USA Statutes : oregon
Title : TITLE 28 PUBLIC FINANCIAL ADMINISTRATION
Chapter : Chapter 307 Property Subject to Taxation; Exemptions
(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](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 308.665.
[Amended by 1959 c.82 §1; 1977 c.602 §1; 1993 c.353 §1; 1997 c.154 §27;
2005 c.94 §30]For purposes of the property tax laws of this state, a
limited liability company that is wholly owned by one or more nonprofit
corporations shall be an entity that qualifies for an exemption or
special assessment if and to the extent that all of the nonprofit
corporation owners of the limited liability company would qualify for the
exemption or special assessment. [2005 c.688 §2]Note: Section 3, chapter 688, Oregon Laws 2005, provides:

Sec. 3. Section 2 of this 2005 Act [307.022] applies to property
tax years beginning on or after July 1, 2006. [2005 c.688 §3] (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 308.665, intangible
personal property is not subject to assessment and taxation. [Amended by
1993 c.353 §2; 1997 c.154 §28](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] 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) 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 thereof is forbidden by law. [Amended by 1953 c.698 §7]
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]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]Notwithstanding the provisions
of ORS 307.060, there shall be exempt from ad valorem taxation all parts
and materials, all work in process and all finished products, the title
to which is vested in the United States pursuant to clauses in a federal
defense or space contract entered into by a contractor and an Armed
Forces procurement agency, which have come into the possession of a
contractor under a federal defense or space contract for the assembly or
manufacture of a product or products pursuant to such contract. [1965
c.298 §2]
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. Except for the improvements, machinery and
buildings thereon, mining claims are exempt from taxation prior to
obtaining a patent therefor from the United States.(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 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.

(3)(a) Notwithstanding ORS 308.505 to 308.665, the property
described in paragraph (b) of this subsection is exempt from taxation if
the owner of the property described in paragraph (b) of this subsection
is a city or public entity of a state other than Oregon and the city or
public entity does not own a fee title interest in any real property in
Oregon.

(b) The property that is subject to exemption under paragraph (a)
of this subsection is tangible or intangible property, property rights or
property interests in or related to the Pacific Northwest AC Intertie, as
referenced in a written capacity ownership agreement executed before
November 4, 2005, between the United States Department of Energy and the
city or public entity described in paragraph (a) of this subsection.
[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]Note: Section 2, chapter 832, Oregon Laws 2005, provides:

Sec. 2. (1) The amendments to ORS 307.090 by section 1 of this 2005
Act apply to:

(a) Any tax year beginning on or after the date a written capacity
ownership agreement described in ORS 307.090 (3) is executed; and

(b) Any tax year beginning on or after July 1, 2005.

(2) Notwithstanding subsection (1) of this section, nothing in this
section or the amendments to ORS 307.090 by section 1 of this 2005 Act
shall be construed as entitling a person to a refund of taxes paid prior
to the effective date of this 2005 Act [November 4, 2005] on any tangible
or intangible property, property rights or property interests. [2005
c.832 §2] (1) Except as
provided in subsection (2) of this section, the property of a housing
authority, including property held under lease or lease purchase
agreement by the authority, or property of a partnership wherein the
authority is general partner or general manager, which partnership
property is leased or rented to persons of lower income for housing
purposes, is declared to be public property used for essential public and
governmental purposes and such property and an authority shall be exempt
from all taxes and special assessments of the city, the county, the state
or any political subdivision thereof. In lieu of such taxes or special
assessments, an authority may agree to make payments to the city, county
or any such political subdivision for improvements, services and
facilities furnished by such city, county or political subdivision for
the benefit of a housing project, but in no event shall such payments
exceed the estimated cost to the city, county or political subdivision of
the improvements, services or facilities to be so furnished.

(2) The provisions of subsection (1) of this section regarding
exemption from taxes and special assessments shall not apply to property
of the housing authority that is commercial property leased to a taxable
entity. [Formerly 456.225](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 the Oregon University System 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]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](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
Parks and Recreation Director under ORS 565.080, 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 the Oregon University System 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 the phrase under ORS 456.055.

(h) 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.626 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](1) Property within a shipyard capable of
dry-docking oceangoing vessels of 200,000 deadweight tons or more and
utilized or leased by a sole contractor for the purpose of ship repair,
layup, conversion or construction is exempt from ad valorem property
taxation.

(2) The public shipyard owner shall notify the county assessor of
the date of the lease or other possessory interest agreement with the
sole shipyard contractor.

(3) Property subleased by the sole shipyard contractor, or utilized
by another person pursuant to a possessory interest agreement with the
sole shipyard contractor, is not exempt under this section.

(4) Persons having on January 1 of any year a lease, sublease, rent
or preferential assignment or other possessory interest in property that
is exempt from taxation under this section are not required to make the
payments in lieu of taxes described in ORS 307.120 (2). [2001 c.114 §10]Note: Section 3, chapter 337, Oregon Laws 1995, provides:

Sec. 3. Section 10 of this 2001 Act [307.111] applies to property
tax years beginning on or after July 1, 1995, and before July 1, 2010.
[1995 c.337 §3; 2001 c.114 §11](1) Real or personal
property of a taxable owner held under lease or lease-purchase agreement
by an institution, organization or public body, other than the State of
Oregon, 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 or
307.147, is exempt from taxation if:

(a) The property is used by the lessee in the manner, if any,
required by law for the exemption of property owned or being purchased by
it; and

(b) It is expressly agreed within the lease or lease-purchase
agreement that the rent payable by the institution, organization or
public body has been established to reflect the savings below market rent
resulting from the exemption from taxation.

(2) The lessee shall 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.

(c) A true copy of the lease 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 rent stated in the
lease or lease-purchase agreement has been established to reflect the
savings below market rent resulting from the tax exemption, before the
exemption may be granted the lessor shall provide documentary proof, as
specified by rule of the Department of Revenue, that the rent has been
established to reflect the savings below market rent resulting from the
tax exemption.

(4)(a) The claim shall be filed on or before April 1, except as
follows:

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

(B) Notwithstanding that no hardship grounds exist, if a late
filing fee is determined, paid and distributed in the manner provided in
ORS 307.162 (2), the claim shall be filed on or before December 31 of the
tax year for which exemption is first claimed.

(b) The exemption first shall apply for the tax year beginning July
1 of the year for which the claim is filed. The exemption shall continue
so long as the use of the property remains unchanged and during the
period of the lease or lease-purchase agreement. If the use changes, a
new application shall be filed as provided in this section. If the lease
or lease-purchase agreement expires before July 1 of any year, the
exemption shall terminate 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](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] 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 to 4, 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]

Sec. 3. (1) In order for land to be exempt from ad valorem property
taxes under section 1 of this 2001 Act, the nonprofit corporation
described in section 1 of this 2001 Act must apply to the county
assessor. The statement required under ORS 307.162 to claim an exemption
listed in ORS 307.162 (1) shall serve as the application to be filed with
the county assessor to claim the exemption under section 1 of this 2001
Act.

