holding that owner is taxed upon all interests in the land, including leasehold
How later courts described this case
- holding that owner is taxed upon all interests in the land, including leasehold
- true cash value of land for tax purposes includes all lesser interests and is assessed to one having title to that land
- “the tax is upon all the interests in the land, including the leasehold interest”
Written by the judges who cited it.
The opinion
ON PETITION FOR REHEARING
*629 Ganong, Ganong & Gordon, Klamath Falls, for the petition.
No appearance contra.
DENECKE, J.
On petition for rehearing the taxpayer contends that our decision disregards existing leases on the property, contrary to the requirements of ORS 308.235, which provides, in part:
“Taxable real property shall be assessed by a method which takes into consideration the improvements on the land and in the surrounding country and also the use, earning power and usefulness of such improvements, and any rights or privileges attached thereto or connected therewith * * *.” (Emphasis added.)
We did not hold that the earning power of the property should be disregarded; however, the income from an existing lease is not by itself determinative of that earning power. It is the potential income to be derived from the highest and best possible use. If the rent reserved in the lease is less than the property is capable of producing, the lessee’s interest is more valuable and it is the entire group of interests in the property, lessor’s and lessee’s, that is valued.
Petition denied.