307 · 2014-01-31 · 307.220 property of nonprofit mutual or cooper-ative telephone associations...

Chapter 3072011 EDITION

Property Subject to Taxation; Exemptions

GENERAL PROVISIONS307.010 Definition of “real property” and “land”;

timber and mineral interests in real prop-erty

307.020 Definition of “personal property”; inappli-cability to certain utilities

307.022 Status of limited liability companiesowned by nonprofit corporations

307.030 Property subject to assessment generally307.032 Maximum assessed value and assessed

value of partially exempt property andspecially assessed property

307.035 Publishing summary of certain exemptreal property

EXEMPTIONS(Public Properties)

307.040 Property of the United States307.050 Property of the United States held under

contract of sale307.060 Property of the United States held under

lease or other interest less than fee; de-duction for restricted use

307.065 Property of the United States in pos-session of contractor under federal de-fense or space contract

307.070 Settled or claimed government land; im-provements

307.080 Mining claims307.090 Property of the state, counties and other

municipal corporations; payments in lieuof taxes on city-owned electric utilityproperty

307.092 Property of housing authority; exception307.095 State property rented for parking subject

to ad valorem taxation; computation307.100 Public property held by taxable owner

under contract of purchase307.107 Property used for natural gas pipeline ex-

tension project307.110 Public property leased or rented by taxa-

ble owner; exceptions307.111 Property of shipyard used for ship repair,

layup, conversion or construction307.112 Property held under lease, sublease or

lease-purchase by institution, organiza-tion or public body other than state

307.115 Property of nonprofit corporations heldfor public parks or recreation purposes

307.118 Wastewater and sewage treatment facili-ties

307.120 Property owned or leased by municipal-ities, dock commissions, airport districtsor ports; exception; payments in lieu oftaxes to school districts

307.123 Property of strategic investment programeligible projects; rules

307.125 Property of forest protection agencies

307.126 Federal Communications Commission li-censes

(Institutional, Religious, Fraternal, Interment Properties)

307.130 Property of art museums, volunteer firedepartments or literary, benevolent,charitable and scientific institutions

307.134 Definition of fraternal organization307.136 Property of fraternal organizations307.140 Property of religious organizations307.145 Certain child care facilities, schools and

student housing307.147 Senior services centers307.150 Burial and crematory property307.155 When property exempt under ORS 97.660,

307.140 or 307.150 taxable; lien307.157 Cemetery land acquired by eleemosynary

or charitable institution; potential addi-tional taxes

307.160 Property of public libraries307.162 Claiming exemption; late claims; notifica-

tion of change to nonexempt use

(Leased Public or Institutional Property)307.166 Property leased by exempt institution, or-

ganization or public body to another ex-empt institution, organization or publicbody

307.168 State land under lease307.171 Sports facility owned by large city

(Alternative Energy Systems)307.175 Alternative energy systems

(Indian Properties)307.180 Property of Indians307.181 Land acquired by tribe within ancient

tribal boundaries

(Recreation Facilities and Summer Homes on Federal Land)

307.182 Federal land used by recreation facilityoperators under permit

307.183 Summer homes on federal land occupiedunder permit

307.184 Summer homes on federal land occupiedunder lease

(Personal Property)307.190 Tangible personal property held for per-

sonal use; inapplicability to property re-quired to be registered, floating homes,boathouses and manufactured structures

307.195 Household furnishings owned by nonprofitorganization furnishing housing for stu-dents attending institutions of higher ed-ucation

307.197 Equipment used for certain emergenciesin navigable waters

Title 29 (2011 Edition)

REVENUE AND TAXATION

(Public Ways)307.200 Public ways

(Mobile Home or Manufactured Dwelling Parks)

307.203 Mobile home or manufactured dwellingparks financed by Housing and Commu-nity Services Department revenue bonds

(Railroad Properties)307.205 Property of railroad temporarily used for

public alternate transportation

(Water Associations)307.210 Property of nonprofit mutual or cooper-

ative water associations; disqualification;application

(Telephone Services)307.220 Property of nonprofit mutual or cooper-

ative telephone associations307.230 Telephonic properties of persons not en-

gaged in public telephone service307.240 Department of Revenue action required

for telephone association and telephonicproperty exemptions

(Nonprofit Corporation Housing for Elderly Persons)