(2) The application must be filed on or before July 1, 2002. The
provisions for late filing described in ORS 307.162 do not apply to an
application filed under this section.

(3) The application shall serve as the applicant’s claim for
exemption for all tax years described in section 2 of this 2001 Act for
which, as of each assessment date, the applicant and property meet the
criteria set forth in section 1 of this 2001 Act.

(4) The assessor shall approve each timely filed application in
which the applicant and the land meet the criteria to be exempt under
section 1 of this 2001 Act.

(5) Any property taxes and interest that have been paid on behalf
of property granted the exemption under section 1 of this 2001 Act for a
tax year beginning before January 1, 2002, shall be refunded in the
manner prescribed in subsection (6) of this section. If the taxes have
not been paid, the taxes and any interest due thereon are 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. [2001 c.256 §3]

Sec. 4. The exemption provided in section 1 of this 2001 Act
applies only to the taxes of a taxing district the governing body of
which has adopted an ordinance or resolution authorizing the exemption
under section 1 of this 2001 Act. [2001 c.256 §4](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](1) Except as provided in subsection (3) of this section, real or
personal property that the Oregon Economic and Community Development
Commission, acting pursuant to ORS 285C.606, has determined is an
eligible project under ORS 285C.600 to 285C.626 shall be subject to
assessment and taxation as follows:

(a) That portion of the real market value of the eligible project
that equals the minimum cost of the project under ORS 285C.606 (1)(c),
increased annually for growth at the rate of three percent, shall be
taxable at the taxable portion’s assessed value under ORS 308.146. 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.

(b) 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.

(2) If the real market value of the property falls below the value
determined under subsection (1)(a) of this section, the owner or lessee
shall pay taxes only on the assessed value of the property.

(3) 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.

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

(5) The determination by the Oregon Economic and Community
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.

(6) 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
(1)(b) of this section. [1993 c.737 §5; 1995 c.698 §8; 1997 c.325 §19;
1997 c.541 §412; 2003 c.662 §12] 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] Licenses
granted by the Federal Communications Commission are exempt from ad
valorem property taxation, and the value of the licenses may not be
reflected in the value of real or tangible personal property. [2001 c.429
§2](Institutional, Religious, Fraternal, Interment Properties)(1) 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 such real or personal
property, or proportion thereof, as 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 thereof, including inventory. As used in this
subsection, “rehabilitation facility” means either those facilities
defined in ORS 344.710 or facilities which provide physically, mentally
or emotionally disabled individuals with occupational rehabilitation
activities of an educational or therapeutic nature, even if remuneration
is received by the individual.

(d) All real and personal property of a retail store dealing
exclusively in donated inventory, where 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. As used in this subsection, “welfare program” means the
providing of food, shelter, clothing or health care, including dental
service, to needy persons without charge.

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

(A) The retail store deals primarily and on a regular basis in
donated and consigned inventory;

(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. As used in this paragraph,
“primarily” means at least one-half of the inventory.

(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.

(2) 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.

(3) 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.

(4) As used in this section:

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

(b) “Internal Revenue Code” means the federal Internal Revenue Code
as amended and in effect on December 31, 2004.

(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.

(d) “Volunteer fire department” means a nonprofit corporation
organized to provide fire protection services in a specific response
area. [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] (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]Note: Section 2, chapter 389, Oregon Laws 2005, provides:

Sec. 2. The amendments to ORS 307.134 by section 1 of this 2005 Act
apply to tax years beginning on or after July 1, 2006. [2005 c.389 §2] 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] 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]
(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 Child Care Division of the Employment
Department under ORS 657A.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 division 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] (1) For purposes of this section:

(a) “Internal Revenue Code” means the federal Internal Revenue Code
as amended and in effect on December 31, 2004.

(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.

(c) “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](1) Upon compliance with ORS 307.162, the following
property shall be exempt from taxation:

(a) All burial grounds, tombs and rights of burial, and all lands
and the buildings thereon, not exceeding 30 acres, owned and actually
occupied by any crematory association incorporated under the laws of this
state, used for the sole purpose of a crematory and burial place to
incinerate remains.

(b) All lands used or held exclusively for cemetery purposes, not
exceeding 600 acres, owned and actually occupied by any cemetery
association incorporated under the laws of this state.

(c) Any burial lots or space for burial of incinerate remains in
buildings or grounds sold by a cemetery or crematory association which
lots or space are used or held exclusively for burial purposes.

(d) Any 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) Any personal property owned by a cemetery or crematory
association incorporated under the laws of this state and used
exclusively for cemetery or crematory association purposes.

(2) The statement required under ORS 307.162 shall be filed by the
cemetery or crematory association that owns or sells 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](1) Land that is exempt from ad valorem property tax under
ORS 65.855, 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
65.855, 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.(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] 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.(1)
Before any real or personal property may be exempted from taxation under
ORS 307.115, 307.118, 307.130 to 307.140, 307.145, 307.147, 307.150,
307.160 or 307.580 for any tax year, the institution or organization
claiming the exemption shall file with the county assessor, on or before
April 1 of the assessment year, a statement verified by the oath or
affirmation of the president or other proper officer of the institution
or organization, listing all real or personal property claimed to be
exempt and showing the purpose for which such property is used. However:

(a) If the ownership of all property included in the statement
filed with the county assessor for a prior year remains unchanged, a new
statement shall not be required.

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

(c) As used in this subsection, “ownership” means legal and
equitable title.

(2) Notwithstanding subsection (1) of this section, a statement may
be filed under this section on or before December 31 of the assessment
year for which exemption is first desired. However, any statement filed
after the time for filing the statement specified in subsection (1) of
this section 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 for 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 tax 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.

(3)(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 make a timely application 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 an application with the county
assessor to have the additions or improvements to the exempt property be
exempt from taxation. The application shall:

(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 of
Revenue; 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 application.

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

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

(e) For each tax year for which an exemption granted pursuant to
this subsection applies:

(A) Any tax, or interest attributable thereto, that was paid with
respect to the property that is declared exempt from taxation, shall be
refunded. Refunds shall be made 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, shall be abated.

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

(4) 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 shall notify the county assessor of the change to a taxable
use within 30 days of the change in use. [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](Leased Public or Institutional Property)(1) If property is owned or being purchased by an
institution, organization or public body, and if the institution,
organization or public body is one granted exemption or the right to
claim exemption for any of its property under a provision of law
contained in this chapter, and such institution, organization or public
body leases or otherwise grants the use and possession of such property
to another institution, organization or public body likewise granted
exemption or the right to claim exemption for any of its property under a
provision of law contained in this chapter, such 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 the rent payable under the lease or other
grant of use and possession of the property has been established to
reflect the savings below market rent resulting from the exemption from
taxation. 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,
such property is exempt if the property is 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 the
rent payable under the sublease or other grant of use and possession of
the property has been established to reflect the savings below market
rent resulting from the exemption from taxation.

(2) The lessee or entity in possession shall 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 or
entity in possession.

