Chapter 307 — Property Subject to Taxation; Exemptions

 

ORS sections in this chapter were amended or repealed by the Legislative Assembly during its 2018 regular session. See the table of ORS sections amended or repealed during the 2018 regular session: 2018 A&R Tables

 

Uncodified sections printed in this chapter were amended or repealed by the Legislative Assembly during its 2018 regular session. See the table of uncodified sections amended or repealed during the 2018 regular session: 2018 A&R Tables

 

New sections of law were enacted by the Legislative Assembly during its 2018 regular session and pertain to or are likely to be compiled in this ORS chapter. See sections in the following 2018 Oregon Laws chapters: 2018 Session Laws 0064; 2018 Session Laws 0111

 

 

2017 EDITION

 

 

PROPERTY SUBJECT TO TAXATION; EXEMPTIONS

 

REVENUE AND TAXATION

 

GENERAL PROVISIONS

 

307.010     Definition of “real property” and “land”; timber and mineral interests in real property

 

307.020     Definition of “personal property”; inapplicability to certain persons

 

307.022     Qualification for exemption of property of certain limited liability companies

 

307.030     Property subject to assessment generally

 

307.032     Maximum assessed value and assessed value of partially exempt property and specially assessed property

 

307.035     Publishing summary of certain exempt real property

 

EXEMPTIONS

 

(Public Properties)

 

307.040     Property of the United States; certain electricity transmission system property leased to United States

 

307.050     Property of the United States held under contract of sale

 

307.060     Property of the United States held under lease or other interest less than fee; deduction for restricted use

 

307.070     Settled or claimed government land; improvements

 

307.080     Mining claims

 

307.090     Property of the state, counties and other municipal corporations; payments in lieu of taxes on city-owned electric utility property

 

307.092     Property of housing authority; exception

 

307.095     State property rented for parking subject to ad valorem taxation; computation

 

307.100     Public property held by taxable owner under contract of purchase

 

307.107     Property used for natural gas pipeline extension project

 

307.110     Public property leased or rented by taxable owner; exceptions

 

307.112     Property held under lease, sublease or lease-purchase by institution, organization or public body other than state

 

307.115     Property of nonprofit corporations held for public parks or recreation purposes

 

307.118     Wastewater and sewage treatment facilities

 

307.120     Property owned or leased by municipalities, dock commissions, airport districts or ports; exception; payments in lieu of taxes to school districts

 

307.123     Property of strategic investment program eligible projects; rules

 

307.125     Property of forest protection agencies

 

(Institutional, Religious, Fraternal, Interment Properties)

 

307.130     Property of certain museums, volunteer fire departments and literary, benevolent, charitable and scientific institutions

 

307.134     Definition of fraternal organization

 

307.136     Property of fraternal organizations

 

307.140     Property of religious organizations

 

307.145     Certain child care facilities, schools and student housing

 

307.147     Senior services centers

 

307.150     Burial and crematory property

 

307.155     When land exempt under ORS 97.660, 307.140 or 307.150 taxable; lien

 

307.157     Cemetery or crematory land acquired by eleemosynary or charitable institution; potential additional taxes

 

307.160     Property of public libraries

 

307.162     Claiming exemption; late claims; notification of change to nonexempt use

 

(Leased Public or Institutional Property)

 

307.166     Property leased by exempt institution, organization or public body to another exempt institution, organization or public body

 

307.168     State land under lease

 

307.171     Sports facility owned by large city

 

(Alternative Energy Systems)

 

307.175     Alternative energy systems

 

(Temporary provisions relating to exemption of solar project property and payment of fee in lieu of property taxes are compiled as notes following ORS 307.175)

 

(Temporary provisions relating to exemption of property that will be seismically retrofitted are compiled as notes following ORS 307.175)

 

(Indian Properties)

 

307.180     Property of Indians

 

307.181     Land acquired or owned by Indian tribe

 

(Recreation Facilities and Summer Homes on Federal Land)

 

307.182     Federal land used by recreation facility operators under permit

 

307.183     Summer homes on federal land occupied under permit

 

307.184     Summer homes on federal land occupied under lease

 

(Personal Property)

 

307.190     Tangible personal property held for personal use; inapplicability to property required to be registered, floating homes, boathouses and manufactured structures

 

307.195     Household furnishings owned by nonprofit organization furnishing housing for students attending institutions of higher education

 

307.197     Equipment used for certain emergencies in navigable waters

 

(Public Ways)

 

307.200     Public ways

 

(Mobile Home or Manufactured Dwelling Parks)

 

307.203     Mobile home or manufactured dwelling parks financed by Housing and Community Services Department revenue bonds

 

(Water Associations)

 

307.210     Property of nonprofit mutual or cooperative water associations; disqualification; application

 

(Nonprofit Corporation Housing for Elderly Persons)

 

307.241     Policy

 

307.242     Property of nonprofit corporation providing housing to elderly persons; necessity of filing claim to secure exemption

 

307.243     Property to which exemption applies

 

307.244     Funded exemption; computation of rate of levy by county assessor; payments to county by department; proration

 

307.245     Denial of exemption for failure to reflect exemption by rent reduction

 

307.248     Suspense account; fiscal year allocation; proration of payments

 

(Veterans and Their Surviving Spouses)

 

307.250     Property of veterans or surviving spouses

 

307.260     Claiming exemption; alternative procedure for surviving spouse

 

307.262     Tax years for which exemption may be claimed upon receipt of federal certification of disability; procedure; refund

 

307.270     Property to which exemption of ORS 307.250 applies

 

307.280     Effect of exemption under ORS 307.250 on prior tax levied

 

307.283     Homesteads of unmarried surviving spouses of veterans of Civil War or Spanish War

 

(Active Duty Military Service)

 

307.286     Homestead exemption

 

307.289     Claiming homestead exemption; alternative procedures following death of person qualifying for exemption

 

(Surviving Spouses of Certain Public Safety Officers)

 

307.295     Property of surviving spouses of certain public safety officers killed in line of duty; application

 

(Deciduous Plants; Agricultural Products)

 

307.315     Nursery stock

 

307.320     Deciduous trees, shrubs, plants, crops, cultured Christmas trees or hardwood on agricultural land

 

307.325     Agricultural products in possession of farmer

 

(Commercial Facilities Under Construction)

 

307.330     Commercial facilities under construction

 

307.340     Filing proof for cancellation of assessment; abatement

 

(Temporary provisions relating to exemption or deferral for certain industrial improvements newly constructed or installed in rural area are compiled as notes following ORS 307.340)

 

(Nonprofit Homes for Elderly Persons)

 

307.370     Property of nonprofit homes for elderly persons; limitation on lessee

 

307.375     Type of corporation to which exemption under ORS 307.370 applicable

 

307.380     Claiming exemption under ORS 307.370

 

307.385     Credit to resident’s account with share of tax exemption; denial of exemption if credit not given

 

(Agricultural Equipment and Facilities)

 

307.390     Mobile field incinerators

 

307.391     Field burning smoke management equipment

 

307.394     Farm machinery and equipment; personal property used in farm operations; limitation

 

307.397     Certain machinery and equipment used in agricultural, aquacultural or fresh shell egg industry operations

 

307.398     Irrigation equipment

 

(Inventory)

 

307.400     Inventory

 

(Beverage Containers)

 

307.402     Beverage containers

 

(Pollution Control Facilities)

 

307.405     Pollution control facilities; qualifications; expiration; revocation; limitations

 

307.420     Filing claim and environmental certificate for exemption; annual statements of ownership

 

307.430     Correction of assessment and tax rolls; termination of exemption

 

(Temporary provisions relating to property tax incentive benefit programs for brownfields and property on brownfields are compiled as notes following ORS 307.430)

 

(Beach Lands)

 

307.450     Certain beach lands

 

(Food Processing Equipment)

 

307.453     Findings

 

307.455     Definitions; application for exemption; exemption; limitations

 

307.457     Certification of eligibility of machinery and equipment; fees

 

307.459     Rules

 

(Student Housing)

 

307.471     Student housing exempt from school district taxes; application procedure; disqualification

 

(Hardship Situations)

 

307.475     Hardship relief for failure to file for exemption, cancellation of assessment or redetermination of value

 

(Agricultural Workforce Housing; Child Care Facilities; Farm Labor Camps)

 

307.480     Definitions for ORS 307.480 to 307.510

 

307.485     Exemption

 

307.490     Payments in lieu of taxes; disposition of moneys received

 

307.495     Claiming exemption; verification of compliance with regulatory laws

 

307.500     Review of claim by Department of Revenue

 

307.505     Inspection of farm labor camps; failure to comply with health code

 

307.510     Appeal to tax court by taxpayer

 

(Filing Deadline for Certain Programs)

 

307.512     Filing deadline for certain housing-related exemption and special assessment programs

 

(Land Held by Nonprofit Corporation for Building Residences for Low Income Individuals)

 

307.513     Eligibility for exemption; duration and extensions; disqualification; additional taxes

 

(Low Income Rental Housing)

 

307.515     Definitions for ORS 307.515 to 307.523

 

307.517     Criteria for exemption

 

307.518     Alternative criteria for exemption

 

307.519     Exemption limited to tax levy of governing body that adopts ORS 307.515 to 307.523; exception; additional provisions

 

307.521     Application for exemption; policies for considering applications

 

307.523     Time for filing application; certification of exemption

 

307.525     Action against landlord for failure to reduce rent

 

307.527     Ordinance or resolution approving or disapproving application; application fee

 

307.529     Notice of proposed termination of exemption; grounds; terminating exemption

 

307.530     Termination if property held for future development or other purpose; additional taxes

 

307.531     Termination of exemption without notice; grounds; additional taxes

 

307.533     Review; correction of tax rolls; payment of tax after exemption terminates

 

307.535     Extension of deadline for completion; exception to imposition of additional taxes

 

(Nonprofit Corporation Low Income Housing)

 

307.540     Definitions for ORS 307.540 to 307.548

 

307.541     Nonprofit corporation low income housing; criteria for exemption

 

307.543     Exemption limited to levy of governing body adopting ORS 307.540 to 307.548; exception; additional provisions

 

307.545     Application for exemption

 

307.547     Determination of eligibility; notice to county assessor

 

307.548     Termination of exemption; additional taxes

 

(Property of Industry Apprenticeship or Training Trust)

 

307.580     Property of industry apprenticeship or training trust

 

(Multiple-Unit Housing)

 

307.600     Legislative findings

 

307.603     Definitions for ORS 307.600 to 307.637

 

307.606     Exemption limited to tax levy of city or county that adopts ORS 307.600 to 307.637; designated areas; public hearings; standards and guidelines for considering applications

 

307.609     Applicability of ORS 307.600 to 307.637 in cities and certain counties

 

307.612     Duration of exemption; exclusions

 

307.615     City or county to provide application forms; contents of application form; filing deadline; revision of application

 

307.618     City or county findings required for approval

 

307.621     Approval or denial of applications; city or county to state in writing reasons for denial of exemption; application fees

 

307.624     Termination of exemption for failure to complete construction or noncompliance; notice

 

307.627     Termination of exemption; additional taxes

 

307.631     Review of denial of application or termination of exemption; correction of assessment and tax rolls; owner’s appeal of valuation; effective date of termination of exemption

 

307.634     Extension of deadline for completion of construction, addition or conversion

 

307.637     Deadlines for actions required for exemption

 

(Single-Unit Housing)

 

307.651     Definitions for ORS 307.651 to 307.687

 

307.654     Legislative findings

 

307.657     Local government action to provide exemption

 

307.661     Median sales price

 

307.664     Exemption; limitations

 

307.667     Application for exemption

 

307.671     Approval criteria

 

307.674     Application, approval and denial procedures; filing with assessor; fee

 

307.677     Extension of construction period; effect of destruction of property

 

307.681     Exemption termination for failure to meet requirements; procedures

 

307.684     Immediate termination of exemption; additional taxes

 

307.687     Review of denial of application; procedures following termination of exemption; correction of tax roll; additional taxes

 

(Rural Health Care Facilities)

 

307.804     Rural health care facilities; claim procedures; duration of exemption

 

307.806     Exemption limited to taxes of district adopting ORS 307.804; procedures

 

(Long Term Care Facilities)

 

307.808     Findings and declarations

 

307.811     Essential community provider long term care facilities

 

307.815     Exemption limited to taxes of district adopting ORS 307.811

 

(Public Beach Access Sites)

 

307.818     Beach access sites; claim procedures

 

307.821     Disqualification; additional taxes

 

(Environmentally Sensitive Logging Equipment)

 

307.824     Findings and declarations

 

307.827     Environmentally sensitive logging equipment

 

307.831     Skyline and swing yarders

 

(Cargo Containers)

 

307.835     Cargo containers

 

(Vertical Housing Development Zones)

 

307.841     Definitions for ORS 307.841 to 307.867

 

307.844     Zone designation; local taxing district election to not participate in zone; notification of local taxing districts

 

307.854     Acquisition, disposition and development of real property within zone

 

307.857     Application for exemption; review; certification; fees

 

307.858     Project certification requirements

 

307.861     Monitoring of certified projects; decertification

 

307.864     Partial property tax exemption

 

307.866     Decertification of project; disqualification from exemption; additional taxes

 

307.867     Termination of zone; effect of termination

 

(Temporary provisions relating to exemption for newly rehabilitated or constructed multiunit rental housing are compiled as notes following ORS 307.867)

 

PENALTIES

 

307.990     Penalties

 

GENERAL PROVISIONS

 

      307.010 Definition of “real property” and “land”; timber and mineral interests in real property. (1) As used in the property tax laws of this state:

      (a) “Land” means land in its natural state. For purposes of assessment of property subject to assessment at assessed value under ORS 308.146, land includes any site development made to the land. As used in this paragraph, “site development” includes fill, grading, leveling, underground utilities, underground utility connections and any other elements identified by rule of the Department of Revenue.

      (b) “Real property” includes:

      (A) The land itself, above or under water;

      (B) All buildings, structures, improvements, machinery, equipment or fixtures erected upon, above or affixed to the land;

      (C) All mines, minerals, quarries and trees in, under or upon the land;

      (D) All water rights and water powers and all other rights and privileges in any way appertaining to the land; or

      (E) Any estate, right, title or interest whatever in the land or real property, less than the fee simple.

      (2) Where the grantor of land has, in the instrument of conveyance, reserved or conveyed:

      (a) Any of the timber standing upon the land, with the right to enter upon the ground and remove the timber, the ownership of the standing timber so reserved or conveyed is an interest in real property.

      (b) The right to enter upon and use any of the surface ground necessary for the purpose of exploring, prospecting for, developing or otherwise extracting any gold, silver, iron, copper, lead, coal, petroleum, gases, oils or any other metals, minerals or mineral deposits in or upon the land, such right is an interest in real property. [Amended by 1987 c.756 §19; 1991 c.459 §37; 1997 c.541 §98; 2003 c.46 §10]

 

      307.020 Definition of “personal property”; inapplicability to certain persons. (1) As used in the property tax laws of this state, unless otherwise specifically provided:

      (a) “Intangible personal property” or “intangibles” includes but is not limited to:

      (A) Money at interest, bonds, notes, claims, demands and all other evidences of indebtedness, secured or unsecured, including notes, bonds or certificates secured by mortgages.

      (B) All shares of stock in corporations, joint stock companies or associations.

      (C) Media constituting business records, computer software, files, records of accounts, title records, surveys, designs, credit references, and data contained therein. “Media” includes, but is not limited to, paper, film, punch cards, magnetic tape and disk storage.

      (D) Goodwill.

      (E) Customer lists.

      (F) Contracts and contract rights.

      (G) Patents, trademarks and copyrights.

      (H) Assembled labor force.

      (I) Trade secrets.

      (b) “Personal property” means “tangible personal property.”

      (c) “Tangible personal property” includes but is not limited to all chattels and movables, such as boats and vessels, merchandise and stock in trade, furniture and personal effects, goods, livestock, vehicles, farming implements, movable machinery, movable tools and movable equipment.

      (2) Subsection (1) of this section does not apply to any person, company, corporation or association covered by ORS 308.505 to 308.681. [Amended by 1959 c.82 §1; 1977 c.602 §1; 1993 c.353 §1; 1997 c.154 §27; 2005 c.94 §30]

 

      307.022 Qualification for exemption of property of certain limited liability companies. For purposes of the property tax laws of this state, the property of a limited liability company qualifies for an exemption from ad valorem property taxation or special assessment:

      (1) If the limited liability company is wholly owned by one or more nonprofit corporations or entities whose property is exempt from taxation under ORS 307.090;

      (2) If the property, if held directly by each of the nonprofit corporation owners of the limited liability company, would qualify for the exemption or special assessment; and

      (3) Only to the least extent that the property would be granted exemption or special assessment in the hands of any of the nonprofit corporation owners of the limited liability company. [2005 c.688 §2; 2017 c.445 §1]

 

      307.030 Property subject to assessment generally. (1) All real property within this state and all tangible personal property situated within this state, except as otherwise provided by law, shall be subject to assessment and taxation in equal and ratable proportion.

      (2) Except as provided in ORS 308.505 to 308.681, intangible personal property is not subject to assessment and taxation. [Amended by 1993 c.353 §2; 1997 c.154 §28]

 

      307.032 Maximum assessed value and assessed value of partially exempt property and specially assessed property. (1) Unless determined under a provision of law governing the partial exemption that applies to the property, the maximum assessed value and assessed value of partially exempt property shall be determined as follows:

      (a) The maximum assessed value:

      (A) For the first tax year in which the property is partially exempt, shall equal the real market value of the property, reduced by the value of the partial exemption, multiplied by the ratio, not greater than 1.00, of the average maximum assessed value over the average real market value for the tax year of property in the same area and property class.

      (B) For each tax year after the first tax year in which the property is subject to the same partial exemption, shall equal 103 percent of the property’s assessed value for the prior year or 100 percent of the property’s maximum assessed value under this paragraph from the prior year, whichever is greater.

      (b) The assessed value of the property shall equal the lesser of:

      (A) The real market value of the property reduced by the partial exemption; or

      (B) The maximum assessed value of the property under paragraph (a) of this subsection.

      (2) Unless determined under a provision of law governing the special assessment, the maximum assessed value subject to special assessment and the assessed value of property subject to special assessment shall be determined as follows:

      (a) The maximum assessed value:

      (A) For the first tax year in which the property is specially assessed, shall equal the specially assessed value of the property multiplied by the ratio, not greater than 1.00, of the average maximum assessed value over the average real market value for the tax year of property in the same area and property class.

      (B) For each tax year after the first tax year in which property is subject to the same special assessment, shall equal 103 percent of the property’s assessed value for the prior year or 100 percent of the property’s maximum assessed value subject to special assessment from the prior year, whichever is greater.

      (b) The assessed value of the property shall equal the lesser of:

      (A) The specially assessed value of the property as determined under the law establishing the special assessment; or

      (B) The property’s maximum assessed value subject to special assessment as determined under paragraph (a) of this subsection.

      (3) As used in this section, “area” and “property class” have the meanings given those terms in ORS 308.149. [2003 c.169 §6]

 

      307.035 Publishing summary of certain exempt real property. The assessor shall list and evaluate all real properties exempt from taxation under ORS 307.090, 307.120, 307.130, 307.140, 307.147, 307.150 and 307.160 and summarize the valuations of such properties in connection with the published summary of each year of assessed valuations of taxable properties of the county. [Formerly 307.310; 1993 c.777 §3; 1995 c.748 §8]

 

EXEMPTIONS

 

(Public Properties)

 

      307.040 Property of the United States; certain electricity transmission system property leased to United States. (1) As used in this section, “United States” means the federal government or an agency or instrumentality of the federal government.

      (2) Except as provided in ORS 307.050, 307.060, 307.070 and 307.080, all property of the United States, its agencies or instrumentalities, is exempt from taxation to the extent that taxation of the property is forbidden by law.

      (3) Notwithstanding ORS 308.505 to 308.681, for purposes of this section, property the title to which is held by a person other than the United States and that is leased to the United States under a lease or lease-purchase agreement is property of the United States if:

      (a) The property is operated or used in furtherance of a statutory responsibility of the United States with respect to a high-voltage electricity transmission system that the United States owns and operates within the Pacific Northwest;

      (b) The property is constructed on or affixed to real property interests of the United States; and

      (c) Upon expiration of the lease or lease-purchase agreement, the United States has an option to purchase the property for a nominal price, if the debt incurred by the person to acquire the property has been paid. [Amended by 1953 c.698 §7; 2013 c.336 §1]

 

      307.050 Property of the United States held under contract of sale. Whenever real and personal property of the United States or any department or agency of the United States is the subject of a contract of sale or other agreement whereby on certain payments being made the legal title is or may be acquired by any person and that person uses and possesses the property or has the right of present use and possession, then a real market value for the property shall be determined, as required under ORS 308.232, without deduction on account of any part of the purchase price or other sum due on such property remaining unpaid. The property shall have an assessed value determined under ORS 308.146 and shall be subject to tax on the assessed value so determined. The lien for the tax shall neither attach to, impair, nor be enforced against any interest of the United States in the real or personal property. This section does not apply to real or personal property held and in immediate use and occupation by this state or any county, municipal corporation or political subdivision of this state, or to standing timber, prior to severance, of the United States or any department or agency of the United States that is the subject of a contract of sale or other agreement. [Amended by 1953 c.698 §7; 1965 c.159 §1; 2001 c.509 §6]

 

      307.060 Property of the United States held under lease or other interest less than fee; deduction for restricted use. Real and personal property of the United States or any department or agency of the United States held by any person under a lease or other interest or estate less than a fee simple, other than under a contract of sale, shall have a real market value determined under ORS 308.232, subject only to deduction for restricted use. The property shall have an assessed value determined under ORS 308.146 and shall be subject to tax on the assessed value so determined. The lien for the tax shall attach to and be enforced against only the leasehold, interest or estate in the real or personal property. This section does not apply to real property held or occupied primarily for agricultural purposes under the authority of a federal wildlife conservation agency or held or occupied primarily for purposes of grazing livestock. This section does not apply to real or personal property held by this state or any county, municipal corporation or political subdivision of this state that is:

      (1) In immediate use and occupation by the political body; or

      (2) Required, by the terms of the lease or agreement, to be maintained and made available to the federal government as a military installation and facility. [Amended by 1953 c.698 §7; 1959 c.298 §1; 1961 c.433 §1; 1969 c.241 §1; 1975 c.656 §1; 1981 c.405 §2; 1991 c.459 §38; 1997 c.541 §99; 2001 c.509 §7]

 

      307.065 [1965 c.298 §2; repealed by 2013 c.193 §1]

 

      307.070 Settled or claimed government land; improvements. The assessor must assess all improvements on lands, the fee of which is still vested in the United States, as personal property until the settler thereon or claimant thereof has made final proof. After final proof has been made, and a certificate issued therefor, the land itself must be assessed, notwithstanding the patent has not been issued.

 

      307.080 Mining claims. Except for the improvements, machinery and buildings thereon, mining claims are exempt from taxation prior to obtaining a patent therefor from the United States.

 

      307.090 Property of the state, counties and other municipal corporations; payments in lieu of taxes on city-owned electric utility property. (1) Except as provided by law, all property of the state and all public or corporate property used or intended for corporate purposes of the several counties, cities, towns, school districts, irrigation districts, drainage districts, ports, water districts, housing authorities, public universities listed in ORS 352.002 and all other public or municipal corporations in this state, is exempt from taxation.

      (2) Any city may agree with any school district to make payments in lieu of taxes on all property of the city located in any such school district, and which is exempt from taxation under subsection (1) of this section when such property is outside the boundaries of the city and owned, used or operated for the production, transmission, distribution or furnishing of electric power or energy or electric service for or to the public. [Amended by 1953 c.698 §7; 1957 c.649 §1; 1975 c.568 §1; 1977 c.673 §1; 1991 c.851 §2; 2005 c.832 §1; 2009 c.804 §1; 2013 c.768 §125]

 

      307.092 Property of housing authority; exception. (1) As used in this section, “property of a housing authority” includes, but is not limited to:

      (a) Property that is held under lease or lease purchase agreement by the housing authority; and

      (b) Property of a partnership, nonprofit corporation or limited liability company for which the housing authority is a general partner, limited partner, director, member, manager or general manager, if the property is leased or rented to persons of lower income for housing purposes.

      (2)(a) The property of a housing authority is declared to be public property used for essential public and governmental purposes and, upon compliance with ORS 307.162, the property and the housing authority are exempt from all taxes and special assessments of the city, the county, the state or any political subdivision of the city, county or state.

      (b) In lieu of taxes or special assessments, the authority may agree to make payments to the city, county or political subdivision for improvements, services and facilities furnished by the city, county or political subdivision for the benefit of a housing project, but in no event may the payments exceed the estimated cost to the city, county or political subdivision of the improvements, services or facilities furnished.

      (3) Notwithstanding subsection (2) of this section, property of a housing authority that is commercial property leased to a taxable entity is not exempt from taxation and special assessments under this section. [Formerly 456.225; 2007 c.606 §4; 2013 c.193 §25]

 

      307.095 State property rented for parking subject to ad valorem taxation; computation. (1) Any portion of state property that is used during the tax year for parking on a rental or fee basis to private individuals is subject to ad valorem taxation.

      (2) The real market value of such portion shall be computed by determining that percentage which the total of receipts from private use bears to the total of receipts from all use of the property. The assessed value of such portion shall be computed as provided in ORS 308.146. However, receipts from any use by a state officer or employee in the performance of the official duties of the state officer or employee shall not be considered as receipts from private use in computing the portion subject to ad valorem taxation.

      (3) This section and ORS 276.592 do not apply to state property that is used by a public university listed in ORS 352.002 or the Oregon Health and Science University solely to provide parking for employees, students or visitors. [1969 c.706 §60; 1989 c.659 §1; 1991 c.459 §39; 1993 c.655 §1; 1995 c.162 §67a; 1995 c.748 §1; 1997 c.541 §100; 2001 c.67 §1; 2013 c.768 §132]

 

      307.100 Public property held by taxable owner under contract of purchase. Whenever real and personal property of the state or any institution or department thereof, or any county, municipal corporation or political subdivision of the state is the subject of a contract of sale or other agreement whereby on certain payments being made the legal title is or may be acquired by any person and such person uses and possesses such property or has the right of present use and possession, then such property shall be considered, for all purposes of taxation, as the property of such person. No deed or bill of sale to such property shall be executed until all taxes and municipal charges are fully paid thereon. This section shall not apply to standing timber, prior to severance thereof, of the state or any political entity referred to above which is the subject of a contract of sale or other agreement. [Amended by 1965 c.159 §2]

 

      307.107 Property used for natural gas pipeline extension project. (1) Property used for a natural gas pipeline extension project is exempt from ad valorem property taxation if:

      (a) The project receives or has received moneys from the Oregon Unified International Trade Fund to pay any portion of the project;

      (b) The length of the pipeline, including additions or improvements, does not exceed 115 miles; and

      (c) The owner of the property is a local government, as defined in ORS 174.116.

      (2) The exemption under this section applies to all property used for the project, real and personal, tangible and intangible.

      (3) Notwithstanding ORS 307.110 or 308.505 to 308.681 or any other provision of state law, property that is exempt under this section is not disqualified from exemption if a person other than the owner:

      (a) Holds a lease, sublease or other interest in the exempt property; or

      (b) Holds, manages or uses any portion of the project. [2007 c.678 §1]

 

      Note: 307.107 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 307 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      307.110 Public property leased or rented by taxable owner; exceptions. (1) Except as provided in ORS 307.120, all real and personal property of this state or any institution or department thereof or of any county or city, town or other municipal corporation or political subdivision of this state, held under a lease or other interest or estate less than a fee simple, by any person whose real property, if any, is taxable, except employees of the state, municipality or political subdivision as an incident to such employment, shall be subject to assessment and taxation for the assessed or specially assessed value thereof uniformly with real property of nonexempt ownerships.

      (2) Each leased or rented premises not exempt under ORS 307.120 and subject to assessment and taxation under this section which is located on property used as an airport and owned by and serving a municipality or port shall be separately assessed and taxed.

      (3) Nothing contained in this section shall be construed as subjecting to assessment and taxation any publicly owned property described in subsection (1) of this section that is:

      (a) Leased for student housing by a school or college to students attending such a school or college.

      (b) Leased to or rented by persons, other than sublessees or subrenters, for agricultural or grazing purposes and for other than a cash rental or a percentage of the crop.

      (c) Utilized by persons under a land use permit issued by the Department of Transportation for which the department’s use restrictions are such that only an administrative processing fee is able to be charged.

      (d) County fairgrounds and the buildings thereon, in a county holding annual county fairs, managed by the county fair board under ORS 565.230, if utilized, in addition to county fair use, for any of the purposes described in ORS 565.230 (2), or for horse stalls or storage for recreational vehicles or farm machinery or equipment.

      (e) The properties and grounds managed and operated by the State Fair Council under ORS chapter 565, if utilized, in addition to the purpose of holding the Oregon State Fair, for horse stalls or for storage for recreational vehicles or farm machinery or equipment.

      (f) State property that is used by a public university listed in ORS 352.002 or the Oregon Health and Science University to provide parking for employees, students or visitors.

      (g) Property of a housing authority created under ORS chapter 456 which is leased or rented to persons of lower income for housing pursuant to the public and governmental purposes of the housing authority. For purposes of this paragraph, “persons of lower income” has the meaning given that term in ORS 456.055.

      (h) Property of any county or city, town or other municipal corporation or political subdivision of this state that is used for affordable housing or is leased or rented to persons of lower income for housing pursuant to the public and governmental purposes of the county or city, town or other municipal corporation or political subdivision of this state. For purposes of this paragraph, “affordable housing” and “persons of lower income” have the meanings given those terms in ORS 456.055. The exemption under this paragraph shall be granted upon compliance with ORS 307.162.

      (i) Property of a health district if:

      (A) The property is leased or rented for the purpose of providing facilities for health care practitioners practicing within the county; and

      (B) The county is a frontier rural practice county under rules adopted by the Office of Rural Health.

      (j) Property of a port if:

      (A) The port:

      (i) Is organized under ORS chapter 777; and

      (ii) Has a board of commissioners appointed by the Governor; and

      (B) The property is:

      (i) Located in a county with a population of less than 450,000; and

      (ii) Used or held for future use by a person other than the port pursuant to an agreement that obligates the person to provide common carrier rail freight service to shippers.

      (4) Property determined to be an eligible project for tax exemption under ORS 285C.600 to 285C.635 and 307.123 that was acquired with revenue bonds issued under ORS 285B.320 to 285B.371 and that is leased by this state, any institution or department thereof or any county, city, town or other municipal corporation or political subdivision of this state to an eligible applicant shall be assessed and taxed in accordance with ORS 307.123. The property’s continued eligibility for taxation and assessment under ORS 307.123 is not affected:

      (a) If the eligible applicant retires the bonds prior to the original dates of maturity; or

      (b) If any applicable lease or financial agreement is terminated prior to the original date of expiration.

      (5) The provisions of law for liens and the payment and collection of taxes levied against real property of nonexempt ownerships shall apply to all real property subject to the provisions of this section. Taxes remaining unpaid upon the termination of a lease or other interest or estate less than a fee simple, shall remain a lien against the real or personal property.

      (6) If the state enters into a lease of property with, or grants an interest or other estate less than a fee simple in property to, a person whose real property, if any, is taxable, then within 30 days after the date of the lease, or within 30 days after the date the interest or estate less than a fee simple is created, the state shall file a copy of the lease or other instrument creating or evidencing the interest or estate with the county assessor. This section applies notwithstanding that the property may otherwise be entitled to an exemption under this section, ORS 307.120 or as otherwise provided by law. [Amended by 1953 c.698 §7; 1961 c.449 §1; 1969 c.675 §18; 1971 c.352 §1; 1971 c.431 §1; 1979 c.689 §4; 1981 c.381 §1; 1987 c.487 §1; 1989 c.659 §2; 1991 c.459 §40; 1991 c.851 §3; 1993 c.655 §2; 1993 c.737 §7; 1995 c.337 §1; 1995 c.376 §3; 1995 c.698 §9; 1995 c.748 §2; 1997 c.541 §101; 1997 c.819 §12; 1999 c.760 §1; 2001 c.67 §2; 2001 c.114 §8; 2003 c.662 §11a; 2005 c.777 §17; 2013 c.287 §1; 2013 c.386 §1; 2013 c.492 §31; 2013 c.768 §133]

 

      Note: The amendments to 307.110 by section 4, chapter 287, Oregon Laws 2013, apply to property tax years beginning on or after July 1, 2023. See section 5, chapter 287, Oregon Laws 2013. The text that applies to property tax years beginning on or after July 1, 2023, is set forth for the user’s convenience.

      307.110. (1) Except as provided in ORS 307.120, all real and personal property of this state or any institution or department thereof or of any county or city, town or other municipal corporation or political subdivision of this state, held under a lease or other interest or estate less than a fee simple, by any person whose real property, if any, is taxable, except employees of the state, municipality or political subdivision as an incident to such employment, shall be subject to assessment and taxation for the assessed or specially assessed value thereof uniformly with real property of nonexempt ownerships.

      (2) Each leased or rented premises not exempt under ORS 307.120 and subject to assessment and taxation under this section which is located on property used as an airport and owned by and serving a municipality or port shall be separately assessed and taxed.

      (3) Nothing contained in this section shall be construed as subjecting to assessment and taxation any publicly owned property described in subsection (1) of this section that is:

      (a) Leased for student housing by a school or college to students attending such a school or college.

      (b) Leased to or rented by persons, other than sublessees or subrenters, for agricultural or grazing purposes and for other than a cash rental or a percentage of the crop.

      (c) Utilized by persons under a land use permit issued by the Department of Transportation for which the department’s use restrictions are such that only an administrative processing fee is able to be charged.

      (d) County fairgrounds and the buildings thereon, in a county holding annual county fairs, managed by the county fair board under ORS 565.230, if utilized, in addition to county fair use, for any of the purposes described in ORS 565.230 (2), or for horse stalls or storage for recreational vehicles or farm machinery or equipment.

      (e) The properties and grounds managed and operated by the State Fair Council under ORS chapter 565, if utilized, in addition to the purpose of holding the Oregon State Fair, for horse stalls or for storage for recreational vehicles or farm machinery or equipment.

      (f) State property that is used by a public university listed in ORS 352.002 or the Oregon Health and Science University to provide parking for employees, students or visitors.

      (g) Property of a housing authority created under ORS chapter 456 which is leased or rented to persons of lower income for housing pursuant to the public and governmental purposes of the housing authority. For purposes of this paragraph, “persons of lower income” has the meaning given that term in ORS 456.055.

      (h) Property of any county or city, town or other municipal corporation or political subdivision of this state that is used for affordable housing or is leased or rented to persons of lower income for housing pursuant to the public and governmental purposes of the county or city, town or other municipal corporation or political subdivision of this state. For purposes of this paragraph, “affordable housing” and “persons of lower income” have the meanings given those terms in ORS 456.055. The exemption under this paragraph shall be granted upon compliance with ORS 307.162.

      (i) Property of a health district if:

      (A) The property is leased or rented for the purpose of providing facilities for health care practitioners practicing within the county; and

      (B) The county is a frontier rural practice county under rules adopted by the Office of Rural Health.

      (4) Property determined to be an eligible project for tax exemption under ORS 285C.600 to 285C.635 and 307.123 that was acquired with revenue bonds issued under ORS 285B.320 to 285B.371 and that is leased by this state, any institution or department thereof or any county, city, town or other municipal corporation or political subdivision of this state to an eligible applicant shall be assessed and taxed in accordance with ORS 307.123. The property’s continued eligibility for taxation and assessment under ORS 307.123 is not affected:

      (a) If the eligible applicant retires the bonds prior to the original dates of maturity; or

      (b) If any applicable lease or financial agreement is terminated prior to the original date of expiration.

      (5) The provisions of law for liens and the payment and collection of taxes levied against real property of nonexempt ownerships shall apply to all real property subject to the provisions of this section. Taxes remaining unpaid upon the termination of a lease or other interest or estate less than a fee simple, shall remain a lien against the real or personal property.

      (6) If the state enters into a lease of property with, or grants an interest or other estate less than a fee simple in property to, a person whose real property, if any, is taxable, then within 30 days after the date of the lease, or within 30 days after the date the interest or estate less than a fee simple is created, the state shall file a copy of the lease or other instrument creating or evidencing the interest or estate with the county assessor. This section applies notwithstanding that the property may otherwise be entitled to an exemption under this section, ORS 307.120 or as otherwise provided by law.

 

      307.111 [2001 c.114 §10; repealed by 2017 c.315 §6]

 

      307.112 Property held under lease, sublease or lease-purchase by institution, organization or public body other than state. (1) Real or personal property of a taxable owner held under lease, sublease or lease-purchase agreement by an institution, organization or public body, other than the State of Oregon, or a public university listed in ORS 352.002, granted exemption or the right to claim exemption for any of its property under ORS 307.090, 307.130, 307.136, 307.140, 307.145, 307.147 or 307.181 (3), is exempt from taxation if:

      (a) The property is used by the lessee or, if the lessee is not in possession of the property, by the entity in possession of the property, in the manner, if any, required by law for the exemption of property owned, leased, subleased or being purchased by it; and

      (b) It is expressly agreed under the terms of the lease, sublease or lease-purchase agreement that any tax savings resulting from the exemption granted under this section shall inure solely to the benefit of the institution, organization or public body.

      (2) To obtain the exemption under this section, the lessee or, if the lessee is not in possession of the property, the entity in possession of the property, must file a claim for exemption with the county assessor, verified by the oath or affirmation of the president or other proper officer of the institution or organization, or head official of the public body or legally authorized delegate, showing:

      (a) A complete description of the property for which exemption is claimed.

      (b) If applicable, all facts relating to the use of the property by the lessee or, if the lessee is not in possession of the property, by the entity in possession of the property.

      (c) A true copy of the lease, sublease or lease-purchase agreement covering the property for which exemption is claimed.

      (d) Any other information required by the claim form.

      (3) If the assessor is not satisfied that the tax savings resulting from the exemption granted under this section will inure solely to the benefit of the institution, organization or public body, before the exemption may be granted the lessor must provide documentary proof, as specified by rule of the Department of Revenue, that the tax savings resulting from the exemption will inure solely to the benefit of the institution, organization or public body.

