After The Trial or Settlement
a. Am I taxed on the condemnation proceeds?
If the government’s taking of your property results in your receiving more for the property than you paid for it, you may be subject to taxation on that technical “gain.” Because, however, the disposition of the property is involuntary, you may be able to defer taxation on the gain through reinvestment of the proceeds in accordance with Section 1033 of the federal Internal Revenue Code. You should consult with a tax professional in this regard.
b. Do I have a right to repurchase my property if the government does not use it for the purpose for which it was taken?
Yes. If, within the time specified in a judgment or settlement agreement, the government does not use the property for the purpose for which it was taken, and you have not waived the right to repurchase the property, you may repurchase the property in an amount determined by a statutory formula. ORS 35.385 to 35.415.