(d) A true copy of the lease or other agreement covering the
property for which exemption is claimed.

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

(3)(a) The claim shall be filed on or before April 1, except as
follows:

(A) If the lease or other agreement is entered into after March 1
but not later than June 30, the claim shall be filed within 30 days after
the date the lease or agreement is entered into if exemption is claimed
for the assessment year beginning on that January 1; or

(B) Notwithstanding that no hardship grounds exist, if a late
filing fee is determined, paid and distributed in the manner provided in
ORS 307.162 (2), the claim shall be filed on or before December 31 of the
assessment year for which exemption is first claimed.

(b) The exemption first shall apply for the tax year beginning July
1 of the year for which the claim is filed. The exemption shall continue
so long as the ownership and use of the property remain unchanged and
during the period of the lease or agreement. If either the ownership or
use changes, a new claim shall be filed as provided in this section. If
the lease or agreement expires before July 1 of any year, the exemption
shall terminate as of January 1 of the same year. [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] (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] 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)(1) Property equipped with solar, geothermal, wind, water, fuel
cell or methane gas energy systems for the purpose of heating, cooling or
generating electrical energy shall be exempt from ad valorem taxation in
an amount that equals any positive amount obtained by subtracting the
real market value of the property as if it were not equipped with such
systems, from the real market value of the property so equipped.

(2) This section applies to tax years beginning prior to July 1,
2012.

(3) This section does not apply to property owned or leased by any
individual or legal entity whose principal business activity is directly
or indirectly the production, transportation or distribution of energy,
including but not limited to public utilities as defined in ORS 757.005
and people’s utility districts as defined in ORS 261.010. [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]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.(Indian Properties) 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]
(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) Transfer of the land to a trust administered by the United
States has been requested or is in process.

(b) The exemption under this section shall continue for no more
than four years after the initial year of exemption under this section.
If the land is not transferred to the trust within the five-tax-year
exemption period, the exemption pursuant to this subsection shall cease
commencing with the first tax year beginning after the expiration of the
five-tax-year period.

(2) Property may not be exempt under this section for a tax year
beginning on or after July 1, 2012. [1993 c.266 §2; 1995 c.748 §3; 2001
c.753 §29](Recreation Facilities and Summer Homes on Federal Land)Notwithstanding ORS 307.060, there shall be exempt from property
taxation 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, but
the improvements thereon are subject to ad valorem taxation as provided
in ORS 307.030. [1981 c.405 §1; 2001 c.114 §12]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 prior to July 1, 2012. [1981 c.405 §4; 1985 c.169 §1; 1995
c.748 §4; 2001 c.67 §4; 2001 c.114 §13; 2001 c.509 §8]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.
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: Section 2, chapter 649, Oregon Laws 1975, provides:

Sec. 2. ORS 307.183 applies to tax years beginning on or after July
1, 1976, but prior to July 1, 2012. [1975 c.649 §2; 1979 c.422 §3; 1985
c.169 §2; 1995 c.748 §5; 2001 c.67 §5]Note: See second note under 307.182.
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: Section 2, chapter 422, Oregon Laws 1979, provides:

Sec. 2. ORS 307.184 applies to tax years beginning on or after July
1, 1980, but prior to July 1, 2012. [1979 c.422 §2; 1985 c.169 §3; 1995
c.748 §6; 2001 c.67 §6]Note: See second note under 307.182.(Personal Property)(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]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](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)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 the amendments to ORS 456.615 by section 1, chapter 738,
Oregon Laws 1991, and ORS 456.550 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.(Railroad Properties)(1) Real property owned by a railroad and that, on
January 1, is temporarily being put to a public alternate transportation
use with the permission of the railroad is exempt from taxation so long
as the property is put exclusively to the public alternate transportation
use.

(2) On or before April 1 of each year, any railroad claiming an
exemption under subsection (1) of this section shall file a written
statement with the county assessor of the county in which the property is
located setting out the basis of the claim and the property to which the
claim is made. If the statement is not filed within the time specified,
the exemption shall not be allowed for that year. However, if the
property qualifies for exemption after March 1 and before July 1, the
claim may be filed within 30 days after the property becomes qualified
for exemption. [1977 c.626 §2; 1987 c.756 §13; 1991 c.459 §48; 1997 c.541
§108](Water Associations)(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](Telephone Services)After the Department of Revenue has taken the action
required by ORS 307.240, all property consisting of improvements,
fixtures, equipment and supplies, owned by any association of persons,
wholly mutual or cooperative in character, whether incorporated or
unincorporated, used exclusively in the construction, maintenance and
operation of a telephonic communication system for the benefit of the
members of such association, where such association has no other business
or purpose and the operation of such system is conducted without intent
to produce profit in money and without the ownership, operation or lease
of telephonic switchboard exchange facilities, or direct or indirect
ownership of stock in any telephonic switchboard association, partnership
or corporation, shall be exempt from taxation. This exemption shall not
apply to any parcel of land or building owned by any such association,
which land or building shall be assessed and apportioned by the
Department of Revenue in accordance with existing law. This exemption
shall not apply to any system having a real market value in excess of
$2,500. [Amended by 1997 c.325 §20]After the Department of Revenue has taken the action
required by ORS 307.240, all property consisting of improvements,
fixtures, equipment and supplies, owned by any person not engaged in
public service operation, used exclusively in the construction,
maintenance and operation of a telephone communication system serving
exclusively property owned or operated by such person, shall be exempt
from taxation. This exemption shall not apply to any such system having a
real market value in excess of $1,500. [Amended by 1997 c.325 §21]Exemptions under ORS
307.220 or 307.230 shall be granted only upon formal action by the
Department of Revenue. The department shall have authority to prepare
forms of petitions for exemption and supply the same to applicants
therefor, and shall prescribe such rules, not inconsistent with ORS
307.220 and 307.230, as may appear necessary to the orderly filing and
consideration of such petitions and the continuation of such exemptions.
[Amended by 1971 c.258 §2; 1997 c.113 §5](Nonprofit Corporation Housing for Elderly Persons)The purpose of ORS 307.241 to 307.245 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 307.245. [1977
c.411 §1; 2005 c.94 §32](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] (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 307.245 (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](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 310.692. If necessary, the payments may be
prorated as provided in ORS 310.692.

(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]The funded property tax exemption granted
under ORS 307.241 to 307.245 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](War Veterans, Surviving Spouses and Dependent Children) (1) 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 (2) of this section:

(a) Any war 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 war veteran having served with the United States Armed
Forces who, as certified by one duly licensed 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 war veteran, but
the exemption shall apply only to the period preceding the date of the
first remarriage of the surviving spouse.

(2) 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 war 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 war veteran, if
the war veteran died as a result of service-connected injury or illness
or if the war 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.

(3) The amount of the exemption allowed under subsection (1) or (2)
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]Note: Section 2, chapter 520, Oregon Laws 2005, provides:

Sec. 2. The amendments to ORS 307.250 by section 1 of this 2005 Act
apply to tax years beginning on or after July 1, 2006. [2005 c.520 §2](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 for that year shall be filed within 30 days after the date of
acquisition.