      (4)(a) The claim must be filed on or before April 1 preceding the tax year for which the exemption is claimed, except:

      (A) If the lease, sublease or lease-purchase agreement is entered into after March 1 but not later than June 30, the claim must be filed within 30 days after the date the lease, sublease or lease-purchase agreement is entered into if exemption is claimed for that year; or

      (B) If a late filing fee is paid in the manner provided in ORS 307.162 (2), the claim may be filed within the time specified in ORS 307.162 (2).

      (b) The exemption first applies for the tax year beginning July 1 of the year for which the claim is filed.

      (5)(a) An exemption granted under this section continues as long as the use of the property remains unchanged and during the period of the lease, sublease or lease-purchase agreement.

      (b) If the use changes, a new claim must be filed as provided in this section.

      (c) If the use changes due to sublease of the property or any portion of the property from the tax exempt entity described in subsection (1) of this section to another tax exempt entity, the entity in possession of the property must file a new claim for exemption as provided in this section.

      (d) If the lease, sublease or lease-purchase agreement expires before July 1 of any year, the exemption terminates as of January 1 of the same calendar year. [1977 c.673 §2; 1987 c.756 §20; 1991 c.459 §41; 1991 c.851 §4; 1993 c.19 §3; 1993 c.777 §4; 1995 c.513 §1; 1997 c.434 §1; 1997 c.541 §102; 1999 c.579 §18; 2003 c.117 §1; 2007 c.817 §1; 2009 c.626 §1; 2011 c.655 §1; 2012 c.42 §2; 2013 c.768 §126; 2017 c.554 §1]

 

      307.115 Property of nonprofit corporations held for public parks or recreation purposes. (1) Subject to approval by the appropriate granting authority under subsection (4) of this section, the following real or personal property owned or being purchased under contract by any nonprofit corporation meeting the requirements of subsection (2) of this section shall be exempt from taxation:

      (a) The real or personal property, or proportion thereof, as is actually and exclusively occupied or used for public park or public recreation purposes.

      (b) The real or personal property, or proportion thereof, as is held for public parks or public recreation purposes if the property is not used for the production of income, for investment, or for any trade or business or commercial purpose, or for the benefit or enjoyment of any private stockholder or individual, but only if the articles of incorporation of the nonprofit corporation prohibit use of property owned or otherwise held by the corporation, or of proceeds derived from the sale of that property, except for public park or public recreation purposes.

      (2) Any nonprofit corporation shall meet the following requirements:

      (a) The corporation shall be organized for the principal purpose of maintaining and operating a public park and public recreation facility or acquiring interest in land for development for public parks or public recreation purposes;

      (b) No part of the net earnings of the corporation shall inure to the benefit of any private stockholder or individual; and

      (c) Upon liquidation, the assets of the corporation shall be applied first in payment of all outstanding obligations, and the balance remaining, if any, in cash and in kind, shall be distributed to the State of Oregon or to one or more of its political subdivisions for public parks or public recreation purposes.

      (3) If any property which is exempt under this section subsequently becomes disqualified for such exemption or the exemption is not renewed as provided in subsection (4) of this section, it shall be added to the next general property tax roll for assessment and taxation in the manner provided by law.

      (4)(a) Real or personal property shall not be exempt under this section except upon approval of the appropriate granting authority obtained in the manner provided under this subsection.

      (b) Before any property shall be exempt under this section, on or before April 1 of any year the corporation owning or purchasing such property shall file an application for exemption with the county assessor. The provisions of ORS 307.162 shall apply as to the form, time and manner of application. Within 10 days of filing in the office of the assessor, the assessor shall refer each application for classification to the granting authority, which shall be the governing body of a county for property located outside the boundaries of a city and the governing body of the city for property located within the boundaries of the city. Within 60 days thereafter, the application shall be granted or denied and written notice given to the applicant and to the county assessor. In determining whether an application made for exemption under this section should be approved or disapproved, the granting authority shall weigh the benefits to the general welfare of granting the proposed exemption to the property which is the subject of the application against the potential loss in revenue which may result from granting the application.

      (c) The granting authority shall not deny the application solely because of the potential loss in revenue if the granting authority determines that granting the exemption to the property will:

      (A) Conserve or enhance natural or scenic resources;

      (B) Protect air or streams or water supplies;

      (C) Promote conservation of soils, wetlands, beaches or tidal marshes;

      (D) Conserve landscaped areas which enhance the value of abutting or neighboring property;

      (E) Enhance the value to the public of abutting or neighboring parks, forests, wildlife preserves, natural reservations, sanctuaries or other open spaces;

      (F) Enhance recreation opportunities;

      (G) Preserve historic sites;

      (H) Promote orderly urban or suburban development;

      (I) Promote the reservation of land for public parks, recreation or wildlife refuge purposes; or

      (J) Affect any other factors relevant to the general welfare of preserving the current use of the property.

      (d) The granting authority may approve the application for exemption with respect to only part of the property which is the subject of the application. However, if any part of the application is denied, the applicant may withdraw the entire application.

      (e) The exemption shall be granted for a 10-year period and may be renewed by the granting authority for additional periods of 10 years each at the expiration of the preceding period, upon the filing of a new application by the corporation with the county assessor on or before April 1 of the year following the 10th year of exemption. The assessor shall refer the application to the governing body as provided in paragraph (b) of this subsection, and within 30 days thereafter, the governing body shall determine if renewing the exemption will continue to serve one of the purposes of paragraph (c) of this subsection. Within 30 days after referral, written notice shall be given to the applicant and to the county assessor of the determination made by the governing body.

      (5) Any nonprofit corporation aggrieved by the refusal of the granting authority to grant or renew an exemption under subsection (4) of this section may, within 60 days after written notice has been sent to the corporation, appeal from the determination of the granting authority to the Oregon Tax Court. The appeal should be perfected in the manner provided in ORS 305.560. The provisions of ORS 305.405 to 305.494 shall apply to the appeals. [1971 c.584 §1; 1973 c.214 §1; 1979 c.689 §5; 1987 c.416 §1; 1995 c.79 §118; 1997 c.325 §18]

 

      307.118 Wastewater and sewage treatment facilities. Upon compliance with ORS 307.162, the wastewater treatment facilities, sewage treatment facilities and all other property used for the purpose of wastewater treatment or sewage treatment, including the land underneath the facilities, shall be exempt from taxation if:

      (1) Owned by a nonprofit corporation that was in existence as of January 1, 1997; and

      (2) The nonprofit corporation’s only activities consist of operating wastewater treatment and sewage treatment facilities that were constructed and in operation as of January 1, 1997. [1997 c.485 §2]

 

      Note: Sections 1 and 2, chapter 256, Oregon Laws 2001, provide:

      Sec. 1. (1) Upon compliance with section 3, chapter 256, Oregon Laws 2001, land that is used both as a golf course and for the discharge of wastewater or sewage effluent is exempt from the ad valorem property taxes of taxing districts authorizing the exemption under section 4, chapter 256, Oregon Laws 2001, if:

      (a) The land is owned by a municipality and leased by a nonprofit corporation that was in existence as of January 1, 1997; and

      (b) The nonprofit corporation operates the golf course.

      (2) Buildings or other improvements that are located on land that is exempt from ad valorem property taxes under subsection (1) of this section and that are used in the operation of the golf course or the discharge of wastewater or sewage effluent are exempt from ad valorem property taxes of the taxing districts that authorized the exemption under section 4, chapter 256, Oregon Laws 2001. [2001 c.256 §1; 2003 c.771 §1]

      Sec. 2. (1) Section 1 (1), chapter 256, Oregon Laws 2001, applies to tax years beginning on or after July 1, 1998, and before July 1, 2021.

      (2) Section 1 (2), chapter 256, Oregon Laws 2001, applies to tax years beginning on or after July 1, 1999, and before July 1, 2021. [2001 c.256 §2; 2003 c.771 §2]

 

      307.120 Property owned or leased by municipalities, dock commissions, airport districts or ports; exception; payments in lieu of taxes to school districts. (1) Real property owned or leased by any municipality and real and personal property owned or leased by any dock commission of any city or by any airport district or port organized under the laws of this state is exempt from taxation to the extent to which such property is:

      (a) Leased, subleased, rented or preferentially assigned for the purpose of the berthing of ships, barges or other watercraft (exclusive of property leased, subleased, rented or preferentially assigned primarily for the purpose of the berthing of floating homes, as defined in ORS 830.700), the discharging, loading or handling of cargo therefrom or for storage of such cargo directly incidental to transshipment, or the cleaning or decontaminating of agricultural commodity cargo, to the extent the property does not further alter or process an agricultural commodity;

      (b) Held under lease or rental agreement executed for any purpose prior to July 5, 1947, except that this exemption shall continue only during the term of the lease or rental agreement in effect on that date; or

      (c) Used as an airport owned by and serving a municipality or port of less than 300,000 inhabitants as determined by the latest decennial census. Property owned or leased by the municipality, airport district or port that is located within or contiguous to the airport is exempt from taxation under this subsection if the proceeds of the lease, sublease or rental are used by the municipality, airport district or port exclusively for purposes of the maintenance and operation of the airport.

      (2) Those persons having on January 1 of any year a lease, sublease, rent or preferential assignment or other possessory interest in property exempt from taxation under subsection (1)(a) of this section, except dock area property, shall make payments in lieu of taxes to any school district in which the exempt property is located as provided in subsection (3) of this section. The annual payment in lieu of taxes shall be one quarter of one percent (0.0025) of the real market value of the exempt property and the payment shall be made to the county treasurer on or before May 1 of each year.

      (3)(a) On or before December 31 preceding any year for which a lease, sublease, rental or preferential assignment or other possessory interest in property is to be held, or within 30 days after acquisition of such an interest, whichever is later, any person described in subsection (2) of this section shall file with the county assessor a request for computation of the payment in lieu of tax for the exempt property in which the person has a possessory interest. The person shall also provide any information necessary to complete the computation that may be requested by the assessor. The request shall be made on a form prescribed by the Department of Revenue.

      (b) On or before April 1 of each assessment year the county assessor shall compute the in lieu tax for the property subject to subsection (2) of this section for which a request for computation has been filed under paragraph (a) of this subsection and shall notify each person who has filed such a request:

      (A) That the person is required to pay the amount in lieu of taxes to the county treasurer on behalf of the school district;

      (B) Of the real market value of the property subject to the payment in lieu of taxes; and

      (C) Of the amount due, the due date of the payment in lieu of taxes and of the consequences of late payment or nonpayment.

      (c) On or before July 15 of each tax year the county treasurer shall distribute to the school districts the amounts received for the respective districts under subsection (2) of this section. If the exempt property is located in more than one school district, the amount received shall be apportioned to the school districts on the basis of the ratio that each school district’s permanent limit on the rate of ad valorem property taxes bears to the total permanent limit on the rate of ad valorem property taxes applicable to all of the school districts in which the property is located.

      (4) If a person described in subsection (2) of this section fails to request a computation or make a payment in lieu of taxes as provided in this section, the property shall not be exempt for the tax year but shall be assessed and taxed as other property similarly situated is assessed and taxed.

      (5) Upon granting of a lease, sublease, rental, preferential assignment or other possessory interest in property described in subsection (1)(a) of this section, except dock area property, the municipality, dock commission, airport district or port shall provide the county assessor with the name and address of the lessee, sublessee, renter, preferential assignee or person granted the possessory interest.

      (6)(a) Not later than 15 days prior to the date that a request is required to be made under subsection (3)(a) of this section, the municipality, dock commission, airport district or port granting a lease, sublease, rental, preferential assignment or other possessory interest in its exempt property for which in lieu tax payments are imposed under subsection (2) of this section, shall notify the person granted the interest:

      (A) Of the obligation to file with the county assessor a request for appraisal and computation of in lieu tax no later than December 31 or within 30 days after the interest is granted, whichever is later.

      (B) Of the obligation to pay the in lieu tax, in the amount of one-quarter of one percent (0.0025) of the real market value of the exempt property held, to the county treasurer before May 1 following the date of the request.

      (C) That, if the request is not made within the time prescribed, or if the in lieu tax is not paid, or both, that the property shall not be exempt from taxation but shall be assessed and taxed in the same manner as other property similarly situated is assessed and taxed.

      (b) Failure of a municipality, dock commission, airport district or port to give the notice as prescribed under this subsection does not relieve any person from the requirements of this section.

      (7) As used in this section:

      (a) “Dock” means a structure extended from the shore or area adjacent to deep water for the purpose of permitting the mooring of ships, barges or other watercraft.

      (b) “Dock area” means that part of the dock situated immediately adjacent to the mooring berth of ships, barges or other watercraft which is used primarily for the loading and unloading of waterborne cargo, but which shall not encompass any area other than that area from which cargo is hoisted or moved aboard a vessel, or to which cargo is set down when unloaded from a vessel when utilizing shipboard or dockside machinery.

      (c) “Dock area property” means all real property situated in the dock area, and includes all structures, machinery or equipment affixed to that property.

      (d) “School district” means a common or union high school district, but does not include a county education bond district, an education service district, a community college service district or a community college district. [Amended by 1955 c.267 §1; 1973 c.234 §1; 1977 c.615 §1; 1979 c.705 §1; 1981 c.160 §1; 1983 c.740 §86; 1987 c.583 §5; 1987 c.756 §10; 1991 c.459 §42; 1995 c.337 §2; 1997 c.271 §4; 1997 c.541 §103; 1997 c.600 §5; 1999 c.570 §1; 2001 c.114 §9; 2003 c.119 §1; 2003 c.169 §1]

 

      307.122 [1987 c.583 §§3,7; repealed by 1991 c.459 §81]

 

      307.123 Property of strategic investment program eligible projects; rules. (1) Except as provided in subsection (4) of this section, real or personal property that the Oregon Business Development Commission, acting pursuant to ORS 285C.606, has determined is an eligible project under ORS 285C.600 to 285C.635 shall be subject to assessment and taxation as provided in this section.

      (2)(a) The following portions of the real market value of the eligible project, increased annually for growth at the rate of three percent, shall be taxable at the taxable portion’s assessed value under ORS 308.146:

      (A) The minimum cost of the project under ORS 285C.606 (1)(c)(A); or

      (B) If the project is located in a rural area as defined in ORS 285C.600:

      (i) $25 million for a project with a total cost of not more than $500 million.

      (ii) $50 million for a project with a total cost of more than $500 million and not more than $1 billion.

      (iii) $100 million for a project with a total cost of more than $1 billion.

      (b) The taxable portion of real market value, as adjusted, shall be allocated as follows until the entire amount is assigned: first to land, second to buildings, third to real property machinery and equipment and last to personal property.

      (c) The remainder of the real market value shall be exempt from taxation for a period of 15 years from the beginning of the tax year after the earliest of the following dates:

      (A) The date the property is certified for occupancy or, if no certificate of occupancy is issued, the date the property is used to produce a product for sale; or

      (B) The expiration of the exemption for commercial facilities under construction under ORS 307.330.

      (3) If the real market value of the property falls below the value determined under subsection (2)(a) of this section, the owner or lessee shall pay taxes only on the assessed value of the property.

      (4) Notwithstanding subsection (1) of this section, real or personal property that has received an exemption under ORS 285C.175 may not be assessed under this section.

      (5) The Department of Revenue may adopt rules and prescribe forms that the department determines are necessary for administration of this section.

      (6) The determination by the Oregon Business Development Commission that a project is an eligible project that may receive a tax exemption under this section shall be conclusive, so long as the property included in the eligible project is constructed and installed in accordance with the application approved by the commission.

      (7) Notwithstanding subsection (1) of this section, if the owner or lessee of property exempt under this section fails to pay the fee required under ORS 285C.609 (4)(b) by the end of the tax year in which it is due, the exemption shall be revoked and the property shall be fully taxable for the following tax year and for each subsequent tax year for which the fee remains unpaid. If an unpaid fee is paid after the exemption is revoked, the property shall again be eligible for the exemption provided under this section, beginning with the tax year after the payment is made. Reinstatement of the exemption under this subsection shall not extend the 15-year exemption period provided for in subsection (2)(c) of this section. [1993 c.737 §5; 1995 c.698 §8; 1997 c.325 §19; 1997 c.541 §412; 2003 c.662 §12; 2017 c.490 §1]

 

      Note: Section 2, chapter 490, Oregon Laws 2017, provides:

      Sec. 2. The amendments to ORS 307.123 by section 1 of this 2017 Act apply to projects first determined by the Oregon Business Development Commission to be eligible projects under ORS 285C.600 to 285C.635 on or after the effective date of this 2017 Act [October 6, 2017]. [2017 c.490 §2]

 

      307.125 Property of forest protection agencies. All the real and personal property of districts, organizations, associations and agencies organized for the purposes of forest protection and fire suppression under ORS chapter 477 is exempt from taxation if such property is used exclusively for such protection and suppression. [1957 c.189 §1; 1965 c.253 §138]

 

      307.126 [2001 c.429 §2; 2015 c.23 §4; renumbered 308.671 in 2015]

 

      307.127 [1977 c.478 §1; 1979 c.689 §6; repealed by 1995 c.79 §119]

 

(Institutional, Religious, Fraternal, Interment Properties)

 

      307.130 Property of certain museums, volunteer fire departments and literary, benevolent, charitable and scientific institutions. (1) As used in this section:

      (a) “Art museum” means a nonprofit corporation organized to display works of art to the public.

      (b) “History museum or science museum” means a nonprofit corporation organized to display historical or scientific exhibits, or both, to the public.

      (c) “Nonprofit corporation” means a corporation that:

      (A) Is organized not for profit, pursuant to ORS chapter 65 or any predecessor of ORS chapter 65; or

      (B) Is organized and operated as described under section 501(c) of the Internal Revenue Code as defined in ORS 305.842.

      (d) “Rehabilitation facility” means a facility defined in ORS 344.710 or a facility that provides individuals who have physical, mental or emotional disabilities with occupational rehabilitation activities of an educational or therapeutic nature, even if remuneration is received by the individual.

      (e) “Volunteer fire department” means a nonprofit corporation organized to provide fire protection services in a specific response area.

      (f) “Welfare program” means a program to provide food, shelter, clothing or health care, including dental service, to needy persons without charge.

      (2) Upon compliance with ORS 307.162, the following property owned or being purchased by art museums, volunteer fire departments, or incorporated literary, benevolent, charitable and scientific institutions shall be exempt from taxation:

      (a) Except as provided in ORS 748.414, only real or personal property, or a proportion of the property, that is actually and exclusively occupied or used in the literary, benevolent, charitable or scientific work carried on by such institutions.

      (b) Parking lots used for parking or any other use as long as that parking or other use is permitted without charge for no fewer than 355 days during the tax year.

      (c) All real or personal property of a rehabilitation facility or any retail outlet of the facility, including inventory.

      (d) All real and personal property of a retail store dealing exclusively in donated inventory, if the inventory is distributed without cost as part of a welfare program or where the proceeds of the sale of any inventory sold to the general public are used to support a welfare program.

      (e) All real and personal property of a retail store if:

      (A) The retail store deals on a regular basis in inventory at least one-half of which is donated and consigned;

      (B) The individuals who operate the retail store are all individuals who work as volunteers; and

      (C) The inventory is either distributed without charge as part of a welfare program, or sold to the general public and the sales proceeds used exclusively to support a welfare program.

      (f) The real and personal property of an art museum that is used in conjunction with the public display of works of art or used to educate the public about art, but not including any portion of the art museum’s real or personal property that is used to sell, or hold out for sale, works of art, reproductions of works of art or other items to be sold to the public.

      (g) All real and personal property of a volunteer fire department that is used in conjunction with services and activities for providing fire protection to all residents within a fire response area.

      (h) All real and personal property, including inventory, of a retail store owned by a nonprofit corporation if:

      (A) The retail store deals exclusively in donated inventory; and

      (B) Proceeds of the retail store sales are used to support a not-for-profit housing program whose purpose is to:

      (i) Acquire property and construct housing for resale to individuals at or below the cost of acquisition and construction; and

      (ii) Provide loans bearing no interest to individuals purchasing housing through the program.

      (i) All real and personal property, including inventory, of a retail store owned by a nonprofit corporation if:

      (A) The retail store deals exclusively in donated inventory;

      (B) The retail store operates with substantial support from volunteers; and

      (C) All net proceeds of the retail store sales are donated:

      (i) To a nonprofit corporation that provides animal rescue services;

      (ii) To a manufacturer or provider of goods or services in return for which an entity described in sub-subparagraph (i) of this subparagraph receives an equivalent value of goods or services from the manufacturer or provider;

      (iii) To an entity that provides spaying and neutering services for pets of individuals residing in households with an annual household income at or below 80 percent of the area median income; or

      (iv) For the purpose of aiding domesticated animals, regardless of whether the animals are in the custody of the county shelter, in furtherance of the purpose for which the nonprofit corporation was organized.

      (3)(a) Upon compliance with ORS 307.162, real and personal property owned or leased by a history museum or science museum shall be exempt from property taxes if the property:

      (A) Is used to fulfill the mission of the museum as provided in the articles of incorporation and bylaws of the museum; and

      (B) Is used or occupied for one or more of the following purposes:

      (i) As a food service facility or concession stand selling food and refreshments to museum visitors, volunteers or staff within the museum buildings or on museum grounds.

      (ii) As a retail store selling inventory, at least 90 percent of which is museum-related, within the museum buildings or on museum grounds.

      (iii) As a parking lot, the use of which is permitted without charge for not fewer than 355 days during the property tax year, for museum visitors, volunteers or staff employed by the museum.

      (iv) As a theater located in a museum building showing entertainment or educational features, at least 75 percent of which are museum-related.

      (v) As unimproved land that is not specially assessed and that is contiguous with the land on which the museum is situated.

      (vi) For displays, storage areas, educational classrooms or meeting areas.

      (b) The exemption granted under this subsection does not apply to property used or occupied as a hotel, water park or chapel or for any commercial enterprise.

      (4) An art museum or institution shall not be deprived of an exemption under this section solely because its primary source of funding is from one or more governmental entities.

      (5) An institution shall not be deprived of an exemption under this section because its purpose or the use of its property is not limited to relieving pain, alleviating disease or removing constraints. [Amended by 1955 c.576 §1; 1959 c.207 §1; 1969 c.342 §1; 1971 c.605 §1; 1974 c.52 §3; 1979 c.688 §1; 1987 c.391 §1; 1987 c.490 §49; 1989 c.224 §50; 1991 c.93 §4; 1993 c.655 §3; 1995 c.470 §4; 1997 c.599 §1; 1999 c.90 §31; 1999 c.773 §1; 2001 c.660 §26; 2003 c.77 §4; 2005 c.832 §16; 2007 c.70 §75; 2007 c.614 §4a; 2007 c.694 §1; 2008 c.45 §4; 2009 c.5 §14; 2009 c.909 §14; 2010 c.82 §14; 2011 c.7 §14; 2012 c.31 §14; 2013 c.377 §14; 2014 c.52 §16; 2015 c.701 §46; 2017 c.686 §1]

 

      Note: The amendments to 307.130 by section 48, chapter 701, Oregon Laws 2015, apply to property tax years beginning on or after July 1, 2019. See section 49, chapter 701, Oregon Laws 2015. The text that applies to property tax years beginning on or after July 1, 2019, including amendments by section 2, chapter 686, Oregon Laws 2017, is set forth for the user’s convenience.

      307.130. (1) As used in this section:

      (a) “Art museum” means a nonprofit corporation organized to display works of art to the public.

      (b) “Nonprofit corporation” means a corporation that:

      (A) Is organized not for profit, pursuant to ORS chapter 65 or any predecessor of ORS chapter 65; or

      (B) Is organized and operated as described under section 501(c) of the Internal Revenue Code as defined in ORS 305.842.

      (c) “Rehabilitation facility” means a facility defined in ORS 344.710 or a facility that provides individuals who have physical, mental or emotional disabilities with occupational rehabilitation activities of an educational or therapeutic nature, even if remuneration is received by the individual.

      (d) “Volunteer fire department” means a nonprofit corporation organized to provide fire protection services in a specific response area.

      (e) “Welfare program” means a program to provide food, shelter, clothing or health care, including dental service, to needy persons without charge.

      (2) Upon compliance with ORS 307.162, the following property owned or being purchased by art museums, volunteer fire departments, or incorporated literary, benevolent, charitable and scientific institutions shall be exempt from taxation:

      (a) Except as provided in ORS 748.414, only real or personal property, or a proportion of the property, that is actually and exclusively occupied or used in the literary, benevolent, charitable or scientific work carried on by such institutions.

      (b) Parking lots used for parking or any other use as long as that parking or other use is permitted without charge for no fewer than 355 days during the tax year.

      (c) All real or personal property of a rehabilitation facility or any retail outlet of the facility, including inventory.

      (d) All real and personal property of a retail store dealing exclusively in donated inventory, if the inventory is distributed without cost as part of a welfare program or where the proceeds of the sale of any inventory sold to the general public are used to support a welfare program.

      (e) All real and personal property of a retail store if:

      (A) The retail store deals on a regular basis in inventory at least one-half of which is donated and consigned;

      (B) The individuals who operate the retail store are all individuals who work as volunteers; and

      (C) The inventory is either distributed without charge as part of a welfare program, or sold to the general public and the sales proceeds used exclusively to support a welfare program.

      (f) The real and personal property of an art museum that is used in conjunction with the public display of works of art or used to educate the public about art, but not including any portion of the art museum’s real or personal property that is used to sell, or hold out for sale, works of art, reproductions of works of art or other items to be sold to the public.

      (g) All real and personal property of a volunteer fire department that is used in conjunction with services and activities for providing fire protection to all residents within a fire response area.

      (h) All real and personal property, including inventory, of a retail store owned by a nonprofit corporation if:

      (A) The retail store deals exclusively in donated inventory; and

      (B) Proceeds of the retail store sales are used to support a not-for-profit housing program whose purpose is to:

      (i) Acquire property and construct housing for resale to individuals at or below the cost of acquisition and construction; and

      (ii) Provide loans bearing no interest to individuals purchasing housing through the program.

      (i) All real and personal property, including inventory, of a retail store owned by a nonprofit corporation if:

      (A) The retail store deals exclusively in donated inventory;

      (B) The retail store operates with substantial support from volunteers; and

      (C) All net proceeds of the retail store sales are donated:

      (i) To a nonprofit corporation that provides animal rescue services;

      (ii) To a manufacturer or provider of goods or services in return for which an entity described in sub-subparagraph (i) of this subparagraph receives an equivalent value of goods or services from the manufacturer or provider;

      (iii) To an entity that provides spaying and neutering services for pets of individuals residing in households with an annual household income at or below 80 percent of the area median income; or

      (iv) For the purpose of aiding domesticated animals, regardless of whether the animals are in the custody of the county shelter, in furtherance of the purpose for which the nonprofit corporation was organized.

      (3) An art museum or institution shall not be deprived of an exemption under this section solely because its primary source of funding is from one or more governmental entities.

      (4) An institution shall not be deprived of an exemption under this section because its purpose or the use of its property is not limited to relieving pain, alleviating disease or removing constraints.

 

      Note: Sections 1 and 2, chapter 7, Oregon Laws 2014, provide:

      Sec. 1. (1) For purposes of ORS 307.130 (2)(a), real or personal property of a nonprofit corporation is actually and exclusively occupied or used in the benevolent or charitable work carried on by the nonprofit corporation, and is exempt from ad valorem property taxation, if, for the tax year beginning on July 1, 2012, the property was actually:

      (a) Offered, occupied or used as low-income housing; and

      (b) Granted exemption under ORS 307.130 (2)(a) by the county in which the property is located.

      (2) The exemption provided under subsection (1) of this section continues until the end of the earliest tax year in which the property described in subsection (1) of this section:

      (a) Is no longer actually offered, occupied or used as low-income housing;

      (b) Changes ownership other than by sale or transfer to a nonprofit corporation under whose ownership the property continues to be offered, occupied or used as low-income housing; or

      (c) Is leased in its entirety by the nonprofit corporation claiming the exemption, other than by leases for occupancy of individual units as low-income housing. [2014 c.7 §1]

      Sec. 2. (1) Section 1, chapter 7, Oregon Laws 2014, applies to property tax years beginning on or after July 1, 2012.

      (2) The exemption provided under section 1, chapter 7, Oregon Laws 2014, may not be granted for tax years beginning on or after July 1, 2022. [2014 c.7 §2; 2016 c.40 §1]

 

      307.134 Definition of fraternal organization. (1) For the purposes of ORS 307.136, “fraternal organization” means a corporation:

      (a) Organized as a corporation not for profit under the laws of any state or national government;

      (b) That is not solely a social club but is established under the lodge system with a ritualistic form of work and a representative form of government;

      (c) That regularly engages in or provides financial support for some form of benevolent or charitable activity with the purpose of doing good to others rather than for the convenience of its members;

      (d) In which no part of the corporation’s income is distributable to its members, directors or officers;

      (e) In which no member, officer, agent or employee is paid, or directly or indirectly receives, in the form of salary or other compensation, an amount beyond that which is just and reasonable compensation commonly paid for such services rendered and which has been fixed and approved by the members, directors or other governing body of the corporation; and

      (f) That is not a college fraternity or sorority.

      (2) For the purposes of ORS 307.136, “fraternal organization” includes, but is not limited to, the grand and subordinate lodges of the Masons, the grand and subordinate lodges of the Knights of Pythias, the Knights of Columbus, the Benevolent and Protective Order of Elks, the Fraternal Order of Eagles, the Loyal Order of Moose, the Independent Order of Odd Fellows, the Oregon State Grange, the American Legion, the Veterans of Foreign Wars, the International Association of Lions Clubs, the Soroptimist International, the Rotary International and the Kiwanis International. [1961 c.543 §§3,4; 2005 c.389 §1]

 

      307.136 Property of fraternal organizations. Upon compliance with ORS 307.162, the following property owned or being purchased by fraternal organizations shall be exempt from taxation:

      (1) All the real or personal property, or portion thereof, which is actually occupied or used in fraternal or lodge work or for entertainment and recreational purposes by one or more fraternal organizations, except that property or portions of property of a fraternal organization rented or leased by it at any time to other persons for sums greater than reasonable expenses for heat, light, water, janitorial services and supplies and facility repair and rehabilitation shall be subject to taxation.

      (2) Parking lots used for parking or any other use as long as that parking or other use is permitted without charge for no fewer than 355 days during the tax year. [1961 c.543 §2; 1974 c.52 §1; 1993 c.655 §4; 1997 c.441 §1]

 

      307.140 Property of religious organizations. Upon compliance with ORS 307.162, the following property owned or being purchased by religious organizations shall be exempt from taxation:

      (1) All houses of public worship and other additional buildings and property used solely for administration, education, literary, benevolent, charitable, entertainment and recreational purposes by religious organizations, the lots on which they are situated, and the pews, slips and furniture therein. However, any part of any house of public worship or other additional buildings or property which is kept or used as a store or shop or for any purpose other than those stated in this section shall be assessed and taxed the same as other taxable property.

      (2) Parking lots used for parking or any other use as long as that parking or other use is permitted without charge for no fewer than 355 days during the tax year.

      (3) Land and the buildings thereon held or used solely for cemetery or crematory purposes, including any buildings solely used to store machinery or equipment used exclusively for maintenance of such lands. [Amended by 1955 c.258 §1; 1959 c.207 §2; 1973 c.397 §1; 1974 c.52 §2; 1987 c.756 §3; 1993 c.655 §5]

 

      307.145 Certain child care facilities, schools and student housing. (1) If not otherwise exempt by law, upon compliance with ORS 307.162, the child care facilities, schools, academies and student housing accommodations, owned or being purchased by incorporated eleemosynary institutions or by incorporated religious organizations, used exclusively by such institutions or organizations for or in immediate connection with educational purposes, are exempt from taxation.

      (2) Property described in subsection (1) of this section which is exclusively for or in the immediate connection with educational purposes shall continue to be exempt when leased to a political subdivision of the State of Oregon, or to another incorporated eleemosynary institution or incorporated religious organization for an amount not to exceed the cost of repairs, maintenance and upkeep.

      (3)(a) As used in this section, “child care facility” means a child care center certified by the Office of Child Care under ORS 329A.280 to provide educational child care.

      (b) Before an exemption for a child care facility is allowed under this section, in addition to any other information required under ORS 307.162, the statement shall:

      (A) Describe the property and declare or be accompanied by proof that the corporation is an eleemosynary institution or religious organization.

      (B) Declare or be accompanied by proof that the office has issued the child care facility a certification to provide educational child care.

      (C) Be signed by the taxpayer subject to the penalties for false swearing. [1957 c.683 §1; 1959 c.207 §3; 1971 c.670 §1; 1981 c.611 §1; 1987 c.756 §6; 1993 c.733 §10; 1995 c.278 §32; 1999 c.743 §20; 2003 c.293 §13; 2013 c.624 §74]

 

      307.147 Senior services centers. (1) For purposes of this section:

      (a) “Nonprofit corporation” means a corporation that:

      (A) Is organized not for profit, pursuant to ORS chapter 65 or any predecessor of ORS chapter 65; or

      (B) Is organized and operated as described under section 501(c) of the Internal Revenue Code as defined in ORS 305.842.

      (b) “Senior services center” means property that:

      (A) Is owned or being purchased by a nonprofit corporation;

      (B) Is actually and exclusively used to provide services and activities (including parking) primarily to or for persons over 50 years of age;

      (C) Is open generally to all persons over 50 years of age;

      (D) Is not used primarily for fund-raising activities; and

      (E) Is not a residential or dwelling place.

      (2) Upon compliance with ORS 307.162, a senior services center is exempt from ad valorem property taxation. [1993 c.777 §2; 1997 c.541 §104; 1997 c.839 §44; 1999 c.90 §32; 2001 c.660 §27; 2003 c.77 §5; 2005 c.94 §31; 2005 c.832 §17; 2007 c.614 §5; 2008 c.45 §5; 2009 c.5 §15; 2009 c.909 §15; 2010 c.82 §15; 2011 c.7 §15; 2012 c.31 §15; 2013 c.377 §15; 2014 c.52 §17]

 

      307.150 Burial and crematory property. (1) Notwithstanding ORS 307.022, upon compliance with ORS 307.162, the following property is exempt from taxation:

      (a) Burial grounds, tombs and rights of burial, and lands and buildings on the land, not exceeding 30 acres, used for the sole purpose of a crematory and burial place to incinerate remains.

      (b) Lands used or held exclusively for cemetery purposes, not exceeding 600 acres.

      (c) Burial lots or space for burial of incinerate remains in buildings or grounds used or held exclusively for burial purposes.

      (d) Buildings on land described in paragraph (a) or (b) of this subsection that are used to store machinery or equipment used exclusively for maintenance of burial grounds.

      (e) Personal property used exclusively for cemetery or crematory purposes.

      (2) The statement required under ORS 307.162 shall be filed by the owner of the property described in subsection (1) of this section.

      (3) Any property exclusively occupied and used as a family burial ground is exempt from ad valorem taxation. [Amended by 1987 c.756 §4; 1999 c.398 §7; 2009 c.455 §1]

 

      307.155 When land exempt under ORS 97.660, 307.140 or 307.150 taxable; lien. (1) Land that is exempt from ad valorem property tax under ORS 97.660, 307.140 (3) or 307.150 that ceases to be used or held exclusively for cemetery or crematory purposes shall be subject to assessment and taxation uniformly with real property of nonexempt ownerships.

      (2) There shall be added to the next general property tax roll, to be collected and distributed in the same manner as other real property taxes, additional taxes equal to the total amount of taxes that otherwise would have been assessed against the land had the land not been used or held for cemetery or crematory purposes for the last 10 years (or such lesser number of years, corresponding to the years after 1981 of exemption for the land) preceding the year after 1981 in which the land was exempt from taxation.

      (3) The lien for the additional taxes imposed by this section, and the interest thereon, shall attach as of the date preceding the date of sale or other transfer of the land.

      (4) For each year that land is exempt from taxation under ORS 97.660, 307.140 (3) or 307.150, or both, the assessor shall enter on the assessment and tax roll, with respect to the land, the notation “(cemetery land-potential additional tax).”

      (5) The amount of additional taxes determined to be due under this section may be paid to the tax collector prior to the completion of the next general property tax roll, pursuant to ORS 311.370.

      (6) Additional taxes collected under this section shall be deemed to have been imposed in the year to which the additional taxes relate. [1981 c.572 §1; 1987 c.756 §4a; 1991 c.459 §43; 1997 c.541 §105]

 

      Note: 307.155 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 307 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      307.157 Cemetery or crematory land acquired by eleemosynary or charitable institution; potential additional taxes. (1) Notwithstanding ORS 307.155, if land was used or held exclusively for cemetery or crematory purposes for the preceding tax year and has ceased to be used or held exclusively for cemetery or crematory purposes as of the assessment date for the current tax year, the land shall remain exempt, and the additional tax that would otherwise be due under ORS 307.155 (2) shall remain a potential tax liability that is not imposed, if:

      (a) As of the date the land ceases to be used or held exclusively for cemetery or crematory purposes, the land is owned or being purchased by an incorporated eleemosynary or charitable institution described in ORS 307.130 or 307.145 for use in connection with educational purposes; and

      (b) The incorporated eleemosynary or charitable institution complies with ORS 307.162.

      (2) The deferred additional tax described in subsection (1) of this section shall be collected as described in this subsection to the extent that land described in subsection (1) of this section ceases to be used by an incorporated eleemosynary or charitable institution in connection with educational purposes. The amount of additional tax to be collected shall be reduced by 10 percent for each 12-month period in which the land was owned or being purchased by an incorporated eleemosynary or charitable institution in connection with educational purposes.

      (3) For each tax year in which the additional tax continues to be deferred, but may subsequently be imposed pursuant to this section, the county assessor shall continue to enter the notation “potential additional tax liability” on the assessment and tax roll.

      (4) ORS 307.155 (3), (5) and (6) apply to any additional tax imposed under this section. [2001 c.422 §4]

 

      Note: Section 5, chapter 422, Oregon Laws 2001, provides:

      Sec. 5. Section 4 of this 2001 Act [307.157] applies to property owned or being purchased by an incorporated eleemosynary or charitable institution on or after January 1, 2001, and before January 1, 2011, and to property tax years beginning on or after July 1, 2001, and before July 1, 2021. [2001 c.422 §5]

 

      307.160 Property of public libraries. Upon compliance with ORS 307.162, all public libraries and the personal property belonging thereto and connected therewith, and the real property belonging thereto and upon which the library is situated shall be exempt from taxation.