307.241 Policy307.242 Property of nonprofit corporation provid-

ing housing to elderly persons; necessityof filing claim to secure exemption

307.243 Property to which exemption applies307.244 Funded exemption; computation of rate

of levy by county assessor; payments tocounty by department; proration

307.245 Denial of exemption for failure to reflectexemption by rent reduction

(Veterans, Surviving Spouses and Dependent Children)

307.250 Property of veterans or surviving spouses307.260 Claiming exemption; alternative proce-

dure for surviving spouse307.262 Tax years for which exemption may be

claimed upon receipt of federal certifica-tion of disability; procedure; refund

307.270 Property to which exemption of ORS307.250 applies

307.280 Effect of exemption under ORS 307.250 onprior tax levied

307.283 Homesteads of unmarried survivingspouses of veterans of Civil War orSpanish War

(Active Duty Military Service)307.286 Homestead exemption307.289 Claiming homestead exemption; alterna-

tive procedures following death of personqualifying for exemption

(Deciduous Plants; Agricultural Products)307.315 Nursery stock307.320 Deciduous trees, shrubs, plants, crops,

cultured Christmas trees or hardwood onagricultural land

307.325 Agricultural products in possession offarmer

(Commercial Facilities Under Construction)307.330 Commercial facilities under construction307.340 Filing proof for cancellation of assess-

ment; abatement

(Nonprofit Homes for Elderly Persons)307.370 Property of nonprofit homes for elderly

persons; limitation on lessee307.375 Type of corporation to which exemption

under ORS 307.370 applicable307.380 Claiming exemption under ORS 307.370307.385 Credit to resident’s account with share of

tax exemption; denial of exemption ifcredit not given

(Agricultural Equipment and Facilities)307.390 Mobile field incinerators307.391 Field burning smoke management equip-

ment307.394 Farm machinery and equipment; personal

property used in farm operations; limita-tion

307.397 Certain machinery and equipment used inagricultural, aquacultural or fresh shellegg industry operations

307.398 Irrigation equipment

(Inventory)307.400 Inventory

(Beverage Containers)307.402 Beverage containers

(Pollution Control Facilities)307.405 Pollution control facilities; qualifications;

expiration; revocation; limitations307.420 Filing claim and environmental certificate

for exemption; annual statements of own-ership

307.430 Correction of assessment and tax rolls;termination of exemption

(Beach Lands)307.450 Certain beach lands

(Food Processing Equipment)307.453 Findings307.455 Definitions; application for exemption;

exemption307.457 Certification of eligibility of machinery

and equipment307.459 Rules

(Egg Processing Equipment)307.462 Definitions; application for exemption307.464 Certification of eligibility of machinery

and equipment307.466 Exemption limited to taxes of district

adopting ORS 307.462; rules

(Student Housing)307.471 Student housing exempt from school dis-

trict taxes; application procedure; dis-qualification


PROPERTY SUBJECT TO TAXATION; EXEMPTIONS

(Hardship Situations)307.475 Hardship relief for failure to file for ex-

emption, cancellation of assessment orredetermination of value

(Farm Labor Camps; Child Care Facilities)307.480 Definitions for ORS 307.480 to 307.510307.485 Farm labor camp and child care facility

property307.490 Payments in lieu of taxes; disposition of

moneys received307.495 Claiming exemption307.500 Transmittal of claim to department and

other agencies; health code compliance307.505 Inspection of farm labor camps; failure to

comply with health code307.510 Appeal to tax court by taxpayer

(Low Income Rental Housing)307.515 Definitions for ORS 307.515 to 307.523307.517 Criteria for exemption307.518 Alternative criteria for exemption307.519 Exemption limited to tax levy of govern-