(b) Not later than April 10 in each year, the county assessor shall
notify each veteran or surviving spouse of a veteran in the county who
secured an exemption under ORS 307.250 in the preceding year but who did
not make application therefor on or before April 1 of the current year.
Such notice may be given on an unsealed postal card. Any veteran or
surviving spouse so notified may secure such 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 year is not filed
within the time specified, the exemption shall not be allowed on the
assessment roll of that year.

(2) 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
(1)(a) and (2)(a) shall have annexed 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. Claims for exemption under ORS
307.250 (1)(b) shall, except as provided in subsection (3) of this
section, have annexed thereto, in addition to any certificate prescribed,
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. There shall be annexed 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 which require
a veteran to annex to the claim certificates of either the United States
Department of Veterans Affairs, any branch of the Armed Forces of the
United States or a duly licensed physician, shall 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](1)
Notwithstanding ORS 307.260, if a war 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 war veteran
has disabilities of 40 percent or more as of a date set forth in the
certification, the war veteran may obtain the exemption set forth in ORS
307.250 for each tax year following the date of certified disability.

(2) A war 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 war veteran of the certified disability.

(3) Notwithstanding subsection (1) of this section, a war 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 war 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 war veteran.
Refunds shall be made from the refund reserve account established under
ORS 311.807. [2001 c.199 §2] (1) The
exemption under ORS 307.250 shall apply to property any such veteran or
surviving spouse may own, or have in possession under a recorded contract
of purchase, on January 1 of the year in which the exemption is claimed.
The exemption shall first apply 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 any such veteran where they
are living together and occupying the same as their homestead shall be
deemed the homestead of the veteran. When any such veteran or surviving
spouse applies for exemption on properties in two or more counties, the
total amount of the exemption allowed in all such counties shall not
exceed $8,750 or $11,670, whichever is applicable.

(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]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](Active Duty Military Service)(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, after a change in status from serving under
Title 32 to serving under Title 10 of the United States Code, for more
than 178 consecutive days during 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. [2005 c.520 §3]Note: Section 5, chapter 520, Oregon Laws 2005, provides:

Sec. 5. Section 3 of this 2005 Act [307.286] applies to qualifying
persons initially ordered to federal active duty on or after January 1,
2005, and property for which an exemption is claimed for tax years
beginning on or after July 1, 2005. [2005 c.520 §5]Note: 307.286 and 307.289 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.(1)(a) 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 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 for that year shall be filed within 30 days
after the date of acquisition.

(b) Not later than April 10 of each year, the county assessor shall
notify each qualifying person in the county who secured an exemption
under ORS 307.286 in the preceding year but who did not file a claim for
exemption on or before April 1 of the current year. The notice may be
given on an unsealed postal card. Any person notified under this
subsection may secure the exemption, if the person is still qualified, by
filing a claim for exemption with the county assessor not later than May
1 of the current year. The person must include 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 year is not filed within the
time specified, the exemption may not be allowed on the assessment roll
of that year.

(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)(a) Notwithstanding subsection (1) of this section, an
individual who is lawfully occupying the homestead of the qualifying
person may file a claim for the exemption under ORS 307.286 at any time
during the tax year if:

(A) The qualifying person died during the prior tax year; or

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

(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 being killed in action, other than the number of
consecutive days of service and 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. [2005 c.520 §4]Note: Section 6, chapter 520, Oregon Laws 2005, provides:

Sec. 6. (1) Notwithstanding the time periods set forth in section 4
(1) of this 2005 Act [307.289 (1)], for the tax year beginning on July 1,
2005, a qualifying person or lawful occupant of the homestead of a
deceased qualifying person may file with the county assessor, on forms
supplied by the assessor, a claim in writing within 60 days after the
effective date of this 2005 Act [November 4, 2005].

(2) If taxes on the exempt value have been paid, the taxes shall be
refunded in the manner prescribed in subsection (3) of this section. If
taxes on the exempt value have not been paid, the taxes and any interest
thereon shall be abated.

(3) 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 §6]Note: See second note under 307.286.(Deciduous Plants; Agricultural Products)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]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] (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) (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](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 principal or secondary industrial property as defined by 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](Nonprofit Homes for Elderly Persons)(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]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
(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
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) 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] 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](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; or

(c) 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]The following items
of real property machinery and equipment or tangible personal property
are exempt from ad valorem property taxation:

(1) Frost control systems used in agricultural or horticultural
activities carried on by the farmer;

(2) Trellises used for hops, beans or fruit or for other
agricultural or horticultural purposes;

(3) Hop harvesting equipment, including but not limited to hop
pickers;

(4) Oyster racks, trays, stakes and other in-water structures used
to raise bivalve mollusks; or

(5) 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. [2001 c.753 §16] (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) 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.
(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)(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](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 principal or secondary industrial property as defined by 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](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](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) 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] (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) “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 or seafood in
any procedure that occurs prior to the point of first sale by the
processor.

(B) Does not include persons engaged in the business of producing
alcoholic beverages.

(c) “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.

(d) “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 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 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. [2005
c.637 §3]Note: Sections 6 and 7, chapter 637, Oregon Laws 2005, provide:

Sec. 6. Section 3 of this 2005 Act [307.455] applies to tax years
beginning on or after July 1, 2006. [2005 c.637 §6]

Sec. 7. Notwithstanding section 3 of this 2005 Act [307.455],
property may not qualify for a first year of exemption under section 3 of
this 2005 Act for a tax year beginning on or after July 1, 2011. [2005
c.637 §7](1) At the request of a food processor or under the State
Department of Agriculture’s own initiative, the department shall certify
qualified machinery and equipment as eligible 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. [2005 c.637 §4] 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](Student Housing)(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 towards 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.
[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](Hardship Situations)(1) Any taxpayer may apply to the Director
of the Department of Revenue for a recommendation that the value of
certain property be stricken from the assessment roll and that any taxes
assessed against such property be stricken from the tax roll on the
grounds of hardship.

(2) As used in this section, “hardship” means a situation where
property is subject to taxation but would have been exempt had there been
a timely filing of a valid claim for exemption or cancellation of
assessment, and where the failure to make timely application for the
exemption or cancellation 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 claim the exemption or cancellation
of assessment 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) Strike all or a portion of the assessment;

(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](Farm Labor Camps; Child Care Facilities) As used in ORS
307.480 to 307.510 unless the context requires otherwise:

(1) “Eligible child care facility” means a child care facility
certified under ORS 657A.030 and 657A.250 to 657A.450 and owned or
operated by a nonprofit corporation as a nonprofit facility which is
operated in conjunction or cooperation with an eligible farm labor camp.

(2) “Eligible farm labor camp” means a farm labor camp owned or
operated by a nonprofit corporation as a nonprofit facility which
complies with the health code for farm labor camps adopted under the
Oregon Safe Employment Act.

