determines that good and sufficient cause exists for the failure by the * * * taxpayer to

pursue the statutory right of appeal.” ORS 305.288(3). “Good and sufficient cause” is “an

extraordinary circumstance that is beyond the control of the taxpayer, or the taxpayer’s agent or

representative, and that causes the taxpayer, agent or representative to fail to pursue the statutory

right of appeal[.]” ORS 305.288(5)(b)(A). It “does not include inadvertence, oversight, lack of

knowledge, hardship or reliance on misleading information provided by any person except an

authorized tax official providing the relevant misleading information.” ORS 305.288(5)(b)(B).

Plaintiffs allege that they chose not to appeal after Senger spoke with a representative of

Defendant’s office. Accepting Plaintiffs’ alleged facts as true, the question becomes whether

Defendant’s representative gave Senger misleading information that he relied upon in deciding

not to appeal. This is closely related to the doctrine of estoppel.3 See River Place Partners, LLC

v. Multnomah County Assessor, TC-MD 060059D, 2006 WL 2237254 (Or Tax M Div, Jul 24,

3 A successful estoppel claim requires taxpayer to prove: “(1) misleading conduct on the part of the department; (2) taxpayer’s good faith, reasonable reliance on that conduct; and (3) injury to taxpayer.” Webb v. Dept. of Rev., 18 OTR 381, 383 (2005).

DECISION OF DISMISSAL TC-MD 240559N 3 2006) (applying estoppel analysis for ORS 305.288). Essentially, Plaintiffs argue but for the

comments of Defendant’s representative—that the property tax amount seemed right and appeals

are likely to be unsuccessful—Plaintiffs would have appealed to BOPTA.

To make a successful estoppel claim, taxpayer must provide “proof positive” that they

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Bluebook (online)
Obsidian Self Storage LLC v. Deschutes County Assessor, Counsel Stack Legal Research, https://law.counselstack.com/opinion/obsidian-self-storage-llc-v-deschutes-county-assessor-ortc-2025.