ing body that adopts ORS 307.515 to307.523; exception

307.521 Application for exemption; policies forapproving application

307.523 Time for filing application; certificationof exemption

307.525 Action against landlord for failure to re-duce rent

307.527 Ordinance approving or disapproving ap-plication; application fee

307.529 Notice of proposed termination of ex-emption; grounds; ordinance terminatingexemption

307.530 Termination if property held for futuredevelopment or other purpose

307.531 Termination of exemption without notice;grounds; additional taxes after termi-nation

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

307.535 Extension of deadline for completion; ex-ception to imposition of additional taxes

307.537 Application

(Nonprofit Corporation Low Income Housing)307.540 Definitions for ORS 307.540 to 307.548307.541 Nonprofit corporation low income hous-

ing; criteria for exemption307.543 Exemption limited to levy of governing

body adopting ORS 307.540 to 307.548; ex-ception

307.545 Application for exemption307.547 Determination of eligibility; notice to

county assessor307.548 Termination of exemption

(Property of Industry Apprenticeship or Training Trust)

307.580 Property of industry apprenticeship ortraining trust

(Multiple-Unit Housing)307.600 Legislative findings307.603 Definitions for ORS 307.600 to 307.637

307.606 Exemption limited to tax levy of city orcounty that adopts ORS 307.600 to 307.637;designated areas; public hearings; stan-dards and guidelines for considering ap-plications

307.609 Applicability of ORS 307.600 to 307.637 incities and certain counties

307.612 Duration of exemption; exclusions307.615 City or county to provide application

forms; contents of application form; filingdeadline; revision of application

307.618 City or county findings required for ap-proval

307.621 Approval or denial of applications; city orcounty to state in writing reasons for de-nial of exemption; application fees

307.624 Termination of exemption for failure tocomplete construction or noncompliance;notice

307.627 Termination of exemption307.631 Review of denial of application or termi-

nation of exemption; correction of assess-ment and tax rolls; owner’s appeal ofvaluation; effective date of terminationof exemption

307.634 Extension of deadline for completion ofconstruction, addition or conversion

307.637 Deadlines for actions required for ex-emption

(Single-Unit Housing)307.651 Definitions for ORS 307.651 to 307.687307.654 Legislative findings307.657 Local government action to designate

distressed areas; scope of exemption;standards and guidelines

307.661 Median sales price307.664 Exemption; limitations307.667 Application for exemption307.671 Approval criteria307.674 Application, approval and denial proce-

dures; filing with assessor; fee307.677 Extension of construction period; effect

of destruction of property307.681 Exemption termination for failure to meet

requirements; procedures307.684 Immediate termination of exemption; ad-

ditional tax307.687 Review of denial of application; proce-

dures following termination of exemption;correction of tax roll; additional tax

(Rural Health Care Facilities)307.804 Rural health care facilities; claim proce-

dures; duration of exemption307.806 Exemption limited to taxes of district

adopting ORS 307.804; procedures

(Long Term Care Facilities)307.808 Findings and declarations307.811 Essential community provider long term

care facilities307.815 Exemption limited to taxes of district

adopting ORS 307.811

(Public Beach Access Sites)307.818 Beach access sites; claim procedures


REVENUE AND TAXATION

307.821 Disqualification; additional taxes

(Environmentally Sensitive Logging Equipment)

307.824 Findings and declarations307.827 Environmentally sensitive logging equip-

ment307.831 Skyline and swing yarders

(Cargo Containers)307.835 Cargo containers

VERTICAL HOUSING DEVELOPMENTZONES

307.841 Definitions for ORS 307.841 to 307.867307.844 Zone designation; application; special dis-

trict election to not participate in zone

307.847 Approval or disapproval of application307.851 Criteria for designation of zone; notice to

county assessor307.854 Acquisition, disposition and development

of real property within zone307.857 Application for exemption; review; certi-

fication; fees307.861 Monitoring of certified projects; decerti-

fication307.864 Partial property tax exemption; disquali-

fication307.867 Termination of zone; effect of termination

PENALTIES307.990 Penalties


PROPERTY SUBJECT TO TAXATION; EXEMPTIONS 307.032

GENERAL PROVISIONS307.010 Definition of “real property”

and “land”; timber and mineral interestsin real property. (1) As used in the propertytax laws of this state:

(a) “Land” means land in its naturalstate. For purposes of assessment of propertysubject to assessment at assessed value un-der ORS 308.146, land includes any site de-velopment made to the land. As used in thisparagraph, “site development” includes fill,grading, leveling, underground utilities,underground utility connections and anyother elements identified by rule of the De-partment of Revenue.