(3) “Farm labor camp” means any place, area or piece of land where
housing, sleeping places or camping grounds are owned or maintained:

(a) By a person engaged in the business of providing housing,
sleeping places or camping grounds 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 to either engage in agricultural work or 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, sleeping places or camping grounds
are owned or maintained by the employer or by another person.

(4) “Owned or operated” by a nonprofit corporation as a nonprofit
facility includes, but is not limited to:

(a) The possession or operation of child care facility or farm
labor camp property by 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 farm labor camp or child care facility; 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) Either a general partner or the general manager; and

(B) Responsible for the day-to-day operation of the property.

(5) “Rental” means the net amount of income from the eligible child
care facility or from the eligible farm labor camp after deduction of
costs paid or incurred in the operation of the facility or camp
including, but 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) but not including the in lieu taxes imposed under ORS
307.490. [1973 c.382 §1; 1991 c.232 §1; 1993 c.168 §1; 1995 c.278 §33]
Subject to ORS 307.490 and 307.495, there shall be exempt from taxation
the assessed value of all real and personal property of an eligible farm
labor camp, or an eligible child care facility. [1973 c.382 §2; 1991
c.459 §61; 1995 c.278 §34; 1997 c.541 §125]
(1) In lieu of real and personal property taxes, each nonprofit
corporation eligible for a tax exemption under ORS 307.485 shall 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,
submitting with the remittance a form supplied by the Department of
Revenue stating the rental and certifying compliance with the
requirements of the State Fire Marshal, local health officer or Child
Care Division, 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] (1) Each
nonprofit corporation claiming exemption under ORS 307.485 shall file
with the county assessor a written claim therefor in five copies on or
before April 1 of each assessment year for which the exemption is
claimed, except that when the property designated is acquired after March
1 and before July 1, the claim shall be filed within 30 days after
acquisition.

(2) The claim shall designate the property to which the exemption
may apply, shall state the facts which make the property eligible within
the definitions of ORS 307.480, and shall certify that the eligible farm
labor camp or eligible child care facility is, to the best of taxpayer’s
knowledge, in compliance with the requirements of the State Fire Marshal,
the health code for farm labor camps or is a certified child care
facility.

(3) No exemption shall be allowed for any year subsequent to the
first unless the 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](1) Immediately upon receipt
of the claim or any subsequent rental statement, the county assessor
shall promptly transmit one copy of the claim to the Department of
Revenue. The rent subsequently reported for the eligible child care
facility or eligible farm labor camp for which the claim is made is
subject to verification and modification by the Department of Revenue.

(2) The county assessor shall promptly transmit one copy of each
claim or statement for exemption to the State Fire Marshal for
verification of compliance with applicable laws and rules and regulations
relating to safety from fire. If the State Fire Marshal refuses such
verification, the county assessor shall deny the claim and cause the
nonprofit corporation to be billed for the real and personal property
taxes it would otherwise be liable to pay.

(3) The county assessor shall promptly transmit one copy of each
claim or statement for exemption of an eligible farm labor camp to the
appropriate authority under the Oregon Safe Employment Act for
verification of compliance with the health code for farm labor camps.
That authority shall refuse to verify compliance if the farm labor camp
does not comply with the health code applicable to it or if access to the
camp for inspection has been denied the county assessor or the authorized
representative of the county assessor. If verification is refused, the
county assessor shall deny the claim and cause the nonprofit corporation
to be billed for the real and personal property taxes it would otherwise
be liable to pay.

(4) If the claim or statement or any part thereof applies to
property used for an eligible child care facility, the county assessor
shall promptly transmit a copy to the Child Care Division for
verification of certification. If the division refuses such verification,
the county assessor shall deny the claim and cause the nonprofit
corporation to be billed for the real and personal property taxes it
would otherwise be liable to pay. [1973 c.382 §5; 1995 c.278 §36]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] 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](Low Income Rental Housing) 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 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 State Housing 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] (1) Property or a portion of
the property that meets the following criteria shall be exempt from
taxation as provided in ORS 307.515 to 307.523:

(a) The property:

(A) Is offered for rent; or

(B) Is held for the purpose of developing low income rental housing.

(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.

(2) 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] (1) Property or a
portion of property that meets all of the following criteria shall be
exempt from taxation as provided under ORS 307.515 to 307.523:

(a) If unoccupied, the property:

(A) Is offered for rental solely as a residence for low income
persons; or

(B) Is held for the purpose of developing low income rental housing.

(b) If occupied, the property 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,
2010.

(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, as described under ORS 65.001 (37) or for a
religious corporation, as described under ORS 65.001 (39).

(e) The property is owned or being purchased by a nonprofit
corporation that expends no more than 10 percent of its 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.

(2) 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.

(3) 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](1) Except as provided in subsection
(2) of this section, the exemptions provided by ORS 307.515 to 307.523
only apply to the tax levy of a governing body that adopts the provisions
of ORS 307.515 to 307.523.

(2) The exemptions provided by ORS 307.515 to 307.523 shall apply
to the tax levy of all taxing districts in which property certified for
exemption is located when, 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 certified for exemption. [1989 c.803 §3; 1991
c.930 §4](1) To qualify for an exemption provided by ORS 307.515 to
307.523, the person shall file an application for exemption with the
governing body. The exemption shall be for a period of 20 years. The
application shall be filed as set forth in ORS 307.523. The application
shall include the following information, if 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 under ORS 307.518,
evidence satisfactory to the governing body that the corporation is
nonprofit and meets the criteria for a public benefit corporation or a
religious corporation; and

(f) A description of the plans for development of the property if
the property is being held for future low income rental housing
development.

(2) The applicant shall verify the information in the application
by oath or affirmation.

(3) Prior to accepting an application under ORS 307.515 to 307.523,
a local jurisdiction shall adopt standards and guidelines to be utilized
in considering applications and making determinations required by ORS
307.515 to 307.537. The standards and guidelines shall establish policy
governing basic requirements for approving an application. 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]
(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.

(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] 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](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) On or before April 1 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 on or
before April 1 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](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, 2010, 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]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](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](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]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, 2010, 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]The amendments to ORS 307.521 (1) by section
5, chapter 930, Oregon Laws 1991, changing the period of the exemption
provided under ORS 307.515 to 307.523 from 10 to 20 years, apply to
property granted exemption pursuant to applications filed on or after
September 29, 1991. [1989 c.803 §12; 1991 c.459 §69; 1991 c.930 §11; 1997
c.752 §16; 2001 c.114 §15](Nonprofit Corporation Low Income Housing) 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) “Low income” means income at or below 60 percent of the area
median income as determined by the State Housing 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]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, 2014. [1985 c.660 §6; 1993
c.108 §1; 2003 c.215 §1](1) Property that meets all of the following criteria shall be
exempt from taxation as provided in ORS 307.540 to 307.548:

(a) The property is owned or being purchased by a corporation that
is exempt from income taxes under section 501(c) (3) or (4) of the
Internal Revenue Code, as amended before December 1, 1984.

