Chapter 656
Oregon Laws 2011
AN ACT
HB 2563
Relating to
exemptions to property taxation; creating new provisions; amending ORS 307.175
and section 7, chapter 637, Oregon Laws 2005; repealing sections 4 and 7,
chapter 957, Oregon Laws 1999; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 7, chapter 637,
Oregon Laws 2005, is amended to read:
Sec. 7. [Notwithstanding section 3 of this 2005 Act,] Property may not
qualify for a first year of exemption under [section 3 of this 2005 Act] ORS 307.455 for a tax year
beginning on or after July 1, [2011]
2013.
SECTION 2. (1) A food processor
may apply for exemption under ORS 307.455 for the tax year beginning on July 1,
2011, by submitting to the Department of Revenue on or before December 31,
2011, the application and information required under ORS 307.455 (2)(a)
accompanied by the late filing fee required under ORS 307.455 (2)(b).
(2) If tax on the exempt value has not
been paid, the tax and any interest are abated.
(3) If tax on the exempt value has
been paid, the tax collector shall notify the governing body of the county of
the refund required under ORS 307.455. Upon receipt of notice from the tax
collector, the governing body shall cause a refund of the tax and any fee and
interest paid to be made from the refund reserve account, if the county has
established a refund reserve account under ORS 311.807, or from the
unsegregated tax collections account described in ORS 311.385. The refund under
this subsection shall be made without interest. The county assessor and tax
collector shall make the necessary corrections in the records of their offices.
SECTION 3. ORS 307.175 is amended to
read:
307.175. (1) As used in this
section, “alternative energy system” means property [equipped with] consisting of solar, geothermal, wind, water,
fuel cell or methane gas energy systems for the purpose of heating, cooling or
generating electricity.[electrical
energy shall be exempt from ad valorem taxation in an amount that equals any
positive amount obtained by subtracting the real market value of the property
as if it were not equipped with such systems, from the real market value of the
property so equipped.]
[(2)
This section applies to tax years beginning prior to July 1, 2012.]
[(3)
Except as provided in subsection (4) of this section, this section does not
apply to property owned or leased by any person whose principal business
activity is directly or indirectly the production, transportation or
distribution of energy, including but not limited to public utilities as
defined in ORS 757.005 and people’s utility districts as defined in ORS
261.010.]
[(4)
This section applies to an alternative energy system that is owned or leased by
a person whose principal business activity is directly or indirectly the
production, transportation or distribution of energy if the system is a net
metering facility, as defined in ORS 757.300, or other system primarily
designed to offset onsite electricity use.]
(2) An alternative energy system is
exempt from ad valorem property taxation if the system is:
(a) A net metering facility, as
defined in ORS 757.300; or
(b) Primarily designed to offset
onsite electricity use.
(3) Notwithstanding ORS 307.110 and
308.505 to 308.665, any portion of the real property to which an alternative
energy system is affixed is exempt under this section if:
(a) The real property is otherwise
exempt from ad valorem property taxation; and
(b) The alternative energy system is
exempt under this section.
(4) Property equipped with an
alternative energy system is exempt from ad valorem property taxation in an
amount that equals any positive amount obtained by subtracting the real market
value of the property as if it were not equipped with an alternative energy
system from the real market value of the property as equipped with the
alternative energy system.
SECTION 4. The amendments to ORS
307.175 by section 3 of this 2011 Act apply to tax years beginning on or after
July 1, 2011, and before July 1, 2018.
SECTION 5. (1) Section 4, chapter
957, Oregon Laws 1999, as amended by section 1, chapter 795, Oregon Laws 2003,
and section 2, chapter 852, Oregon Laws 2009, is repealed.
(2) Section 7, chapter 957, Oregon
Laws 1999, as amended by section 2, chapter 795, Oregon Laws 2003, and section
3, chapter 852, Oregon Laws 2009, is repealed.
SECTION 6. This 2011 Act takes
effect on the 91st day after the date on which the 2011 regular session of the
Seventy-sixth Legislative Assembly adjourns sine die.
Approved by
the Governor August 2, 2011
Filed in the
office of Secretary of State August 2, 2011
Effective date
September 29, 2011
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