(b) “Real property” includes:(A) The land itself, above or under water;(B) All buildings, structures, improve-

ments, machinery, equipment or fixtureserected upon, above or affixed to the land;

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

(D) All water rights and water powersand all other rights and privileges in anyway appertaining to the land; or

(E) Any estate, right, title or interestwhatever in the land or real property, lessthan the fee simple.

(2) Where the grantor of land has, in theinstrument of conveyance, reserved or con-veyed:

(a) Any of the timber standing upon theland, with the right to enter upon the groundand remove the timber, the ownership of thestanding timber so reserved or conveyed isan interest in real property.

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

307.020 Definition of “personal prop-erty”; inapplicability to certain utilities.(1) As used in the property tax laws of thisstate, unless otherwise specifically provided:

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

(A) Money at interest, bonds, notes,claims, demands and all other evidences ofindebtedness, secured or unsecured, includ-ing notes, bonds or certificates secured bymortgages.

(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 refer-ences, 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 mova-bles, such as boats and vessels, merchandiseand stock in trade, furniture and personaleffects, goods, livestock, vehicles, farmingimplements, movable machinery, movabletools and movable equipment.

(2) Subsection (1) of this section does notapply to any person, company, corporation orassociation covered by ORS 308.505 to308.665. [Amended by 1959 c.82 §1; 1977 c.602 §1; 1993c.353 §1; 1997 c.154 §27; 2005 c.94 §30]

307.022 Status of limited liability com-panies owned by nonprofit corporations.For purposes of the property tax laws of thisstate, a limited liability company that iswholly owned by one or more nonprofit cor-porations shall be an entity that qualifies foran exemption or special assessment if and tothe extent that all of the nonprofit corpo-ration owners of the limited liability com-pany would qualify for the exemption orspecial assessment. [2005 c.688 §2]

307.030 Property subject to assess-ment generally. (1) All real property withinthis state and all tangible personal propertysituated within this state, except as other-wise provided by law, shall be subject to as-sessment and taxation in equal and ratableproportion.

(2) Except as provided in ORS 308.505 to308.665, intangible personal property is notsubject to assessment and taxation. [Amendedby 1993 c.353 §2; 1997 c.154 §28]

307.032 Maximum assessed value andassessed value of partially exempt prop-erty and specially assessed property. (1)Unless determined under a provision of lawgoverning the partial exemption that appliesto the property, the maximum assessed valueand assessed value of partially exempt prop-erty 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 thereal market value of the property, reduced


307.035 REVENUE AND TAXATION

by the value of the partial exemption, multi-plied by the ratio, not greater than 1.00, ofthe average maximum assessed value overthe average real market value for the taxyear of property in the same area and prop-erty class.

(B) For each tax year after the first taxyear in which the property is subject to thesame partial exemption, shall equal 103 per-cent of the property’s assessed value for theprior year or 100 percent of the property’smaximum assessed value under this para-graph from the prior year, whichever isgreater.

(b) The assessed value of the propertyshall equal the lesser of:

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

(B) The maximum assessed value of theproperty under paragraph (a) of this subsec-tion.

(2) Unless determined under a provisionof law governing the special assessment, themaximum assessed value subject to specialassessment and the assessed value of prop-erty subject to special assessment shall bedetermined as follows:

(a) The maximum assessed value:(A) For the first tax year in which the

property is specially assessed, shall equal thespecially assessed value of the propertymultiplied by the ratio, not greater than 1.00,of the average maximum assessed value overthe average real market value for the taxyear of property in the same area and prop-erty class.

(B) For each tax year after the first taxyear in which property is subject to the samespecial assessment, shall equal 103 percentof the property’s assessed value for the prioryear or 100 percent of the property’s maxi-mum assessed value subject to special as-sessment from the prior year, whichever isgreater.

(b) The assessed value of the propertyshall equal the lesser of:

(A) The specially assessed value of theproperty as determined under the law estab-lishing the special assessment; or

(B) The property’s maximum assessedvalue subject to special assessment as deter-mined under paragraph (a) of this subsection.

