Relating to farm use land used for illegal growing of marijuana; and prescribing an effective date.

Illegal marijuana growing ends farm tax breaks

Oregon farm-use land loses its special property-tax assessment after a final civil penalty or conviction for illegal marijuana growing. The outcome must involve the owner or someone with legal possession and control, and only the affected land loses the break. The change starts January 1 of the assessment year when the penalty was imposed or the criminal complaint was filed. Assessors must correct that year’s tax roll. Owners face additional taxes equal to the tax savings for up to 10 years, limited to years with special assessment. The usual exceptions to imposing additional tax do not apply. Disqualification does not apply when the person responsible for property taxes reasonably lacked knowledge and notified law enforcement as soon as practicable. Another exception covers arm’s-length purchases during the law’s specified period before the final outcome. For cases involving licensed growers or people required to be licensed, courts, district attorneys, and municipal authorities must immediately report civil-penalty orders and final convictions. Notices identify the outcome and land location and go to the Oregon Liquor and Cannabis Commission, county assessors, and Department of Revenue. Assessors must flag potential additional tax liability on property tax records until disqualification. The disqualification rule covers conduct on or after the law’s effective date: 91 days after the 2025 regular legislative session adjourns.