 

      307.162 Claiming exemption; late claims; notification of change to nonexempt use. (1)(a) Before any real or personal property may be exempted from taxation under ORS 307.092, 307.110 (3)(h), 307.115, 307.118, 307.130 to 307.140, 307.145, 307.147, 307.150, 307.160, 307.181 (3), 307.513 or 307.580 for any tax year, the institution or organization entitled to claim the exemption must file a claim with the county assessor, on or before April 1 preceding the tax year for which the exemption is claimed. The claim must contain statements, verified by the oath or affirmation of the president or other proper officer of the institution or organization, that:

      (A) List all real property claimed to be exempt and show the purpose for which the real property is used; and

      (B) Cite the statutes under which exemption for personal property is claimed.

      (b) If the ownership of all property, other than property described in ORS 307.110 (3)(h), included in the claim filed with the county assessor for a prior year remains unchanged, a new claim is not required.

      (c) When the property designated in the claim for exemption is acquired after March 1 and before July 1, the claim for that year must be filed within 30 days from the date of acquisition of the property.

      (2)(a) Notwithstanding subsection (1) of this section, a claim may be filed under this section for the current tax year:

      (A) On or before December 31 of the tax year, if the claim is accompanied by a late filing fee of the greater of $200, or one-tenth of one percent of the real market value as of the most recent assessment date of the property to which the claim pertains.

      (B) On or before April 1 of the tax year, if the claim is accompanied by a late filing fee of $200 and the claimant demonstrates good and sufficient cause for failing to file a timely claim, is a first-time filer or is a public entity described in ORS 307.090.

      (b)(A) Notwithstanding subsection (1) of this section, a claimant that demonstrates good and sufficient cause for failing to file a timely claim, is a first-time filer or is a public entity described in ORS 307.090 may file a claim under this section for the five tax years prior to the current tax year:

      (i) Within 60 days after the date on which the county assessor mails notice of additional taxes owing under ORS 311.206 for the property to which the claim filed under this subparagraph pertains; or

      (ii) At any time if no notice is mailed.

      (B) A claim filed under this paragraph must be accompanied by a late filing fee of the greater of $200, or one-tenth of one percent of the real market value as of the most recent assessment date of the property to which the claim pertains, multiplied by the number of prior tax years for which exemption is claimed.

      (c) If a claim filed under this subsection is not accompanied by the late filing fee or if the late filing fee is not otherwise paid, an exemption may not be allowed for the tax years sought by the claim. A claim may be filed under this subsection notwithstanding that there are no grounds for hardship as required for late filing under ORS 307.475.

      (d) The value of the property used to determine the late filing fee under this subsection and the determination of the county assessor relative to a claim of good and sufficient cause are appealable in the same manner as other acts of the county assessor.

      (e) A late filing fee collected under this subsection must be deposited in the county general fund.

      (3)(a) In a claim for exemption of property described in ORS 307.110 (3)(h), the county or city, town or other municipal corporation or political subdivision of this state that is filing the claim must substantiate that the property is used for affordable housing or that it is leased or rented to persons of lower income, as applicable.

      (b) A claim filed under this subsection must be filed annually on a form prescribed by the Department of Revenue.

      (4) As used in this section:

      (a) “First-time filer” means a claimant that:

      (A) Has never filed a claim for the property that is the subject of the current claim; and

      (B) Did not receive notice from the county assessor on or before December 1 of the tax year for which exemption is claimed regarding the potential property tax liability of the property.

      (b)(A) “Good and sufficient cause” means an extraordinary circumstance beyond the control of the taxpayer or the taxpayer’s agent or representative that causes the failure to file a timely claim.

      (B) “Good and sufficient cause” does not include hardship, reliance on misleading information unless the information is provided by an authorized tax official in the course of the official’s duties, lack of knowledge, oversight or inadvertence.

      (c) “Ownership” means legal and equitable title.

      (5)(a) Notwithstanding subsection (1) of this section, if an institution or organization owns property that is exempt from taxation under a provision of law listed in subsection (1) of this section and fails to file a timely claim for exemption under subsection (1) of this section for additions or improvements to the exempt property, the additions or improvements may nevertheless qualify for exemption.

      (b) The organization must file a claim for exemption with the county assessor to have the additions or improvements to the exempt property be exempt from taxation. The claim must:

      (A) Describe the additions or improvements to the exempt property;

      (B) Describe the current use of the property that is the subject of the application;

      (C) Identify the tax year and any preceding tax years for which the exemption is sought;

      (D) Contain any other information required by the department; and

      (E) Be accompanied by a late filing fee equal to the product of the number of tax years for which exemption is sought multiplied by the greater of $200 or one-tenth of one percent of the real market value as of the most recent assessment date of the property that is the subject of the claim.

      (c) Upon the county assessor’s receipt of a completed claim and late filing fee, the assessor shall determine for each tax year for which exemption is sought whether the additions or improvements that are the subject of the claim would have qualified for exemption had a timely claim been filed under subsection (1) of this section. Any property that would have qualified for exemption had a timely claim been filed under subsection (1) of this section is exempt from taxation for each tax year for which the property would have qualified.

      (d) A claim for exemption under this subsection may be filed only for tax years for which the time for filing a claim under subsections (1) and (2)(a) of this section has expired. A claim filed under this subsection, however, may serve as the claim required under subsection (1) of this section for the current tax year.

      (e) A late filing fee collected under this subsection must be deposited in the county general fund.

      (6) For each tax year for which an exemption granted pursuant to subsection (2) or (5) of this section applies:

      (a) Any tax, or interest attributable thereto, that was paid with respect to the property that is declared exempt from taxation must be refunded. Refunds must be made without interest from the unsegregated tax collections account established under ORS 311.385.

      (b) Any tax, or interest attributable thereto, that remains unpaid as of the date the exemption is granted must be abated.

      (7) If an institution or organization owns property that is exempt from taxation under a provision of law listed in subsection (1) of this section and changes the use of the property to a use that would not entitle the property to exemption from taxation, the institution or organization must notify the county assessor of the change to a taxable use within 30 days. [Formerly 307.170; 1967 c.51 §1; 1967 s.s. c.9 §4; 1969 c.237 §1; 1977 c.478 §2; 1977 c.884 §33; 1985 c.613 §3; 1987 c.574 §1; 1987 c.756 §7; 1991 c.459 §44; 1993 c.18 §68; 1993 c.19 §4; 1993 c.777 §5; 1995 c.79 §120; 1995 c.513 §2; 1997 c.485 §3; 1997 c.541 §106; 1999 c.398 §9; 1999 c.579 §1; 2009 c.455 §3; 2009 c.626 §2a; 2011 c.655 §2; 2012 c.42 §3; 2013 c.193 §26; 2013 c.386 §2; 2015 c.520 §2]

 

      307.163 [1967 s.s. c.9 §3; repealed by 1977 c.884 §32]

 

      307.164 [1973 c.476 §2; repealed by 1977 c.884 §25 (307.166 enacted in lieu of 307.164)]

 

      307.165 [1961 c.598 §§2,3 (renumbered 307.169)]

 

(Leased Public or Institutional Property)

 

      307.166 Property leased by exempt institution, organization or public body to another exempt institution, organization or public body. (1) If property is owned or being purchased by an institution, organization or public body that is granted exemption or the right to claim exemption for any of its property under a provision of law contained in this chapter, and the institution, organization or public body leases or otherwise grants the use and possession of the property to another institution, organization or public body that is likewise granted exemption or the right to claim exemption for property under a provision of law contained in this chapter, the property is exempt from taxation if used by the lessee or possessor in the manner, if any, required by law for the exemption of property owned or being purchased by the lessee or possessor and any tax savings resulting from the exemption from taxation granted under this section will inure solely to the benefit of the lessee or possessor. Likewise, if the property is sublet or otherwise the use and possession of the property is granted to another institution, organization or public body of the kind described in this subsection, the property is exempt if used by the sublessee or possessor in the manner, if any, required by law for the exemption of property owned or being purchased by the sublessee or possessor and any tax savings resulting from the exemption from taxation granted under this section will inure solely to the benefit of the sublessee or possessor.

      (2) Except as provided in subsection (4) of this section, to obtain the exemption under this section, the lessee, sublessee or entity in possession must file a claim for exemption with the county assessor, verified by the oath or affirmation of the president or other proper officer of the institution or organization, or head official of the public body or the legally authorized delegate of the head official, showing:

      (a) A complete description of the property for which exemption is claimed.

      (b) All facts relating to the ownership or purchase of the property.

      (c) All facts relating to the use of the property by the lessee, sublessee or entity in possession.

      (d) A true copy of the lease, sublease or other grant of use and possession covering the property for which exemption is claimed.

      (e) Any other information required by the claim form.

      (3)(a) The claim required under subsection (2) of this section must be filed on or before April 1 preceding the tax year for which the exemption is claimed, except:

      (A) If the lease, sublease or other grant of use and possession is entered into after March 1 but not later than June 30, the claim must be filed within 30 days after the date the lease, sublease or other grant of use and possession is entered into if the exemption is claimed for the assessment year beginning on the preceding January 1; or

      (B) If a late filing fee is paid in the manner provided in ORS 307.162 (2), the claim may be filed within the time specified in ORS 307.162 (2).

      (b) The exemption first applies for the tax year beginning July 1 of the year for which the claim is filed. The exemption continues as long as the ownership and use of the property remain unchanged and during the period of the lease, sublease or other grant of use and possession. If either the ownership or use changes, a new claim must be filed as provided in this section. If the lease, sublease or other grant of use and possession expires before July 1 of any year, the exemption terminates as of January 1 of the same calendar year.

      (4)(a) In lieu of filing a claim under subsection (2) of this section, the lessor, sublessor or person granting the use and possession of property that is exempt from taxation under ORS 307.040 or 307.090 to a lessee, sublessee or entity the property of which is eligible for exemption under ORS 307.040 or 307.090 must provide the assessor of the county in which the property is located with the following information as soon as practicable after execution of a lease, sublease or other grant of use and possession of the property:

      (A) The name and address of the lessee, sublessee or possessor;

      (B) Upon request of the assessor, a copy of the lease, sublease or other grant of use and possession of the property; and

      (C) The location of the property.

      (b) Upon compliance with paragraph (a) of this subsection, the property is exempt from taxation under this section during the term of the lease, sublease or other grant of use and possession. [1977 c.884 §26 (enacted in lieu of 307.164); 1991 c.459 §45; 1993 c.104 §1; 1997 c.154 §1; 1997 c.541 §107; 1999 c.579 §19; 2009 c.626 §3; 2011 c.655 §3; 2013 c.193 §15; 2017 c.554 §2]

 

      307.168 State land under lease. (1) Notwithstanding ORS 307.110, all land leased by any person from the State Land Board or agency with authority over land under ORS 273.141 is exempt from taxation.

      (2) As used in this section “land” means the land itself, above or under water, but does not include:

      (a) Any buildings, structures, improvements, machinery, equipment or fixtures erected upon, under, above or affixed to the land; or

      (b) Mines, minerals, or quarries in, under or upon the land. The term “land,” however, does include all water rights appertaining to the land. [1982 s.s.1 c.25 §2; 1995 c.589 §5]

 

      307.169 [Formerly 307.165; 1991 c.459 §46; 1993 c.187 §24; repealed by 1995 c.748 §9]

 

      307.170 [Amended by 1955 c.576 §2; 1961 c.543 §5; renumbered 307.162]

 

      307.171 Sports facility owned by large city. Any sports facility owned by a city with a population of at least 500,000 is exempt from taxation, even if leased to or operated by a taxpaying entity. [2001 c.931 §2]

 

(Alternative Energy Systems)

 

      307.175 Alternative energy systems. (1) As used in this section, “alternative energy system” means property consisting of solar, geothermal, wind, water, fuel cell or methane gas energy systems for the purpose of heating, cooling or generating electricity.

      (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 308.681, 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. [1975 c.460 §§1,2; 1977 c.196 §§9,10; 1979 c.670 §1; 1991 c.459 §47; 1997 c.534 §1; 2001 c.584 §1; 2007 c.885 §1; 2011 c.656 §3]

 

      Note: Section 4, chapter 656, Oregon Laws 2011, provides:

      Sec. 4. (1) The amendments to ORS 307.175 by section 3, chapter 656, Oregon Laws 2011, apply to tax years beginning on or after July 1, 2011.

      (2) An exemption under ORS 307.175 may not be allowed for tax years beginning after July 1, 2023. [2011 c.656 §4; 2013 c.193 §28; 2017 c.542 §1]

 

      Note: 307.175 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 307 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

(Temporary provisions relating to exemption of solar project property and payment of fee in lieu of property taxes)

 

      Note: Sections 1, 2 and 3, chapter 571, Oregon Laws 2015, provide:

      Sec. 1. (1)(a) The governing body of a county and the owner or person in possession or control of a solar project located within the county and outside the boundaries of any incorporated city may enter into an agreement that exempts from property taxes the property constituting the solar project and allows the payment of a fee in lieu of property taxes imposed on the property. An agreement may not be entered into for a term longer than 20 consecutive years.

      (b) If any portion of a solar project is located within the boundaries of an incorporated city, the governing body of the county shall consult with the governing body of the city before entering into an agreement under paragraph (a) of this subsection. An agreement entered into under paragraph (a) of this subsection with respect to a solar project located within the boundaries of the incorporated city is not effective unless the governing body of the city is a party to the agreement.

      (2) The fee in lieu of property taxes shall be computed at the rate of $7,000 per megawatt of nameplate capacity of the solar project for each property tax year. Megawatt of nameplate capacity shall be carried to the third decimal place.

      (3)(a) On or before December 31 preceding the first property tax year to which an agreement entered into under this section relates, the owner or person in possession or control of the solar project shall file with the county assessor a copy of the agreement and a request for computation of the fee in lieu of property taxes for the property constituting the solar project. The request must include any information required by the assessor to compute the fee.

      (b) On or before December 31 preceding each subsequent property tax year to which an agreement entered into under this section relates, the owner or person in possession or control of the solar project shall file with the county assessor a request for computation of the fee in lieu of property taxes for the property constituting the solar project. If the identity of the owner or person in possession or control, or the nameplate capacity, of the solar project has changed, the request for computation of the fee must include the new information.

      (c) A request for computation that is not filed on or before December 31 must be accompanied by a late fee of $200.

      (4)(a) On or before February 1 of each year to which the agreement relates, the county assessor shall compute the fee in lieu of property taxes for the property constituting the solar project and shall notify the owner or person in possession or control:

      (A) That the fee in lieu of property taxes must be paid to the county treasurer on or before March 1; and

      (B) Of the amount due and of the consequences of late payment or nonpayment.

      (b) Notwithstanding paragraph (a) of this subsection, payment of the fee in lieu of property taxes is not due until after the notice required under paragraph (a) of this subsection has been sent.

      (c) On or before July 15 of each year, the county treasurer shall distribute fee revenue collected under this section to each taxing district in which a solar project is located on the basis of the ratio that the taxing district’s total rate of ad valorem property taxes, excluding the rates of taxes imposed to repay bonded indebtedness, bears to the total rate of ad valorem property taxes, excluding the rates of taxes imposed to repay bonded indebtedness, imposed by all taxing districts in which the solar project is located.

      (5)(a) If the owner or person in possession or control of a solar project that has entered into an agreement under this section fails to pay the fee as required under this section, the property constituting the solar project is not exempt for the following property tax year and shall be assessed and taxed as other similar property is assessed and taxed.

      (b) Notwithstanding paragraph (a) of this subsection, the property shall be exempt for the following property tax year upon payment, within one year after the date of delinquency, of the delinquent fee plus interest at the rate prescribed in ORS 311.505 (2). Delinquent fees and interest shall be collected in the manner provided for collection of delinquent property taxes on personal property.

      (6)(a) If the owner or person in possession or control of the solar project fails to pay the fee in lieu of property taxes for more than one year during the term of an agreement entered into under this section, notwithstanding the agreement, the property constituting the solar project shall be disqualified for the exemption and payment of the fee in lieu of property taxes.

      (b) Property that is disqualified under this subsection shall:

      (A) Be assessed and taxed as other similar property is assessed and taxed.

      (B) In addition, be assessed a penalty in an amount equal to one year of the fee in lieu of property taxes for the property. The penalty assessed under this subparagraph shall be distributed in the manner described in subsection (4)(c) of this section.

      (7)(a) Property constituting a solar project that has received an exemption under ORS 285C.350 to 285C.370 or 307.123 for any property tax year is not eligible to pay a fee in lieu of property taxes under this section.

      (b) Paragraph (a) of this subsection does not apply to property constituting a solar project that was the subject of an application filed pursuant to ORS 285C.350 to 285C.370 if the property did not receive the exemption for any property tax year. The election to pay the fee in lieu of property taxes for property described in this paragraph is not a disqualifying event. [2015 c.571 §1]

      Sec. 2. Section 1 of this 2015 Act applies to property tax years beginning on or after July 1, 2016. [2015 c.571 §2]

      Sec. 3. (1) Section 1 of this 2015 Act is repealed on January 2, 2022.

      (2) Notwithstanding subsection (1) of this section, property constituting a solar project that is exempt from property taxes under section 1 of this 2015 Act on the date specified in subsection (1) of this section shall continue to be exempt and to pay the fee in lieu of property taxes for the term specified in the agreement entered into under section 1 of this 2015 Act. [2015 c.571 §3]

 

(Temporary provisions relating to exemption of property that will be seismically retrofitted)

 

      Note: Sections 1 to 6, chapter 537, Oregon Laws 2017, provide:

      Sec. 1. (1) As used in sections 1 to 5 of this 2017 Act:

      (a)(A) “Eligible costs” means costs that are:

      (i) Directly related to the work necessary to seismically retrofit eligible property; and

      (ii) Incurred after an application relating to the retrofitting has been approved under section 2 of this 2017 Act.

      (B) “Eligible costs” includes, but is not limited to:

      (i) All costs directly related to structural seismic retrofitting, including, but not limited to, the necessary costs of demolition and restoration of similar architectural finishes, electrical systems, plumbing and mechanical systems necessary for access; and

      (ii) Architectural and engineering fees, and fees for testing, insurance and project management, related to the seismic retrofitting.

      (C) “Eligible costs” does not include:

      (i) Costs associated with refurbishing or remodeling that are intended to enhance the aesthetics, functionality or marketability of the improvements but do not extend the seismic life safety of the improvements; or

      (ii) Costs for abatement of hazardous materials, including, but not limited to, asbestos, or for relocation or loss of rent during the seismic retrofitting.

      (b) “Eligible property” means improvements built before January 1, 1993, that constitute a commercial, industrial or multifamily building.

      (2) The governing body of a city or county may adopt an ordinance or resolution providing for exemption or partial exemption from ad valorem property taxation of eligible property that will be seismically retrofitted.

      (3)(a) An ordinance or resolution adopted under this section must specify the eligibility requirements for the exemption or partial exemption.

      (b) Notwithstanding paragraph (a) of this subsection, property is not eligible for an exemption or partial exemption pursuant to this section if, at the time an application for the property is filed under section 2 of this 2017 Act, the property is:

      (A) Subject to assessment under ORS 308.505 to 308.681; or

      (B) State-appraised industrial property as defined in ORS 306.126.

      (4)(a) An ordinance or resolution adopted under this section must specify the period, not to exceed 15 years, for which the exemption or partial exemption may be granted.

      (b) Eligible property may be granted exemption or partial exemption under this section until the earlier of:

      (A) The expiration of the period for which the eligible property is eligible for exemption or partial exemption under paragraph (a) of this subsection; or

      (B) The date on which the dollar amount of the tax benefit from the exemption or partial exemption equals the eligible costs for the property.

      (c) The ordinance or resolution may:

      (A) Further restrict eligible properties to unreinforced masonry buildings, unreinforced concrete buildings or any other building type considered seismically dangerous by the governing body of the city or county; and

      (B) Impose any other conditions for the exemption or partial exemption that do not conflict with sections 1 to 5 of this 2017 Act.

      (5)(a) A city or county may amend or repeal an ordinance or resolution adopted under this section at any time.

      (b) Notwithstanding paragraph (a) of this subsection, eligible property that is granted an exemption or partial exemption under this section when the ordinance or resolution is amended or repealed shall continue to receive the exemption or partial exemption for the period granted, pursuant to the provisions of the ordinance or resolution in effect when the property was initially granted the exemption or partial exemption.

      (6)(a) An ordinance or resolution adopted under this section does not become effective unless the rates of taxation of the taxing districts located within the territory of the city or county whose governing bodies agree to the exemption or partial exemption, when combined with the rate of taxation of the city or county that adopted the ordinance or resolution, equal 75 percent or more of the total combined rate of taxation within the territory of the city or county. In agreeing to the exemption or partial exemption, the governing bodies of the taxing districts shall impose a limit on the total amount of exemptions and partial exemptions that may be approved.

      (b) If an ordinance or resolution becomes effective pursuant to paragraph (a) of this subsection, the exemption or partial exemption shall be effective for the tax levies of all taxing districts in which an eligible property that is granted an exemption or partial exemption is located. [2017 c.537 §1]

      Sec. 2. (1)(a) The owner of eligible property seeking an exemption or partial exemption for the eligible property under an ordinance or resolution adopted pursuant to section 1 of this 2017 Act must file an application, with the governing body of the city or county that adopted the ordinance or resolution, on or before March 15 preceding the beginning of the property tax year for which the exemption or partial exemption is sought. A single application may be filed for eligible property in contiguous tax accounts under common ownership.

      (b) Notwithstanding paragraph (a) of this subsection, an application may be filed after March 15 and on or before December 31 if the application is accompanied by a late filing fee equal to the greater of $200 or one-tenth of one percent of the real market value of the eligible property to which the application relates as of the assessment date for that tax year.

      (2) An application filed pursuant to this section must include:

      (a) The address of the eligible property.

      (b) Documentation showing the ownership of the eligible property by the person filing the application.

      (c) Documentation showing that all applicable eligibility requirements have been met.

      (d) Documentation of estimated eligible costs with respect to the eligible property prepared by a person unrelated to the owner of the eligible property and having expertise in estimating such costs. Documentation of eligible costs may include, but is not limited to, bids, cost estimates, copies of contracts, notes and minutes of contract negotiations and accounts, invoices, sales receipts and other payment records of purchases, sales, leases and other transactions relating to the eligible costs.

      (e) Plans, calculations and any other documentation prepared and stamped by a registered structural engineer or architect establishing to the satisfaction of the city or county that the proposed seismic retrofitting meets or exceeds the standard defined as Basic Performance Objective for Existing Buildings in the Seismic Evaluation and Retrofit of Existing Buildings ASCE/SEI 41-13, published by the American Society of Civil Engineers and the Structural Engineering Institute, as in effect on December 31, 2016, unless the governing body of the city or county has expressly approved or required a different standard that enhances life safety in a seismic event. The documentation must include seismic retrofitting for any parapets, cornices and chimneys. The standard of care for documentation prepared and stamped under this paragraph is the same as for documents stamped in accordance with ORS 671.025 or 672.020.

      (f) Documentation of any financial incentives received from local, state or federal government for the seismic retrofitting of the eligible property, exclusive of the exemption or partial exemption granted under sections 1 to 5 of this 2017 Act.

      (g) An application fee, if any, required by the city or county.

      (3) The application shall be reviewed by the city or county. The city or county may consult with the owner of the eligible property about the application, and the owner may amend the application.

      (4)(a) If the city or county determines that the application does not meet the requirements of this section, the city or county shall promptly notify the owner of the eligible property in writing that the application is not approved, stating the reasons for the determination. A determination under this paragraph is not reviewable, but the owner of the eligible property may file an application under this section for any subsequent year.

      (b) If the city or county determines that the application meets the requirements of this section, the city or county shall promptly:

      (A) Notify the owner of the eligible property in writing that the application is approved; and

      (B) Notify the county assessor in writing that the application is approved and certify the period for which the exemption or partial exemption is granted and the estimated eligible costs with respect to the eligible property, reduced by any financial incentives received from local, state or federal government for the seismic retrofitting of the eligible property, exclusive of the exemption or partial exemption granted under sections 1 to 5 of this 2017 Act.

      (5) The assessor of the county in which the eligible property granted an exemption or partial exemption is located may charge the owner a fee of up to $200 for the first year and up to $100 for each subsequent year for which the exemption or partial exemption is granted to compensate the assessor for duties imposed under sections 1 to 5 of this 2017 Act.

      (6) Upon receiving notice under subsection (4) of this section of the approval of an application, the owner of the eligible property shall cause to be recorded with the clerk of the county in which the eligible property is located a notice that contains a legal description of the eligible property and a statement that the eligible property has been granted a property tax exemption pursuant to an ordinance or resolution adopted under section 1 of this 2017 Act and that the owner, or the owner’s successor or assignees, may be liable for additional taxes under section 5 of this 2017 Act.

      (7) The transfer of the eligible property shall not disqualify the eligible property from an exemption or partial exemption granted to the eligible property under the ownership of the transferor, provided the transferee:

      (a) Notifies the city or county and the county assessor as soon as practicable of the transfer and of the transferee’s intention to continue the seismic retrofitting in a manner consistent with the requirements of sections 1 to 5 of this 2017 Act; and

      (b) Complies with all requirements under sections 1 to 5 of this 2017 Act. [2017 c.537 §2]

      Sec. 3. (1) An ordinance or resolution adopted under section 1 of this 2017 Act must state the percentage of the exemption to be applied to the real market value of the eligible property.

      (2) The exemption or partial exemption shall apply to existing eligible property of any classification under rules established by the Department of Revenue pursuant to ORS 308.215 (1)(a)(C) that is consistent with the definition of “eligible property” under section 1 of this 2017 Act.

      (3) ORS 307.032 applies to eligible property granted partial exemption under the ordinance or resolution.

      (4) Each year the county assessor shall add to the assessment and tax rolls of the county, with respect to the eligible property granted exemption or partial exemption pursuant to an ordinance or resolution adopted under section 1 of this 2017 Act, the notation “potential additional tax.” [2017 c.537 §3]

      Sec. 4 (1)(a) Each year, on or before a date prescribed by the city or county that adopted the ordinance or resolution under section 1 of this 2017 Act pursuant to which eligible property is granted an exemption or partial exemption, the owner of the eligible property shall submit documentation of actual eligible costs incurred and an updated estimate of the eligible costs to the city or county, as applicable.

      (b) The owner shall include with the documentation the amount of any financial incentives received from local, state or federal government for the seismic retrofitting of the eligible property, exclusive of the exemption or partial exemption granted under sections 1 to 5 of this 2017 Act. The city or county shall report the amount of the incentives to the assessor of the county in which the eligible property is located, who shall reduce the eligible costs for the eligible property by the amount of the incentives.

      (2)(a) If the updated estimate of the eligible costs is greater or less than the original estimate by 10 percent or more, the city or county shall submit the documentation and updated estimate to the county assessor.

      (b) Upon receipt, the county assessor shall recompute the assessed value and maximum assessed value of the eligible property under ORS 308.156, beginning with the first year for which the eligible property was granted exemption or partial exemption.

      (c) The values as recomputed under this section shall apply to the remaining period for which the eligible property has been granted exemption or partial exemption. Delinquent taxes may not be assessed or collected, and refunds may not be paid, as a consequence of the recomputation under this section for property tax years preceding the remaining period. [2017 c.537 §4]

      Sec. 5. (1) Eligible property that is granted exemption or partial exemption pursuant to an ordinance or resolution adopted under section 1 of this 2017 Act shall continue to receive the exemption or partial exemption until the eligible property is disqualified by the earliest of:

      (a) The expiration of the period for which the exemption or partial exemption was certified under section 2 of this 2017 Act.

      (b) The date on which the dollar amount of the exemption or partial exemption equals the eligible costs for the eligible property.

      (c) The discovery by the city or county that the owner of the eligible property has failed to:

      (A) Comply with the eligibility requirements adopted by the city or county;

      (B) Begin or make reasonable progress on seismic retrofitting of the eligible property; or

      (C) Perform the seismic retrofitting of the eligible property in substantial compliance with documentation described in section 2 (2)(e) of this 2017 Act that was included in the application relating to the eligible property approved under section 2 of this 2017 Act.

      (d) The discovery by the city or county that any statement or representation in any documentation filed pursuant to section 2 of this 2017 Act was misleading or false.

      (2) The city or county may provide an owner with the opportunity to cure the grounds for disqualification under subsection (1) of this section.

      (3) The city or county shall notify the county assessor of the disqualification of eligible property from exemption or partial exemption under this section, and upon disqualification the eligible property shall be assessed and taxed under ORS 308.146.

      (4) Upon disqualification of eligible property from exemption or partial exemption under subsection (1)(c) or (d) of this section, there shall be added to the tax extended against the eligible property on the next assessment and tax roll, to be collected and distributed in the same manner as other property taxes, additional taxes, equal to the difference between the taxes assessed against the eligible property and the taxes that otherwise would have been assessed against the eligible property if the eligible property had not been granted exemption or partial exemption, for all years for which the eligible property was granted exemption or partial exemption.

      (5) Additional taxes collected under this section shall be deemed to have been imposed in the year to which the additional taxes relate.

      (6) The amount of additional taxes determined to be due under this section may be paid to the tax collector prior to the completion of the next assessment and property tax roll pursuant to ORS 311.370. [2017 c.537 §5]

      Sec. 6. (1) Sections 1 to 5 of this 2017 Act are repealed on January 2, 2028.

      (2) Notwithstanding the date specified in subsection (1) of this section, eligible property that is granted exemption or partial exemption under an ordinance or resolution adopted pursuant to section 1 of this 2017 Act before the date specified in subsection (1) of this section shall continue to receive the exemption or partial exemption under the provisions of the ordinance or resolution for the period of time for which the exemption or partial exemption was granted. [2017 c.537 §6]

 

(Indian Properties)

 

      307.180 Property of Indians. The real property of all Indians residing upon Indian reservations who have not severed their tribal relations or taken lands in severalty, except lands held by them by purchase or inheritance, and situated on an Indian reservation, is exempt from taxation. However, the lands owned or held by Indians in severalty upon any Indian reservation and the personal property of such Indians upon reservations shall be exempt from taxation only when so provided by any law of the United States. [Amended by 1953 c.698 §7]

 

      307.181 Land acquired or owned by Indian tribe. (1)(a) Land acquired by an Indian tribe by purchase, gift or without consideration is exempt from taxation if:

      (A) The land is located within the ancient tribal boundaries of the tribe; and

      (B) Acquisition of the land by the United States in trust status has been requested or is in process.

      (b) The exemption granted under this subsection ceases if the federal government enters a final administrative determination denying the request for acquisition of the land in trust status and:

      (A) The deadlines for all available federal administrative appeals and federal judicial review expire with no appeal or review initiated; or

      (B) All federal administrative and judicial proceedings arising from or related to the request for or process of acquisition of the land in trust status that have been initiated are completed without overturning the administrative denial of the request.

      (2)(a) Regardless of ownership, permanent improvements are exempt from state and local property taxes and fees, charges and assessments related to property taxation if the improvements are located on land that is owned by the United States and held in trust pursuant to federal law for:

      (A) A federally recognized Indian tribe; or

      (B) An individual member of a federally recognized Indian tribe.

      (b) The exemption granted under this subsection does not apply to property assessable under ORS 308.505 to 308.681.

      (3)(a) Notwithstanding subsection (1) of this section, property that is owned exclusively by an eligible Indian tribe or by an entity wholly owned by an eligible Indian tribe, or a portion of the property, is exempt from taxation if the property, or the portion of the property, respectively, is used exclusively for government services.

      (b) Property described in paragraph (a) of this subsection that may be exempt from taxation as property used exclusively for low income rental housing includes, without limitation, property that:

      (A) Is held under lease or a lease purchase agreement by an eligible Indian tribe;

      (B)(i) Is the property of a partnership, nonprofit corporation or limited liability company of which an eligible Indian tribe is a general partner, limited partner, director, member, manager or general manager; and

      (ii) Is leased or rented to low income persons for housing purposes; or

      (C) Is used exclusively for an activity that qualifies as an affordable housing activity under 25 U.S.C. 4132.

      (c) Property described in paragraph (a) of this subsection may not be exempt from taxation as property that is used exclusively for low income rental housing unless:

      (A) All agreements necessary for the construction and operation of the property as low income rental housing are executed before July 1, 2017;

      (B) For purposes of ORS 307.540 to 307.548, the requirements of ORS 307.543 have been satisfied;

      (C) The property is offered for rent or is held for the purpose of developing low income rental housing;

      (D) If occupied, the property is occupied solely by low income persons; and

      (E) The property is located in a county in which more than 10 percent of the enrolled members of the eligible Indian tribe reside.

      (4) As used in this section:

      (a) “Eligible Indian tribe” means the Burns Paiute Tribe, the Confederated Tribes of Coos, Lower Umpqua and Siuslaw Indians, the Confederated Tribes of the Grand Ronde Community of Oregon, the Confederated Tribes of Siletz Indians of Oregon, the Confederated Tribes of the Umatilla Indian Reservation, the Confederated Tribes of Warm Springs Reservation of Oregon, the Coquille Indian Tribe, the Cow Creek Band of Umpqua Tribe of Indians or the Klamath Tribes.

      (b) “Government services” means services provided by an eligible Indian tribe that:

      (A) Are equivalent to services that a state or local government or the federal government customarily provides to its citizens;

      (B) Are related to:

      (i) Tribal administration;

      (ii) Tribal facilities or tribal health facilities;

      (iii) Elementary or secondary education or higher education, including community colleges;

      (iv) Transportation;

      (v) Fire or police;

      (vi) Low income rental housing;

      (vii) Utility services provided to an Indian reservation or to land held in trust by the United States for the benefit of an eligible Indian tribe; or

      (viii) Cemeteries; and

      (C) Other than government services related to the uses of property described in subsection (3)(c) of this section, do not generate income.

      (c) “Low income”:

      (A) Means income at or below 60 percent of the area median income as determined by the Oregon Housing Stability Council based on information from the United States Department of Housing and Urban Development.

      (B) For purposes of projects undertaken pursuant to the Native American Housing Assistance and Self-Determination Act of 1996 (P.L. 104-330), includes income that qualifies under 24 C.F.R. 5.609.

      (d) “Permanent improvements” means “real property” as defined in ORS 307.010 (1)(b)(B).

      (e) “Utility services” means services related to sanitation, sewer, storm drainage and water. [1993 c.266 §2; 1995 c.748 §3; 2001 c.753 §29; 2009 c.453 §1; 2012 c.42 §§1,5; 2015 c.65 §§1,2; 2015 c.180 §§42,43]

 

      Note: Sections 4 and 7, chapter 42, Oregon Laws 2012, provide:

      Sec. 4. (1) On or before January 1 of each year, an eligible Indian tribe as defined in ORS 307.181 that is granted tax exemption for property, or a portion of property, used exclusively for low income rental housing under ORS 307.181 (3) shall submit a report to the Commission on Indian Services.

      (2) The report required under subsection (1) of this section must include:

      (a) For each property, or portion of property, the value of the property tax exemption granted under ORS 307.181 (3) for the current property tax year as provided to the tribe by the assessor of the county in which the property is located; and

      (b) The percentage of the current occupants of each property who are members of an eligible Indian tribe as defined in ORS 307.181. [2012 c.42 §4]

      Sec. 7. (1) It is the intention of the amendments to ORS 307.181 by section 5 of this 2012 Act to eliminate the property tax exemption for low income rental housing projects created by the amendments to ORS 307.181 by section 1 of this 2012 Act, only with respect to projects for which all agreements necessary for the construction and operation of the property as low income rental housing are not executed before July 1, 2017.

      (2) Projects for which all agreements necessary for the construction and operation of the property as low income rental housing are executed before July 1, 2017, remain eligible on and after July 1, 2017, for the property tax exemption for low income rental housing created by the amendments to ORS 307.181 by section 1 of this 2012 Act. [2012 c.42 §7]

 

(Recreation Facilities and Summer Homes on Federal Land)

 

      307.182 Federal land used by recreation facility operators under permit. Notwithstanding ORS 307.060, real property used and occupied by commercial recreation facility operators under permits issued pursuant to the Acts of June 4, 1897 (16 U.S.C. 551), and March 4, 1915 (16 U.S.C. 497), as amended, is exempt from ad valorem property taxation. This section does not apply to improvements on real property described in this section. [1981 c.405 §1; 2001 c.114 §12; 2013 c.343 §1]

 

      Note: Section 4, chapter 405, Oregon Laws 1981, provides:

      Sec. 4. ORS 307.182 applies to tax years beginning on or after July 1, 1981, and before July 1, 2024. [1981 c.405 §4; 1985 c.169 §1; 1995 c.748 §4; 2001 c.67 §4; 2001 c.114 §13; 2001 c.509 §8; 2013 c.343 §2]

 

      Note: 307.182 to 307.184 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 307 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      307.183 Summer homes on federal land occupied under permit. Notwithstanding ORS 307.060, there shall be exempt from property taxation real property of the United States used and occupied for summer homes under a permit issued pursuant to the Act of March 4, 1915, ch. 144 (16 U.S.C. 497), as amended, but improvements thereon are subject to taxation. [1975 c.649 §1]

 

      Note: See second note under 307.182.

 

      307.184 Summer homes on federal land occupied under lease. Notwithstanding ORS 307.060, there shall be exempt from property taxation real property of the United States used and occupied for summer homes under a lease issued pursuant to the Act of June 1, 1938 (52 Stat. 609; 43 U.S.C. 682a), as amended, or Public Law 94-579, Title III, section 302, October 21, 1976, 90 Stat. 2762 (43 U.S.C. 1732), but improvements thereon are subject to taxation. [1979 c.422 §1]

 

      Note: See second note under 307.182.

 

(Personal Property)

 

      307.190 Tangible personal property held for personal use; inapplicability to property required to be registered, floating homes, boathouses and manufactured structures. (1) All items of tangible personal property held by the owner, or for delivery by a vendor to the owner, for personal use, benefit or enjoyment, are exempt from taxation.

      (2) The exemption provided in subsection (1) of this section does not apply to:

      (a) Any tangible personal property held by the owner, wholly or partially for use or sale in the ordinary course of a trade or business, for the production of income, or solely for investment.

