68th OREGON LEGISLATIVE ASSEMBLY--1995 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3324
A-Engrossed
House Bill 3133
Ordered by the House May 11
Including House Amendments dated May 11
Sponsored by Representative BEYER
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Expands { + , if city or county enacts enabling ordinance, + }
application of property tax exemption granted for multiple-unit
rental housing in core area to housing in transit corridors,
stories added over commercial buildings, conversion of
single-story commercial property to housing units and housing
units constructed on surface parking lots { + , for owner or
renter + }. Applies to construction, addition or conversion
completed in calendar years beginning on or after 1996 and to tax
years beginning on or after July 1, 1997.
A BILL FOR AN ACT
Relating to property tax exemptions for multiple-unit rental
housing; creating new provisions; and amending ORS 307.600,
307.605, 307.610, 307.620, 307.630, 307.650, 307.660, 307.670,
307.675 and 307.690.
Be It Enacted by the People of the State of Oregon: + }
SECTION 1. ORS 307.600 is amended to read:
307.600. { + (1) + } The legislature finds that it is in the
public interest to stimulate the construction of { - rental - }
{ + multiple-unit + } housing in the core areas of Oregon's
urban centers to improve the balance between the residential and
commercial nature of those areas, and thus, to { - insure - }
{ + ensure + } full-time use of these areas as places where
citizens of the community have an option to live as well as work.
{ + (2) The legislature finds that it is in the public
interest to promote private investment in the development of
residential, transit-oriented property adjacent to light rail
transit stations in order to maximize Oregon's transit investment
to the fullest extent possible. The legislature also finds that
the cities and counties of this state should be enabled to
establish and design programs to attract new development of
multiple-unit housing, and commercial and retail property, in
areas located near light rail transit stations based on the
incentive of a local property tax exemption authorized under ORS
307.600 to 307.690.
(3) + } The legislature further finds that cities { + and
counties + } of this state should be enabled to establish and
design programs to attract new development of { - rental - }
{ + multiple-unit + } housing in their core areas based on the
incentive of a local property tax exemption, which is authorized
under ORS 307.600 to 307.690. { + The + }
{ - Such - } programs shall emphasize { + the following:
(a) + } The development of vacant or underutilized sites in the
core areas, rather than sites where sound or rehabilitable
multiple-unit { - rental - } housing exists { + . + } { - ,
and - }
{ + (b) The development of multiple-unit housing, with or
without parking, in structures that may include ground level
commercial space or on sites with existing single-story
commercial structures.
(c) The development of multiple-unit housing, with or without
parking, on existing surface parking lots.
(4) The programs + } shall result in the construction { + ,
addition or conversion + } of units at rental rates { + or sale
prices + } accessible to a broad range of the general public.
SECTION 2. ORS 307.605 is amended to read:
307.605. As used in ORS 307.600 to 307.690 { + , + }
'multiple-unit housing' means newly constructed structures { + ,
stories or other additions to existing structures and structures
converted in whole or in part from other use to multiple family
use that meet the following criteria:
(1) The structure must have + } { - having as - } a minimum
{ - a - } number of { - rental - } dwelling units { +
as + } specified by the city { + or county + } pursuant to ORS
307.610 (4) { + .
(2) The structure must + } { - and - } not { + be + }
designed or used as transient accommodations { + , including but
not limited to + } { - and not including - } hotels and motels
{ - , but including such - } { + .
(3) The structure must have those + } design elements
benefiting the general public as specified by the city { + or
county + } pursuant to ORS 307.650. { - Included in the
definition are newly constructed structures and structures
converted in whole or in part from other use to multiple family
use. - }
SECTION 3. ORS 307.610 is amended to read:
307.610. (1) ORS 307.600 to 307.690 apply to multiple-unit
{ - rental - } housing constructed { + , added to or
converted + } { - after July 1, 1975, and completed on or
before July 1, 1998, - } in cities { + or counties + }
{ - which - } { + that + } adopt { + or amend + }, after a
public hearing and determination pursuant to subsection (3) of
this section, by resolution or ordinance, the provisions of ORS
307.600 to 307.690. The tax exemption provided by ORS 307.600 to
307.690 only applies to the tax levy of a city { + or county + }
{ - which - } { + that + } adopts the provisions of ORS
307.600 to 307.690, except that the tax exemption shall apply to
the ad valorem tax levy of all taxing districts when upon request
of the city { + or county + } { - which - } { + that + } has
adopted the provisions of ORS 307.600 to 307.690, the rates of ad
valorem taxation of taxing districts whose governing boards agree
by resolution to the policy of providing tax exemptions for
multiple-unit { - rental - } housing as provided in ORS
307.600 to 307.690, when combined with the rate of taxation of
the city { + or county + } { - which - } { + that + } adopts
the provisions of ORS 307.600 to 307.690, equal 51 percent or
more of the total combined rate of taxation levied on the
property which is tax exempt under ORS 307.600 to 307.690.