(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 future development as low income housing.

(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, as
amended before December 1, 1984.

(e) The exemption has been approved as provided in ORS 307.547.

(2) 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.

(3) 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]Note: See note under 307.540.(1) Except as provided in subsection (2)
of this section, the exemption provided by ORS 307.541 only applies to
the tax levy of a governing body that adopts the provisions of ORS
307.540 to 307.548.

(2) The exemption provided by ORS 307.541 shall apply to the tax
levy of all taxing districts in which property certified for exemption is
located when, 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 certified for limited assessment. [1985 c.660 §3]Note: See note under 307.540. (1) To qualify for the exemption
provided by ORS 307.541, the corporation shall file an application for
exemption with the governing body for each assessment year the
corporation wants the exemption. The application shall be filed on or
before April 1 of the assessment year for which the exemption is sought,
except that when the property designated is acquired after April 1 and
before July 1, the claim for that year shall be filed within 30 days
after the date of acquisition. The application shall include the
following information, if 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; and

(f) A declaration that the corporation has been granted an
exemption from income taxes under section 501(c) (3) or (4) of the
Internal Revenue Code, as amended before December 1, 1984.

(2) 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]Note: See note under 307.540.(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 under ORS 307.541. If the governing body
determines the applicant qualifies, the governing body shall certify to
the assessor of the county where the real property is located that all or
a portion of the property shall be exempt from taxation under the levy of
the certifying governing body.

(2) Upon receipt of certification under subsection (1) of this
section, the county assessor shall exempt the property from taxation to
the extent certified by the governing body. [1985 c.660 §5]Note: See note under 307.540. (1) 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. 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 that terminate the
exemption. A copy of the ordinance or resolution 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 shall terminate 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) 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.

(6) 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]Note: See note under 307.540.(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) (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 citizens of the community have an opportunity to
live as well as 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] 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 dwelling units 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 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](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]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] (1)
Except as provided under subsection (2) of this section, multiple-unit
housing that qualifies for exemption under ORS 307.600 to 307.637 shall
be exempt from ad valorem taxation for no more than 10 successive years.
The first year of exemption shall be 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. However:

(a) The exemption shall not include the land or any improvements
not a part of the multiple-unit housing, but may include parking
constructed as part of the multiple-unit housing construction, addition
or conversion.

(b) In the case of a structure to which stories or other
improvements are added or a structure that is converted in whole or in
part from other use to dwelling units, only the increase in value
attributable to the addition or conversion shall be exempt from taxation.

(2) 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.

(3)(a) The exemption provided by ORS 307.600 to 307.637 shall be in
addition to any other exemption provided by law. However, nothing in ORS
307.600 to 307.637 shall 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 shall 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 shall 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
shall not be granted exemption pursuant to an ordinance or resolution
adopted by a city. Property shall be granted exemption under ORS 307.600
to 307.637 only once. [Formerly 307.630]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]
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
elements benefiting the general public as specified by the city or the
county, including but not limited to open spaces, parks and recreational
facilities, common meeting rooms, 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](1) The
city or county shall approve or deny an application filed under ORS
307.618 within 180 days after receipt of the application. An application
not acted upon within 180 days shall be deemed approved.

(2) Final action upon an application by the city or county shall be
in the form of an ordinance or resolution that shall contain the owner’s
name and address, a description of the subject multiple-unit housing,
either the legal description of the property or the assessor’s property
account number, and the specific conditions upon which the approval of
the application is based. On or before April 1 following approval, the
city or county shall file with the county assessor and send to the owner
at the last-known address of the owner a copy of the ordinance or
resolution approving or disapproving the application. In addition, the
city or county shall file with the county assessor on or before April 1 a
document listing the same information otherwise required to be in an
ordinance or resolution under this subsection, as to each application
deemed approved under subsection (1) of this section.

(3) If the application is denied, the city or county shall state in
writing the reasons for denial and send notice of denial to the applicant
at the last-known address of the applicant within 10 days after the
denial.

(4) The city or county, after consultation with the county
assessor, shall establish an application fee in an amount sufficient to
cover the cost to be incurred by the city or county and the assessor in
administering ORS 307.600 to 307.637. 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](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] (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](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]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]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, 2012.

(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, 2012. [Formerly 307.691](Single-Unit Housing) As used in ORS
307.651 to 307.687, unless the context requires otherwise:

(1) “Distressed area” means a primarily residential area of a city
designated by a city under ORS 307.657 which, by reason of deterioration,
inadequate or improper facilities, the existence of unsafe or abandoned
structures, including but not limited to a significant number of vacant
or abandoned single or multifamily residential units, or any combination
of these or similar factors, is detrimental to the safety, health and
welfare of the community.

(2) “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.

(3) “Qualified dwelling unit” means a dwelling unit that, upon
completion, has a market value (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.

(4) “Single-unit housing” means a newly constructed structure
having one or more dwelling units that:

(a) Is, or will be, at the time that construction is completed, 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) Is constructed on or after January 1, 1990, and is completed
within two years after application for exemption is approved under ORS
307.674 or before July 1, 2015, whichever is earlier.

(c) Upon completion, is designed for each dwelling unit within the
structure to be purchased by and lived in by one person or one family.

(d) Upon completion, 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 (5)(a) to (f).

(5) “Structure” does not include the land, nor any site development
to the land, as both are defined under ORS 307.010. [Formerly 458.005]Note: Section 15, chapter 470, Oregon Laws 2005, provides:

Sec. 15. The amendments to ORS 458.005, 458.010, 458.015, 458.020,
458.025, 458.035, 458.040, 458.045, 458.050, 458.060 and 458.065
by sections 1 to 4, 6 to
9 and 11 to 14 of this 2005 Act apply to property tax years beginning on
or after July 1, 2005. [2005 c.470 §15] (1) The Legislative Assembly finds it
to be in the public interest to stimulate the construction of new
single-unit housing in distressed urban areas in this state in order to
improve in those areas the general life quality, to promote residential
infill development on vacant or underutilized lots, to encourage
homeownership and to reverse declining property values.

(2) The Legislative Assembly further finds and declares that the
cities of this state be able to establish and design programs to
stimulate the construction of new single-unit housing in distressed urban
areas by means of a limited property tax exemption, as provided under ORS
307.651 to 307.687. [Formerly 458.010]Note: See note under 307.651.(1)(a) 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.

(b) Each governing body that adopts, by resolution or ordinance,
ORS 307.651 to 307.687 shall adopt rules specifying the process for
determining the boundaries of a distressed area and for distressed area
boundary changes. The cumulative land area within the boundaries of
distressed areas within a city, determined for purposes of ORS 307.651 to
307.687, may not exceed 20 percent of the total land area of the city.

(2) The tax exemption provided under ORS 307.651 to 307.687 applies
to the tax levy of all taxing units when upon request of the city that
has adopted ORS 307.651 to 307.687, the rates of taxation of taxing units
whose governing bodies agree by resolution to the policy of providing tax
exemptions for single-unit housing as described in ORS 307.651 to
307.687, 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 which is tax exempt under ORS 307.651 to 307.687.