      (b) Any tangible personal property required to be licensed or registered under the laws of this state.

      (c) Floating homes or boathouses, as defined in ORS 830.700.

      (d) Manufactured structures as defined in ORS 446.561. [Amended by 1953 c.698 §7; 1969 c.648 §1; 1977 c.615 §2; 1985 c.614 §1; 1987 c.601 §5; 2003 c.655 §63]

 

      307.193 [1969 c.605 §18; repealed by 1971 c.529 §37]

 

      307.195 Household furnishings owned by nonprofit organization furnishing housing for students attending institutions of higher education. All furniture, goods and furnishings owned by or situated in and used solely by a fraternity, sorority, student housing cooperative or student living organization is exempt from taxation if such fraternity, sorority, student housing cooperative or student living organization furnishes living quarters for students attending institutions of higher education and is not conducted for profit. [1957 c.631 §1]

 

      307.197 Equipment used for certain emergencies in navigable waters. Communications equipment, emergency response equipment and other tangible personal property is exempt from ad valorem property taxation if the equipment or property is:

      (1) Acquired or used primarily for the purposes of responding to and maintaining the capability to respond to shipboard fires or oil spills in navigable waters;

      (2) Owned by a nonprofit corporation organized under ORS chapter 65 that operates as a maritime fire and safety association; and

      (3) Made available by the nonprofit corporation for use by a federal, state or local emergency response agency pursuant to a mutual aid compact. [2010 c.29 §3]

 

(Public Ways)

 

      307.200 Public ways. All lands within the boundary of any county road, and all dedicated streets and alleys in any incorporated or unincorporated city or town, or town plat, within this state, are exempt from assessment and taxation while used for such purposes.

 

(Mobile Home or Manufactured Dwelling Parks)

 

      307.203 Mobile home or manufactured dwelling parks financed by Housing and Community Services Department revenue bonds. Notwithstanding any other provision of law granting an exemption from property taxation, specific works or improvements to provide mobile home or manufactured dwelling parks as defined in ORS 446.003 that are financed from the proceeds of revenue bonds issued by the Housing and Community Services Department under ORS 456.548 to 456.725 shall not be eligible for a limited assessment or exemption from property taxation unless:

      (1) A city or county governing body has authorized a limited assessment under ORS 308.450 to 308.481 or an exemption under ORS 307.515 to 307.523; and

      (2) The work or improvement qualifies for the limited assessment or exemption. [1991 c.738 §2; 1997 c.249 §92]

 

      Note: 307.203 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 307 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      307.205 [1977 c.626 §2; 1987 c.756 §13; 1991 c.459 §48; 1997 c.541 §108; repealed by 2013 c.193 §1]

 

(Water Associations)

 

      307.210 Property of nonprofit mutual or cooperative water associations; disqualification; application. (1) After the county assessor has approved an application for exemption filed under this section, all property consisting of land, improvements, fixtures, equipment or supplies, including dams and dikes, owned by any association of persons, wholly mutual or cooperative in character, whether incorporated or unincorporated, used primarily in storing, conveying and distributing water to the members of such association for domestic use or irrigation, where such association has no other business or purpose and its operations are conducted without profit in money, is exempt from taxation.

      (2) The property described in subsection (1) of this section shall not be exempt if either of the following conditions existed in the 12-month period prior to the January 1 assessment date:

      (a) More than 15 percent of the members of the association were a commercial establishment or establishments that used any of the water for commercial purposes.

      (b) More than 25 percent of the total annual volume of water furnished by the association was used by a commercial establishment or establishments for commercial purposes.

      (3) For the purpose of this section service to the government of this state, the government of the United States, or any subdivision, agency or instrumentality, corporate or otherwise, of either of them, shall not be construed as a commercial purpose.

      (4)(a) An association seeking to claim an exemption under this section shall file an application with the county assessor on or before April 1 preceding the tax year for which the exemption is being claimed.

      (b) An application is not required under this section if the property of the association was exempt under this section for the previous tax year and, as of the assessment date for the current tax year, the ownership or use of all of the property that was the subject of the application remains unchanged.

      (5) The application shall be on such form and shall contain such information as the Department of Revenue shall prescribe.

      (6) The county assessor shall approve or disapprove an application filed under this section and shall notify the applicant of the assessor’s determination. [Amended by 1953 c.709 §2; 1955 c.207 §1; 1957 c.274 §1; 1971 c.258 §1; 1971 c.759 §1; 1991 c.459 §49; 1997 c.113 §4; 1997 c.541 §109; 2003 c.37 §1]

 

      307.215 [1981 c.533 §21; renumbered 305.823 in 2001]

 

      307.220 [Amended by 1997 c.325 §20; repealed by 2013 c.193 §1]

 

      307.230 [Amended by 1997 c.325 §21; repealed by 2013 c.193 §1]

 

      307.240 [Amended by 1971 c.258 §2; 1997 c.113 §5; repealed by 2013 c.193 §1]

 

(Nonprofit Corporation Housing for Elderly Persons)

 

      307.241 Policy. The purpose of ORS 307.241 to 307.248 is to assist private nonprofit corporations to provide permanent housing, recreational and social facilities, and care to elderly persons. The Legislative Assembly finds that the housing and related facilities furnished by private nonprofit corporations provide inherent benefits that justify the funded property tax exemption provided by ORS 307.241 to 307.248. [1977 c.411 §1; 2005 c.94 §32]

 

      307.242 Property of nonprofit corporation providing housing to elderly persons; necessity of filing claim to secure exemption. (1) Upon compliance with this section, whenever a corporation, as described in ORS 307.375, is receiving or has received any federal or state financial assistance, such as a loan, mortgage insurance, aid to construction, rent supplement or otherwise, under the following federal or state laws, the property owned or being purchased by that corporation in actual use for corporate purposes or in the process of construction for use for corporate purposes on January 1 of the assessment year is exempt from ad valorem taxation:

      (a) Section 202 of Title II of the National Housing Act (12 U.S.C. 1701q).

      (b) Section 236 of the National Housing Act (12 U.S.C. 1715z-1).

      (c) Section 231 of Title II of the National Housing Act (12 U.S.C. 1715v).

      (d) Section 101 of Title I of the National Housing Act (12 U.S.C. 1701s) or section 8 of Title II of the National Housing Act (42 U.S.C. 1437f), providing rent supplement or housing assistance payments.

      (e) ORS 456.515 to 456.725 and 458.505 to 458.515.

      (2) A corporation claiming the exemption under subsection (1) of this section shall file with the county assessor, on forms prescribed by the Department of Revenue and supplied by the assessor, a written claim therefor in duplicate on or before April 1 of each assessment year for which the exemption is claimed. If the claim for any year is not filed within the time specified, the exemption may not be allowed on the assessment roll for that year. In addition to any other matters prescribed by the Department of Revenue to be contained in or accompany the claim, the claim shall:

      (a) Declare or be accompanied by a declaration that the corporation meets the requirements of ORS 307.375 and that the property meets the requirements of ORS 307.243 (1);

      (b) Describe or be accompanied by a description of the federal financial assistance the corporation is receiving or has received;

      (c) Contain or be accompanied by a statement showing in detail the sources and amounts of all income received by the corporation and the basis for rental amounts charged for occupancy of the facilities; and

      (d) Be signed by the taxpayer subject to the penalties for false swearing.

      (3) Notwithstanding subsection (2) of this section:

      (a) If the property qualifies for exemption on or after March 1 and before July 1, the claim may be filed within 30 days after the date of qualification.

      (b) A statement may be filed under this section at any time prior to September 15 of the assessment year for which exemption is first desired. However, any statement filed after the time for filing the statement specified in subsection (2) of this section, unless filed under paragraph (a) of this subsection, must be accompanied by a late filing fee of the greater of $200 or one-tenth of one percent of the real market value of the property to which the statement pertains, as determined as of January 1 of the assessment year by the assessor for this purpose. If the statement is not accompanied by the late filing fee or if the late filing fee is not otherwise paid, no exemption shall be allowed for the year based upon a statement filed pursuant to this subsection. A statement may be filed under this section notwithstanding that there are no grounds for hardship as required for late filing under ORS 307.475. The value of the property used to determine the late filing fee under this section is appealable in the same manner as other acts of the county assessor. Any filing fee collected under this section shall be deposited to the county general fund to be made available for county general governmental expenses.

      (4) The assessor shall act upon the claim and shall approve or reject it, noting the action of the assessor upon both the original and the duplicate copies. The duplicate copy therefor shall be returned to the claimant.

      (5) The Department of Revenue shall furnish to a county assessor, upon the request of the county assessor, a statement certifying the qualification or nonqualification of a corporation under ORS 307.375 and this section based upon the corporation’s claim under this section.

      (6) Residents of a facility of a corporation exempt from taxation under this section are not entitled to the tax benefits of ORS 307.370 to 307.385. [1977 c.411 §2; 1987 c.372 §1; 1987 c.756 §18; 1989 c.803 §13; 1991 c.459 §50; 1995 c.300 §2; 1997 c.170 §21; 1997 c.541 §110; 1999 c.579 §2; 2001 c.114 §14; 2001 c.753 §22; 2003 c.46 §12]

 

      307.243 Property to which exemption applies. (1)(a) Except as provided under paragraph (b) of this subsection, the exemption allowed by ORS 307.242 shall apply only to property, consisting of land and improvements, where the process of construction of the improvements on the land is commenced after January 1, 1977, or to property acquired after January 1, 1977.

      (b) The exemption allowed by ORS 307.242 (1)(e) shall apply only to property, consisting of land and improvements, meeting the requirements of ORS 307.241 to 307.248 (including paragraph (a) of this subsection) that on January 1, 1990, is actually being occupied and used, wholly or partially, to furnish permanent residential, recreational and social facilities primarily for elderly persons. Construction, reconstruction, renovation, maintenance, repair or other improvement (including addition of square footage to the existing buildings and structures and the construction or addition of buildings and structures within the initial land area) made to property that is in actual use on January 1, 1990, wholly or partially, to furnish permanent residential, recreational and social facilities primarily for elderly persons shall not disqualify the property for exemption under ORS 307.242 if, during the process of improvement, the property continues to be in actual use, in whole or in part, to furnish permanent residential, recreational and social facilities primarily for elderly persons. The property, as improved, may qualify for exemption. However, land area and the improvements thereon, contiguous or noncontiguous to the initial land area and improvements in use, in whole or in part, for the corporate purposes of the corporation on January 1, 1990, and first placed in service for the corporate purposes of the corporation after January 1, 1990, shall not qualify for exemption under ORS 307.242 (1)(e).

      (2) The exemption allowed by ORS 307.242 shall not apply to the property of any corporation that requires any payment in excess of one month’s rent, including a deposit or founder’s fee, to be paid, in addition to rent paid for occupancy of the facility, as a condition for occupancy.

      (3) The exemption allowed by ORS 307.242 shall not apply in any year in which delinquencies exist for taxes or other amounts charged against the property on the tax roll. [1977 c.411 §3; 1989 c.803 §14; 1993 c.19 §5]

 

      307.244 Funded exemption; computation of rate of levy by county assessor; payments to county by department; proration. (1) The assessor shall compute and list the value and compute and list the amount of tax which would have been charged on each property receiving an exemption under ORS 307.242 had the property not received an exemption. On or before October 15, the county assessor shall certify the total amounts so computed for each county to the Department of Revenue and to the county treasurer.

      (2) Not later than November 15, the Department of Revenue shall pay to each county treasurer the amount certified under subsection (1) of this section, less any discount provided in ORS 311.505. The payments made by the department under this section shall be made from the suspense account referred to in ORS 307.248. If necessary, the payments may be prorated as provided in ORS 307.248.

      (3) Payments made by the department to the various county treasurers under this section shall be distributed to the taxing units of the county in accordance with the schedule of percentages computed under ORS 311.390. [1977 c.411 §4; 1977 c.761 §6; 1985 c.761 §29; 1991 c.459 §51; 2001 c.753 §23]

 

      307.245 Denial of exemption for failure to reflect exemption by rent reduction. The funded property tax exemption granted under ORS 307.241 to 307.248 may not be granted in any year following a year for which the corporation has failed to satisfy the county assessor or the Department of Revenue that the exemption granted in the previous year has been reflected by a reduction in the amount of rent that would otherwise be paid for occupancy of the facility by its residents. [1977 c.411 §5; 2005 c.94 §33]

 

      307.248 Suspense account; fiscal year allocation; proration of payments. (1) Amounts necessary to make the payments authorized by ORS 307.244 shall be transferred to a suspense account established under ORS 293.445. Moneys in the suspense account are continuously appropriated to the Department of Revenue to carry out the purposes of ORS 307.241 to 307.248.

      (2) Of the total amount transferred to the suspense account referred to in subsection (1) of this section for the biennium, the department shall allocate a portion to each fiscal year. The allocation shall be the department’s best estimate of the most efficient use of the moneys in the suspense account so as to minimize any reductions in the payments required under ORS 307.244 for each fiscal year.

      (3) On or before November 1 of each fiscal year of each biennium, the department shall determine the amount of money needed to make the payments under ORS 307.244 for that fiscal year. If the sum of the obligations is greater than the amounts credited to the suspense account referred to in subsection (1) of this section and allocated to that fiscal year for those obligations under subsection (2) of this section, the payments required under ORS 307.244 shall be proportionally reduced so that the state does not accrue a debt in excess of the amount credited. A claim for payment may not accrue to a county under ORS 307.244 in excess of the amount determined under this subsection.

      (4) If the amount allocated to the first fiscal year of a biennium under subsection (2) of this section exceeds the amount of actual payments made under ORS 307.244, the excess amount shall be available for payments under ORS 307.244 in the second fiscal year of the biennium. [Formerly 310.692]

 

(Veterans and Their Surviving Spouses)

 

      307.250 Property of veterans or surviving spouses. (1) As used in this section and ORS 307.260, 307.262 and 307.270, “veteran” has the meaning given that term in ORS 408.225.

      (2) Upon compliance with ORS 307.260, there shall be exempt from taxation not to exceed $15,000 of the assessed value of the homestead or personal property of any of the following residents of this state other than those described in subsection (3) of this section:

      (a) Any veteran who is officially certified by the United States Department of Veterans Affairs or any branch of the Armed Forces of the United States as having disabilities of 40 percent or more.

      (b) Any veteran having served with the United States Armed Forces who, as certified by one duly licensed physician or naturopathic physician, is rated as having disabilities of 40 percent or more. However, a veteran shall be entitled to the exemption granted under this paragraph only if the veteran during the calendar year immediately preceding the assessment year for which the exemption is claimed had total gross income, including pensions, disability compensation or retirement pay, or any combination of such payments from the United States Government on account of such service, of not more than 185 percent of federal poverty guidelines.

      (c) The surviving spouse remaining unmarried of a veteran, but the exemption shall apply only to the period preceding the date of the first remarriage of the surviving spouse.

      (3) Upon compliance with ORS 307.260, there shall be exempt from taxation not to exceed $18,000 of the assessed value of the homestead or personal property of any of the following residents of this state:

      (a) Any veteran who is officially certified by the United States Department of Veterans Affairs or any branch of the Armed Forces of the United States as having service-connected disabilities of 40 percent or more.

      (b) The surviving spouse remaining unmarried of a veteran, if the veteran died as a result of service-connected injury or illness or if the veteran received at least one year of the maximum exemption from taxation allowed under paragraph (a) of this subsection after 1981 for a veteran certified as having service-connected disabilities of 40 percent or more.

      (4) The amount of the exemption allowed under subsection (2) or (3) of this section shall equal 103 percent of the amount of the exemption for the prior tax year. [Amended by 1953 c.63 §3; 1955 c.248 §1; 1961 c.410 §5; 1969 c.605 §55; 1971 c.338 §1; 1973 c.402 §7; 1981 c.530 §3; 1981 c.682 §1; 1982 s.s.1 c.33 §2; 1991 c.67 §77; 1991 c.459 §52; 1995 c.610 §2; 1997 c.541 §111; 1999 c.221 §1; 2005 c.520 §1; 2009 c.41 §1; 2017 c.356 §26]

 

      307.260 Claiming exemption; alternative procedure for surviving spouse. (1)(a) Each veteran or surviving spouse qualifying for the exemption under ORS 307.250 shall file with the county assessor, on forms supplied by the assessor, a claim therefor in writing on or before April 1 of the assessment year for which the exemption is claimed, except that when the property designated is acquired after March 1 but prior to July 1 the claim shall be filed within 30 days after the date of acquisition.

      (b) A claim need not be filed under this section in order to be allowed the exemption described in ORS 307.250 if:

      (A) The homestead or personal property of the veteran or surviving spouse was allowed the exemption under ORS 307.250 for the preceding tax year;

      (B) The individual claiming the exemption is a veteran described in ORS 307.250 (2)(a) or (3)(a) or a surviving spouse who meets the requirements of ORS 307.250 (2)(c) or (3)(b); and

      (C) As of the filing date for the current tax year, the ownership and use of the homestead or personal property and all other qualifying conditions for the homestead or personal property to be allowed the exemption remain unchanged.

      (c)(A) If the individual claiming the exemption is a veteran described in ORS 307.250 (2)(b), the claimant shall file a claim annually that satisfies the requirements of subsection (2) of this section on or before the date required in paragraph (a) of this subsection.

      (B) If the county assessor has not received a claim filed under this paragraph on or before April 1 of the current year, not later than April 10 of each year, the county assessor shall notify the veteran in the county who secured an exemption under ORS 307.250 (2)(b) in the preceding year but who did not make application therefor on or before April 1 of the current year. The county assessor may provide the notification on an unsealed postal card. A veteran so notified may secure the exemption, if still qualified, by making application therefor to the county assessor not later than May 1 of the current year, accompanied by a late-filing fee of $10, which shall be deposited in the general fund of the county for general governmental expenses. If the claim for any tax year is not filed within the time specified, the exemption may not be allowed on the assessment roll for that year.

      (2)(a) The claim shall set out the basis of the claim and designate the property to which the exemption may apply. Except as provided in subsection (3) of this section, claims for exemptions under ORS 307.250 (2)(a) and (3)(a) shall have affixed thereto the certificate last issued by United States Department of Veterans Affairs or the branch of the Armed Forces of the United States, as the case may be, but dated within three years prior to the date of the claim for exemption, certifying the rate of disability of the claimant.

      (b) Claims for exemption under ORS 307.250 (2)(b) shall, except as provided in subsection (3) of this section, have affixed thereto, in addition to the certificate last issued by a licensed physician or naturopathic physician and dated within one year prior to the date of the claim for exemption, certifying the rate of disability of the claimant, a statement by the claimant under oath or affirmation setting forth the total gross income received by the claimant from all sources during the last calendar year.

      (c) There also shall be affixed to each claim the affidavit or affirmation of the claimant that the statements contained therein are true.

      (3) The provisions of subsection (2) of this section that require a veteran to affix to the claim certificates of the United States Department of Veterans Affairs, a branch of the Armed Forces of the United States or a licensed physician or naturopathic physician do not apply to a veteran who has filed the required certificate after attaining the age of 65 years or to a veteran who has filed, on or after September 27, 1987, a certificate certifying a disability rating that, under federal law, is permanent and cannot be changed.

      (4)(a) Notwithstanding subsection (1) of this section, a surviving spouse may file a claim for the exemption under ORS 307.250 at any time during the tax year if:

      (A) The veteran died during the previous tax year; or

      (B) The property designated as the homestead was acquired after March 1 but prior to July 1 of the assessment year and the veteran died within 30 days of the date the property was acquired.

      (b) The claim shall be allowed by the county assessor if the surviving spouse meets all of the qualifications for an exemption under ORS 307.250 other than the timely filing of a claim under subsection (1) of this section.

      (c) If taxes on the exempt value have been paid, the taxes shall be refunded in the manner prescribed in paragraph (d) of this subsection. If taxes on the exempt value have not been paid, the taxes and any interest thereon shall be abated.

      (d) The tax collector shall notify the governing body of the county of any refund required under this section and the governing body shall cause a refund of the taxes and any interest paid to be made 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. [Amended by 1961 c.235 §1; 1969 c.562 §1; 1979 c.689 §7; 1981 c.530 §4; 1981 c.682 §2; 1982 s.s.1 c.33 §3; 1987 c.363 §1; 1991 c.67 §78; 1991 c.459 §53; 1995 c.610 §3; 1997 c.541 §113; 2001 c.351 §1; 2003 c.169 §12; 2007 c.615 §1; 2009 c.41 §2; 2017 c.356 §27]

 

      307.262 Tax years for which exemption may be claimed upon receipt of federal certification of disability; procedure; refund. (1) Notwithstanding ORS 307.260, if a veteran receives notice of certification from the United States Department of Veterans Affairs or any branch of the Armed Forces of the United States that the veteran has disabilities of 40 percent or more as of a date set forth in the certification, the veteran may obtain the exemption set forth in ORS 307.250 for each tax year following the date of certified disability.

      (2) A veteran seeking to obtain an exemption under ORS 307.250 pursuant to this section must file a claim for exemption with the county assessor within six months of the date the federal government agency notifies the veteran of the certified disability.

      (3) Notwithstanding subsection (1) of this section, a veteran may not receive an exemption under ORS 307.250 for a tax year that is more than three tax years prior to the tax year in which a claim is filed under this section.

      (4) If the county assessor determines that a veteran who has filed a claim under this section meets the requirements of ORS 307.250 for a tax year prior to the current tax year, property taxes collected on the exempt amount for the prior tax year, together with interest at the rate set forth in ORS 311.812, shall be refunded to the veteran. Refunds shall be made from the refund reserve account established under ORS 311.807. [2001 c.199 §2; 2009 c.41 §3]

 

      307.270 Property to which exemption of ORS 307.250 applies. (1) The exemption under ORS 307.250 applies to property a veteran or surviving spouse owns or has in possession under a recorded contract of purchase. The exemption first applies to the homestead of the veteran or surviving spouse and then to the personal property of the veteran or surviving spouse. Property of the spouse of the veteran is deemed the homestead of the veteran if the veteran and the spouse of the veteran are living together and occupying the property as their homestead. When a veteran or surviving spouse applies for exemption on properties in two or more counties, the total amount of the exemption allowed in all counties may not exceed the maximum amount of exemption under ORS 307.250.

      (2) For each qualified veteran or surviving spouse only one valid and allowable claim for an exemption on a homestead shall be permitted in any one assessment year. [Amended by 1955 c.248 §2; 1977 c.113 §1; 1981 c.530 §5; 1981 c.682 §3; 1982 s.s.1 c.33 §4; 1991 c.459 §54; 1995 c.610 §4; 1997 c.541 §115; 1999 c.221 §2; 2007 c.615 §3; 2009 c.41 §4; 2017 c.315 §7]

 

      307.280 Effect of exemption under ORS 307.250 on prior tax levied. Allowance of the exemption, under ORS 307.250, in any year shall not have the effect of canceling or permitting the cancellation of any tax levied in any prior year.

 

      307.283 Homesteads of unmarried surviving spouses of veterans of Civil War or Spanish War. The surviving spouse remaining unmarried of any honorably discharged veteran of the Civil War or the Spanish War, who is pensioned and actually resides in a homestead, is entitled to an exemption of $2,000 of the taxable value of such homestead, in addition to the exemption from taxes on real property otherwise provided by law for such surviving spouse. [Formerly 307.300]

 

      307.285 [1981 c.530 §2; 1982 s.s.1 c.33 §5; repealed by 1991 c.459 §81]

 

(Active Duty Military Service)

 

      307.286 Homestead exemption. (1) Upon compliance with ORS 307.289, there shall be exempt from taxation up to $60,000 of the assessed value of the homestead of any resident of this state who is:

      (a) Serving in the Oregon National Guard, military reserve forces or organized militia of any other state or territory of the United States; and

      (b) Performing service:

      (A) Under Title 10 of the United States Code or pursuant to a deployment made under the authority of the Emergency Management Assistance Compact; and

      (B) For more than 178 consecutive days, if at least one of the days falls within the tax year for which the exemption is claimed.

      (2) For each tax year beginning on or after July 1, 2006, the amount of the exemption allowed under subsection (1) of this section shall equal 103 percent of the amount of the exemption for the prior tax year.

      (3) As used in this section, “homestead” means residential property that is owned by a person described in subsection (1) of this section and that, but for military service, would be occupied as a residence by the person. [2005 c.520 §3; 2007 c.604 §1]

 

      307.289 Claiming homestead exemption; alternative procedures following death of person qualifying for exemption. (1) Each person qualifying for the exemption under ORS 307.286 shall file with the county assessor, on forms supplied by the assessor, a claim in writing on or before August 1 following the end of the tax year for which the exemption is claimed.

      (2) The claim shall set out the basis of the claim and designate the property to which the exemption may apply. Claims for exemptions under ORS 307.286 shall include a statement by the claimant under oath or affirmation setting forth the basis for eligibility for the exemption. The claim shall also include an affidavit or affirmation of the claimant that the statements contained therein are true.

      (3) Notwithstanding subsection (1) of this section and ORS 307.286 (1), an individual described in ORS 307.286 (1) who applies prior to the date on which service begins shall be allowed the exemption if the claimant has written orders that require the performance of service for at least one day during the tax year for which the exemption is being claimed and the claimant is otherwise eligible for the exemption.

      (4)(a) Notwithstanding subsection (1) of this section and ORS 307.286 (1), an individual who is lawfully occupying the homestead of the qualifying person may file a claim for the exemption under ORS 307.286 by the time prescribed in subsection (1) of this section if the qualifying person died while performing the service described in ORS 307.286 (1)(b)(A) during the current or prior tax year.

      (b) The claim shall be allowed by the county assessor if the qualifying person met all of the qualifications for an exemption under ORS 307.286 prior to death, other than the number of consecutive days of service.

      (5) If taxes on the exempt value have been paid, the taxes shall be refunded in the manner prescribed in subsection (6) of this section. If taxes on the exempt value have not been paid, the taxes and any interest thereon shall be abated.

      (6) The tax collector shall notify the governing body of the county of any refund required under this section and the governing body shall cause a refund of the taxes and any interest paid to be made 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. [2005 c.520 §4; 2007 c.604 §2]

 

      307.290 [Repealed by 1977 c.113 §2]

 

(Surviving Spouses of Certain Public Safety Officers)

 

      307.295 Property of surviving spouses of certain public safety officers killed in line of duty; application. (1) As used in this section:

      (a) “Fire service professional,” “police officer” and “reserve officer” have the meanings given those terms in ORS 181A.355.

      (b) “Homestead” means the owner-occupied principal dwelling, either real or personal property, owned by a surviving spouse and the tax lot upon which the dwelling is located.

      (c) “Surviving spouse” means the spouse of a fire service professional, police officer or reserve officer killed in the line of duty who has not remarried after the death of the fire service professional, police officer or reserve officer.

      (2)(a) A county may provide, by ordinance or resolution, that up to $250,000 of assessed value of each homestead located in the county shall be exempt from ad valorem property taxes imposed by all taxing jurisdictions on the homestead.

      (b) An exemption granted under this section applies solely to the period preceding the date of the first remarriage of the surviving spouse after the death of the fire service professional, police officer or reserve officer and ends on the date of remarriage.

      (3)(a) A surviving spouse seeking an exemption granted pursuant to this section must file an application with the county assessor on or before April 1 preceding the property tax year for which the exemption is sought.

      (b) If the homestead designated in the claim for exemption is acquired after March 1 and before July 1, the claim for that year must be filed within 30 days after the date of acquisition.

      (c) Notwithstanding paragraphs (a) and (b) of this subsection, a claim may be filed for the current tax year:

      (A) On or before December 31 of the tax year, if the claim is accompanied by a late filing fee in an amount equal to the greater of $200 or one-tenth of one percent of the real market value as of the most recent assessment date of the homestead to which the claim pertains.

      (B) On or before April 1 of the tax year, if the claim is accompanied by a late filing fee of $200 and the claimant is a first-time filer, as defined in ORS 307.162, or demonstrates good and sufficient cause, as defined in ORS 307.162, for failing to file a timely claim.

      (4)(a) An application for an exemption granted pursuant to this section must:

      (A) Be made on a form prescribed by the Department of Revenue;

      (B) Designate the property for which the exemption is claimed and be accompanied by documentation showing the surviving spouse’s ownership of the homestead;

      (C) Include a statement setting forth the basis for eligibility for the exemption;

      (D) Be accompanied by a document that:

      (i) Is issued by the fire service agency or law enforcement unit that employed or utilized the fire service professional, police officer or reserve officer at the time of death; and

      (ii) Certifies that the fire service professional, police officer or reserve officer was killed in the line of duty; and

      (E) Include a written statement signed by the surviving spouse affirming that all information contained in the application is true.

      (b) A timely application shall be approved if all requirements for the exemption are met. [2016 c.56 §1]

 

      Note: 307.295 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 307 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      307.300 [Amended by 1967 c.293 §31; 1981 c.530 §6; renumbered 307.283 in 2005]

 

      307.310 [Renumbered 307.035]

 

(Deciduous Plants; Agricultural Products)

 

      307.315 Nursery stock. Nursery stock, as defined in ORS 571.005 (5), whether bare root, or whether balled or heeled or growing in containers in or upon the ground, is exempt from ad valorem taxation in the hands of the grower or wholesalers. [1971 c.285 §2; 1979 c.692 §1]

 

      307.320 Deciduous trees, shrubs, plants, crops, cultured Christmas trees or hardwood on agricultural land. The value of any deciduous trees, shrubs, plants or crops, whether annual or perennial, and any cultured Christmas trees, as defined in ORS 215.203, or timber described under ORS 321.267 (3) or 321.824 (3), growing upon agricultural land devoted to agricultural purposes, shall be exempt from assessment and taxation and shall not be deemed real property under the provisions of ORS 307.010. [1957 c.615 §1; 1983 c.657 §4; 1985 c.565 §53; 1989 c.887 §6; 1991 c.714 §5; 2003 c.454 §118; 2003 c.621 §79a]

 

      307.325 Agricultural products in possession of farmer. (1) The items of personal property described in subsection (2) of this section which, on the assessment date, are owned and in the actual or constructive possession of the farmer who produced them or who has procured them for use or consumption in the farm operations of the farmer, shall be exempt from taxation.

      (2) The items referred to in subsection (1) of this section are as follows:

      (a) Grain.

      (b) Seed.

      (c) Hay.

      (d) Fruit.

      (e) Vegetables.

      (f) Nuts.

      (g) Hops.

      (h) Wool.

      (i) Fish.

      (j) Poultry.

      (k) Butter, cheese and evaporated, condensed or concentrated milk.

      (L) Mint.

      (m) Bivalve mollusks.

      (n) Livestock.

      (o) Fur-bearing animals.

      (p) Bees.

      (q) Vermiculture supplies and products. [1965 c.429 §2; 1979 c.692 §2; 1987 c.691 §1; 2001 c.753 §11; 2005 c.657 §5]

 

(Commercial Facilities Under Construction)

 

      307.330 Commercial facilities under construction. (1) Except for property centrally assessed by the Department of Revenue, each new building or structure or addition to an existing building or structure is exempt from taxation for each assessment year of not more than two consecutive years if the building, structure or addition:

      (a) Is in the process of construction on January 1;

      (b) Is not in use or occupancy on January 1;

      (c) Has not been in use or occupancy at any time prior to such January 1 date;

      (d) Is being constructed in furtherance of the production of income; and

      (e) Is, in the case of nonmanufacturing facilities, to be first used or occupied not less than one year from the time construction commences. Construction shall not be deemed to have commenced until after demolition, if any, is completed.

      (2) If the property otherwise qualifies for exemption under this section and ORS 307.340, the exemption shall likewise apply to any machinery or equipment located at the construction site which is or will be installed in or affixed to such building, structure or addition. [1959 c.246 §1; 1961 c.552 §1; 1971 c.284 §1; 1991 c.459 §55; 1997 c.541 §117]

 

      307.340 Filing proof for cancellation of assessment; abatement. (1) The property described in ORS 307.330 shall be listed for ad valorem property taxation, but the assessor shall cancel the assessment for any assessment year upon receipt of sufficient documentary proof that the property meets all of the conditions contained in ORS 307.330. Such proof shall be filed with the assessor on or before April 1 of such year. No cancellation of assessment shall be made unless the required proof is filed within the time prescribed by this section. Any cancellation of assessment will be abated as to any nonmanufacturing property that is used or occupied within one year from the time construction commences and the assessor shall proceed to correct the assessment and tax roll or rolls from which the property was omitted from taxation, in the manner provided in ORS 311.216 to 311.232.

      (2) If the proof required by subsection (1) of this section relates to state-appraised industrial property as defined in ORS 306.126 and is filed with the Department of Revenue within the time required by subsection (1) of this section, the proof shall be deemed timely filed with the assessor. [1959 c.246 §2; 1967 c.51 §2; 1971 c.284 §2; 1991 c.459 §56; 1993 c.270 §77; 1997 c.541 §118; 2015 c.36 §8]

 

(Temporary provisions relating to exemption or deferral for certain industrial improvements newly constructed or installed in rural area)

 

      Note: Sections 1 to 7, chapter 112, Oregon Laws 2016, provide:

      Sec. 1. (1) As used in sections 1 to 5 of this 2016 Act:

      (a) “Eligible location” means land and improvements that are located in a rural area.

      (b) “Eligible property” means improvements classified as industrial under rules established by the Department of Revenue pursuant to ORS 308.215 (1)(a)(C), and associated personal property, that:

      (A) Are newly constructed or installed at an eligible location; and

      (B) Have a cost of initial investment to the purchaser of at least $1 million and not more than $25 million.

      (c) “Qualified property” means eligible property for which an application has been approved under section 2 of this 2016 Act.

      (d) “Rural area” means an area located entirely outside of the urban growth boundary of a city with a population of 40,000 or more, as the urban growth boundary is acknowledged on the date on which an applicant submits an application for eligible property under section 2 of this 2016 Act.

      (2)(a) The governing body of a city or county may adopt an ordinance or resolution granting a property tax exemption for eligible property located within the boundaries of the city or county, respectively.

      (b) The terms of the exemption must conform to the provisions of sections 1 to 5 of this 2016 Act. In addition, an ordinance or resolution adopted under this subsection shall establish standards for the imposition of conditions described in section 2 (4) of this 2016 Act.

      (3)(a) Qualified property must be:

      (A) Owned or leased by the applicant filing the application under section 2 of this 2016 Act.

      (B) Used through the final year of exemption for the purpose, and at the location, identified in the application filed under section 2 of this 2016 Act.

      (b) The exemption:

      (A) May be granted to eligible property only if the first assessment year to which the application filed under section 2 of this 2016 Act relates is the first assessment year that begins after the eligible property was first placed in service; and

      (B) Shall be granted only for qualified property that was first placed in service after the ordinance or resolution was adopted.

      (4)(a) The exemption shall be granted as a 100 percent exemption of the real market value of the qualified property for any three out of five consecutive property tax years.

      (b) Notwithstanding paragraph (a) of this subsection, the city or county may specify in the ordinance or resolution:

      (A) A minimum cost of initial investment greater than $1 million.

      (B) Any number of years not greater than five for which the exemption shall be granted.

      (C) The percentage of the real market value of the qualified property granted exemption for each year.

      (D) Different schedules in each property tax year for the years and percentages described in subparagraphs (B) and (C) of this paragraph, depending on the minimum costs of initial investment of the qualified property.

      (5)(a) An ordinance or resolution adopted pursuant to this section may not take effect unless, upon request of the city or county that adopted the ordinance or resolution, the rates of taxation of the taxing districts whose governing bodies agree to grant the exemption, when combined with the rate of taxation of the city or county, equal 75 percent or more of the total combined rate of taxation on the qualified property.

      (b) Upon the taking effect of the ordinance or resolution, the exemption shall apply to all property tax levies of all taxing districts in which qualified property is located.

      (c) The decisions of the taxing districts under paragraph (a) of this subsection may not be changed but are not binding with respect to an ordinance or resolution adopted pursuant to subsection (6) of this section or a new ordinance or resolution adopted pursuant to subsection (2) of this section.

      (d) All qualified property shall be granted exemption under this section, or deferral under section 3 of this 2016 Act, on the same terms provided in the ordinance or resolution adopted or amended by the city or county and in effect on the date the application is submitted under section 2 of this 2016 Act.

      (6)(a) A city or county may adopt at any time an ordinance or resolution amending the terms of an exemption granted pursuant to this section or a deferral granted pursuant to section 3 of this 2016 Act, subject to approval of the taxing districts under subsection (5)(a) of this section, or terminating the exemption or deferral.

      (b) Notwithstanding an ordinance or resolution adopted under paragraph (a) of this subsection, qualified property that has been granted an exemption pursuant to this section, or a deferral pursuant to section 3 of this 2016 Act, shall continue to receive the exemption or deferral under the terms in effect at the time the exemption or deferral was first granted.

      (7) If a city or county proposes an ordinance or resolution providing for an exemption on terms other than the terms provided in subsection (4)(a) of this section, the ordinance or resolution may not take effect unless the governing body of the city or county, as applicable, receives testimony from the county assessor at a public hearing on the question regarding the cost and administration of the proposed terms of the exemption.

      (8)(a) Qualified property granted an exemption pursuant to this section, or a deferral pursuant to section 3 of this 2016 Act, is not eligible for any other property tax exemption or special assessment.

      (b) Otherwise eligible property that has received another property tax exemption or special assessment is not eligible for the exemption or deferral.

      (c) Paragraphs (a) and (b) of this subsection do not apply to the exemption granted under ORS 307.330. [2016 c.112 §1]

      Sec. 2. (1)(a) The governing body of a city or county that adopts an ordinance or resolution pursuant to section 1 of this 2016 Act shall prescribe exemption application forms and the information required to be included in the application.

      (b) If eligible property is located in a city and county, each of which has adopted an ordinance or resolution under section 1 of this 2016 Act, the applicant shall elect the exemption the applicant wishes to receive for the eligible property by submitting the application to the city or county, as applicable.

      (c) If the initial cost of investment of the eligible property exceeds $25 million, the applicant shall specify in the application the items of eligible property having a total cost of initial investment of $25 million for which the exemption is sought.

      (d) An application must be accompanied by an application fee fixed by the city or county, as applicable, in an amount determined to compensate the city or county for the actual costs of processing the application.

      (2)(a) An application must be submitted for review to the city or county, as applicable, on or before March 1 preceding the property tax year to which the application relates.