(2) The city { + or county + } shall designate an area
{ - in proximity to the central business district, - } within
which it proposes to allow exemptions provided for under the
provisions of ORS 307.600 to 307.690. { + The city or county
from time to time may add or withdraw territory from the area
originally designated and include in the area designated transit
corridors or areas within proximity of public transportation. + }
(3) The city { + or county + } shall, prior to passage of a
resolution or ordinance { + or an amendment to an existing
resolution or ordinance that elects + } { - electing - } to
utilize the provisions of ORS 307.600 to 307.690, hold a public
hearing in order to determine whether multiple-unit housing
meeting the qualifications of subsection (4) of this section
would not otherwise be built in the designated area without the
benefits provided by ORS 307.600 to 307.690.
(4) Prior to accepting project applications under ORS 307.600
to 307.690, cities { + or counties + } shall promulgate
standards and guidelines to be utilized in considering
applications and making the determinations required by ORS
307.650. The standards and guidelines shall establish policy
governing basic requirements for an application, including but
not limited to:
(a) Existing utilization of proposed project site, including
justification of the elimination of any existing sound or
rehabilitable housing.
(b) Design elements.
(c) Rental rates { + or sales prices + }.
(d) Extensions of public benefits from the project beyond the
period of the exemption.
(e) Minimum number of units.
SECTION 4. ORS 307.620 is amended to read:
307.620. In cities { + or counties + } with a population of
over 300,000, the exemption shall apply only to multiple-unit
housing constructed { + , added to or converted + } on land
within an area designated under ORS 307.610 (2) { + or within a
designated transit corridor + } or within a designated urban
renewal or redevelopment area formed pursuant to ORS chapter 457.
SECTION 5. ORS 307.630 is amended to read:
307.630. (1) Except as provided under subsection (2) of this
section, multiple-unit housing { - which - } { + that + }
qualifies for exemption under ORS 307.600 to 307.690 { - , - }
shall be exempt from ad valorem taxation for no more than
{ + the period specified in an agreement entered into between
the city or county and the applicant. + } { - 10 successive
years - } { + The first tax year of exemption shall be the tax
year + } beginning July 1 { - of the tax year - } immediately
following the calendar year in which construction { + , addition
or conversion + } is completed, determined by that stage in the
construction process when, pursuant to ORS 307.330, the
improvement would have gone on the tax rolls in the absence of
the exemption provided for in ORS 307.600 to 307.690. However:
(a) The exemption shall not include the land or any
improvements not a part of the multiple-unit housing { + but may
include parking constructed as part of the multiple-unit housing
construction, addition or conversion + }.
(b) In the case of a structure { + to which stories or other
improvements are added or a structure that is + }converted in
whole or in part from other use to multiple family use, only the
increase in value attributable to the conversion shall be exempt
from taxation.
(2) If the multiple-unit housing is subject to a low income
rental assistance contract with an agency of this state or of the
United States, the city { + or county + } may extend the
exemption provided by ORS 307.600 to 307.690 through June 30 of
the tax year during which the termination date of the contract
falls.
(3) The exemption provided by ORS 307.600 to 307.690 shall be
in addition to any other exemption provided by law.
SECTION 6. ORS 307.650 is amended to read:
307.650. The city { + or county + } may approve the
application if it finds that:
(1) The owner has agreed to include in the construction { + ,
addition or conversion + } as a part of the multiple-unit housing
one or more design elements benefiting the general public as
specified by the city { + or the county + }, including but not
limited to open spaces, parks and recreational facilities, common
meeting rooms { + , + }
{ - and - } day care facilities { + , transit amenities and
transit or pedestrian design elements + }.
(2) The proposed construction { + , addition or conversion + }
project is or will be, at the time of completion, in conformance
with all local plans and planning regulations, including special
or district-wide plans developed and adopted pursuant to ORS
chapters 195, 196, 197 { + , 215 + } and 227, { - which - }
{ + that + } are applicable at the time the application is
approved.
(3) The owner has complied with all standards and guidelines
adopted by cities { + or counties + } pursuant to ORS 307.610
(4).
SECTION 7. ORS 307.660 is amended to read:
307.660. (1) The city { + or county + } shall approve or deny
an application filed under ORS 307.650 within 180 days after
receipt of the application. An application not acted upon within
180 days shall be deemed approved.
(2) Final action upon an application by the city { + or
county + } shall be in the form of an ordinance or resolution
that shall contain the owner's name and address, a description of
the subject multiple-unit housing, either the legal description
of the property or the assessor's property account number, and
the specific conditions upon which the approval of the
application is based. On or before April 1 following approval,
the city { + or county + } shall file with the county assessor
and send to the owner at the last-known address of the owner a
copy of the ordinance or resolution approving or disapproving the
application { + and a copy of the agreement between the city or
county and the applicant fixing the number of years of tax
exemption and the first and last tax year of exemption + }. In
addition, the city { + or county + } shall file with the county
assessor on or before April 1 a document listing the same
information otherwise required to be in an ordinance or
resolution under this subsection, as to each application deemed
approved under subsection (1) of this section.
(3) If the application is denied, the city { + or county + }
shall state in writing the reasons for denial and send notice of
denial to the applicant at the last-known address of the
applicant within 10 days after the denial.