(3) The city shall designate one or more distressed areas, located
within the territorial boundaries of the city, within which the city
proposes to allow exemptions under ORS 307.651 to 307.687.

(4) 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) Standards and guidelines for designating a distressed area,
including but not limited to the probability of revitalization in the
area without the assistance of the property tax exemption provided under
ORS 307.651 to 307.687.

(b) Design elements for construction of the single-unit housing
proposed to be exempt.

(c) Extensions of public benefits from the construction of the
single-unit housing beyond the period of exemption. [Formerly 458.015]Note: See note under 307.651. 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] 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]Note: See note under 307.651. (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]Note: See note under 307.651.Note: Section 10, chapter 470, Oregon Laws 2005, provides:

(both sections as set forth in the 2001 Edition or
2003 Edition or as amended by sections 7 and 9 of this 2005 Act), an
application for exemption that seeks a tax year beginning on or before
July 1, 2005, as the first year of the exemption may be approved or
denied by the city within 30 days following the effective date of this
2005 Act [November 4, 2005]. If an application is approved pursuant to
this section, the first tax year of the exemption shall be the tax year
beginning July 1, 2005. [2005 c.470 §10] The city may approve an application made
under ORS 307.667 if it finds that:

(1) The proposed construction will be located in a distressed area.

(2) The proposed construction will constitute single-unit housing.

(3) The owner has agreed to include the design elements adopted
under ORS 307.657 (4) in the construction.

(4) The construction will result in public benefits beyond the
period of exemption. [Formerly 458.035]Note: See note under 307.651.(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) On or before April 1 following approval, 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 on
or before April 1 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]Note: See note under 307.651.Notwithstanding any provision of ORS 307.651 to 307.687:

(1) If the city finds that construction of the 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]Note: See note under 307.651.(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,
2015, 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]Note: See note under 307.651. (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]Note: See note under 307.651.(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]Note: See note under 307.651.(Ethanol Production Facilities) (1) As used in this section
“ethanol” has the meaning given the term under ORS 646.905.

(2) Upon compliance with subsection (4) of this section, the real
and personal property of an ethanol production facility that meets the
requirements of subsection (3) of this section is exempt from taxation.
The exemption shall be 50 percent of the assessed value of the property
determined under ORS 308.146. The exemption under this section may be
claimed for five assessment years.

(3) An ethanol production facility may qualify for exemption from
taxation under this section if the facility:

(a) Is first in the process of construction, erection or
installation as a new facility after July 1, 1993;

(b) Is or will be placed in service to produce ethanol within four
years after January 1 of the first assessment year for which the
exemption under this section is claimed; and

(c) Within four years after January 1 of the first assessment year
for which the exemption under this section is claimed, is or will be
certified by the State Department of Agriculture as a facility that
produces ethanol capable of blending or mixing with gasoline. The blend
or mixture shall meet the specifications or registration requirements
established by the United States Environmental Protection Agency pursuant
to section 211 of the Clean Air Act, 42 U.S.C. 7545 and 40 C.F.R. Part 79.

(4)(a) In order to claim an exemption from taxation under this
section for any assessment year, the owner of an ethanol production
facility shall file with the county assessor, on or before April 1 of the
year for which exemption is claimed, a statement verified by the oath or
affirmation of the owner listing all real and personal property claimed
to be exempt and showing the purpose for which the property will be or is
used.

(b) If the ownership and use of the property included in the
statement filed for a prior year remain the same, a new statement shall
not be required. However, if the ownership or use changes, or if the
facility property is added to or retired, a new statement is required and
the property shall not be exempt under this section if the statement is
not filed. The new statement shall be filed no later than December 31 of
the year to which the statement pertains.

(5) If the facility property is not placed in service within the
time required under subsection (3) of this section, or if the
certification required under subsection (3) of this section is not
obtained within the required time, then the facility property shall not
be exempt for any year under this section. For any year for which the
property has been granted exemption under this section, the county
assessor shall add the property to the assessment and tax roll as omitted
property in the manner provided under ORS 311.216 to 311.232. [1993 c.475
§2; 1997 c.541 §144]Note: Section 4, chapter 475, Oregon Laws 1993, provides:

Sec. 4. (1) An ad valorem property tax exemption provided by
section 2 of this Act [307.701] is first applicable to the tax year
beginning July 1, 1994.

(2) Section 2 of this Act is repealed on July 1, 2008. The repeal
applies to tax years beginning on or after July 1, 2008. Notwithstanding
that an ethanol production facility has not received five years of
exemption under section 2 of this Act, no exemption for the facility
shall be granted under section 2 of this Act for a tax year beginning on
(Rural Health Care Facilities)(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](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) 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] (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]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) (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] (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) 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] (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 not more than eight years
preceding the assessment date for the tax year for which exemption under
this section is claimed.

(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]Note: Sections 4 and 5, chapter 957, Oregon Laws 1999, provide:

Sec. 4. ORS 307.827 applies to tax years beginning on or after July
1, 2000, and before July 1, 2012. [1999 c.957 §4; 2003 c.795 §1]

Sec. 5. (1) Notwithstanding section 3 of this 1999 Act [307.827],
environmentally sensitive logging equipment that qualifies for the
exemption under section 3 of this 1999 Act for any tax year beginning on
or after July 1, 2000, and before July 1, 2006, shall qualify for the
exemption for at least five tax years if the equipment continues to meet
the definition of logging equipment under section 3 of this 1999 Act
during that period.

(2) This section does not apply to tax years beginning on or after
July 1, 2008. [1999 c.957 §5] 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]Note: Section 7, chapter 957, Oregon Laws 1999, provides:

Sec. 7. ORS 307.831 applies to tax years beginning on or after July
1, 2000, and before July 1, 2012. [1999 c.957 §7; 2003 c.795 §2](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 section 1, chapter 783,
Oregon Laws 1979 [307.835], are exempt from taxation for tax years
beginning on or after July 1, 1974, but prior to July 1, 2010. [1979
c.783 §2; 1987 c.583 §1; 1995 c.748 §7; 2003 c.218 §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.VERTICAL HOUSING DEVELOPMENT ZONES 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
Housing and Community Services Department by rule.

(2) “Equalized floor” means the quotient determined under ORS
307.857 (3)(b).

(3) “Light rail station area” has the meaning given that term in
ORS 307.603.

(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 department.

(5) “Rehabilitation” means the substantial repair of improvements
or land developments, and may be further defined by the department by
rule.

(6) “Transit oriented area” has the meaning given that term in ORS
307.603.

(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
307.847. [Formerly 285C.450](1)(a) A city may apply to the Housing and
Community Services Department for designation of an area within the city
as a vertical housing development zone.

(b) A county may apply to the Housing and Community Services
Department for designation of an unincorporated area within the county as
a vertical housing development zone.