      (b) Notwithstanding paragraph (a) of this subsection, an application may be filed under this section for the current property tax year:

      (A) On or before December 31 of the property tax year, if the application is accompanied by a late filing fee of the greater of $200 or one-tenth of one percent of the real market value as of the most recent assessment date of the eligible property to which the application relates.

      (B) On or before April 1 of the property tax year, if the application is accompanied by a late filing fee of $200 and the applicant demonstrates good and sufficient cause, as defined in ORS 307.162, for failing to file a timely application or is a first-time filer, as defined in ORS 307.162.

      (c)(A) An application may be filed as provided in paragraph (b) of this subsection notwithstanding that there are no grounds for hardship as required for late filing under ORS 307.475.

      (B) A late filing fee collected under paragraph (b) of this subsection must be deposited in the general fund of the city or county, as applicable.

      (d) If the ownership of all property included in the application for a prior year remains unchanged, a new application is not required.

      (3)(a) Upon receipt of an application submitted pursuant to subsection (2) of this section, the city or county, as applicable, shall determine as soon as practicable:

      (A) Whether the property to which the application relates is eligible property located within the boundaries of the city or county;

      (B) The cost of initial investment of the eligible property to the purchaser; and

      (C) The date on which the eligible property was first placed in service.

      (b) If any determination made pursuant to paragraph (a) of this subsection renders the property ineligible for the exemption, the application shall be rejected.

      (4) If the property is eligible for the exemption under subsection (3) of this section, the application meets the requirements of the ordinance or resolution of the city or county and the governing body of the city or county and the applicant have agreed to conditions under section 5 of this 2016 Act, the governing body shall adopt a resolution:

      (a) Approving the application;

      (b) Stating the conditions; and

      (c) Notifying the assessor of the county in which the qualified property is located and, if the qualified property is state-appraised industrial property, the Department of Revenue of the approval and including with the notification such information as is necessary for the assessor and department to perform their respective duties with respect to the qualified property.

      (5) Provided all other requirements of ORS 305.275 are met, the cost of initial investment of the qualified property as determined under this section may be appealed pursuant to ORS 305.275 even if, for purposes of ORS 305.275 (1)(a), the governing body of the city makes the determination of the cost. The rejection of an application on any basis other than the cost of initial investment may not be appealed.

      (6) For each property tax year that qualified property is granted exemption pursuant to this section, the assessor of the county in which the qualified property is located:

      (a) Shall enter on the assessment and tax roll the notation “potential additional tax liability”; and

      (b) May impose and collect a fee in an amount determined by the assessor to compensate the assessor for the actual costs of administering the exemption for the qualified property. [2016 c.112 §2]

      Sec. 3. (1)(a) The governing body of a city or county that adopts an ordinance or resolution pursuant to section 1 of this 2016 Act may, at the time of adoption, elect to grant the amount of the exemption as computed under section 1 (4) of this 2016 Act as a deferral of property taxes rather than as an exemption. Except as otherwise provided in this section, all provisions of sections 1, 2 and 4 of this 2016 Act apply to a property tax deferral elected in accordance with this section. The election to defer rather than exempt property taxes may be changed only in the manner provided by section 1 (6) of this 2016 Act.

      (b) An ordinance or resolution that grants a deferral pursuant to paragraph (a) of this subsection may not take effect unless the governing body of the city or county, as applicable, receives testimony from the county assessor at a public hearing on the question regarding the cost and administration of the proposed terms of the deferral.

      (2)(a) For each property tax year that qualified property is granted deferral pursuant to this section, and until the taxes have been added to the assessment and tax roll under subsection (3) of this section, the assessor of the county in which the qualified property is located:

      (A) Shall enter on the assessment and tax roll the notation “deferred additional tax liability”; and

      (B) May impose and collect a fee in an amount determined by the assessor to compensate the assessor for the actual costs of administering the deferral for the qualified property.

      (b) Interest shall not accrue on taxes deferred pursuant to this section during the period of deferral.

      (3)(a) Taxes deferred pursuant to this section shall be added to the taxes extended against the qualified property on the assessment and tax roll as follows:

      (A) The deferred additional taxes for the first property tax year for which deferral was granted shall be added to the tax extended against the qualified property on the assessment and tax roll for the first property tax year that begins after the period of deferral ends; and

      (B) The deferred additional taxes for the second, third, fourth and fifth property tax years, as applicable, shall be added to the tax extended against the qualified property on the assessment and tax roll for the second, third, fourth and fifth property tax years, respectively, that begin after the period of deferral ends.

      (b) Deferred additional taxes collected pursuant to this section shall be deemed to be assessed and imposed in the property tax year for which the taxes were imposed and deferred.

      (c) Deferred additional taxes added to the tax extended against the qualified property may be paid to the tax collector prior to the completion of the assessment and tax roll to which the tax is to be added, pursuant to ORS 311.370. The tax collector may apply prepayments of deferred additional taxes under this paragraph for one or more future property tax years to the taxes imposed on the next following assessment and tax roll.

      (4) If any qualified property granted deferral under this section is sold or otherwise transferred or is moved out of the county, the lien for the deferred additional taxes added under this section shall attach and the deferred additional taxes are due and payable as of the day before the sale or transfer or, if the qualified property is removed from the county, five days before the removal, whichever is earlier. [2016 c.112 §3]

      Sec. 4. (1) The assessor of the county in which qualified property is located shall immediately disqualify the property for an exemption granted pursuant to section 1 of this 2016 Act, or deferral granted pursuant to section 3 of this 2016 Act, and the disqualified property shall be assessed and taxed in the same manner as other property is assessed and taxed, if, in any year through the final assessment year of the exemption or deferral:

      (a) The qualified property is not used for the purpose, or at the location, identified in the application approved under section 2 of this 2016 Act; or

      (b) The applicant fails to comply with the conditions established and agreed to under section 5 of this 2016 Act.

      (2)(a) If the disqualified property was granted an exemption, additional taxes shall be assessed against the property for the first property tax year following the disqualification in an amount equal to the difference between the taxes assessed against the property and the taxes that would have been assessed against the property without the exemption, for the number of years that the exemption was granted.

      (b) If the disqualified property was granted a deferral, deferred additional taxes shall be assessed against the property for the first property tax year following the disqualification in an amount equal to the deferred taxes for all years for which the deferral was granted. [2016 c.112 §4]

      Sec. 5. (1) As used in this section:

      (a) “Annual average employment of the applicant” means the average employment of the applicant, calculated over the 12 months preceding the date of the application submitted under section 2 of this 2016 Act.

      (b) “Employment of the applicant” means the number of employees working for the applicant a majority of their time in eligible operations at locations in this state.

      (c) “First-source hiring agreement” means an agreement between an applicant and a publicly funded job training provider whereby the provider refers qualified candidates to the firm for new jobs and job openings in the firm.

      (2) An application for exemption may not be approved under section 2 of this 2016 Act unless the applicant and the governing body of the city or county have agreed to, and the applicant has complied with, the conditions of this section.

      (3) The applicant must agree to enter into a first-source hiring agreement with the governing body of the city or county for the period of the exemption.

      (4) No later than the date on which the application is submitted, the employment of the applicant may not be less than the greater of:

      (a) 110 percent of the annual average employment of the applicant; or

      (b) The annual average employment of the applicant plus one employee.

      (5)(a) The applicant or another firm under common control may not close or permanently curtail operations in another part of the state that is more than 30 miles from the eligible location. This subsection applies to the transfer of any of the applicant’s operations to an eligible location from another part of the state, if the closure or permanent curtailment in the other part of the state decreased the applicant’s employment in the other part of the state.

      (b) The applicant or another firm under common control may not close or permanently curtail operations in another part of the state that is 30 miles or less from the eligible location unless the employment of the applicant at the eligible location and at the other locations from which employees were transferred has been increased to not less than 110 percent of the annual average employment of the firm at the eligible location and the other locations from which the employees were transferred.

      (6) The governing body of the city or county may establish other reasonable conditions related to economic development with respect to the qualified property, including greater employment requirements under this section.

      (7) The conditions established under this subsection may be modified at the request of the applicant at any time before the beginning of the first property tax year for which the exemption is granted.

      (8) The governing body of the city or county shall establish procedures for monitoring and verifying the compliance of the applicant with the conditions imposed under this section and shall require the applicant to agree to the procedures as a condition for granting the exemption.

      (9) The conditions established under this subsection shall be set forth in the resolution adopted under section 2 (4) of this 2016 Act and shall remain in effect throughout the period for which the exemption is granted. [2016 c.112 §5]

      Sec. 6. (1) Sections 1 to 5 of this 2016 Act are repealed on January 2, 2024.

      (2) Notwithstanding the date specified in subsection (1) of this section, newly constructed or installed industrial improvements that are granted exemption or deferral under an ordinance or resolution adopted pursuant to section 1 of this 2016 Act shall continue to receive the exemption or deferral under the provisions of the ordinance or resolution. [2016 c.112 §6]

      Sec. 7. (1) As soon as practicable after December 1 of each year, a city or county that has granted a property tax exemption or deferral pursuant to sections 1 to 5 of this 2016 Act shall submit the following information from the current property tax year to the Department of Revenue:

      (a) The kind and value of the qualified property;

      (b) The name of the owner or lessee that submitted the application approved under section 2 of this 2016 Act;

      (c) The real market value of the qualified property;

      (d) The amount of ad valorem property taxes that were not imposed on the property because of the exemption or deferral;

      (e) The number of years and the percentage of real market value for which the exemption or deferral was granted; and

      (f) A copy of the employment and other conditions established for the property under section 2 (4) of this 2016 Act.

      (2) The department shall submit the information in a report to the Chief State Information Officer for posting on the Oregon transparency website under ORS 184.484 [renumbered 276A.256]. [2016 c.112 §7]

 

      307.345 [1965 c.615 §19; 1969 c.493 §78; repealed by 1971 c.747 §21]

 

      307.347 [1965 c.615 §16; repealed by 1971 c.747 §21]

 

      307.350 [1963 c.569 §3; 1963 s.s. c.4 §2; 1965 c.615 §22; 1969 c.578 §1; repealed by 1971 c.747 §21]

 

      307.355 [1963 c.569 §2; 1963 s.s. c.4 §1; repealed by 1965 c.615 §27]

 

      307.356 [1965 c.615 §17; repealed by 1971 c.747 §21]

 

      307.360 [1963 c.569 §4; 1965 c.615 §23; 1969 c.562 §2; repealed by 1971 c.747 §21]

 

      307.362 [1965 c.615 §18; repealed by 1971 c.747 §21]

 

      307.365 [1963 c.569 §5; repealed by 1971 c.747 §21]

 

      307.366 [1969 c.562 §3; repealed by 1971 c.747 §21]

 

(Nonprofit Homes for Elderly Persons)

 

      307.370 Property of nonprofit homes for elderly persons; limitation on lessee. (1) In aid of veterans tax exemptions, subject to the conditions prescribed in ORS 307.370 to 307.385 and 308.490, there shall be exempt from taxation the personal property and a portion of the real property computed as provided in ORS 307.380, owned or being purchased under a contract by a corporation described in ORS 307.375 which is actually and exclusively occupied and used in the operation of a nonprofit home for elderly persons.

      (2) For the purposes of subsection (1) of this section, a corporation which is described in ORS 307.375 which has only a leasehold interest in a nonprofit home for elderly persons operated by it is deemed to be a purchaser of the property if the operating lessee is specifically obligated by its contract of lease to pay the ad valorem taxes on the real and personal property used in the operation of the home. [1969 c.587 §2; 1974 c.54 §1; 1975 c.780 §17]

 

      307.375 Type of corporation to which exemption under ORS 307.370 applicable. The exemption provided in ORS 307.370 may be permitted only as to a corporation organized and operated only for the purpose of furnishing permanent residential, recreational and social facilities primarily for elderly persons, that:

      (1) Is organized not for profit, pursuant to ORS chapter 65 or any statute repealed by chapter 580, Oregon Laws 1959;

      (2) Receives not less than 95 percent of its operating gross income, excluding any investment income, solely from payments for living, medical, recreational and social services and facilities, paid by or on behalf of elderly persons using the facilities of such corporation;

      (3) Permits no part of its net earnings to inure to the benefit of any private stockholder or individual; and

      (4) Provides in its articles or other governing instrument that, upon dissolution, the assets remaining after satisfying all lawful debts and liabilities shall be distributed to one or more corporations exempt from taxation under this chapter as corporations organized and operated exclusively for religious, charitable, scientific, literary or educational purposes, or to the State of Oregon. [1969 c.587 §3]

 

      307.380 Claiming exemption under ORS 307.370. (1) Each corporation described in ORS 307.375, claiming the personal property tax exemption pursuant to ORS 307.370, shall file with the county assessor, on forms supplied by the assessor, a written claim therefor in duplicate on or before April 1 of each year in which the exemption is claimed, except that when the property designated is acquired after March 1 and before July 1, the claim for that year shall be filed within 30 days after the date of acquisition. If the claim for any year is not filed within the time specified, the exemption shall not be allowed on the assessment roll for that year. The claim shall be signed by the taxpayer subject to the penalties for false swearing.

      (2)(a) Each corporation annually shall aid residents, who could qualify for property tax exemptions pursuant to ORS 307.250 to 307.283, if the living unit of such elderly person were the homestead of the person and owned in fee simple, to prepare applications in duplicate for property tax exemptions on behalf of the corporation, for the benefit of the elderly person as provided by ORS 307.370 to 307.385 and 308.490. The duplicate forms shall be completed and signed by the resident-applicant and filed with the assessor on or before the date required by law.

      (b) The corporation shall determine the amount of assessed value that each resident of a nonprofit home who would have qualified for an exemption under ORS 307.250 to 307.283 would have had exempted if the living unit of such elderly person was the homestead of the person and owned in fee simple. The amount of the property tax exemption provided for in ORS 307.370 to 307.385 and 308.490 and attributable to the veteran or surviving spouse of the veteran shall be the lesser of:

      (A) The maximum amount of exemption that the veteran or surviving spouse of a veteran would have qualified for under ORS 307.250 or 307.283, whichever is applicable; or

      (B) The assessed value of the living unit of the veteran or the surviving spouse.

      (c) The assessor shall process each such application in the manner otherwise required under ORS 307.250 to 307.283, except for the requirement of owning or purchasing a homestead. The total of such exempt amounts in each facility, together with the exemption on personal property, shall constitute the exemption allowed the corporation.

      (3) The assessor shall act upon the claim and shall approve it or reject it, noting the action upon both the original and the duplicate copies. The duplicate copy thereupon shall be returned to the claimant.

      (4) The Department of Revenue shall furnish to a county assessor, upon request, a statement certifying the qualification or nonqualification of a corporation under ORS 307.375. [1969 c.587 §4; 1971 c.747 §15; 1975 c.780 §1; 1981 c.530 §7; 1981 c.682 §4; 1987 c.293 §65; 1987 c.756 §16; 1997 c.113 §7]

 

      307.385 Credit to resident’s account with share of tax exemption; denial of exemption if credit not given. Not later than December 15 of each year, a corporation that has received a real property exemption for the current year under ORS 307.370 shall credit the account of each resident of a facility whose living unit was taken into account in determining the real property exemption. The amount of the credit must equal the amount of real property taxes that would have been assessed and collected against the corporation for that portion of the assessed value of such living unit included in computing the corporation’s exemption. The county assessor shall furnish the corporation with the information necessary for the corporation to make the computation. Prior to the following February 1, the corporation shall satisfy the assessor that credit has been given each applicable resident as required by this section. If the corporation fails to satisfy the assessor that the applicable resident has received the credit, the assessor must deny the corporation any property tax exemption under ORS 307.370 to 307.385 or 308.490 in the next assessment year, beginning January 1. [1969 c.587 §6; 1975 c.780 §2; 1991 c.459 §57; 1997 c.541 §119; 2005 c.94 §34]

 

(Agricultural Equipment and Facilities)

 

      307.390 Mobile field incinerators. Mobile field incinerators owned by farmers or by groups of farmers that are exclusively used for sanitizing grass seed fields by means other than open field burning shall be exempt from taxation if they are purchased within five years after they are certified as a feasible alternative to open field burnings by the Department of Environmental Quality pursuant to ORS 468A.555 to 468A.620 and 468A.992. [1971 c.678 §2; 1977 c.650 §12]

 

      307.391 Field burning smoke management equipment. Radio communications equipment, meteorological equipment or other tangible personal property used in connection with the operation of the field burning smoke management program established under ORS 468A.555 to 468A.620 and 468A.992 is exempt from ad valorem property taxation. [2001 c.753 §18]

 

      307.394 Farm machinery and equipment; personal property used in farm operations; limitation. (1) The following tangible personal property is exempt from ad valorem property taxation:

      (a) Farm machinery and equipment used primarily in the preparation of land, planting, raising, cultivating, irrigating, harvesting or placing in storage of farm crops;

      (b) Farm machinery and equipment used primarily for the purpose of feeding, breeding, management and sale of, or the produce of, livestock, poultry, fur-bearing animals or bees or for dairying and the sale of dairy products;

      (c) Machinery and equipment used primarily to implement a remediation plan as defined in ORS 308A.053 for the period of time for which the remediation plan is certified; or

      (d) Farm machinery and equipment used primarily in any other agricultural or horticultural use or animal husbandry or any combination of these activities.

      (2)(a) Items of tangible personal property, including but not limited to tools, machinery and equipment that are used predominantly in the construction, reconstruction, maintenance, repair, support or operation of farm machinery, and equipment and other real or personal farm improvements that are used primarily in animal husbandry, agricultural or horticultural activities, or any combination of these activities, are exempt from ad valorem property taxation.

      (b) An item of tangible personal property described in paragraph (a) of this subsection is exempt from ad valorem property taxation only if the person that owns, possesses or controls the item also:

      (A) Owns, possesses or controls the farm machinery, equipment and other real and personal farm improvements for which the item is used; and

      (B) Carries on the animal husbandry, agricultural or horticultural activity, or combination of activities, in which the farm machinery, equipment or other real and personal farm improvements are used. [2001 c.753 §15; 2009 c.776 §8]

 

      307.395 [1971 c.141 §§1,2; 1983 c.740 §87; repealed by 1991 c.459 §81]

 

      307.397 Certain machinery and equipment used in agricultural, aquacultural or fresh shell egg industry operations. (1) The following items of real property machinery and equipment or tangible personal property are exempt from ad valorem property taxation:

      (a) Frost control systems used in agricultural or horticultural activities carried on by the farmer;

      (b) Trellises used for hops, beans or fruit or for other agricultural or horticultural purposes;

      (c) Hop harvesting equipment, including but not limited to hop pickers;

      (d) Oyster racks, trays, stakes and other in-water structures used to raise bivalve mollusks; or

      (e) Equipment used for the fresh shell egg industry that is directly related and reasonably necessary to produce, prepare, package and ship fresh shell eggs from the place of origin to market, whether bolted to the floor, wired or plumbed to interconnected equipment, including but not limited to grain bins, conveyors for transporting grain, grain grinding machinery, feed storage hoppers, cages, egg collection conveyors and equipment for washing, drying, candling, grading, packaging and shipping fresh shell eggs.

      (2) A real property building, structure or improvement is exempt from ad valorem property taxation if it:

      (a) Is used primarily to grow plants for agricultural or horticultural production;

      (b) Is covered with polyethylene, fiberglass, corrugated polycarbonate acrylic or any other transparent or translucent material designed primarily to allow passage of solar heat and light; and

      (c) Does not have a permanent heat source other than radiant heating provided by direct sunlight. [2001 c.753 §16; 2009 c.776 §11]

 

      307.398 Irrigation equipment. (1) Center pivots, wheel lines or movable set lines are exempt from ad valorem property taxation.

      (2) As used in this section:

      (a) “Center pivot” means a piece of self-propelled machinery that rotates around a riser for the purpose of sprinkling a circular tract of land. “Center pivot” includes all of the component parts of the center pivot irrigation system that are ordinarily located above the ground on the land to be irrigated and that can be disconnected from the riser and moved to another point. A center pivot constitutes personal property.

      (b) “Center pivot irrigation system” means an irrigation system that uses pumping stations and pipelines to convey water from its source to a riser to which a center pivot may be connected and used for sprinkling.

      (c) “Riser” means a pipe located in the field to be irrigated that rises vertically through the surface of the ground. [2001 c.753 §17]

 

(Inventory)

 

      307.400 Inventory. Items of tangible personal property consisting of inventory, including but not limited to materials, supplies, containers, goods in process, finished goods and other personal property owned by or in possession of the taxpayer, that are or will become part of the stock in trade of the taxpayer held for sale in the ordinary course of business, are exempt from ad valorem property taxation. [Formerly 310.608; 1983 c.600 §2; 1987 c.691 §2; part renumbered 307.402 in 1991; 1995 c.379 §1; 1997 c.325 §22; 2001 c.753 §12]

 

(Beverage Containers)

 

      307.402 Beverage containers. Any beverage container having a refund value as required under ORS 459A.700 to 459A.740 is exempt from ad valorem taxation. [Formerly 310.608; 1983 c.600 §2; 1987 c.691 §2; formerly part of 307.400]

 

(Pollution Control Facilities)

 

      307.405 Pollution control facilities; qualifications; expiration; revocation; limitations. (1) A pollution control facility or facilities which have been constructed in accordance with the requirements of ORS 468.165 (1), and have been certified by the Environmental Quality Commission pursuant to ORS 468.170 are exempt to the extent of the highest percentage figure certified by the Environmental Quality Commission as the portion of the actual cost properly allocable to the prevention, control or reduction of pollution. The exemption shall be allowed only if the taxpayer is a corporation organized under ORS chapter 62 or 65, or any predecessor to ORS chapter 62 relating to incorporation of cooperative associations, or is a subsequent transferee of such a corporation. If the subsequent transferee is organized under other than ORS chapter 62 or 65, the exemption shall only be allowed if the transfer occurs after the expiration of five years from the date of original certification by the commission.

      (2) To qualify for the ad valorem tax relief:

      (a) The pollution control facility must be erected, constructed or installed in connection with the trade or business conducted by the taxpayer on Oregon property owned or leased by said taxpayer.

      (b) The taxpayer must be the owner of the trade or business that utilizes Oregon property requiring a pollution control facility to prevent or minimize pollution or a person who, as a lessee under a written lease or pursuant to a written agreement, conducts the trade or business that operates or utilizes such property and who by the terms of such lease or agreement is obliged to pay the ad valorem taxes on such property. As used in this subsection, “owner” includes a contract purchaser.

      (3) The ad valorem exemption of a facility shall expire, in any event, 20 years from the date of its first certification for any owner or lessee by the Environmental Quality Commission.

      (4) Upon any sale, exchange, or other disposition of a facility, notice thereof shall be given to the Environmental Quality Commission who shall revoke the certification covering such facility as of the date of such disposition. The transferee may apply for a new certificate under ORS 468.170, but the number of years of ad valorem tax exemption that may be claimed by the transferee is the remainder of the exemption period specified in subsection (3) of this section.

      (5) If the facility also functions to prevent pollution from operations conducted on other property owned or leased by the taxpayer the Environmental Quality Commission shall state in its certification of the facility the percentage of the facility used to prevent pollution from such qualifying trade or business conducted on such qualifying property. The exemption from ad valorem taxes under this section shall be limited to such percentage of the value of the facility. [1967 c.592 §13; 1969 c.340 §1; 1971 c.678 §1; 1973 c.831 §7; 1977 c.795 §9; 1987 c.596 §1; 1989 c.802 §1]

 

      307.420 Filing claim and environmental certificate for exemption; annual statements of ownership. (1) Before any exemption from taxation is allowed under ORS 307.405, the person claiming the exemption shall file with the county assessor a written claim for such exemption prepared on a form prescribed by the Department of Revenue and furnished by the assessor, and shall file with the assessor with the first claim for exemption the certificate issued by the Environmental Quality Commission under ORS 468.170 covering the property for which exemption is sought. The claim shall be filed not later than April 1 of the assessment year for which the exemption is claimed; except that if the person receives a certificate after April 1 but before July 1, the person may file a claim on or before July 15 of that year. The county clerk shall record the certificate in the county record of deeds, upon presentation by the assessor. Each year thereafter to continue such exemption, the taxpayer must file not later than April 1 a statement with the county assessor, on a form prescribed by the Department of Revenue and furnished by the assessor, stating that the ownership of all property included in the certificate and its use remain unchanged.

      (2) If a claim required by subsection (1) of this section relates to state-appraised industrial property as defined in ORS 306.126 and is filed with the Department of Revenue within the time required by subsection (1) of this section, the claim shall be deemed timely filed with the assessor. [1967 c.592 §14; 1973 c.831 §10; 1983 c.637 §5; 1991 c.459 §58; 1993 c.270 §79; 1997 c.541 §120; 2015 c.36 §9]

 

      307.430 Correction of assessment and tax rolls; termination of exemption. (1) Upon receipt of notice of the revocation of a certification of a pollution control facility pursuant to ORS 468.185 (1)(a), the county assessor shall proceed to correct the assessment and tax roll or rolls from which the facility was omitted from taxation, in the manner provided in ORS 311.216 to 311.232, and in all cases shall add interest in the manner provided in ORS 311.229. The five-year limitation provided for in ORS 311.205 shall not apply to such corrections.

      (2) Upon receipt of notice of the revocation of a certification of a pollution control facility pursuant to ORS 468.185 (1)(b), if the final revocation occurs before September 15 of any assessment year, the exemption otherwise allowable shall terminate and not be allowed beginning with the assessment and tax rolls prepared as of January 1 of the assessment year. [1967 c.592 §15; 1991 c.459 §59; 1997 c.541 §121]

 

(Temporary provisions relating to property tax incentive benefit programs for brownfields and property on brownfields)

 

      Note: Sections 1 to 8, chapter 96, Oregon Laws 2016, provide:

      Sec. 1. (1) The governing body of a city or county, or of a port organized under ORS chapter 777 or 778, may adopt an ordinance or resolution providing for programs that offer either or both of the following ad valorem property tax incentive benefits:

      (a) Special assessment of any land that constitutes a brownfield, as defined in ORS 285A.185, located within the respective jurisdiction of the city, county or port.

      (b) Exemption or partial exemption of improvements and personal property on land described in paragraph (a) of this subsection.

      (2)(a) An ordinance or resolution adopted under this section shall specify the eligibility requirements for the programs, including, but not limited to, a showing by the owner of a brownfield in an application filed under section 2 of this 2016 Act:

      (A) That the owner or authorized representative of the owner has obtained, as applicable, a site evaluation, preliminary assessment, confirmation of release or remedial investigation of the brownfield prepared by a geologist registered under ORS 672.505 to 672.705 or a professional engineer as defined in ORS 672.002.

      (B) If the site evaluation, preliminary assessment, confirmation of release or remedial investigation required under subparagraph (A) of this paragraph concludes that a remedial action, as defined in ORS 465.200, is required in response to the release of a hazardous substance at the brownfield, that the remedial action shall be conducted pursuant to an agreement with, an order of or a program or process authorized by the Department of Environmental Quality under ORS 465.200 to 465.455 and 465.900.

      (C) That the owner is in compliance with any agreement, order, program or process governing the conduct of the remedial action under subparagraph (B) of this paragraph.

      (D) That the report of the site evaluation, preliminary assessment, confirmation of release or remedial investigation required under subparagraph (A) of this paragraph, and a report prepared by a geologist or professional engineer showing that any remedial action has complied with any applicable agreement, order, program or process authorized by the department and with any other applicable state law administered by the department, have been submitted to the department.

      (b) Notwithstanding paragraph (a) of this subsection, property is not eligible for tax incentive programs adopted pursuant to this section if, at the time an application for the property is filed under section 2 of this 2016 Act, the property is:

      (A) Subject to assessment under ORS 308.505 to 308.681;

      (B) State-appraised industrial property as defined in ORS 306.126; or

      (C) A federal Superfund site.

      (c) For any property tax year, property granted any other special assessment, exemption or partial exemption may not be granted benefits under a tax incentive program adopted pursuant to this section.

      (3)(a)(A) An ordinance or resolution adopted under this section shall specify the period, not to exceed 10 years, for which the property tax incentive program benefits may be granted.

      (B) The ordinance or resolution may allow for an additional period, not to exceed five years, based on criteria set forth in the ordinance or resolution.

      (b) Property may be granted a tax incentive program benefit under this section until the earlier of:

      (A) The expiration of the period for which the property is eligible for the benefit under paragraph (a) of this subsection; or

      (B) The date on which the dollar amount of the benefit equals the eligible costs for the property as determined under section 3 of this 2016 Act.

      (c) If a city, county or port adopts both a special assessment and an exemption or partial exemption program, the two program benefits must be granted concurrently for any property.

      (d) The city, county or port may adopt any other provisions relating to the property tax incentive programs that do not conflict with the requirements of sections 1 to 7 of this 2016 Act.

      (4)(a) The city, county or port may amend or repeal an ordinance or resolution adopted under this section at any time.

      (b) Notwithstanding paragraph (a) of this subsection, property that is receiving a tax incentive program benefit under this section when the ordinance or resolution is amended or repealed shall continue to receive the benefit pursuant to the provisions of the ordinance or resolution in effect when the property was initially granted the benefit.

      (5)(a) An ordinance or resolution adopted under this section does not become effective unless the rates of taxation of the taxing districts located within territory of the city, county or port whose governing boards agree to the property tax incentive programs, when combined with the rate of taxation of the city, county or port that adopted the ordinance or resolution, equal 75 percent or more of the total combined rate of taxation within the territory of the city, county or port.

      (b) If an ordinance or resolution becomes effective pursuant to paragraph (a) of this subsection, the property tax incentive programs shall be effective for the tax levies of all taxing districts in which a brownfield that is granted a property tax incentive program benefit is located. [2016 c.96 §1]

      Sec. 2. (1)(a) The owner of a brownfield seeking a property tax incentive program benefit for the brownfield or improvements and personal property on the brownfield under an ordinance or resolution adopted pursuant to section 1 of this 2016 Act must file an application, with the governing body of the city, county or port that adopted the ordinance or resolution, on or before March 15 preceding the beginning of the property tax year for which the property tax incentive program benefit is sought. A single application may be filed for brownfields in contiguous tax accounts under common ownership.

      (b) Notwithstanding paragraph (a) of this subsection, an application may be filed after March 15 and on or before December 31 if the application is accompanied by a late filing fee equal to the greater of $200 or one-tenth of one percent of the real market value of the property to which the application relates as of the assessment date for that tax year.

      (2) An application filed pursuant to this section must include:

      (a) The address of the brownfield.

      (b) Documentation showing the ownership of the property by the person filing the application.

      (c) An affidavit signed by the owner of the brownfield under penalty of perjury affirming that the owner has not, by any acts, or omissions where there is a duty to act, caused, contributed to or exacerbated the release of a hazardous substance at the brownfield for which the eligible costs as determined under section 3 of this 2016 Act are to be incurred.

      (d) Documentation showing that all applicable eligibility requirements have been met.

      (e) Documentation of estimated eligible costs with respect to the brownfield prepared by the Department of Environmental Quality or by a person unrelated to the owner of the brownfield and having expertise in estimating such costs.

      (f) An application fee, if any, required by the city, county or port.

      (3) The application shall be reviewed by the city, county or port. Upon request, the Department of Environmental Quality may consult with the city, county or port regarding remedial action costs included in the application as eligible costs. The city, county or port may consult with the owner of the brownfield about the application, and the owner may amend the application.

      (4)(a) If the city, county or port determines that the application does not meet the requirements of this section, the city, county or port shall promptly notify the owner of the brownfield in writing that the application is not approved, stating the reasons for the determination. A determination under this paragraph is not reviewable, but the owner of the brownfield may file an application under this section for any subsequent year.

      (b) If the city, county or port determines that the application meets the requirements of this section, the city, county or port shall promptly:

      (A) Notify the owner of the brownfield in writing that the application is approved; and

      (B) Notify the county assessor in writing that the application is approved and certifying the period for which the property tax incentive program benefit is granted and the estimated eligible costs with respect to the brownfield.

      (5) The assessor of the county in which the property granted a property tax incentive program benefit is located may charge the owner a fee of up to $200 for the first year and up to $100 for each subsequent year for which the benefit is granted to compensate the assessor for duties imposed under sections 1 to 7 of this 2016 Act.

      (6) The transfer of the brownfield in an arm’s-length transaction shall not disqualify the property from the property tax incentive program benefits granted to the property under the ownership of the transferor provided the transferee:

      (a) Notifies the city, county or port and the county assessor as soon as practicable of the transfer;

      (b) Files an affidavit described in subsection (2)(c) of this section; and

      (c) Complies with all requirements under sections 1 to 7 of this 2016 Act. [2016 c.96 §2]

      Sec. 3. (1) For purposes of sections 1 to 7 of this 2016 Act, eligible costs equal the discounted present value of estimated after-tax costs directly related to the remaining work necessary to remove, contain or treat the contamination of a brownfield.

      (2) Eligible costs may include:

      (a) Remedial action costs as defined in ORS 465.200, including costs for a site evaluation, preliminary assessment, confirmation of release or remedial investigation performed by a geologist or professional engineer without the oversight or approval of the Department of Environmental Quality.

      (b) The costs of demolishing existing improvements on the brownfield as necessary for removal or remedial action, as those terms are defined in ORS 465.200.

      (c) The costs of abating the release of hazardous substances within existing improvements on the brownfield.

      (d) The costs of new improvements constructed on the brownfield for the purpose of containing hazardous substances or limiting exposure to the release of hazardous substances.

      (e) The costs of managing, handling, removing, treating and disposing of solid waste, environmental media and building materials containing hazardous substances in the course of redeveloping the brownfield.

      (f) The costs of environmental audits, surety bonds, insurance, engineering and legal fees and monitoring other than water monitoring.

      (3) For purposes of section 2 (2)(e) of this 2016 Act, documentation of eligible costs may include, but is not limited to, bids, cost estimates, remediation plans, copies of contracts, notes and minutes of contract negotiations, and accounts, invoices, sales receipts and other payment records of purchases, sales, leases and other transactions relating to the eligible costs.

      (4) Eligible costs shall be reduced by the amount of any state, federal or other grant moneys, tax credits, insurance proceeds or legal settlements received by the owner of the brownfield to offset eligible costs for the brownfield. [2016 c.96 §3]

      Sec. 4. (1)(a) For the first property tax year of the period for which special assessment is certified under section 2 of this 2016 Act for land constituting a brownfield, the county assessor shall list on the assessment and tax roll a specially assessed value for the land that equals the real market value the land would have if it were not a brownfield less the eligible costs determined under section 3 of this 2016 Act and apportioned to each tax account included in the application. The specially assessed value of the land determined under this subsection shall be listed on the assessment and tax rolls for the number of years certified for the land under section 2 of this 2016 Act.

      (b) Notwithstanding paragraph (a) of this subsection, the specially assessed value of the land may not be less than $100 for any property tax year.

      (2)(a) For the first property tax year for which the land is specially assessed, the maximum assessed value of the land shall equal the specially assessed value of the land determined under subsection (1) of this section multiplied by the ratio, not greater than 1.00, of the average maximum assessed value divided by the average real market value, as those terms are defined in ORS 308.149.

      (b) For each property tax year after the first property tax year for which the land is specially assessed, the maximum assessed value of the land shall equal the greater of 103 percent of the assessed value of the land from the prior year or 100 percent of the maximum assessed value of the land from the prior year.

      (3) For each property tax year for which the land is specially assessed, the assessed value of the land shall equal the least of:

      (a) The specially assessed value of the land as determined under subsection (1) of this section;

      (b) The maximum assessed value of the land as determined under subsection (2) of this section; or

      (c) The real market value of the land as of the assessment date for the tax year.

      (4) The entitlement of land to the special assessment provisions of this section shall be determined as of July 1. If the land becomes disqualified on or after July 1, the land shall be specially assessed for the property tax year as provided in this section.

      (5) Each year the county assessor shall add to the assessment and tax rolls of the county, with respect to land specially assessed under this section, the notation “potential additional tax.” [2016 c.96 §4]

      Sec. 5. (1) An ordinance or resolution adopted under section 1 of this 2016 Act providing for exemption or partial exemption of improvements and personal property on a brownfield must state the percentage of the exemption to be applied to the real market value of the improvements and personal property.

      (2) The exemption or partial exemption shall apply to new or existing property of any classification under rules established by the Department of Revenue pursuant to ORS 308.215 (1)(a)(C).

      (3) ORS 307.032 applies to improvements and personal property granted partial exemption under the ordinance or resolution.

      (4) Each year the county assessor shall add to the assessment and tax rolls of the county, with respect to the improvements and personal property granted exemption or partial exemption under this section, the notation “potential additional tax.” [2016 c.96 §5]

      Sec. 6. (1) Each year, on or before a date prescribed by the city, county or port that adopted the ordinance or resolution under section 1 of this 2016 Act, pursuant to which land constituting a brownfield is specially assessed, the owner of the land shall submit documentation of actual eligible costs incurred and an updated estimate of the eligible costs to the city, county or port, as applicable.

      (2)(a) If the updated estimate of the eligible costs is greater or less than the original estimate by 10 percent or more, the city, county or port shall submit the documentation and updated estimate to the assessor of the county in which the land is located.

      (b) Upon receipt, the county assessor shall recompute the specially assessed value and maximum assessed value of the land under section 4 of this 2016 Act, beginning with the first year for which the land was granted special assessment.

      (c) The values as recomputed under this section shall apply to the remaining period for which the land has been granted the special assessment. Delinquent taxes may not be assessed or collected, and refunds may not be paid, as a consequence of the recomputation under this section for property tax years preceding the remaining period. [2016 c.96 §6]

      Sec. 7. (1) Property that is granted a property tax incentive program benefit pursuant to an ordinance or resolution adopted under section 1 of this 2016 Act shall continue to receive the benefit until the property is disqualified by the earliest of:

      (a) The expiration of the period for which the benefit was certified under section 2 of this 2016 Act.

      (b) The date on which the dollar amount of the benefit equals the eligible costs for the property as determined under section 3 of this 2016 Act.

      (c) The discovery by the city, county or port that the owner of the brownfield has failed to:

      (A) Comply with the eligibility requirements adopted by the city, county or port;

      (B) Begin or make reasonable progress on remediation or redevelopment of the brownfield; or

      (C) File any required reports.