(4) The city { + or county + }, after consultation with the
county assessor, shall establish an application fee in an amount
sufficient to cover the cost to be incurred by the city { + or
county + } and the assessor in administering ORS 307.600 to
307.690. The application fee shall be paid to the city { + or
county + } at the time the application for exemption is filed. If
the application is approved, the city { + or county + } shall
pay the application fee to the county assessor for deposit in the
county general fund, after first deducting that portion of the
fee attributable to its own administrative costs in processing
the application. If the application is denied, the city { + or
county + } shall retain that portion of the application fee
attributable to its own administrative costs and shall refund the
balance to the applicant.
SECTION 8. ORS 307.670 is amended to read:
307.670. (1) Except as provided in ORS 307.675, if, after an
application has been approved under ORS 307.600 to 307.690, the
city { + or county + } finds that { - construction of
multiple-unit housing was not completed on or before July 1,
1998, or that - } any provision of ORS 307.600 to 307.690 is not
being complied with, or any provision required by the city
{ + or county + } pursuant to ORS 307.600 to 307.690 is not
being complied with, the city { + or county + } shall give
notice to the owner, mailed to the owner's last-known address, of
the proposed termination of the exemption. The notice shall state
the reasons for the proposed termination and shall require the
owner to appear at a specified time, not less than 20 days after
mailing the notice, to show cause, if any, why the exemption
should not be terminated.
(2) If the owner fails to show cause why the exemption should
not be terminated, the city { + or county + } shall adopt an
ordinance or resolution stating its findings terminating the
exemption. A copy of the ordinance or resolution shall be filed
with the county assessor and a copy sent to the owner at the
owner's last-known address, within 10 days after its adoption.
SECTION 9. ORS 307.675 is amended to read:
307.675. (1) If, after application has been approved under ORS
307.600 to 307.690, a declaration defined in ORS 100.005 with
respect to the property is presented to the county assessor or
tax collector for approval under ORS 100.110 or if the county
assessor discovers that the multiple-unit housing or a portion of
the multiple-unit housing is changed to a use that is other than
residential or housing:
(a) The exemption granted the multiple-unit housing or portion
under ORS 307.600 to 307.690 shall terminate immediately, without
right of notice or appeal;
(b) The property or portion shall be assessed and taxed as
other property similarly situated is assessed and taxed; and
(c) Notwithstanding ORS 311.220, there shall be added to the
general property tax roll for the tax year next following the
presentation or discovery, to be collected and distributed in the
same manner as other real property tax, an amount equal to the
difference between the amount of tax that would have been due on
the property or portion had it not been exempt under ORS 307.600
to 307.690 for each of the years, not to exceed the { + period
of years of exemption specified in the agreement entered into
under ORS 307.630 + } { - last 10 years - } , during which the
property was exempt from taxation under ORS 307.600 to 307.690.
(2) If, at the time of presentation or discovery, the property
is no longer exempt, additional taxes shall be imposed as
provided in this section, but the number of years that would
otherwise be used to compute the additional taxes shall be
reduced one year for each year that has elapsed since the year
the property was last granted exemption beginning with the oldest
year for which additional taxes are due.
(3) The assessment and tax rolls shall show 'potential
additional tax liability' for each property granted exemption
under ORS 307.600 to 307.690.
(4) Additional taxes collected under this section shall be
deemed to have been imposed in the year to which the additional
taxes relate.
SECTION 10. ORS 307.690 is amended to read:
307.690. Notwithstanding any provision of ORS 307.670, if the
city { + or county + } finds that construction { + , addition or
conversion + } of the multiple-unit housing was not completed by
July 1, { + 2005 + }
{ - 1998 - } , due to circumstances beyond the control of the
owner, and that the owner had been acting and could reasonably be
expected to act in good faith and with due diligence, the city
{ + or county + } may extend the deadline for completion of
construction for a period not to exceed 12 consecutive months.
SECTION 11. { + Section 12 of this Act is added to and made a
part of ORS 307.600 to 307.690. + }
SECTION 12. { + An exemption for multiple-unit housing shall
not be granted under ORS 307.600 to 307.690 unless the
construction, addition or conversion is completed on or before
July 1, 2005. + }
SECTION 13. { + (1) Except as provided in section 12 of this
Act, the amendments to ORS 307.600, 307.605, 307.610, 307.620,
307.630, 307.650, 307.660, 307.670, 307.675 and 307.690 by
sections 1 to 10 of this Act first apply to exemptions for those
structures that are completed in the calendar year 1996 or any
calendar year thereafter and first apply to tax years beginning
on or after July 1, 1997.
(2) Any exemption granted under ORS 307.600 to 307.690 for a
structure completed in the calendar year 1995 or a calendar year
prior to 1995 shall not be affected by the amendments to ORS
307.600, 307.605, 307.610, 307.620, 307.630, 307.650, 307.660,
307.670, 307.675 and 307.690 by sections 1 to 10 of this Act. ORS
307.600 to 307.690 (1993 Edition) shall continue to apply to the
structure and exemption as if this Act were not in effect. + }
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