(2) With the prior consent of the governing body of each city in
which a proposed zone is to be located, a county may apply to the
department for designation of any area within each city that has given
consent for vertical housing development zone designation.

(3) A city and a county, or any combination of cities and counties,
may apply to the department for designation of an area situated within
each applying jurisdiction as a vertical housing development zone.

(4) A district listed in ORS 198.010 or 198.180 may elect not to
participate in a vertical housing development zone. A 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) An application for designation of a vertical housing
development zone must be submitted to the department. The application
shall be in the form and contain the information required by the
department, including:

(a) A list of local taxing districts, other than the applicant,
that have territory in the proposed vertical housing development zone.

(b) A copy of a written notification that the applicant mailed to
the districts listed pursuant to paragraph (a) of this subsection that:

(A) Describes the proposed vertical housing development zone;

(B) Explains the exemption described in ORS 307.864 that would
apply if the proposed zone is designated;

(C) Explains the process by which a district listed in ORS 198.010
or 198.180 may elect not to participate in the vertical housing
development zone; and

(D) Is in a form that is satisfactory to the department.

(c) A statement signed by the applicant attesting that the
notification described in paragraph (b) of this subsection was sent by
regular mail to each district listed pursuant to paragraph (a) of this
subsection.

(6) The application shall:

(a) Be filed on behalf of one or more local government units as
described in subsections (1) to (3) of this section by action of the
governing body of each applicant;

(b) Contain a description of the area sought to be designated as a
vertical housing development zone, including proposed zone boundaries;

(c) Contain the reasons that all or a portion of a proposed zone
constitutes a core area of an urban center, a light rail system area or a
transit oriented area; and

(d) Contain any other information required by the department.

(7) The applicant shall submit to the department, within 30 days
following the date the application is filed with the department, a list
of the districts that elected not to participate in the vertical housing
development zone. [Formerly 285C.453] (1) The Housing and
Community Services Department shall review each application filed under
ORS 307.844 and shall approve or disapprove each application.

(2) The department may approve an application and designate all or
a portion of the area that is the subject of the application as a
vertical housing development zone if the department determines that the
area meets the criteria set forth in ORS 307.851.

(3) The determination of the department to approve or disapprove an
application is a discretionary determination. The determination is final
and is not subject to judicial or administrative review. [Formerly
285C.456]The Housing and Community Services Department shall:

(1) Designate a vertical housing development zone upon application
made under ORS 307.844 if the department determines that the proposed
zone meets the criteria established by the department by rule for a zone.

(2) Notify the county assessor of the county in which the vertical
housing development zone is located of the designation of that zone and
of the districts that elected not to participate in the zone. [Formerly
285C.459]Following the designation of a vertical housing development
zone under ORS 307.847, the city or county that sought zone designation
may acquire or dispose of real property within the zone for the purpose
of developing vertical housing development projects within the zone. 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. 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](1) Following the designation of a vertical housing development
zone under ORS 307.847, 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 Housing and
Community Services Department for certification of the project.

(2) The application must be satisfactory to the department in form
and content and shall contain any information required by the department,
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 (3)
of this section; and

(h) A commitment that is satisfactory to the department, 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 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)(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 department 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.

(4) The application must be filed under this section on or before
the date residential units that are a part of the vertical housing
development project are ready for occupancy.

(5) The department shall review each application submitted under
this section and shall certify or deny certification based on whether the
proposed vertical housing development project meets criteria established
by the department by rule that are consistent with ORS 307.841 to 307.867.

(6) The department may request any documentation or undertake any
investigation necessary to ascertain the veracity of any statement made
on an application under this section.

(7) The certification issued by the department 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 department.

(8) The determination of the department to certify or deny
certification is a discretionary determination. The determination is
final and is not subject to judicial or administrative review.

(9) The department 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]Note: Section 11, chapter 119, Oregon Laws 2005, provides:

Sec. 11. (1) Property that was constructed pursuant to a
certification for a partial property tax exemption under ORS 285C.465
, prior to the effective date of this 2005 Act
[November 4, 2005], shall continue to receive the exemption according to
the same schedule and subject to the disqualification provisions of ORS
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 Economic
and Community Development Department prior to the effective date of this
2005 Act but not acted upon as of the effective date of this 2005 Act,
the Economic and Community Development Department shall forward the
application to the Housing and Community Services Department. [2005 c.119
§11]Note: Section 13, chapter 119, Oregon Laws 2005, provides:

Sec. 13. The Housing and Community Services Department may not
on or after January 1, 2016. [2005 c.119 §13] (1) Upon
determining to certify a vertical housing development project, the
Housing and Community Services Department shall send a copy of the
certification to the county assessor of the county in which the project
is to be located.

(2) At any time after certification and prior to the end of the
exemption period, the department may:

(a) Request documentation, undertake investigations or otherwise
review and monitor the project to ensure ongoing compliance by project
applicants and owners; and

(b) Undertake any remedial action that the department 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. The
decertification notice 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.

(3) A notice of decertification issued under subsection (2) of this
section shall include any other information prescribed by the department.

(4) The department shall send copies of a notice of decertification
issued under subsection (2) of this section to the property owner and the
county assessor of the county in which the property is located. [Formerly
285C.468] (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 as described in ORS 307.844 (4), according to the
following schedule and as identified in the certification issued by the
department under ORS 307.857 (7):

(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 as described in 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 by the department under ORS
307.857 (7).

(2) In order 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 shall notify
the county assessor of the county in which the project exists, that the
project meets the requirements of subsection (1) of this section. The
notification must be given to the assessor in writing on or before April
1 preceding the first tax year for which the partial property tax
exemption is sought.

(3) During the period in which property would otherwise be
partially exempt under subsection (1)(a) of this section, if all or a
portion of a project has been decertified by the Housing and Community
Services Department under ORS 307.861, the property shall be disqualified
from exemption under this section in proportion to the equivalent of each
equalized floor that has ceased qualifying as residential housing, as set
forth in the notice of decertification.

(4) During the period in which land would otherwise be partially
exempt under subsection (1)(b) of this section, if all or a portion of a
project has been decertified by the Housing and Community Services
Department under ORS 307.861, the land shall be disqualified from
exemption under this section 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. [Formerly
285C.471] (1) Following
vertical housing development zone designation under ORS 307.847, if the
Housing and Community Services Department receives a request to terminate
a vertical housing development zone from the applicant for zone
designation under ORS 307.844, the department shall terminate the zone.

(2) The termination of a zone under this section does not affect
the exemption of any property from tax under ORS 307.864 if an
application for the exemption was approved prior to the zone termination.
[Formerly 285C.480]

If any person shall willfully deliver any
statement to the officer charged with assessment of property for tax
purposes in the county of the person containing a false statement of a
material fact, whether it be an owner, shipper, the agent of the person,
or a storageman or warehouseman of the agent of the person, the person
shall be guilty of a misdemeanor, and upon conviction shall be punished
by a fine of not more than $500 or by imprisonment in the county jail for
not more than six months. [1959 c.659 §5]