      (d) The discovery by the city, county or port that any statement or representation in any documentation filed pursuant to section 2 of this 2016 Act was misleading or false.

      (2) The city, county or port may provide an owner with the opportunity to cure the grounds for disqualification under subsection (1) of this section.

      (3) The city, county or port shall notify the county assessor of the disqualification of property from special assessment or exemption or partial exemption under this section, and upon disqualification the property shall be assessed and taxed under ORS 308.146.

      (4) Upon disqualification of land constituting a brownfield from special assessment under subsection (1)(c) or (d) of this section, in addition to any other remedy provided by law, there shall be added to the tax extended against the land on the next assessment and tax roll, to be collected and distributed in the same manner as other property taxes, additional taxes equal to the potential additional taxes noted on the roll for the land for all years for which the land was specially assessed under section 4 of this 2016 Act.

      (5) Upon disqualification of improvements or personal property on land constituting a brownfield from exemption or partial exemption under subsection (1)(c) or (d) of this section, there shall be added to the tax extended against the improvements or personal property on the next assessment and tax roll, to be collected and distributed in the same manner as other property taxes, additional taxes, equal to the difference between the taxes assessed against the property and the taxes that otherwise would have been assessed against the property if the property had not been granted exemption or partial exemption, for all years for which the property was granted exemption or partial exemption.

      (6) Additional taxes collected under this section shall be deemed to have been imposed in the year to which the additional taxes relate.

      (7) The amount of additional taxes determined to be due under this section may be paid to the tax collector prior to the completion of the next assessment and property tax roll pursuant to ORS 311.370. [2016 c.96 §7]

      Sec. 8. (1) Sections 1 to 7 of this 2016 Act are repealed on January 2, 2027.

      (2) Notwithstanding subsection (1) of this section, property that has been granted a property tax incentive program benefit under sections 1 to 7 of this 2016 Act before the date specified in subsection (1) of this section, shall continue to receive the benefit for the period of time for which the benefit was granted. [2016 c.96 §8]

 

(Beach Lands)

 

      307.450 Certain beach lands. The land, but not the improvements to the land, within the area described by ORS 390.770 is exempt from taxation. [1969 c.601 §15; 1999 c.21 §14]

 

(Food Processing Equipment)

 

      307.453 Findings. The Legislative Assembly finds that food processing activities make significant contributions to the economy of this state and are important in supporting and maintaining a high level of agricultural diversity, upon which consistent economic performance is based. The Legislative Assembly declares that a property tax exemption for qualified real property machinery and equipment encourages continued operation and expansion of the food processing industry in this state. [2005 c.637 §2]

 

      307.455 Definitions; application for exemption; exemption; limitations. (1) As used in this section and ORS 307.457:

      (a) “Assessor” means the county assessor, or the Department of Revenue if under ORS 306.126 the department is responsible for appraisal of the facility at which the qualified machinery and equipment is located.

      (b) “Bakery product” has the meaning given that term in ORS 625.010.

      (c) “Dairy products” has the meaning given that term in ORS 621.003.

      (d) “Food processor”:

      (A) Means a person engaged in the business of freezing, canning, dehydrating, concentrating, preserving, processing or repacking for human consumption raw or fresh fruit, vegetables, nuts, legumes, grains, bakery products, dairy products, eggs or seafood in any procedure that occurs prior to the point of first sale by the processor.

      (B) Does not include:

      (i) Persons engaged in the business of producing alcoholic beverages or marijuana items as defined in ORS 475B.015.

      (ii) A person engaged in the business of producing bakery products unless the person has been issued a wholesale license by the State Department of Agriculture.

      (e) “Integrated processing line” does not include forklifts, trucks or other rolling stock used to transport material to or from a point of manufacture or assembly.

      (f) “Qualified machinery and equipment” means property, whether new or used, that is newly acquired by a food processor and placed into service prior to January 1 preceding the first tax year for which an exemption under this section is sought, and that consists of:

      (A) Real property machinery and equipment that is used by a food processor in the primary processing of raw or fresh fruit, vegetables, nuts, legumes, grains, bakery products, dairy products, eggs or seafood; or

      (B) Personal property machinery and equipment that is used in an integrated processing line for the primary processing of raw or fresh fruit, vegetables, nuts, legumes, grains, bakery products, dairy products, eggs or seafood.

      (2)(a) On or before March 1 preceding the first tax year for which property is to be exempt from taxation under this section, a food processor seeking an exemption under this section shall apply to the assessor for exemption. The application shall be on a form prescribed by the Department of Revenue and shall include any information required by the department, including a schedule of the qualified machinery and equipment for which certification is sought.

      (b) Notwithstanding paragraph (a) of this subsection, the assessor may approve an application that is filed after March 1, and on or before December 31 of the assessment year, if the statement is accompanied by a late filing fee of the greater of $200 or one-tenth of one percent of the real market value of the property that is the subject of the application.

      (c) The assessor shall review the application and, if the machinery and equipment that is the subject of the application constitutes qualified machinery and equipment certified by the State Department of Agriculture under ORS 307.457, shall approve the application and exempt the qualified machinery and equipment.

      (d) If any of the machinery and equipment that is the subject of the application does not constitute qualified machinery and equipment certified by the State Department of Agriculture under ORS 307.457, the assessor shall exclude the nonqualified machinery and equipment from the application.

      (3) Qualified machinery and equipment for which an application has been approved under subsection (2) of this section shall be exempt for the tax year for which the application was approved and for the next four succeeding tax years, if as of the assessment date for each year the property constitutes qualified machinery and equipment.

      (4) The duration of the exemption under subsection (3) of this section may not be extended as the result of the value of changes to qualified machinery and equipment that are attributable to rehabilitation, reconditioning or ongoing maintenance or repair.

      (5) Notwithstanding subsection (3) of this section, qualified machinery and equipment that is used to process grains or bakery products may not be granted exemption under this section unless the qualified machinery and equipment has a total cost of initial investment of at least $100,000 to the food processor.

      (6) Notwithstanding subsection (3) of this section, qualified machinery and equipment that is used to process bakery products may not be granted exemption under this section if proceeds from retail sales made at the processing site constitute more than 10 percent of all proceeds from sales made at the processing site. [2005 c.637 §3; 2015 c.827 §1; 2016 c.105 §1; 2017 c.21 §102]

 

      Note: Section 7, chapter 637, Oregon Laws 2005, provides:

      Sec. 7. Property may not qualify for a first year of exemption under ORS 307.455 for a tax year beginning on or after July 1, 2020. [2005 c.637 §7; 2011 c.656 §1; 2013 c.210 §1]

 

      Note: Section 5, chapter 827, Oregon Laws 2015, provides:

      Sec. 5. The State Department of Agriculture shall submit, in the manner provided by ORS 192.245, a report on the impact that the amendments to ORS 307.455 by section 1 of this 2015 Act have had on the use of the exemption for qualified food processing machinery and equipment to the interim committees of the Legislative Assembly related to revenue not later than September 15, 2018. [2015 c.827 §5]

 

      307.457 Certification of eligibility of machinery and equipment; fees. (1) At the request of a food processor or on the State Department of Agriculture’s own initiative, the department shall certify the eligibility of qualified machinery and equipment for exemption under ORS 307.455.

      (2) The method of certification under this section shall be provided by rules adopted by the State Department of Agriculture, after consultation with the Department of Revenue.

      (3) A decision by the State Department of Agriculture to deny certification of certain property may be appealed to the Director of Agriculture as a contested case under ORS chapter 183.

      (4) The State Department of Agriculture may fix, assess and collect, or cause to be collected, fees on food processors for the certification of qualified machinery and equipment under subsection (1) of this section. The fees must be in an amount reasonably necessary to cover the costs of the certification and of the administration of this section. The fees must have a uniform basis, but the scale of fees may vary according to the location of the qualified machinery and equipment. [2005 c.637 §4; 2015 c.827 §2]

 

      307.459 Rules. The Department of Revenue and the State Department of Agriculture may adopt rules to implement the provisions of ORS 307.455 and 307.457. [2005 c.637 §5]

 

      307.460 [1973 c.822 §1; 1979 c.105 §1; 1983 c.634 §1; 1987 c.756 §17; 1991 c.459 §60; 1995 c.650 §75; 1997 c.170 §§22,23; 1997 c.271 §§5,6; 1997 c.325 §§23,24; 1997 c.541 §§122,123; 1997 c.600 §§6,7; 1999 c.21 §15; renumbered 307.471 in 2007]

 

      307.462 [2007 c.843 §70; repealed by 2015 c.827 §3]

 

      307.464 [2007 c.843 §71; repealed by 2015 c.827 §3]

 

      307.466 [2007 c.843 §§72,73; repealed by 2015 c.827 §3]

 

      307.470 [1973 c.486 §1; repealed by 1979 c.692 §13]

 

(Student Housing)

 

      307.471 Student housing exempt from school district taxes; application procedure; disqualification. (1)(a) Upon compliance with subsection (2) of this section, student housing shall be exempt from all ad valorem property taxes levied by a school district, a county education bond district, an education service district, a community college service district or a community college district.

      (b) As used in this subsection, “student housing” means housing that is:

      (A) Rented exclusively to students of any educational institution, public or private, that offers at least a two-year program acceptable for full credit toward a baccalaureate degree;

      (B) Rented upon a nondiscriminatory basis, without regard to race, creed, color or national origin;

      (C) Owned by a nonprofit corporation having articles of incorporation that provide that on dissolution or liquidation, the right, title and interest of the corporation in and to all accommodations and facilities with respect to which exemption is sought will be conveyed to the educational institution or institutions whose students are served by the housing, and all its other remaining assets will be conveyed to one or more organizations exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code;

      (D) Owned by a nonprofit corporation that has made legally enforceable arrangements to convey its interest in any property with respect to which exemption is claimed to the educational institution or institutions whose students are served by the housing upon final payment of the mortgage indebtedness incurred in connection with the construction or acquisition of the housing; and

      (E) Regulated by federal or state law in regard to rents, charges, development costs and methods of operation. The renting of the property for safekeeping purposes during the summer months shall not disqualify the property from the exemption granted by this section.

      (2)(a) Except as provided in paragraph (b) of this subsection, the nonprofit corporation shall apply to the assessor for the exemption on or before April 1 of the assessment year for which the exemption is claimed on forms prescribed by the Department of Revenue. The exemption claim shall include a certification by the university, college or community college attended by a majority of the student occupants that the property is being used for student housing during the current school year. Once an exemption has been granted, the exemption shall continue in effect, without reapplication, until the property fails to meet the qualifications of subsection (1) of this section as exempt student housing.

      (b) If the property designated in the claim for exemption under paragraph (a) of this subsection is acquired after March 1 and before July 1, or if there is a change in use of the property qualifying the property for exemption under this section after March 1 and before July 1, the initial claim for exemption shall be filed within 30 days from the date of acquisition or change of use of the property.

      (3) When, for any reason, the property or any portion thereof ceases to meet the qualifications of subsection (1) of this section, the owner at the time of the change shall notify the assessor of such change prior to the next January 1, or within 60 days after the date of disqualification, whichever is the earlier.

      (4) When property that has received special exemption as student housing under subsection (1) of this section thereafter becomes disqualified for such exemption, and the notice required by subsection (3) of this section is not given, the assessor shall determine the date that the notice should have been given, shall notify the owner thereof and notwithstanding ORS 311.235, there shall be added to the tax extended against the property on the next general property tax roll, to be collected and distributed in the same manner as the remainder of the real property tax, an amount equal to the sum of the following:

      (a) The total amount by which taxes assessed against the property would have been increased if it had been subject to tax without regard to subsection (1) of this section during the tax year for which the notice should have been given and each tax year thereafter together with the interest which would have accrued had the taxes been properly assessed and the exemption not been granted in the applicable years; and

      (b) A penalty equal to 20 percent of the amount specified in paragraph (a) of this subsection, however, no penalty shall be imposed on any amount attributable to interest.

      (5) A fraternity, sorority or cooperative housing organization, or an associated alumni nonprofit corporation organized exclusively for the purpose of owning property housing the fraternity, sorority or cooperative housing organization and providing related financial and operational support, may qualify for the exemption provided by subsection (1) of this section if the requirements of subsection (1)(b)(A) and (B) of this section are met, provided that any of its housing accommodations not occupied by members of the organization shall be open to occupancy by students who are not members of or affiliated with the organization, on a nondiscriminatory basis, without regard to race, creed, color or national origin, under rules or conditions set by the school.

      (6) Additional taxes collected under this section shall be deemed to have been imposed in the year to which the additional taxes relate. [Formerly 307.460]

 

(Hardship Situations)

 

      307.475 Hardship relief for failure to file for exemption, cancellation of assessment or redetermination of value. (1) Any taxpayer may apply to the Director of the Department of Revenue for a recommendation that the value of certain property be:

      (a) Stricken from the assessment roll and that any taxes assessed against such property be stricken from the tax roll on the grounds of hardship; or

      (b) Redetermined pursuant to ORS 308.146 (6).

      (2) As used in this section, “hardship” means a situation where property is subject to taxation but would have received relief had there been a timely filing of a valid claim for exemption, for cancellation of assessment or for a redetermination of value pursuant to ORS 308.146 (6), and where the failure to make timely application for the exemption, cancellation or change in assessment date was by reason of good and sufficient cause.

      (3) An application to the director for a recommendation of tax relief on the grounds of hardship must be made not later than December 15 of the year in which the failure to timely file a valid claim for exemption, for cancellation of assessment or for a redetermination of value pursuant to ORS 308.146 (6) occurred.

      (4) If the director, in the discretion of the director, finds that tax relief should be granted on the grounds of hardship, the director shall send the written recommendation of the director to the assessor of the county in which the property is located. If the assessor agrees with the recommendation, the assessor shall note approval thereon. The person in charge of the roll shall:

      (a) Enter an assessment consistent with a redetermination of the value of the property as of July 1 of the assessment year;

      (b) Strike all or a portion of taxes on the tax roll; or

      (c) Issue a refund of taxes already paid. A refund of taxes paid shall be treated as any refund granted under ORS 311.806. [1973 c.218 §1; 1979 c.689 §8; 1999 c.398 §3; 2007 c.449 §1; 2011 c.83 §7; 2015 c.92 §3]

 

(Agricultural Workforce Housing; Child Care Facilities; Farm Labor Camps)

 

      307.480 Definitions for ORS 307.480 to 307.510. As used in ORS 307.480 to 307.510 unless the context requires otherwise:

      (1) “Agricultural workforce housing” means housing:

      (a) That is limited to occupancy by agricultural workers, including agricultural workers who are retired or disabled, and the immediate family members of the agricultural workers; and

      (b) No dwelling unit of which is occupied by a relative of the owner or operator of the agricultural workforce housing, other than a manufactured dwelling in a manufactured dwelling park nonprofit cooperative as defined in ORS 62.803.

      (2) “Eligible agricultural workforce housing” means agricultural workforce housing that:

      (a) Is owned or operated by a nonprofit corporation as a nonprofit facility;

      (b) Is not provided in connection with the recruitment or employment of agricultural workers; and

      (c) Complies with all applicable local, state and federal building codes.

      (3) “Eligible child care facility” means a child care facility that is:

      (a) Certified under ORS 329A.030 and 329A.250 to 329A.450;

      (b) Owned or operated by a nonprofit corporation as a nonprofit facility; and

      (c) Operated in conjunction or cooperation with an eligible farm labor camp.

      (4) “Eligible farm labor camp” means a farm labor camp that:

      (a) Is owned or operated by a nonprofit corporation as a nonprofit facility; and

      (b) Complies with the safety and health standards for agricultural labor housing and related facilities adopted under the Oregon Safe Employment Act.

      (5) “Farm labor camp” means any place, area or piece of land where housing or sleeping places are owned or maintained:

      (a) By a person engaged in the business of providing housing or sleeping places for employees or prospective employees of another person and the immediate families of the employees or prospective employees if the employees or prospective employees are or will be engaged in agricultural work. Eligible farm labor camps may provide housing to workers not currently engaged in agricultural work if agricultural work is not available and employees or prospective employees are required either to engage in agricultural work or to leave the farm labor camp once agricultural work becomes available in the area.

      (b) In connection with any work or place where agricultural work is being performed, whether the housing or sleeping places are owned or maintained by the employer or by another person.

      (6) “Owned or operated by a nonprofit corporation as a nonprofit facility” includes, but is not limited to:

      (a) The possession or operation of agricultural workforce housing, child care facility or farm labor camp property by a nonprofit corporation pursuant to a written lease or lease-purchase agreement if:

      (A) The nonprofit corporation is obligated under the terms of the lease or lease-purchase agreement to pay the ad valorem taxes on the property used in operating the agricultural workforce housing, child care facility or farm labor camp; or

      (B) The rent payable by the nonprofit corporation has been established to reflect the savings resulting from the exemption from taxation.

      (b) The possession or operation of the property by a partnership of which the nonprofit corporation is:

      (A) A general partner or the general manager; and

      (B) Responsible for the day-to-day operation of the property.

      (7)(a) “Rental” means the net amount of income from eligible agricultural workforce housing, an eligible child care facility or an eligible farm labor camp after deduction of costs paid or incurred in the operation of the housing, facility or camp.

      (b) Deductible costs under this subsection:

      (A) Include, but are not limited to, salaries or other compensation, insurance, utilities, garbage disposal, supplies, repairs and maintenance, interest and capital costs, whether capitalized and depreciated or amortized or deducted currently.

      (B) Do not include in lieu taxes imposed under ORS 307.490. [1973 c.382 §1; 1991 c.232 §1; 1993 c.168 §1; 1995 c.278 §33; 2015 c.34 §1]

 

      307.485 Exemption. Subject to ORS 307.490 and 307.495, there shall be exempt from taxation the assessed value of all real and personal property of eligible agricultural workforce housing, an eligible child care facility or an eligible farm labor camp. [1973 c.382 §2; 1991 c.459 §61; 1995 c.278 §34; 1997 c.541 §125; 2015 c.34 §2]

 

      307.490 Payments in lieu of taxes; disposition of moneys received. (1) In lieu of real and personal property taxes, each nonprofit corporation granted tax exemption under ORS 307.485 shall:

      (a) Pay to the treasurer of the county on or before November 15 an amount equal to 10 percent of the rentals for the period ending the preceding October 15; and

      (b) Submit with the remittance a form supplied by the Department of Revenue that states the rental income and:

      (A) If for agricultural workforce housing, certifies compliance with all applicable local, state and federal building codes; or

      (B) If for a child care facility or farm labor camp that is offered in connection with recruitment or employment of agricultural workers, certifies compliance with the requirements of the State Fire Marshal, the local health officer or the Office of Child Care, as applicable.

      (2) The treasurer shall, with the assistance of the assessor, allocate the money received by the treasurer under subsection (1) of this section, to the districts in which the exempt property is located in the same proportion that the tax rate for the current tax year for each district bears to the total tax rate for all districts.

      (3) The moneys received by the district shall be considered as a budget resource for the next ensuing fiscal year. [1973 c.382 §3; 1997 c.325 §26; 2013 c.624 §75; 2015 c.34 §3]

 

      307.495 Claiming exemption; verification of compliance with regulatory laws. (1)(a) A nonprofit corporation claiming exemption under ORS 307.485 shall file with the county assessor two copies of a written claim for exemption on or before April 1 of each assessment year for which the exemption is claimed.

      (b) Notwithstanding paragraph (a) of this subsection, if the property for which exemption is claimed is acquired after March 1 and before July 1, the claim shall be filed within 30 days after acquisition.

      (2) The claim shall:

      (a) Designate the property for which exemption is claimed;

      (b) State the facts that make the property eligible within the definitions of ORS 307.480; and

      (c) Include all verifications required under subsection (3) of this section.

      (3) The claim for exemption under this section must include written verification:

      (a) If for agricultural workforce housing, by the owner of the agricultural workforce housing that the agricultural workforce housing is in compliance with all applicable local, state and federal building codes.

      (b) If for a child care facility, in whole or in part, by the Office of Child Care that the child care facility is certified.

      (c) If for a farm labor camp, by the appropriate authority under the Oregon Safe Employment Act that the farm labor camp is in compliance with the safety and health standards for agricultural labor housing and related facilities adopted under the Oregon Safe Employment Act.

      (4) Verification of compliance under subsection (3)(c) of this section may be denied if access to the farm labor camp for purposes of inspection is denied to the appropriate authority.

      (5) If any verification required under subsection (3) of this section is refused by the appropriate authority or is otherwise not included with a claim for exemption, the county assessor shall deny the claim and cause the nonprofit corporation to be billed for the real and personal property taxes.

      (6) An exemption may not be allowed for any year subsequent to the first year unless the nonprofit corporation submits to the assessor details as to the rentals for the prior year and proof that the payments required by ORS 307.490 have been made. [1973 c.382 §4; 1991 c.459 §62; 1995 c.278 §35; 1997 c.541 §126; 2013 c.193 §22; 2015 c.34 §4]

 

      307.500 Review of claim by Department of Revenue. Upon receipt of a claim, or any subsequent rental statement, filed under ORS 307.495, the county assessor may request the Department of Revenue to review the information included in the rental statement. The department may verify and modify the information. [1973 c.382 §5; 1995 c.278 §36; 2013 c.193 §23; 2013 c.624 §76; 2015 c.34 §5]

 

      307.505 Inspection of farm labor camps; failure to comply with health code. The appropriate authority under the Oregon Safe Employment Act shall cause an inspection to be made of any farm labor camp that has filed for an exemption at any time prior to August 15. If the conditions of the camp would not justify verification of compliance with the health code for farm labor camps, even though verification has been made under ORS 307.500, the appropriate authority shall notify the county assessor who shall cancel the exemption and cause the owner to be billed for the real and personal property taxes the owner would otherwise be liable to pay. [1973 c.382 §6]

 

      307.510 Appeal to tax court by taxpayer. Any taxpayer aggrieved by any decision under ORS 307.480 to 307.510 may appeal to the tax court within the time provided and in the manner specified by ORS 305.404 to 305.560. [1973 c.382 §7; 1995 c.650 §76]

 

(Filing Deadline for Certain Programs)

 

      307.512 Filing deadline for certain housing-related exemption and special assessment programs. Notice of approval of an application for exemption or special assessment, and any additional information required, under ORS 307.515 to 307.535, 307.540 to 307.548, 307.600 to 307.637, 307.651 to 307.687, 307.841 to 307.867 or 308.450 to 308.481 must be filed with the assessor by the entity issuing the notice of approval on or before April 1 immediately preceding the first property tax year for which the exemption or special assessment is requested. [2013 c.193 §4]

 

      Note: 307.512 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 307 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

(Land Held by Nonprofit Corporation for Building Residences for Low Income Individuals)

 

      307.513 Eligibility for exemption; duration and extensions; disqualification; additional taxes. (1)(a) Upon compliance with ORS 307.162, land acquired and held by a nonprofit corporation as defined in ORS 307.130 for the purpose of building on the land one or more residences to be sold to individuals whose income is not greater than 80 percent of area median income, adjusted for family size, as determined by the Housing and Community Services Department, shall be exempt from property taxation.

      (b) Notwithstanding paragraph (a) of this subsection, a nonprofit corporation may not claim an exemption for land under this section unless, within the 10 years immediately preceding the filing of a claim pursuant to this section, the nonprofit corporation has sold at least one residence to individuals described in paragraph (a) of this subsection.

      (2)(a) The exemption shall be granted to land beginning with the first property tax year for which the nonprofit corporation files a claim for the land under ORS 307.162 and ending on or at the earlier of:

      (A) The date on which the nonprofit corporation has transferred title to the residences on the land; or

      (B) The end of the seventh consecutive property tax year for which the land is granted an exemption under this section or, if the nonprofit corporation has claimed an extension under paragraph (b) of this subsection, the end of the 10th consecutive property tax year for which the land is granted an exemption under this section.

      (b)(A) If, before the end of the sixth consecutive property tax year for which the land is granted an exemption, the nonprofit corporation believes that title to the residences on the land will not be transferred by the end of the next following property tax year, the nonprofit corporation may claim a three-year extension of the exemption period by filing a notice of extension with the county assessor.

      (B) The extension becomes effective if the notice of extension is filed on or before April 1 preceding the first property tax year for which the extension is claimed and is accompanied by a filing fee equal to the greater of $200 or one-tenth of one percent of the real market value of the land as of the most recent assessment date.

      (3)(a) For each property tax year that land is exempt under this section, the county assessor shall indicate on the assessment and tax roll that the land is exempt from property taxation under this section and is subject to potential additional taxes.

      (b) If the nonprofit corporation has not transferred title to the residences on the land by the end of the seventh consecutive property tax year for which the land is granted an exemption under this section, or, if the nonprofit corporation has claimed an extension under subsection (2)(b) of this section, by the end of the 10th consecutive property tax year, the land shall be disqualified for the exemption. Additional taxes shall be imposed on the land on the next assessment and tax roll following the disqualification and shall be collected and distributed in the same manner as other ad valorem property taxes.

      (c) The additional taxes shall be imposed in an amount equal to the property taxes that were not imposed on the land because of the exemption, plus interest computed at the rate provided under ORS 311.505 (2).

      (d) The additional taxes described in this subsection shall be deemed assessed and imposed in the year to which the additional taxes relate.

      (e) The amount determined to be due under this subsection may be paid to the tax collector prior to the time of the next general property tax roll, pursuant to the provisions of ORS 311.370.

      (4) An exemption for land under this section does not preempt a county from granting other tax benefits to the land or the nonprofit corporation for any year. [2015 c.520 §1]

 

      Note: 307.513 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 307 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

(Low Income Rental Housing)

 

      307.515 Definitions for ORS 307.515 to 307.523. As used in ORS 307.515 to 307.523:

      (1) “Governing body” means the city or county legislative body having jurisdiction over the property for which an exemption may be applied for under ORS 307.515 to 307.523.

      (2) “Lender” means the provider of a loan secured by the recorded deed of trust or recorded mortgage made to finance the purchase, construction or rehabilitation of a property used for low income housing under the criteria listed in or adopted under ORS 307.517 or 307.518.

      (3) “Low income” means income at or below 60 percent of the area median income as determined by the Oregon Housing Stability Council based on information from the United States Department of Housing and Urban Development. [1989 c.803 §1; 1991 c.930 §3; 1993 c.168 §3; 2015 c.180 §44; 2015 c.310 §3]

 

      307.517 Criteria for exemption. (1) Property or a portion of the property is exempt from taxation as provided under ORS 307.515 to 307.523 if:

      (a) The property is:

      (A) Offered for rent; or

      (B) Held for the purpose of developing low income rental housing, for a period not exceeding a reasonable maximum period, if any, adopted by the governing body;

      (b) The property, if occupied, is occupied solely by low income persons;

      (c) The required rent payment reflects the full value of the property tax exemption;

      (d) The exemption has been approved as provided in ORS 307.523;

      (e) The housing units on the property were constructed after the local governing body adopted the provisions of ORS 307.515 to 307.523; and

      (f) The information disclosed on the application filed pursuant to ORS 307.521 meets any other criteria adopted by the governing body.

      (2) A governing body that adopts the provisions of ORS 307.515 to 307.523 may adopt additional criteria for exemption that do not conflict with the criteria described in subsection (1)(a) to (e) of this section.

      (3) For the purposes of subsection (1) of this section, a person that has only a leasehold interest in property is deemed to be a purchaser of that property if:

      (a) The person is obligated under the terms of the lease to pay the ad valorem taxes on the real and personal property used in this activity on that property; or

      (b) The rent payable has been established to reflect the savings resulting from the exemption from taxation. [1989 c.803 §2; 1997 c.752 §5; 2005 c.94 §36; 2015 c.310 §1]

 

      307.518 Alternative criteria for exemption. (1) Property or a portion of property is exempt from taxation as provided under ORS 307.515 to 307.523 if:

      (a) The property, if unoccupied, is:

      (A) Offered for rental solely as a residence for low income persons; or

      (B) Held for the purpose of developing low income rental housing, for a period not exceeding a reasonable maximum period, if any, adopted by the governing body;

      (b) The property, if occupied, is occupied solely as a residence for low income persons;

      (c) An exemption for the property has been approved as provided under ORS 307.523, pursuant to an application filed before January 1, 2020;

      (d) The property is owned or being purchased by a nonprofit corporation organized in a manner that meets the criteria for a public benefit corporation or a religious corporation, both terms as defined in ORS 65.001;

      (e) The property is owned or being purchased by a nonprofit corporation that expends no more than 10 percent of the nonprofit corporation’s annual income from residential rentals for purposes other than the acquisition, maintenance or repair of residential rental property for low income persons or for the provision of on-site child care services for the residents of the rental property; and

      (f) The information disclosed on the application filed pursuant to ORS 307.521 meets any other criteria adopted by the governing body.

      (2) A governing body that adopts the provisions of ORS 307.515 to 307.523 may adopt additional criteria for exemption that do not conflict with the criteria described in subsection (1)(a) to (e) of this section.

      (3) For the purposes of this section, a nonprofit corporation that has only a leasehold interest in property is considered to be a purchaser of that property if:

      (a) The nonprofit corporation is obligated under the terms of the lease to pay the ad valorem taxes on the real and personal property used in the rental activity on that property; or

      (b) The rent payable has been established to reflect the savings resulting from the exemption from taxation.

      (4) A partnership shall be considered a nonprofit corporation for purposes of this section if:

      (a) A nonprofit corporation is a general partner of the partnership; and

      (b) The nonprofit corporation is responsible for the day-to-day operation of the property that is the subject of the exemption under ORS 307.515 to 307.523. [1991 c.930 §2; 1993 c.168 §4; 1995 c.79 §121; 1995 c.702 §1; 1997 c.541 §127; 1997 c.752 §6; 1999 c.487 §1; 2001 c.315 §55; 2005 c.94 §37; 2010 c.29 §6; 2013 c.158 §36; 2015 c.310 §2]

 

      307.519 Exemption limited to tax levy of governing body that adopts ORS 307.515 to 307.523; exception; additional provisions. (1) Except as provided in subsection (2) of this section, the exemptions granted under ORS 307.515 to 307.523 apply only to the tax levy of a governing body that adopts the provisions of ORS 307.515 to 307.523.

      (2) The exemptions granted under ORS 307.515 to 307.523 apply to the tax levy of all taxing districts in which property certified for exemption is located if, upon request of a governing body that has adopted the provisions of ORS 307.515 to 307.523, the rates of taxation of such taxing districts whose governing boards agree to the policy of exemption under ORS 307.515 to 307.523, when combined with the rate of taxation of the governing body that adopts the provisions of ORS 307.515 to 307.523, equal 51 percent or more of the total combined rate of taxation on the property granted exemption.

      (3) A governing body may adopt additional provisions relating to the exemption granted under ORS 307.515 to 307.523 that do not conflict with the provisions of ORS 307.515 to 307.523. [1989 c.803 §3; 1991 c.930 §4; 2015 c.310 §4]

 

      307.521 Application for exemption; policies for considering applications. (1) A person seeking the exemption granted under ORS 307.515 to 307.523 must file an application for exemption with the governing body. The exemption, if granted, shall be for a period of 20 years.

      (2) The application must be filed as set forth in ORS 307.523 and must include the following information, as applicable:

      (a) A description of the property or a portion of the property for which the exemption is requested;

      (b) A description of the purpose of the project and whether all or a portion of the property is being used for that purpose;

      (c) A certification of income levels of low income occupants;

      (d) A description of how the tax exemption will benefit project residents;

      (e) If the exemption is an exemption described in ORS 307.518, evidence satisfactory to the governing body that the corporation is a nonprofit corporation and meets the criteria for a public benefit corporation or a religious corporation;

      (f) A description of the plans for development of the property if the property is being held for future low income rental housing development; and

      (g) A description of how the applicant and the property, respectively, meet any additional criteria adopted by the governing body pursuant to ORS 307.517 (2) or 307.518 (2).

      (3) The applicant shall verify the information in the application by oath or affirmation.

      (4)(a) Prior to accepting an application under ORS 307.515 to 307.523, a local jurisdiction shall adopt standards and guidelines to establish the policies governing the consideration of applications under ORS 307.515 to 307.523.

      (b) Policies considered may include, but are not limited to:

      (A) Rent regulatory agreements or other enforcement mechanisms to demonstrate that the required rent payment reflects the full value of the property tax exemption.

      (B) Enforcement mechanisms to ensure that housing that is exempt under ORS 307.515 to 307.523 is maintained in decent, safe and sanitary conditions for the occupants.

      (C) Methodology and timing for submitting evidence of use of rentals received from low income persons. [1989 c.803 §4; 1991 c.459 §63; 1991 c.930 §5; 1997 c.752 §7; 2005 c.94 §38; 2015 c.310 §5]

 

      307.523 Time for filing application; certification of exemption. (1) Application shall be made on or before December 1 of the calendar year immediately preceding the first assessment year for which exemption is requested, and shall be accompanied by the application fee required under ORS 307.527. However, if the property is acquired after November 1, the application shall be made within 30 days after the date of acquisition.

      (2) Within 60 days of the filing of an application under ORS 307.521, the governing body shall take final action upon the application as provided under ORS 307.527, and certify the results of the action to the county assessor, as set forth in ORS 307.512.

      (3) Upon receipt of certification under subsection (2) of this section, the county assessor shall exempt the property from taxation to the extent certified by the governing body. [1989 c.803 §5; 1991 c.459 §64; 1991 c.930 §6; 1997 c.541 §128; 2013 c.193 §5]

 

      307.525 Action against landlord for failure to reduce rent. In addition to any other provision of law, if a landlord violates ORS 307.517 (1)(c), a tenant may recover damages in an amount triple the actual damages sustained as a result of the violation. The court may award reasonable attorney fees to the prevailing party in an action under this section. [1989 c.803 §6; 1995 c.618 §62]

 

      307.527 Ordinance or resolution approving or disapproving application; application fee. (1) Final action upon an application by the governing body shall be in the form of an ordinance or resolution that shall contain the owner’s name and address, a description of the housing unit, either the legal description of the property or the county assessor’s property account number, any specific conditions upon which the approval of the application is based and if only a portion of the property is approved, a description of the portion that is approved.

      (2) Following approval, the governing body shall file with the county assessor and send to the applicant a copy of the ordinance or resolution approving or disapproving the application. The copy shall contain or be accompanied by a notice explaining the grounds for possible termination of the exemption prior to the end of the exemption period or thereafter, and the effects of termination. In addition, the governing body shall file with the county assessor a document listing the same information otherwise required to be in an ordinance or resolution under subsection (1) of this section, as to each application deemed approved under this section.

      (3) If the application is denied, the governing body shall state in writing the reasons for denial and send the notice of denial to the applicant within 10 days after the denial. The notice shall inform the applicant of the right to appeal under ORS 307.533.

      (4) The governing body, after consultation with the county assessor, shall establish an application fee in an amount sufficient to cover the cost to be incurred by the governing body and the county assessor in administering ORS 307.515 to 307.523. The application fee shall be paid to the governing body at the time the application for exemption is filed. If the application is approved, the governing body 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 governing body shall retain that portion of the application fee attributable to its own administrative costs and shall refund the balance to the applicant. [1989 c.803 §7; 1995 c.79 §122; 2013 c.193 §6]

 

      307.529 Notice of proposed termination of exemption; grounds; terminating exemption. (1) Except as provided in ORS 307.531, if, after an application for exemption under ORS 307.517 has been approved under ORS 307.527, the governing body finds that construction or development of the exempt property differs from the construction or development described in the application for exemption, or is not completed on or before January 1, 2020, or that any provision of ORS 307.515 to 307.523 is not being complied with, or any provision required by the governing body pursuant to ORS 307.515 to 307.523 is not being complied with, the governing body shall give notice of the proposed termination of the exemption to the owner, by mailing the notice to the last-known address of the owner, and to every known lender, by mailing the notice to the last-known address of every known lender. 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 appear and show cause why the exemption should not be terminated, the governing body shall notify every known lender, and shall allow any lender not less than 30 days after the date the notice of the failure to appear and show cause is mailed to cure any noncompliance or to provide assurance adequate to the governing body that all noncompliance shall be remedied.

      (3) If the owner fails to appear and show cause why the exemption should not be terminated, and the lender fails to cure or give adequate assurance of the cure of any noncompliance, the governing body 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 shall be sent to the owner at the owner’s last-known address and to the lender at the last-known address of the lender within 10 days after its adoption. [1989 c.803 §8; 1991 c.459 §65; 1991 c.930 §7; 1993 c.168 §5; 1997 c.541 §129; 1997 c.752 §8; 1999 c.487 §2; 2010 c.29 §7]

 

      307.530 Termination if property held for future development or other purpose; additional taxes. An exemption granted under ORS 307.515 to 307.523 shall be immediately terminated and additional taxes imposed as provided in ORS 307.531 if the exempt property:

      (1) Is being held for future development of low income rental housing; and

      (2) Is used for any purpose other than the provision of low income rental housing. [1997 c.752 §10]

 

      307.531 Termination of exemption without notice; grounds; additional taxes. (1) If, after application has been approved under ORS 307.527, a declaration as 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 governing body should file its termination findings with the county assessor pursuant to ORS 307.529:

      (a) The exemption granted the housing unit or portion under ORS 307.515 to 307.523 shall terminate immediately, without right of notice or appeal;

      (b) The property or a portion of the property shall be assessed and taxed as other property similarly situated is assessed and taxed; and

      (c) Notwithstanding ORS 311.235, 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 taxes assessed against the property and the taxes that would have been assessed against the property had it not been exempt under ORS 307.515 to 307.523 for each of the years, not to exceed the last 10 years, during which the property was exempt from taxation under ORS 307.515 to 307.523.

      (2) If, at the time of presentation or discovery, the property is no longer exempt, additional taxes shall be collected as provided in this section, but the number of years for which the additional taxes shall be collected shall be reduced by 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 307.515 to 307.523.

      (4) Additional taxes collected under this section shall be deemed to have been imposed in the year to which the additional taxes relate. [1989 c.803 §9; 1991 c.459 §66; 1991 c.930 §8]

 

      307.533 Review; correction of tax rolls; payment of tax after exemption terminates. (1) Review of a denial of an application under ORS 307.527, or of the termination of an exemption under ORS 307.529, shall be as provided by ORS 34.010 to 34.100.

      (2) If no review of the termination of an exemption as provided in subsection (1) of this section is effected, or upon final adjudication, the county officials having possession of the assessment and tax rolls shall correct the rolls in the manner provided for omitted property under ORS 311.216 to 311.232 to provide for the assessment and taxation of any property for which exemption was terminated by the governing body or by a court, in accordance with the finding of the governing body or the court as to the assessment year in which the exemption is first to be terminated. The county assessor shall make such valuation of the property as shall be necessary to permit such correction of the rolls. The owner may appeal any such valuation in the same manner as provided for appeals under ORS 311.216 to 311.232.

      (3) Where there has been a failure to comply with ORS 307.529, the property shall become taxable beginning January 1 of the first assessment year following the date on which the noncompliance first occurred. Any additional taxes becoming due shall be payable without interest if paid in the period prior to the 16th day of the month next following the month of correction. If not paid within such period, the additional taxes shall be delinquent on the date they would normally have become delinquent if timely extended on the roll or rolls in the year or years for which the correction was made. [1989 c.803 §10; 1991 c.459 §67; 1991 c.930 §9; 1997 c.541 §131]

 

      307.535 Extension of deadline for completion; exception to imposition of additional taxes. Notwithstanding any provision of ORS 307.515 to 307.523:

      (1) If the governing body finds that construction of the housing unit otherwise entitled to exemption under ORS 307.517 was not completed by January 1, 2020, 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 governing body may extend the deadline for completion of construction for a period not to exceed 12 consecutive months.

      (2) If property granted exemption under ORS 307.515 to 307.523 is destroyed by fire or act of God, or is otherwise no longer capable of owner-occupancy due to circumstances beyond the control of the owner, the exemption shall cease but no additional taxes shall be imposed upon the property under ORS 307.531 or 307.533. [1989 c.803 §11; 1991 c.459 §68; 1991 c.930 §10; 1997 c.541 §132; 1999 c.487 §3; 2010 c.29 §8]

 

      307.537 [1989 c.803 §12; 1991 c.459 §69; 1991 c.930 §11; 1997 c.752 §16; 2001 c.114 §15; repealed by 2015 c.310 §6]

 

(Nonprofit Corporation Low Income Housing)

 

      307.540 Definitions for ORS 307.540 to 307.548. As used in ORS 307.540 to 307.548:

      (1) “Governing body” means the city or county legislative body having jurisdiction over the property for which an exemption may be applied for under ORS 307.540 to 307.548.

      (2) According to the election of a governing body pursuant to ORS 307.543 (1), “low income” means:

      (a) Income at or below 60 percent of the area median income as determined by the Oregon Housing Stability Council based on information from the United States Department of Housing and Urban Development; or

      (b)(A) For the initial year that persons occupy property for which an application for exemption is filed under ORS 307.545, income at or below 60 percent of the area median income as determined by the Oregon Housing Stability Council based on information from the United States Department of Housing and Urban Development; and

      (B) For every subsequent consecutive year that the persons occupy the property, income at or below 80 percent of the area median income as determined by the Oregon Housing Stability Council based on information from the United States Department of Housing and Urban Development. [1985 c.660 §1; 1993 c.168 §7; 2005 c.94 §39; 2015 c.141 §1; 2015 c.180 §45]

 

      Note: Section 6, chapter 660, Oregon Laws 1985, provides:

      Sec. 6. ORS 307.540 to 307.548 apply to tax years beginning on or after January 1, 1985, and before July 1, 2027. [1985 c.660 §6; 1993 c.108 §1; 2003 c.215 §1; 2011 c.191 §1]

 

      Note: Section 3, chapter 141, Oregon Laws 2015, provides:

      Sec. 3. (1) A governing body that has adopted the provisions of ORS 307.540 to 307.548 before the effective date of this 2015 Act [October 5, 2015] may, on or after the effective date of this 2015 Act, elect a definition of “low income” under ORS 307.540 as amended by section 1 of this 2015 Act. An election made pursuant to this subsection applies to the first property tax year that begins on or after the date on which the election is made.

      (2) If a governing body described in this section does not make an election under subsection (1) of this section, the definition of “low income” provided in ORS 307.540 as in effect immediately before the effective date of this 2015 Act shall apply to the exemption allowed by the governing body.

      (3) This section is repealed on June 30, 2027. [2015 c.141 §3]

 

      307.541 Nonprofit corporation low income housing; criteria for exemption. (1) Property is exempt from taxation as provided under ORS 307.540 to 307.548 if:

      (a) The property is owned or being purchased by a corporation described in section 501(c)(3) or (4) of the Internal Revenue Code that is exempt from income taxation under section 501(a) of the Internal Revenue Code;

      (b) Upon liquidation, the assets of the corporation are required to be applied first in payment of all outstanding obligations, and the balance remaining, in cash and in kind, to be distributed to corporations exempt from taxation and operated exclusively for religious, charitable, scientific, literary or educational purposes or to the State of Oregon;

      (c) The property is:

      (A) Occupied by low income persons; or

      (B) Held for the purpose of developing low income housing, for a period not exceeding a reasonable maximum period, if any, adopted by the governing body;

      (d) The property or portion of the property receiving the exemption, if occupied, is actually and exclusively used for the purposes described in section 501(c)(3) or (4) of the Internal Revenue Code;

      (e) The exemption has been approved as provided in ORS 307.547; and

      (f) The information disclosed on the application filed pursuant to ORS 307.545 meets any other criteria adopted by the governing body.

      (2) A governing body that adopts the provisions of ORS 307.540 to 307.548 may adopt additional criteria for exemption that do not conflict with the criteria described in subsection (1)(a) to (e) of this section.

      (3) For the purposes of subsection (1) of this section, a corporation that has only a leasehold interest in property is deemed to be a purchaser of that property if:

      (a) The corporation is obligated under the terms of the lease to pay the ad valorem taxes on the real and personal property used in this activity on that property; or

      (b) The rent payable by the corporation has been established to reflect the savings resulting from the exemption from taxation.

      (4) A partnership shall be treated the same as a corporation to which this section applies if the corporation is:

      (a) A general partner of the partnership; and

      (b) Responsible for the day-to-day operation of the property that is the subject of the exemption. [1985 c.660 §2; 1995 c.702 §2; 1997 c.752 §11; 2005 c.94 §40; 2015 c.310 §7]

 

      Note: See first note under 307.540.

 

      307.543 Exemption limited to levy of governing body adopting ORS 307.540 to 307.548; exception; additional provisions. (1) Except as provided in subsection (2) of this section, the exemption granted under ORS 307.540 to 307.548 applies only to the tax levy of a governing body that adopts the provisions of ORS 307.540 to 307.548. At the time of adoption, the governing body shall elect a definition of “low income” under ORS 307.540.

      (2) The exemption granted under ORS 307.540 to 307.548 applies to the tax levy of all taxing districts in which property certified for exemption is located if, upon request of a governing body that has adopted the provisions of ORS 307.540 to 307.548, the rates of taxation of such taxing districts whose governing boards agree to the policy of exemption under ORS 307.540 to 307.548, when combined with the rate of taxation of the governing body that adopts the provisions of ORS 307.540 to 307.548, equal 51 percent or more of the total combined rate of taxation on the property granted exemption.

      (3) A governing body may adopt additional provisions relating to the exemption granted under ORS 307.540 to 307.548 that do not conflict with the provisions of ORS 307.540 to 307.548. [1985 c.660 §3; 2015 c.141 §2; 2015 c.310 §8]

 

      Note: See first note under 307.540.

 

      307.545 Application for exemption. (1) A corporation seeking the exemption granted under ORS 307.540 to 307.548 must file an application for exemption with the governing body for each assessment year the corporation wants the exemption. The application must be filed on or before March 1 of the assessment year for which the exemption is sought, except that when the property designated is acquired after March 1 and before July 1, the application for that year must be filed within 30 days after the date of acquisition.

      (2) The application must include the following information, as applicable:

      (a) A description of the property for which the exemption is requested;

      (b) A description of the charitable purpose of the project and whether all or a portion of the property is being used for that purpose;

      (c) A certification of income levels of low income occupants;

      (d) A description of how the tax exemption will benefit project residents;

      (e) A description of the development of the property if the property is being held for future low income housing development;

      (f) A declaration that the corporation has been granted exemption from income taxation under section 501(a) of the Internal Revenue Code as an organization described in section 501(c)(3) or 501(c)(4) of the Internal Revenue Code; and

      (g) A description of how the corporation and the property, respectively, meet any additional criteria adopted by the governing body pursuant to ORS 307.541 (2).

      (3) The applicant shall verify the information in the application by oath or affirmation. [1985 c.660 §4; 1987 c.756 §15; 1993 c.108 §2; 1993 c.270 §25; 1997 c.541 §§133,133a; 2013 c.193 §7; 2015 c.310 §9]

 

      Note: See first note under 307.540.

 

      307.547 Determination of eligibility; notice to county assessor. (1) Within 30 days of the filing of an application under ORS 307.545, the governing body shall determine whether the applicant qualifies for the exemption granted under ORS 307.540 to 307.548.

      (2)(a) If the governing body determines that the applicant qualifies, the governing body shall certify to the assessor of the county where the real property is located, as set forth in ORS 307.512, that all or a portion of the property is exempt from taxation under the levy of the certifying governing body.

      (b) Notwithstanding paragraph (a) of this subsection, the governing body may send the certification required under this subsection on or before the deadline specified in ORS 307.512, or as promptly as practicable after making the determination under subsection (1) of this section, whichever is later.

      (3) Upon receipt of certification sent pursuant to subsection (2) of this section, the county assessor shall exempt the property from taxation to the extent certified by the governing body. [1985 c.660 §5; 2013 c.193 §8; 2015 c.310 §10]

 

      Note: See first note under 307.540.

 

      307.548 Termination of exemption; additional taxes. (1)(a) If the governing body that has granted an exemption under ORS 307.540 to 307.548 to property in anticipation of future development of low income housing in connection with the exempt property finds that the property is being used for any purpose other than the provision of low income housing, or that any provision of ORS 307.540 to 307.548 is not being complied with, the governing body shall give notice of the proposed termination of the exemption to the owner, by mailing the notice to the last-known address of the owner, and to every known lender, by mailing the notice to the last-known address of every known lender.

      (b) The notice required under this subsection 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 appear and show cause why the exemption should not be terminated, the governing body shall notify every known lender, and shall allow any lender not less than 30 days after the date the notice of the failure to appear and show cause is mailed to cure any noncompliance or to provide assurance adequate to the governing body that all noncompliance will be remedied.

      (3)(a) If the owner fails to appear and show cause why the exemption should not be terminated, and the lender fails to cure or give adequate assurance of the cure of any noncompliance, the governing body shall adopt an ordinance or resolution stating its findings that terminate the exemption.

      (b) A copy of the ordinance or resolution required under this subsection shall be filed within 10 days after its adoption with the county assessor, and a copy shall be sent to the owner at the owner’s last-known address and to the lender at the last-known address of the lender within 10 days after its adoption.

      (4) Upon the county assessor’s receipt of the governing body’s termination findings:

      (a) The exemption granted the housing unit or portion under ORS 307.540 to 307.548 terminates immediately, without right of notice or appeal;

      (b) The property shall be assessed and taxed as other property similarly situated is assessed and taxed; and

      (c) Notwithstanding ORS 311.235, 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 taxes assessed against the property and the taxes that would have been assessed against the property had it not been exempt under ORS 307.540 to 307.548 for each of the years, not to exceed the last 10 years, during which the property was exempt from taxation under ORS 307.540 to 307.548.

      (5) Notwithstanding subsection (4) of this section, if at the time of presentation or discovery, the property is no longer exempt, additional taxes may be collected as provided in subsection (4) of this section, except that the number of years for which the additional taxes shall be collected shall be reduced by 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.

      (6) The assessment and tax rolls shall show potential additional tax liability for each property granted exemption under ORS 307.540 to 307.548 because the property is being held for future development of low income housing.

      (7) Additional taxes collected under this section shall be deemed to have been imposed in the year to which the additional taxes relate. [1997 c.752 §14; 2013 c.193 §17]

 

      Note: See first note under 307.540.

 

      307.550 [1983 c.786 §10; 1991 c.459 §70; 1997 c.541 §134; repealed by 2001 c.114 §16]

 

      307.560 [1983 c.786 §11; 1991 c.459 §71; 1999 c.314 §63; repealed by 2001 c.114 §16]

 

(Property of Industry Apprenticeship or Training Trust)

 

      307.580 Property of industry apprenticeship or training trust. (1) If not otherwise exempt by law and upon compliance with ORS 307.162, all real and personal property or proportion thereof owned or being purchased by an industry apprenticeship or training trust is exempt from property taxation if:

      (a) The trust is organized pursuant to a trust instrument solely for the purpose of aiding or assisting in the implementation or operation of one or more apprenticeship or training programs that conform to and are conducted under ORS 660.002 to 660.210;

      (b) The property or proportion thereof that is the subject of the exemption is actually and exclusively occupied and used in the implementation or operation of an apprenticeship or training program or programs that are established under, conform to and are conducted under ORS 660.002 to 660.210; and

      (c) The trust is considered an organization exempt from federal income taxes under the federal Internal Revenue Code or other laws of the United States relating to federal income taxes.

      (2) If property described under subsection (1) of this section would be exempt from taxation except that it is held under lease or lease-purchase agreement by the trust rather than owned or being purchased by it, the property shall be exempt from taxation upon compliance with and subject to ORS 307.112.

      (3) No exemption shall be allowed under subsection (1) or (2) of this section if the property is used in the implementation or operation of an apprenticeship or training program that discriminates with respect to its participants on the basis of age, race, religion, sex or national origin. [1983 c.619 §2]

 

(Multiple-Unit Housing)

 

      307.600 Legislative findings. (1) The Legislative Assembly finds that it is in the public interest to stimulate the construction of transit supportive 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 to ensure full-time use of the areas as places where residents of the community have an opportunity to live as well as to work.

      (2) The Legislative Assembly further finds that it is in the public interest to promote private investment in transit supportive multiple-unit housing in light rail station areas and transit oriented areas in order to maximize Oregon’s transit investment to the fullest extent possible and 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 within a light rail station area or transit oriented area.

      (3) The Legislative Assembly further 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 in light rail station areas, in transit oriented areas or in city core areas by means of the local property tax exemption authorized under ORS 307.600 to 307.637. The programs shall emphasize the following:

      (a) The development of vacant or underutilized sites in light rail station areas, transit oriented areas or core areas, rather than sites where sound or rehabilitable multiple-unit housing exists.

      (b) The development of multiple-unit housing, with or without parking, in structures that may include ground level commercial space.

      (c) The development of multiple-unit housing, with or without parking, on sites with existing single-story commercial structures.

      (d) The development of multiple-unit housing, with or without parking, on existing surface parking lots.

      (4) The Legislative Assembly further finds that it is in the public interest to preserve or establish existing housing that is affordable to low income persons by providing the incentives authorized in ORS 307.600 to 307.637 to:

      (a) Existing multiple-unit housing subject to a low income housing assistance contract with an agency or subdivision of this state or the United States; and

      (b) Existing multiple-unit housing that becomes subject to a low income housing assistance contract with an agency or subdivision of this state or the United States in order to use the incentives authorized in ORS 307.600 to 307.637.

      (5) The programs shall result in the preservation, construction, addition or conversion of units at rental rates or sale prices accessible to a broad range of the general public. [1975 c.428 §2; 1995 c.596 §1; 1999 c.808 §1; 2003 c.457 §1; 2017 c.315 §8]

 

      307.603 Definitions for ORS 307.600 to 307.637. As used in ORS 307.600 to 307.637:

      (1) “Establish” means, unless the context requires otherwise, making existing multiple-unit housing subject to a low income housing assistance contract.

      (2) “Lender” means any person who makes a loan, secured by a recorded mortgage or trust deed, to finance the acquisition, construction, addition or conversion of multiple-unit housing.

      (3) “Light rail station area” means an area defined in regional or local transportation plans to be within a one-half mile radius of an existing or planned light rail station.

      (4) “Low income housing assistance contract” means an agreement between a public agency and a property owner that results in the production, rehabilitation, establishment or preservation of housing affordable to those with a defined level of household income.

      (5) “Multiple-unit housing” means:

      (a) Housing that is or becomes subject to a low income housing assistance contract with an agency or subdivision of this state or the United States; or

      (b) Newly constructed structures, stories or other additions to existing structures and structures converted in whole or in part from other use to housing that meet the following criteria:

      (A) The structure must have a minimum number of dwelling units as specified by the city or county pursuant to ORS 307.606 (4).

      (B) The structure must not be designed or used as transient accommodations, including but not limited to hotels and motels.

      (C) The structure must have those design elements benefiting the general public, including any commercial use of a portion of the structure, as specified by the city or county pursuant to ORS 307.618.

      (D) If in a light rail station area or transit oriented area, the structure must:

      (i) Be physically or functionally related to a light rail line or mass transportation system; and

      (ii) Enhance the effectiveness of a light rail line or mass transportation system.

      (6) “Transit oriented area” means an area defined in regional or local transportation plans to be within one-quarter mile of a fixed route transit service. [Formerly 307.605; 2011 c.266 §1]

 

      307.605 [1975 c.428 §1; 1979 c.425 §1; 1989 c.1051 §1; 1995 c.596 §2; 1999 c.808 §2; 2003 c.457 §2; renumbered 307.603 in 2005]

 

      307.606 Exemption limited to tax levy of city or county that adopts ORS 307.600 to 307.637; designated areas; public hearings; standards and guidelines for considering applications. (1) ORS 307.600 to 307.637 apply to multiple-unit housing preserved, constructed, established, added to or converted in cities or counties that adopt, after a public hearing and determination pursuant to subsection (3) of this section, by resolution or ordinance, the provisions of ORS 307.600 to 307.637. The tax exemption provided by ORS 307.600 to 307.637 only applies to the tax levy of a city or county that adopts the provisions of ORS 307.600 to 307.637, except that the tax exemption shall apply to the ad valorem property taxes of all taxing districts when upon request of the city or county that has adopted the provisions of ORS 307.600 to 307.637, 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 housing as provided in ORS 307.600 to 307.637, when combined with the rate of taxation of the city or county that adopts the provisions of ORS 307.600 to 307.637, 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 307.637.

      (2) The city or county shall designate an area within which it proposes to allow exemptions provided for under the provisions of ORS 307.600 to 307.637. Core areas, light rail station areas or transit oriented areas may be designated by a city. A city may designate the entire city as the area in which the city proposes to allow exemptions under ORS 307.600 to 307.637 for housing that is or becomes subject to a low income housing assistance contract with an agency or subdivision of this state or the United States. A county may designate areas as light rail station areas or transit oriented areas but may not designate areas as core areas. A county may designate the entire county as the area in which the county proposes to allow exemptions under ORS 307.600 to 307.637 for housing that is or becomes subject to a low income housing assistance contract with an agency or subdivision of this state or the United States. A city or county from time to time may, by amending its resolution or ordinance, add or withdraw territory from the area originally designated as a light rail station area or a transit oriented area, but any area added must be within the boundaries of the area as limited by ORS 307.603 (3) or (6).

      (3) The city or county shall, prior to passage of a resolution or ordinance electing to utilize the provisions of ORS 307.600 to 307.637, 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 or preserved without the benefits provided by ORS 307.600 to 307.637.

      (4) Prior to accepting project applications under ORS 307.600 to 307.637, cities or counties shall promulgate standards and guidelines to be utilized in considering applications and making the determinations required by ORS 307.618. 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.

      (f) For housing that is or becomes subject to a low income housing assistance contract with an agency or subdivision of this state or the United States, a demonstration that the exemption is necessary to preserve or establish the low income units.

      (g) For housing that is to become subject to a low income housing assistance contract with an agency or subdivision of this state or the United States, the date on which the housing must be established in order to be exempt under ORS 307.600 to 307.637. [Formerly 307.610]

 

      307.609 Applicability of ORS 307.600 to 307.637 in cities and certain counties. In any city, or in any county with a population of over 300,000, the exemption shall apply only to multiple-unit housing preserved, established, constructed, added to or converted on land within an area designated under ORS 307.606 (2) or within a designated urban renewal or redevelopment area formed pursuant to ORS chapter 457. [Formerly 307.620]

 

      307.610 [1975 c.428 §3; 1979 c.425 §2; 1983 c.493 §1; 1989 c.1051 §2; 1991 c.459 §72; 1995 c.596 §3; 1997 c.325 §27; 1999 c.808 §3; 2003 c.457 §3; renumbered 307.606 in 2005]

 

      307.612 Duration of exemption; exclusions. (1) Multiple-unit housing that qualifies for exemption under ORS 307.600 to 307.637 may be exempt from ad valorem taxation for no more than 10 successive years. The first year of exemption is the assessment year beginning January 1 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 307.637 or, in the case of multiple-unit housing that is or becomes subject to a low income housing assistance contract, the application is approved.

      (2)(a) The exemption may not include the land or any improvements not a part of the multiple-unit housing.

      (b) The exemption may include:

      (A) Parking constructed as part of the multiple-unit housing construction, addition or conversion; and

      (B) Commercial property to the extent that the commercial property is a required design or public benefit element of a multiple-unit housing construction, addition or conversion approved by an authorizing city or county.

      (c) 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 dwelling units, only the increase in value attributable to the addition or conversion may be exempt from taxation.

      (3) Notwithstanding subsection (1) of this section, if the multiple-unit housing is or becomes subject to a low income housing assistance contract with an agency or subdivision of this state or the United States, the city or county may extend the exemption provided by ORS 307.600 to 307.637 through June 30 of the tax year during which the termination date of the contract falls.

      (4)(a) The exemption provided by ORS 307.600 to 307.637 is in addition to any other exemption provided by law. However, nothing in ORS 307.600 to 307.637 may be construed to exempt any property beyond 100 percent of its real market value.

      (b) If property is located within a core area and within a light rail station area or a transit oriented area, or both, and application for exemption under more than one program is made, only the exemption for which application is first made and approved may be granted. If property is granted exemption under ORS 307.600 to 307.637 pursuant to an ordinance or resolution adopted by a city, the property may not be granted exemption pursuant to an ordinance or resolution adopted by a county. If property is granted exemption under ORS 307.600 to 307.637 pursuant to an ordinance or resolution adopted by a county, the property may not be granted exemption pursuant to an ordinance or resolution adopted by a city. Property may be granted exemption under ORS 307.600 to 307.637 only once. [Formerly 307.630; 2011 c.266 §2]

 

      307.615 City or county to provide application forms; contents of application form; filing deadline; revision of application. An owner desiring an exemption under ORS 307.600 to 307.637 shall first apply to the city or county, whichever is appropriate, on forms supplied by the city or county. The application shall describe the property for which an exemption is requested, set forth the grounds supporting the requested exemption and be verified by oath or affirmation of the applicant. Application shall be made on or before February 1 immediately preceding the first assessment year for which exemption is requested, and shall be accompanied by the application fee required by ORS 307.621. The city or county may permit the applicant to revise an application prior to final action by the city or county. [Formerly 307.640]

 

      307.618 City or county findings required for approval. The city or county may approve an application filed under ORS 307.615 if the city or county finds that:

      (1) In the case of the construction, addition or conversion of multiple-unit housing:

      (a) The owner has agreed to include in the construction, addition or conversion as a part of the multiple-unit housing one or more design or public benefit elements as specified by the city or the county, including but not limited to commercial uses of a portion of the multiple-unit housing structure, open spaces, parks and recreational facilities, common meeting rooms, child care facilities, transit amenities and transit or pedestrian design elements.

      (b) 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, that are applicable at the time the application is approved.

      (2) In the case of housing that is or becomes subject to a low income housing assistance contract with an agency or subdivision of this state or the United States, it is important to the community to preserve or establish the housing as low income housing and it is probable that the housing would not be produced, be established or remain as low income housing without the exemption being granted.

      (3) The owner has complied with all standards and guidelines adopted by cities or counties pursuant to ORS 307.606 (4). [Formerly 307.650; 2011 c.266 §3]

 

      307.620 [1975 c.428 §4; 1989 c.1051 §3; 1995 c.596 §4; 1999 c.808 §4; 2003 c.457 §4; renumbered 307.609 in 2005]

 

      307.621 Approval or denial of applications; city or county to state in writing reasons for denial of exemption; application fees. (1) The city or county shall approve or deny an application filed under ORS 307.615 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. Following approval and on or before the deadline set forth in ORS 307.512, 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. In addition, the city or county shall file with the county assessor 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 307.637. 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. [Formerly 307.660; 2013 c.193 §9]

 

      307.624 Termination of exemption for failure to complete construction or noncompliance; notice. (1) Except as provided in ORS 307.627, if the city or county finds that construction of multiple-unit housing was not completed on or before the date specified in ORS 307.637, or that any provision of ORS 307.600 to 307.637 is not being complied with, or any provision required by the city or county pursuant to ORS 307.600 to 307.637 is not being complied with, the city or county shall give notice to the owner, mailed to the owner’s last-known address, and to any known lender, mailed to the lender’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 appear and show cause why the exemption should not be terminated, the city or county shall further notify every known lender and shall allow the lender a period of not less than 30 days, beginning with the date that the notice of failure to appear and show cause is mailed to the lender, to cure any noncompliance or to provide assurance that is adequate, as determined by the governing body, to assure the governing body that the noncompliance will be remedied.

      (3) If the owner fails to appear and show cause why the exemption should not be terminated, and a lender fails to cure or give adequate assurance that any noncompliance will be cured, 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, and to any lender at the lender’s last-known address, within 10 days after its adoption. [Formerly 307.670]

 

      307.627 Termination of exemption; additional taxes. (1) If, after application has been approved under ORS 307.600 to 307.637, 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, or if the exemption was granted for housing being or becoming subject to a low income housing assistance contract with an agency or subdivision of this state or the United States and the housing is not housing subject to a low income housing assistance contract as of a date the housing is required to be subject to a low income housing assistance contract in order to receive the exemption:

      (a) The exemption granted the multiple-unit housing or portion under ORS 307.600 to 307.637 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)(A) Notwithstanding ORS 311.235, 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 307.637 for each of the years, not to exceed the last 10 years, during which the property was exempt from taxation under ORS 307.600 to 307.637.

      (B) In the case of multiple-unit housing described in ORS 307.603 (5)(a), this paragraph applies only if the low income housing assistance contract to which the housing was or was to become subject was not entered into, breached or terminated prematurely.

      (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 307.637.

      (4) Additional taxes collected under this section shall be deemed to have been imposed in the year to which the additional taxes relate. [Formerly 307.675]

 

      307.630 [1975 c.428 §5; 1979 c.425 §3; 1989 c.1051 §3a; 1991 c.459 §73; 1995 c.596 §5; 1997 c.541 §136; 1999 c.808 §5; 2003 c.457 §5; renumbered 307.612 in 2005]

 

      307.631 Review of denial of application or termination of exemption; correction of assessment and tax rolls; owner’s appeal of valuation; effective date of termination of exemption. (1) Review of a denial of an application under ORS 307.621, or of the termination of an exemption under ORS 307.624, shall be as provided by ORS 34.010 to 34.100.

      (2) If no review of the termination of an exemption as provided in subsection (1) of this section is affected, or upon final adjudication, the county officials having possession of the assessment and tax rolls shall correct the rolls in the manner provided for omitted property under ORS 311.216 to 311.232, to provide for the assessment and taxation of any property for which exemption was terminated by the city or county, or by a court, in accordance with the finding of the city, county or the court as to the tax year in which the exemption is first to be terminated. The county assessor shall make such valuation of the property as shall be necessary to permit such correction of the rolls. The owner may appeal any such valuation in the same manner as provided for appeals under ORS 311.216 to 311.232. Where there has been a failure to comply with ORS 307.624, the property shall become taxable beginning January 1 of the assessment year following the assessment year in which the noncompliance first occurred. Any additional taxes becoming due shall be payable without interest if paid in the period prior to the 16th of the month next following the month of correction. If not paid within such period, the additional taxes shall be delinquent on the date they would normally have become delinquent if timely extended on the roll or rolls in the year or years for which the correction was made. [Formerly 307.680]

 

      307.634 Extension of deadline for completion of construction, addition or conversion. Notwithstanding any provision of ORS 307.624, if the city or county finds that construction, addition or conversion of the multiple-unit housing was not completed by the date specified in ORS 307.637, 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, addition or conversion for a period not to exceed 12 consecutive months. [Formerly 307.690]

 

      307.637 Deadlines for actions required for exemption. An exemption for multiple-unit housing may not be granted under ORS 307.600 to 307.637 unless:

      (1) In the case of multiple-unit housing described in ORS 307.603 (5)(a), the application for exemption is made to the city or county on or before January 1, 2022.

      (2) In the case of multiple-unit housing described in ORS 307.603 (5)(b), the construction, addition or conversion is completed on or before January 1, 2022. [Formerly 307.691; 2011 c.266 §4]

 

      307.640 [1975 c.428 §6; 1991 c.459 §74; 1995 c.596 §6; 1997 c.541 §138; renumbered 307.615 in 2005]

 

      307.650 [1975 c.428 §7; 1995 c.278 §37; 1995 c.596 §7; 1999 c.808 §6; 2003 c.457 §6; 2005 c.94 §41; renumbered 307.618 in 2005]

 

(Single-Unit Housing)

 

      307.651 Definitions for ORS 307.651 to 307.687. As used in ORS 307.651 to 307.687, unless the context requires otherwise:

      (1) “Governing body” means the city legislative body having jurisdiction over the property for which an exemption may be applied for under ORS 307.651 to 307.687.

      (2) “Qualified dwelling unit” means a dwelling unit that, at the time an application is filed pursuant to ORS 307.667, has a market value for the land and improvements of no more than 120 percent, or a lesser percentage as adopted by the governing body by resolution, of the median sales price of dwelling units located within the city.

      (3) “Single-unit housing” means a structure having one or more dwelling units that:

      (a) Is, or will be, upon purchase, rehabilitation or completion of construction, 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 and 227.

      (b) If newly constructed, is completed within two years after application for exemption is approved under ORS 307.674 or before January 1, 2025, whichever is earlier.

      (c) Is designed for each dwelling unit within the structure to be purchased by and lived in by one person or one family.

      (d) Has one or more qualified dwelling units within the single-unit housing.

      (e) Is not a floating home, as defined in ORS 830.700, or a manufactured structure, as defined in ORS 446.561, other than a manufactured home described in ORS 197.307 (8)(a) to (f).

      (4) “Structure” does not include the land or any site development made to the land, as those terms are defined in ORS 307.010. [Formerly 458.005; 2011 c.354 §8; 2013 c.426 §1; 2017 c.294 §1]

 

      Note: Section 5, chapter 294, Oregon Laws 2017, provides:

      Sec. 5. The amendments to ORS 307.651, 307.654, 307.671 and 307.677 by sections 1 to 4 of this 2017 Act apply to qualified dwelling units of single-unit housing purchased or rehabilitated on or after the effective date of this 2017 Act [October 6, 2017] in a city that, on or after the effective date of this 2017 Act, adopts a resolution or ordinance pursuant to ORS 307.657 or amends a resolution or ordinance previously adopted pursuant to ORS 307.657 to incorporate the amendments to ORS 307.651, 307.654, 307.671 and 307.677 by sections 1 to 4 of this 2017 Act. [2017 c.294 §5]

 

      307.654 Legislative findings. (1) The Legislative Assembly finds it to be in the public interest to encourage homeownership among low and moderate income families.

      (2) The Legislative Assembly further finds and declares that the cities of this state should be able to establish and design programs to stimulate the purchase, rehabilitation and construction of single-unit housing for homeownership by low and moderate income families by means of a limited property tax exemption, as provided under ORS 307.651 to 307.687. [Formerly 458.010; 2013 c.426 §2; 2017 c.294 §2]

 

      Note: See note under 307.651.

 

      307.657 Local government action to provide exemption. (1) ORS 307.651 to 307.687 apply to single-unit housing located within the jurisdiction of a governing body that adopts, by resolution or ordinance, ORS 307.651 to 307.687. Except as provided in subsection (2) of this section, the exemption provided by ORS 307.651 to 307.687 applies only to the tax levy of a governing body that adopts ORS 307.651 to 307.687.

      (2)(a) Except as provided in paragraph (b) of this subsection, the tax exemption provided under ORS 307.651 to 307.687 applies to the tax levy of all taxing units with jurisdiction over property granted the tax exemption by a city if the rates of taxation of taxing units whose governing bodies agree by resolution or ordinance to grant the tax exemption, when combined with the rate of taxation of the city, equal 51 percent or more of the total combined rate of taxation levied on the property.

      (b) If the rate of taxation of the city that has granted the tax exemption equals 40 percent or more of the total combined rate of taxation of all taxing units with jurisdiction over the property, the tax exemption applies to the tax levy of all taxing units only if:

      (A) The percentage requirement of paragraph (a) of this subsection is met; and

      (B) The governing body of the county also agrees, by resolution or ordinance, to grant the tax exemption to the property.

      (3) The city shall adopt standards and guidelines to be utilized in considering applications and making the determinations required under ORS 307.651 to 307.687, including but not limited to:

      (a) Design elements for construction of the single-unit housing proposed to be exempt.

      (b) Extensions of public benefits from the construction of the single-unit housing beyond the period of exemption. [Formerly 458.015; 2013 c.426 §3]

 

      307.660 [1975 c.428 §8; 1995 c.596 §8; renumbered 307.621 in 2005]

 

      307.661 Median sales price. Prior to January 1 of each assessment year, the governing body of a city that adopts ORS 307.651 to 307.687 shall adopt by resolution the median sales price to be used for purposes of determining if dwelling units are qualified under ORS 307.651 to 307.687. In determining the median sales price, the governing body, assisted by the county assessor, shall use the sales data collected under ORS 309.200 in the county in which the greater portion of the taxable assessed value of single-unit housing in the city is located, as of the period ending the prior November 30. [2005 c.470 §5]

 

      307.664 Exemption; limitations. Each qualified dwelling unit of single-unit housing that qualifies for exemption under ORS 307.651 to 307.687 shall be exempt from ad valorem taxation for no more than 10 successive tax years beginning July 1 of the first tax year following approval of the application under ORS 307.674, as determined under rules adopted by the Department of Revenue. The exemption provided by this section shall be in addition to any other exemption provided by law for the property. However, the amount of assessed value exempted under this section may not exceed the real market value of the structure determined as of the date that the property is inspected for purposes of making a determination under ORS 307.674. [Formerly 458.020]

 

      307.667 Application for exemption. (1) Any owner desiring an exemption under ORS 307.651 to 307.687 shall first apply to the city on forms supplied by the city.

      (2) The application shall describe the property for which an exemption is requested, set forth the grounds for the exemption and be verified by oath or affirmation of the applicant.

      (3) The city may permit the applicant to revise an application made under this section prior to final action by the city. [Formerly 458.025]

 

      307.670 [1975 c.428 §9; 1979 c.425 §4; 1981 c.697 §6; 1983 c.493 §2; 1989 c.1051 §4; 1991 c.459 §75; 1995 c.596 §9; renumbered 307.624 in 2005]

 

      307.671 Approval criteria. The city may approve an application made under ORS 307.667 if it finds that:

      (1) For a property that is an existing qualified dwelling unit, the qualified dwelling unit constitutes single-unit housing; or

      (2) For a property that is a newly constructed qualified dwelling unit:

      (a) The proposed qualified dwelling unit will constitute single-unit housing;

      (b) The owner has agreed to include the design elements adopted under ORS 307.657 (3) in the construction; and

      (c) The construction will result in public benefits beyond the period of exemption. [Formerly 458.035; 2013 c.426 §4; 2017 c.294 §3]

 

      Note: See note under 307.651.

 

      307.674 Application, approval and denial procedures; filing with assessor; fee. (1) The city shall approve or deny an application filed under ORS 307.667 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 shall be in the form of an ordinance or resolution that shall contain the owner’s name and address, a description of the structure that is the subject of the application that includes 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.

      (3) Following approval and on or before the deadline set forth in ORS 307.512, the city 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 the application. The copy shall contain or be accompanied by a notice explaining the grounds for possible termination of the exemption prior to the end of the exemption period or thereafter, and the effects of termination. In addition, the city shall file with the county assessor a document listing the same information otherwise required to be in an ordinance or resolution under subsection (2) of this section, as to each application deemed approved under subsection (1) of this section.

      (4) If the application is denied, the city 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. The notice shall inform the applicant of the right to appeal under ORS 307.687.

      (5) The city, 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 and the assessor in administering ORS 307.651 to 307.687. The application fee shall be paid to the city at the time the application for exemption is filed. If the application is approved, the city 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 shall retain that portion of the application fee attributable to its own administrative costs and shall refund the balance to the applicant. [Formerly 458.040; 2013 c.193 §10]

 

      Note: Section 6, chapter 294, Oregon Laws 2017, provides:

      Sec. 6. (1) A city may not approve an application for exemption under ORS 307.674 on or after January 1, 2025.

      (2) Notwithstanding the date specified in subsection (1) of this section, a qualified dwelling unit of single-unit housing that was granted exemption under ORS 307.651 to 307.687 pursuant to an application approved under ORS 307.674 before the date specified in subsection (1) of this section shall continue to receive the exemption for the period of time for which the exemption was granted. [2017 c.294 §6]

 

      307.675 [1981 c.697 §5; 1987 c.158 §45; 1987 c.459 §33; 1991 c.459 §76; 1999 c.808 §7; 2003 c.457 §7; renumbered 307.627 in 2005]

 

      307.677 Extension of construction period; effect of destruction of property. Notwithstanding ORS 307.651 to 307.687:

      (1) If the city finds that construction of single-unit housing was not completed by a date that is 12 months after the date on which applications may no longer be approved under ORS 307.674, and further finds that the failure to complete construction was 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 may extend the deadline for completion of construction for a period not to exceed an additional 12 consecutive months.

      (2) If property granted exemption under ORS 307.651 to 307.687 is destroyed by fire or act of God, or is otherwise no longer capable of occupancy due to circumstances beyond the control of the owner, the exemption shall cease but no additional taxes or penalty shall be imposed under ORS 307.651 to 307.687 upon the property. [Formerly 458.065; 2017 c.294 §4]

 

      Note: See note under 307.651.

 

      307.680 [1975 c.428 §10; 1991 c.459 §77; 1995 c.596 §10; 1997 c.541 §141; renumbered 307.631 in 2005]

 

      307.681 Exemption termination for failure to meet requirements; procedures. (1) Except as provided in ORS 307.684, if, after an application has been approved under ORS 307.674, the city finds that construction of single-unit housing was not completed within two years after the date the application was approved or on or before January 1, 2025, whichever is earlier, or that any provision of ORS 307.651 to 307.687 is not being complied with, or any provision required by the city pursuant to ORS 307.651 to 307.687 is not being complied with, the city 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 shall adopt an ordinance or resolution stating its findings and 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. [Formerly 458.045; 2013 c.426 §5]

 

      307.684 Immediate termination of exemption; additional taxes. (1) If, after application has been approved under ORS 307.674, the county assessor discovers that the single-unit housing or a portion of the single-unit housing is changed to a use that is other than single-unit housing:

      (a) The exemption granted the single-unit housing or portion under ORS 307.651 to 307.687 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 311.235, there shall be added to the general property tax roll for the tax year next following the 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 due on the property and the amount of the tax that would have been due on the property had it not been exempt under ORS 307.651 to 307.687 for each of the years, not to exceed the last 10 years, during which the property was exempt from taxation under ORS 307.651 to 307.687.

      (2) If, at the time of 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 by one year for each year that has elapsed since the year the property was last granted exemption.

      (3) The assessment and tax rolls shall show potential additional tax liability for each property granted exemption under ORS 307.651 to 307.687.

      (4) Additional taxes collected under this section shall be deemed to have been imposed in the year to which the additional taxes relate. [Formerly 458.050]

 

      307.687 Review of denial of application; procedures following termination of exemption; correction of tax roll; additional taxes. (1) Review of a denial of an application under ORS 307.674 shall be as provided by ORS 34.010 to 34.100.

      (2) Upon termination of an exemption, the county officials having possession of the assessment and tax rolls shall correct the rolls in the manner provided for omitted property under ORS 311.216 to 311.232 to provide for the assessment and taxation of any property for which exemption was terminated by the city or by a court, in accordance with the finding of the city or the court as to the year in which the exemption is first to be terminated. The county assessor shall make such valuation of the property as shall be necessary to permit such correction of the rolls. The owner may appeal any such valuation in the same manner as provided for appeals under ORS 311.216 to 311.232.

      (3) Unless the exemption is terminated pursuant to ORS 307.684, where there has been a failure to comply with ORS 307.681, the property shall become taxable beginning July 1 of the tax year in which the noncompliance first occurred. Any additional taxes becoming due shall be payable without interest if paid in the period prior to the 16th day of the month next following the month of correction. If not paid within such period, the additional taxes shall be delinquent on the date they would normally have become delinquent if timely extended on the roll or rolls in the year or years for which the correction was made. [Formerly 458.060]

 

      307.690 [1975 c.428 §11; 1979 c.425 §5; 1983 c.493 §3; 1989 c.1051 §5; 1991 c.459 §78; 1995 c.596 §11; 1997 c.325 §29; renumbered 307.634 in 2005]

 

      307.691 [1995 c.596 §13; 1997 c.541 §143; 1999 c.808 §8; 2003 c.457 §8; 2005 c.176 §1; renumbered 307.637 in 2005]

 

      307.700 [1979 c.561 §1; repealed by 1993 c.475 §3]

 

      307.701 [1993 c.475 §2; 1997 c.541 §144; repealed by 1993 c.475 §4]

 

      307.705 [1979 c.561 §2; 1991 c.459 §79; repealed by 1993 c.475 §3]

 

(Rural Health Care Facilities)

 

      307.804 Rural health care facilities; claim procedures; duration of exemption. (1) As used in this section and ORS 307.806, “rural health care facility” means a health care facility that:

      (a) Is located in a rural health service area with an average travel time of more than 30 minutes from a population center of 30,000 or more, as determined by the Office of Rural Health; and

      (b) Is used exclusively to provide medical care.

      (2) Real and personal property of a rural health care facility is exempt from the ad valorem property taxes of the county in which the facility is located, and from the ad valorem property taxes of each other local taxing district in which the facility is located that authorizes the exemption under ORS 307.806, if all of the following apply:

      (a) The property constitutes new construction, new additions, new modifications or new installations of property as of the first assessment date for which the facility is in service. Land and other property that was in existence at the location of the facility prior to the date work began on the construction, addition, modification or installation of property at the facility is not exempt under this section.

      (b) The exemption has been authorized by the governing body of the county in which the facility is located in the manner set forth in ORS 307.806.

      (3) To receive the exemption provided under this section, the rural health care facility must annually file its intention to take the exemption. The filing must be with the county assessor of the county that authorized the exemption under ORS 307.806 and must be made by April 1 preceding the tax year for which the exemption is being claimed.

      (4) A rural health care facility described in this section shall be exempt from the taxes to which the exemption applies for the tax year in which the facility is first in service as of the assessment date and for the next two succeeding tax years. [2001 c.642 §2]

 

      307.806 Exemption limited to taxes of district adopting ORS 307.804; procedures. (1) In order for a rural health care facility to be exempt from tax under ORS 307.804, prior to the construction, addition, modification or installation of the facility the governing body of the county in which the facility is to be located must, by ordinance or resolution, authorize the exemption provided under ORS 307.804.

      (2) Within 10 days following adoption of the ordinance or resolution that authorizes the exemption provided under ORS 307.804, the county governing body must give written notice of the authorization of the exemption to:

      (a) Each taxing district located in the county; and

      (b) The county assessor.

      (3) The notice must state that:

      (a) The county has authorized the exemption provided under ORS 307.804; and

      (b) The exemption will apply to the taxes of the local taxing district receiving the notice if that district elects to authorize the exemption under subsection (4) of this section.

      (4)(a) A local taxing district that receives a notice described in this section may elect to authorize the exemption within 180 days of the date of the notice.

      (b) The governing body of a taxing district makes an election by passing an ordinance or resolution stating that the taxing district is authorizing the exemption.

      (c) A taxing district making an election shall mail copies of the ordinance or resolution in which the election is made to the county governing body and to the county assessor within 10 days of the date the election is made.

      (5) A county that has authorized exemptions provided under ORS 307.804 may revoke authorization by repealing the ordinance or resolution described in subsection (1) of this section. Authorization revocation under this subsection does not affect the continued exemption of any rural health care facility that has already qualified for the exemption, but a rural health care facility that has not qualified for an exemption as of the date of revocation may not qualify for an exemption after the date of revocation. [2001 c.642 §3]

 

(Long Term Care Facilities)

 

      307.808 Findings and declarations. The Legislative Assembly finds that owners of long term care facilities who devote substantial proportions of those facilities to providing long term care to residents eligible for medical services under Medicaid provide an essential community service. The Legislative Assembly declares that a property tax exemption will enable these essential community provider long term care facilities to increase the quality of care provided to facility residents. The Legislative Assembly further declares that the quality of care is increased most efficiently when the full value of the exemption is applied to increasing direct caregiver wages, physical plant improvements and other expenditures that directly benefit the facility residents and staff. [1999 c.476 §1]

 

      307.810 [1959 c.659 §1; repealed by 1979 c.692 §13]

 

      307.811 Essential community provider long term care facilities. (1) Real and personal property that is used solely in the operations of a long term care facility that has been certified for the tax year as an essential community provider long term care facility under ORS 443.888 shall be exempt from ad valorem property taxation.

      (2)(a) In order for the long term care facility to be exempt from taxation under this section, the owner of the facility shall file with the county assessor a copy of a certificate issued by the Department of Human Services under ORS 443.888, certifying the facility as an essential community provider long term care facility.

      (b) The certificate must be filed with the assessor on or before April 1 preceding the tax year for which the exemption is being claimed.

      (c) Notwithstanding paragraph (b) of this subsection, a certificate may be filed with the assessor on or before December 31 of the tax year if accompanied by a late filing fee of the greater of $200 or one-tenth of one percent of the real market value of the property to which the certificate applies.

      (3) As used in this section and ORS 307.808, “long term care facility” means a nursing facility, assisted living facility, residential care facility or adult foster home as defined in ORS 443.705. [1999 c.476 §2]

 

      307.815 Exemption limited to taxes of district adopting ORS 307.811. The exemption provided in ORS 307.811 applies only to the taxes of a taxing district the governing body of which has adopted, by ordinance or resolution, the provisions of ORS 307.811. [1999 c.476 §2a]

 

(Public Beach Access Sites)

 

      307.818 Beach access sites; claim procedures. (1) Upon compliance with subsection (2) of this section, the portion of real property owned by a private individual or organization that is subject to an easement for public beach access shall be exempt from taxation if:

      (a) The property is designated as a beach access site for free and open use by the public and the easement contains or is accompanied by a description of the property that conforms with the requirements of ORS 93.600 and allows the county assessor to locate the boundaries of and otherwise identify the property;

      (b) The easement and legal description are recorded in the records of the county recording officer and a copy of the recorded easement and the property description is filed in the office of the county assessor; and

      (c) The beach access site is free and open to the public permanently and continually throughout the year and is of sufficient size to accommodate parking for at least three automobiles.

      (2) On or before April 1 preceding the first tax year for which exemption under subsection (1) of this section is desired, the owner shall file a claim for exemption with the county assessor, except that if the property becomes qualified for the exemption after March 1 but before July 1, the claim shall be filed within 30 days after the property qualified for the exemption. [1999 c.872 §4]

 

      307.820 [1959 c.659 §2; 1965 c.395 §1; repealed by 1979 c.692 §13]

 

      307.821 Disqualification; additional taxes. (1) If, after an exemption under ORS 307.818 is granted, the county assessor determines that the property or a portion of the property is not managed, operated or maintained in a manner consistent with ORS 307.818:

      (a) The exemption granted under ORS 307.818 may be terminated;

      (b) For the first tax year following the date of termination and each succeeding tax year, the property or portion shall be assessed and taxed as other property similarly situated is assessed and taxed; and

      (c) Notwithstanding ORS 311.235, there shall be added to the general property tax roll for the tax year next following the determination, to be collected and distributed in the same manner as other real property tax, an amount equal to the amount of tax that would have been due on the property had it not been exempt under ORS 307.818 for each of the years during which the property was exempt from taxation under ORS 307.818, not to exceed 15 tax years.

      (2) The assessment and tax rolls shall show “potential additional tax liability” for each property granted exemption under ORS 307.818.

      (3) No additional taxes shall be imposed under subsection (2) of this section if the property becomes disqualified for exemption under ORS 307.818 because the property is destroyed by fire, act of God or other natural disaster.

      (4) Additional taxes collected under this section shall be deemed to have been imposed in the year to which the additional taxes relate.

      (5) A property that has lost eligibility for exemption under ORS 307.818 may requalify for exemption beginning with the tax year following payment of any additional taxes. [1999 c.872 §5]

 

(Environmentally Sensitive Logging Equipment)

 

      307.824 Findings and declarations. The Legislative Assembly finds and declares that:

      (1) The public policy of this state is to facilitate the transition of older logging equipment to newer equipment designed and manufactured to be as environmentally sensitive as current technology can provide, consistent with the need to match the equipment to the specifics of the site being harvested.

      (2) Personal property taxes paid on logging equipment act as a disincentive to a transition to environmentally sensitive technology, because older equipment has a lower assessed value and therefore generates a correspondingly reduced property tax liability. In contrast, newer equipment, the use of which benefits the environment more than the use of older equipment, has a higher assessed value and a correspondingly higher property tax liability.

      (3) A property tax incentive is a means of facilitating the transition to newer, environmentally sensitive equipment and accomplishing the declared public policy. [1999 c.957 §2]

 

      307.827 Environmentally sensitive logging equipment. (1) Environmentally sensitive logging equipment is exempt from ad valorem property taxation.

      (2) As used in this section:

      (a) “Environmentally sensitive logging equipment” means logging equipment that was originally manufactured after 1992.

      (b) “Logging equipment” means machinery and equipment:

      (A) Used in logging or forest management operations involving timber harvest, including the felling, bucking, yarding, loading or utilization of timber, logs or wood fiber in the forest, or used in reforestation, forest vegetation restoration, site preparation, vegetation control, stand and tree improvement or thinning;

      (B) That is specifically designed for activities related to water quality or fish and wildlife habitat protection in the forest; or

      (C) Consisting of excavators used in logging road construction, maintenance, reconstruction or improvements, including the closing or obliterating of existing forest roads.

      (c) “Logging equipment” does not include:

      (A) Equipment used in nonforest applications for more than 20 percent of the tax year, as measured by the operating hours of the equipment.

      (B) Equipment used in the manufacturing or milling of forest products.

      (C) Power saws, hand tools, blocks or pulleys that are not a part of the equipment, rigging, shop equipment or support equipment.

      (D) Logging equipment that is exempt from tax under ORS 307.831. [1999 c.957 §3; 2009 c.852 §1]

 

      307.830 [1959 c.659 §3; repealed by 1979 c.692 §13]

 

      307.831 Skyline and swing yarders. Logging equipment consisting of a skyline yarder and carriage in the form of a mobile tower or swing yarder that is capable of full log suspension during inhaul is exempt from ad valorem property taxation. [1999 c.957 §6]

 

(Cargo Containers)

 

      307.835 Cargo containers. All cargo containers principally used for the transportation of cargo by vessels in trade and ocean commerce shall be exempt from taxation. The term “cargo container” means a receptacle:

      (1) Of a permanent character and accordingly strong enough to be suitable for repeated use;

      (2) Specially designed to facilitate the carriage of goods, by one or more modes of transport, one of which shall be by vessels, without intermediate reloading; and

      (3) Fitted with devices permitting its ready handling, particularly its transfer from one mode of transport to another. [1979 c.783 §1]

 

      Note: Section 2, chapter 783, Oregon Laws 1979, provides:

      Sec. 2. Cargo containers, as defined in ORS 307.835, are exempt from taxation for tax years beginning on or after July 1, 1974, but prior to July 1, 2020. [1979 c.783 §2; 1987 c.583 §1; 1995 c.748 §7; 2003 c.218 §1; 2009 c.548 §1; 2013 c.213 §1]

 

      Note: 307.835 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 307 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      307.840 [1959 c.659 §4; repealed by 1979 c.692 §13]

 

(Vertical Housing Development Zones)

 

      307.841 Definitions for ORS 307.841 to 307.867. As used in ORS 307.841 to 307.867:

      (1) “Construction” means the development of land and the construction of improvements to land, and may be further defined by the city or county that designated the vertical housing development zone under ORS 307.844.

      (2) “Displacement” means a situation in which a household is forced to move from its current residence due to conditions that affect the residence or the immediate surroundings of the residence and that:

      (a) A reasonable person would consider to be beyond the household’s ability to prevent or control;

      (b) Occur despite the household’s having met all previously imposed conditions of occupancy; and

      (c) Make continued occupancy of the residence by the household unaffordable, hazardous or impossible.

      (3) “Equalized floor” means the quotient determined under ORS 307.857 (4)(b).

      (4) “Low income residential housing” means housing that is restricted to occupancy by persons or families whose income is no greater than 80 percent of area median income, adjusted for family size, as determined by the Housing and Community Services Department.

      (5) “Nonresidential use” means any use that is not exclusively residential use.

      (6) “Rehabilitation” means repair or replacement of improvements, including fixtures, or land developments, the cost of which equals at least 20 percent of the real market value of the improvements or land developments being repaired or replaced, and may be further defined by the city or county that designated the zone.

      (7) “Vertical housing development project” or “project” means the construction or rehabilitation of a multiple-story building, or a group of buildings, including at least one multiple-story building, so that a portion of the project is to be used for nonresidential uses and a portion of the project is to be used for residential uses.

      (8) “Vertical housing development zone” or “zone” means an area that has been designated a vertical housing development zone under ORS 307.844. [Formerly 285C.450; 2015 c.507 §1; 2017 c.326 §1]

 

      307.844 Zone designation; local taxing district election to not participate in zone; notification of local taxing districts. (1)(a) A city may designate an area within the city as a vertical housing development zone.

      (b) A county may designate as a vertical housing development zone an area that is subject to a goal exception for residential use approved under ORS 197.732.

      (2) With the prior consent of the governing body of each city in which a proposed vertical housing development zone is to be located, a county may designate any area within each city that has given consent for vertical housing development zone designation as a vertical housing development zone.

      (3) A city and a county, or any combination of cities and counties, may designate an area within each jurisdiction as a vertical housing development zone.

      (4) A local taxing district may elect not to participate in a vertical housing development zone. A local taxing district that elects not to participate may continue to impose taxes on property otherwise exempt from ad valorem property tax under ORS 307.864.

      (5) A city or county must consider the potential for displacement of households within a proposed vertical housing development zone before designating the zone.

      (6)(a) Before designating a vertical housing development zone, a city or county, as applicable, must notify the local taxing districts, other than the city or county, that have territory in the proposed vertical housing development zone of the city’s or county’s intention to designate a vertical housing development zone.

      (b) The notice required under paragraph (a) of this subsection must be sent by regular mail and must:

      (A) Describe the proposed vertical housing development zone;

      (B) Explain the exemption described in ORS 307.864 that would apply if the proposed zone is designated; and

      (C) Explain the process by which a local taxing district may elect not to participate in the vertical housing development zone.

      (c) Notice of the election of a district listed in ORS 198.010 or 198.180 not to participate in the vertical housing development zone must be received by the city or county, as applicable, within 30 days after the district receives the notice required under paragraph (a) of this subsection.

      (7)(a) Not sooner than 60 days after sending the notice required under subsection (6)(a) of this section, the governing body of the city or county that seeks to designate a vertical housing development zone may adopt an ordinance or resolution designating the vertical housing development zone and describing the area and boundaries of the zone. The ordinance or resolution may include additional criteria for certification of a vertical housing development project that do not conflict with the requirements described in ORS 307.858.

      (b) As soon as practicable after adopting the ordinance or resolution designating the zone, the governing body shall notify the assessor of the county in which the zone is located of the designation of the zone and the districts that elected not to participate in the zone. [Formerly 285C.453; 2015 c.507 §2; 2017 c.326 §2]

 

      307.847 [Formerly 285C.456; repealed by 2017 c.326 §11]

 

      307.850 [1965 c.278 §1; 1993 c.70 §1; 1997 c.499 §1; renumbered 285A.325 in 1997]

 

      307.851 [Formerly 285C.459; repealed by 2017 c.326 §11]

 

      307.854 Acquisition, disposition and development of real property within zone. (1) Following the designation of a vertical housing development zone under ORS 307.844, the city or county that designated the zone may acquire or dispose of real property within the zone for the purpose of developing vertical housing development projects within the zone.

      (2) The development of projects may be undertaken by the city or county independently, jointly or in partnership with a private entity or may be undertaken by a private entity acting independently.

      (3) The entities undertaking the development of property under this section may own and operate the developed property or may sell or otherwise dispose of the property at any time during or after development. The property may be sold at the property’s real market value or at a lesser value. [Formerly 285C.462; 2017 c.326 §3]

 

      307.857 Application for exemption; review; certification; fees. (1) Following the designation of a vertical housing development zone under ORS 307.844, a person proposing to undertake a proposed vertical housing development project and seeking the partial property tax exemption set forth in ORS 307.864 shall apply to the governing body of the city or county that designated the zone for certification of the project. Each phase of a phased development, whether vertical or horizontal, requires a separate application.

      (2) The application must be satisfactory to the city or county in form and content and must contain any information required by the city or county, including all of the following:

      (a) The address and boundaries of the proposed vertical housing development project.

      (b) A description of the existing state of the property.

      (c) A description of the proposed project construction or rehabilitation, including the design of the construction or rehabilitation, the cost of the construction or rehabilitation and the number of floors and residential units to be constructed or rehabilitated.

      (d) A description of the nonresidential uses to which any portion of the proposed project is to be put, including the proportion of total square footage of the project proposed for nonresidential uses.

      (e) A description of the proposed portion of the project to be used for residential uses, including the proportion of total square footage of the project proposed for residential uses.

      (f) A description of the number and nature of residential units in the proposed project that are to be low income residential housing, including the proportion of total square footage of the project proposed for low income residential housing uses.

      (g) The calculation and allocations described under subsection (4) of this section.

      (h) Documentation establishing the costs of construction and rehabilitation with respect to the project.

      (i) A commitment that is satisfactory to the city or county, including documentation and evidence of recording of the documentation, that the project will be maintained and operated in a manner consistent with the application submitted under this section for the duration of the commitment. The duration of the commitment, including the eligibility of units in the project as low income residential housing, may not be less than the number of tax years for which the project is intended to be partially exempt from ad valorem property taxes under ORS 307.864.

      (3) For purposes of this section, square footage does not include areas used for parking, patios or porches, unless these areas are demonstrated to the satisfaction of the city or county to be economically necessary to the project or the city or county otherwise determines that it is appropriate to include the areas in square footage.

      (4)(a) Each application filed under this section shall contain a calculation of equalized floors, an allocation of equalized floors to residential uses and an allocation of equalized floors to low income residential housing uses as determined under this subsection.

      (b) An equalized floor is the quotient that results from the division of total square footage of a project by the number of actual floors of the project that are at least 500 square feet per floor, or as may be increased or otherwise qualified by the city or county by rule.

      (c) To allocate equalized floors to residential uses, divide the total square footage of residential property in the project by the square footage of an equalized floor.

      (d) To allocate equalized floors to low income residential housing use, divide the total square footage of low income residential housing property in the project by the square footage of an equalized floor. In determining the square footage of low income residential housing property, include that proportion of the square footage of residential common space that is the same as the proportion of the total square footage of low income residential housing units to the total square footage of all residential housing units.

      (e) Land that is necessary for a project having at least one equalized floor of low income residential housing may be certified for partial exemption. Land that is not necessary for the project may not be certified for partial exemption.

      (5)(a) For rehabilitation that does not involve displacement of tenants, the application must be filed on or before the date on which the rehabilitation is complete.

      (b) The application must be filed on or before the date on which residential units that are a part of the vertical housing development project are ready for occupancy.

      (6) The city or county shall review each application submitted under this section and shall certify or deny certification based on whether the proposed vertical housing development project meets the requirements described in ORS 307.858 and all criteria established by the city or county that are consistent with ORS 307.841 to 307.867.

      (7) The city or county may request any documentation or undertake any investigation necessary to ascertain the veracity of any statement made on an application under this section.

      (8) The certification issued by the city or county shall:

      (a) Identify the property included in the certified vertical housing development project;

      (b) Identify the number of equalized floors of residential housing in the project and include a description of the property of each equalized floor;

      (c) Identify the number of equalized floors of low income residential housing in the project and include a description of the property of each equalized floor; and

      (d) Contain any other information prescribed by the city or county.

      (9) The determination of the city or county to certify or deny certification is a discretionary determination. The determination is final and is not subject to judicial or administrative review.

      (10) The city or county may charge appropriate fees to offset the cost of administering the application and certification process under this section and any other related costs. [Formerly 285C.465; 2017 c.326 §6]

 

      Note: Section 13, chapter 326, Oregon Laws 2017, provides:

      Sec. 13. (1) Property that was constructed pursuant to a certification for a partial property tax exemption under ORS 307.857 prior to the effective date of this 2017 Act [October 6, 2017] shall continue to receive the exemption according to the same schedule and subject to the disqualification provisions of ORS 307.841 to 307.867 that were in effect and applied at the time the vertical housing development project was certified for partial property tax exemption.

      (2) If an application for certification was filed with the Housing and Community Services Department prior to the effective date of this 2017 Act but not acted upon as of the effective date of this 2017 Act, the Housing and Community Services Department shall forward the application to the city or county, as applicable. [2017 c.326 §13]

 

      307.858 Project certification requirements. (1) A city or county may not certify a vertical housing development project under ORS 307.857 unless the project meets all requirements of this section.

      (2) The project must be entirely located within a vertical housing development zone designated by the city or county with which the application for certification is filed.

      (3) The project must include one or more equalized floors.

      (4) Construction or rehabilitation must have been started on each building included in the project, including, but not limited to, additions that expand or enlarge an existing building.

      (5)(a) At least 50 percent of the project’s ground floor that fronts on the primary public street must be committed to nonresidential use. If a project has access to only one public street, the square footage of driveways, loading docks, bike storage, garbage receptacles and building entryways shall be excluded before applying the 50 percent test.

      (b) For the project’s ground floor to be considered committed to nonresidential use, all ground floor interior spaces that front on the primary public street must be constructed to building code standards for commercial use or planned for commercial use upon completion. [2017 c.326 §5]

 

      Note: Section 13, chapter 119, Oregon Laws 2005, provides:

      Sec. 13. (1) The Housing and Community Services Department may not issue a certification under ORS 307.841 to 307.867 on or after January 1, 2018.

      (2) A city or county may not issue a certification under ORS 307.841 to 307.867 on or after January 1, 2026. [2005 c.119 §13; 2015 c.507 §4; 2017 c.326 §14]

 

      307.861 Monitoring of certified projects; decertification. (1) Upon determining to certify a vertical housing development project under ORS 307.857, the city or county shall send a copy of the certification to the county assessor of the county in which the project is to be located. The certification must be accompanied by a description of the property granted partial exemption under ORS 307.864.

      (2) At any time after certification and prior to the end of the exemption period, the city or county may:

      (a) Request documentation, undertake investigations or otherwise review and monitor the project to ensure ongoing compliance by project applicants and owners.

      (b) Undertake any remedial action that the city or county determines to be necessary or appropriate to fulfill the purposes of ORS 307.841 to 307.867, including issuing a notice of decertification directing the county assessor to disqualify all or a portion of a project.

      (3)(a) A notice of decertification issued under subsection (2)(b) of this section shall identify:

      (A) The property decertified from the vertical housing development project;

      (B) The number of equalized floors that have ceased qualifying as residential housing for purposes of ORS 307.841 to 307.867;

      (C) The number of equalized floors that have ceased qualifying as low income residential housing for purposes of ORS 307.841 to 307.867;

      (D) The remaining number of equalized floors of residential housing in the project and include a description of the property of each remaining equalized floor; and

      (E) The remaining number of equalized floors of low income residential housing in the project and include a description of the property of each remaining equalized floor of low income residential housing.

      (b) The notice of decertification shall include any other information prescribed by the city or county.

      (c) The city or county shall send copies of the notice of decertification to the property owner and the county assessor of the county in which the property is located. [Formerly 285C.468; 2017 c.326 §7]

 

      307.864 Partial property tax exemption. (1) For the first tax year in which, as of the assessment date, a vertical housing development project is occupied or ready for occupancy following certification under ORS 307.857, and for the next nine consecutive tax years:

      (a) The property of the vertical housing development project, except for the land of the project, shall be partially exempt from ad valorem property taxes imposed by local taxing districts, other than the districts that elected not to participate in the vertical housing development zone pursuant to ORS 307.844 (4), according to the following schedule and as identified in the certification issued under ORS 307.857 (8):

      (A) If the project consists of the equivalent of one equalized floor allocated to residential housing, the project shall be 20 percent exempt.

      (B) If the project consists of the equivalent of two equalized floors allocated to residential housing, the project shall be 40 percent exempt.

      (C) If the project consists of the equivalent of three equalized floors allocated to residential housing, the project shall be 60 percent exempt.

      (D) If the project consists of the equivalent of four or more equalized floors allocated to residential housing, the project shall be 80 percent exempt.

      (b) The land of the vertical housing development project shall be partially exempt from ad valorem property taxes imposed by local taxing districts, other than the districts that elected not to participate in the vertical housing development zone pursuant to ORS 307.844 (4), in the same percentages determined under paragraph (a) of this subsection, for each equalized floor allocated to low income residential housing, as identified in the certification issued under ORS 307.857 (8).

      (2) In order for the property of a vertical housing development project to receive the partial property tax exemption described in subsection (1) of this section, the vertical housing development project property owner, project applicant or other person responsible for the payment of property taxes on the project must notify the city or county that the project is occupied or ready for occupancy, and the city or county must notify the assessor of the county in which the project is located, in the manner set forth in ORS 307.512, that the project is occupied or ready for occupancy and has been certified under ORS 307.857. [Formerly 285C.471; 2013 c.193 §§11,18; 2017 c.326 §8]

 

      307.866 Decertification of project; disqualification from exemption; additional taxes. (1)(a) During the period in which property of a vertical housing development project would otherwise be partially exempt under ORS 307.864 (1)(a), if all or a portion of the project has been decertified under ORS 307.861, the property is disqualified from exemption in proportion to the equivalent of each equalized floor that has ceased qualifying as residential housing, as set forth in the notice of decertification.

      (b) During the period in which the land of a vertical housing development project would otherwise be partially exempt under ORS 307.864 (1)(b), if all or a portion of the project has been decertified under ORS 307.861, the land is disqualified from exemption in proportion to the equivalent number of equalized floors that have ceased qualifying as low income residential housing, as set forth in the notice of decertification.

      (2) Notwithstanding ORS 307.864, there shall be added to the general property tax roll for the tax year next following decertification described in subsection (1) of this section, to be collected and distributed in the same manner as other real property tax, an amount equal to the difference between the taxes assessed against the property and land granted exemption under ORS 307.864 and the taxes that would have been assessed against the property and land but for the exemption for each of the years, not to exceed the last 10 years, during which the property and land were exempt from taxation under ORS 307.864.

      (3) Notwithstanding ORS 307.864, if, after a period of exemption under ORS 307.864 has terminated, the city or county that designated the zone in which the project is located discovers that the property or land of a vertical housing development project was granted exemption to which the project was not entitled, additional taxes may be collected as provided in subsection (2) of this section, except that the number of years for which the additional taxes may be collected shall be reduced by one year for each year that has elapsed since the year the property or land was last granted exemption, beginning with the earliest year for which additional taxes are due.

      (4) The assessment and tax rolls shall show potential additional tax liability for all property and land granted exemption under ORS 307.864.

      (5) Additional taxes collected under this section shall be deemed to have been imposed in the year to which the additional taxes relate. [2013 c.193 §20; 2017 c.326 §9]

 

      307.867 Termination of zone; effect of termination. (1) A city or county that designates a vertical housing development zone under ORS 307.844 may terminate the zone at any time.

      (2) The termination of a zone under this section does not affect the exemption from tax under ORS 307.864 of any property of a vertical housing development project that was certified under ORS 307.857 prior to the termination of the zone and that continues to qualify for the exemption at the time of the termination of the zone. [Formerly 285C.480; 2017 c.326 §10]

 

(Temporary provisions relating to exemption for newly rehabilitated or constructed multiunit rental housing)

 

      Note: Sections 1 to 4, chapter 624, Oregon Laws 2017, provide:

      Sec. 1. (1) As used in sections 1 to 3 of this 2017 Act, “eligible rental property” means newly rehabilitated or constructed multiunit rental housing.

      (2)(a) The governing body of a city or county may adopt an ordinance or resolution granting a property tax exemption for eligible rental property located within the boundaries of the city or county, respectively.

      (b) The terms of the exemption must conform to the provisions of sections 1 to 3 of this 2017 Act.

      (3)(a) The exemption may be granted to eligible rental property only if:

      (A) The rehabilitation or construction is completed after the ordinance or resolution has been adopted; and

      (B) The first assessment year to which the application filed under section 2 of this 2017 Act relates is the first assessment year that begins after the eligible rental property is first offered for rent for residential occupancy upon completion of the rehabilitation or construction.

      (b) Otherwise eligible rental property may not receive an exemption on the basis of rehabilitation more than once.

      (4) An ordinance or resolution adopted pursuant to this section must:

      (a) Establish a schedule in which the number of consecutive property tax years for which the exemption is granted, up to a maximum of 10 years, increases directly with the percentage of units constituting the eligible rental property that are rented to households with an annual income at or below 120 percent of the area median income at monthly rates that are affordable to such households.

      (b) Include definitions of “area median income,” adjusted for the size of a household, and “affordable,” for purposes of sections 1 to 3 of this 2017 Act. The governing body of the city or county that adopted the ordinance or resolution shall notify the county assessor of the definitions.

      (5)(a) An ordinance or resolution adopted pursuant to this section may not take effect unless, upon request of the city or county that adopted the ordinance or resolution, the rates of taxation of the taxing districts whose governing bodies agree to grant the exemption, when combined with the rate of taxation of the city or county, equal 51 percent or more of the total combined rate of taxation on the eligible rental property.

      (b) If the ordinance or resolution takes effect, the exemption shall apply to all property tax levies of all taxing districts in which eligible rental property is located.

      (c) The decisions of the taxing districts under paragraph (a) of this subsection may not be changed but are not binding with respect to an ordinance or resolution adopted pursuant to subsection (6) of this section or a new ordinance or resolution adopted pursuant to subsection (2) of this section.

      (d) All eligible rental property shall be granted exemption under this section on the same terms provided in the ordinance or resolution adopted or amended by the city or county and in effect on the date the application is submitted under section 2 of this 2017 Act.

      (6)(a) A city or county may adopt at any time an ordinance or resolution amending the terms of an exemption granted pursuant to this section, subject to approval of the taxing districts under subsection (5)(a) of this section, or terminating the exemption.

      (b) Notwithstanding an ordinance or resolution adopted under paragraph (a) of this subsection, eligible rental property that has been granted an exemption pursuant to this section shall continue to receive the exemption under the terms in effect at the time the exemption was first granted.

      (7) As soon as practicable after January 1 of each year, the governing body of a city or county that has adopted an ordinance or resolution under this section shall:

      (a) Determine the area median income as defined by the city or county;

      (b) Notify each owner or lessee of eligible rental property granted exemption pursuant to the ordinance or resolution for the immediately preceding property tax year of the determination; and

      (c) Publish the determination on the website of the city or county, respectively. [2017 c.624 §1]

      Sec. 2. (1)(a) The governing body of a city or county that adopts an ordinance or resolution pursuant to section 1 of this 2017 Act shall prescribe exemption application forms and the information required to be included in an application.

      (b) If eligible rental property is located in a city and county each of which has adopted an ordinance or resolution under section 1 of this 2017 Act, the applicant shall elect the exemption the applicant wishes to receive for the eligible rental property by submitting the application to the city or the county, as applicable.

      (c) The applicant must be the owner or lessee of the eligible rental property to which the application relates.

      (d) An application must be accompanied by an application fee fixed by the city or county, as applicable, in an amount determined to compensate the city or county for the actual costs of processing the application.

      (2)(a) An application must be submitted for review to the city or county, as applicable, on or before March 1 preceding the property tax year to which the application relates.

      (b) Notwithstanding paragraph (a) of this subsection, an application may be filed under this section for the current property tax year:

      (A) On or before December 31 of the property tax year, if the application is accompanied by a late filing fee of the greater of $200 or one-tenth of one percent of the real market value as of the most recent assessment date of the eligible rental property to which the application relates.

      (B) On or before April 1 of the property tax year, if the application is accompanied by a late filing fee of $200 and the applicant demonstrates good and sufficient cause, as defined in ORS 307.162, for failing to file a timely application or is a first-time filer, as defined in ORS 307.162, of an application under this subsection.

      (c)(A) An application may be filed as provided in paragraph (b) of this subsection notwithstanding that there are no grounds for hardship as required for late filing under ORS 307.475.

      (B) A late filing fee collected under paragraph (b) of this subsection must be deposited in the general fund of the city or county, as applicable.

      (3)(a) Upon receipt of an initial application submitted pursuant to subsection (2) of this section, the city or county, as applicable, shall determine as soon as practicable:

      (A) Whether the property to which the application relates is eligible rental property located within the boundaries of the city or county;

      (B) The date on which the rehabilitation or construction of the eligible rental property was or will be completed;

      (C) The date on which the eligible rental property was first offered for rent for residential occupancy; and

      (D) The rent charged for each unit to which the application relates and whether the rent meets the requirements of the schedule established under section 1 (4) of this 2017 Act.

      (b) If any eligibility determination made under this subsection renders the property ineligible for the exemption, the application shall be rejected and the rejection may not be appealed.

      (4)(a) The owner or lessee of eligible rental property granted exemption for the current property tax year must submit an application under subsection (2) of this section for each subsequent property tax year for which the eligible rental property remains eligible under section 1 (4) of this 2017 Act.

      (b) If any eligibility determination made under this subsection renders the eligible rental property ineligible for the exemption, the application shall be rejected.

      (5) If the property qualifies for the exemption under subsection (3) or (4) of this section and the application meets the requirements of the ordinance or resolution of the city or county, the governing body shall, on or before April 1, adopt a resolution:

      (a) Approving the application; and

      (b) Notifying the assessor of the county in which the eligible rental property is located of the approval and including with the notification all information necessary for the assessor to perform the assessor’s duties with respect to the eligible rental property. [2017 c.624 §2]

      Sec. 3. (1) If, after an exemption is granted pursuant to an ordinance or resolution adopted under section 1 of this 2017 Act, the county assessor determines that the eligible rental property does not meet the requirements of the ordinance or resolution or section 1 of this 2017 Act:

      (a) The exemption shall be terminated immediately, without right of notice or appeal;

      (b) The eligible rental property shall be assessed and taxed as other property similarly situated is assessed and taxed; and

      (c) Notwithstanding ORS 311.235, there shall be added to the general property tax roll for the tax year next following the determination, to be collected and distributed in the same manner as other real property tax, an amount equal to the amount of tax that would have been due on the property had it not been exempt for each of the years during which the property was exempt, not to exceed 10 tax years.

      (2) The assessment and tax rolls shall show “potential additional tax liability” for each eligible rental property granted exemption pursuant to section 1 of this 2017 Act.

      (3) Additional taxes collected under this section shall be deemed to have been imposed in the year to which the additional taxes relate. [2017 c.624 §3]

      Sec. 4. (1) Sections 1 to 3 of this 2017 Act are repealed on January 2, 2027.

      (2) Notwithstanding the date specified in subsection (1) of this section, eligible rental property that is granted exemption under an ordinance or resolution adopted pursuant to section 1 of this 2017 Act before the date specified in subsection (1) of this section shall continue to receive the exemption under the provisions of the ordinance or resolution for the period of time for which the exemption was granted. [2017 c.624 §4]

 

PENALTIES

 

      307.990 Penalties. If any person willfully delivers any statement containing a false statement of a material fact to the officer charged with assessment of property for tax purposes in the county of the person, whether it be an owner, shipper, the agent of the person, or a storehouse or warehouse operator of the agent of the person, the person commits a Class B misdemeanor. [1959 c.659 §5; 2011 c.83 §8; 2011 c.597 §180]

_______________