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

307.035 Publishing summary of certainexempt real property. The assessor shalllist and evaluate all real properties exemptfrom taxation under ORS 307.090, 307.120,307.130, 307.140, 307.147, 307.150 and 307.160

and summarize the valuations of such prop-erties in connection with the published sum-mary of each year of assessed valuations oftaxable properties of the county. [Formerly307.310; 1993 c.777 §3; 1995 c.748 §8]

EXEMPTIONS(Public Properties)

307.040 Property of the United States.Except as provided in ORS 307.050, 307.060,307.070 and 307.080, all property of theUnited States, its agencies or instrumental-ities, is exempt from taxation to the extentthat taxation thereof is forbidden by law.[Amended by 1953 c.698 §7]

307.050 Property of the United Statesheld under contract of sale. Whenever realand personal property of the United Statesor any department or agency of the UnitedStates is the subject of a contract of sale orother agreement whereby on certain pay-ments being made the legal title is or maybe acquired by any person and that personuses and possesses the property or has theright of present use and possession, then areal market value for the property shall bedetermined, as required under ORS 308.232,without deduction on account of any part ofthe purchase price or other sum due on suchproperty remaining unpaid. The propertyshall have an assessed value determined un-der ORS 308.146 and shall be subject to taxon the assessed value so determined. Thelien for the tax shall neither attach to, im-pair, nor be enforced against any interest ofthe United States in the real or personalproperty. This section does not apply to realor personal property held and in immediateuse and occupation by this state or anycounty, municipal corporation or politicalsubdivision of this state, or to standing tim-ber, prior to severance, of the United Statesor any department or agency of the UnitedStates that is the subject of a contract ofsale or other agreement. [Amended by 1953 c.698§7; 1965 c.159 §1; 2001 c.509 §6]

307.060 Property of the United Statesheld under lease or other interest lessthan fee; deduction for restricted use.Real and personal property of the UnitedStates or any department or agency of theUnited States held by any person under alease or other interest or estate less than afee simple, other than under a contract ofsale, shall have a real market value deter-mined under ORS 308.232, subject only todeduction for restricted use. The propertyshall have an assessed value determined un-der ORS 308.146 and shall be subject to taxon the assessed value so determined. The lienfor the tax shall attach to and be enforcedagainst only the leasehold, interest or estatein the real or personal property. This section



does not apply to real property held or occu-pied primarily for agricultural purposes un-der the authority of a federal wildlifeconservation agency or held or occupied pri-marily for purposes of grazing livestock. Thissection does not apply to real or personalproperty held by this state or any county,municipal corporation or political subdivisionof this state that is:

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

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

307.065 Property of the United Statesin possession of contractor under federaldefense or space contract. Notwithstand-ing the provisions of ORS 307.060, there shallbe exempt from ad valorem taxation all partsand materials, all work in process and allfinished products, the title to which is vestedin the United States pursuant to clauses ina federal defense or space contract enteredinto by a contractor and an Armed Forcesprocurement agency, which have come intothe possession of a contractor under a fed-eral defense or space contract for the assem-bly or manufacture of a product or productspursuant to such contract. [1965 c.298 §2]

307.070 Settled or claimed governmentland; improvements. The assessor must as-sess all improvements on lands, the fee ofwhich is still vested in the United States, aspersonal property until the settler thereonor claimant thereof has made final proof. Af-ter final proof has been made, and a certif-icate issued therefor, the land itself must beassessed, notwithstanding the patent has notbeen issued.

307.080 Mining claims. Except for theimprovements, machinery and buildingsthereon, mining claims are exempt from tax-ation prior to obtaining a patent thereforfrom the United States.

307.090 Property of the state, countiesand other municipal corporations; pay-ments in lieu of taxes on city-ownedelectric utility property. (1) Except as pro-vided by law, all property of the state and allpublic or corporate property used or intendedfor corporate purposes of the several coun-ties, cities, towns, school districts, irrigationdistricts, drainage districts, ports, water dis-tricts, housing authorities and all other pub-lic or municipal corporations in this state, isexempt from taxation.

(2) Any city may agree with any schooldistrict to make payments in lieu of taxes on

all property of the city located in any suchschool district, and which is exempt fromtaxation under subsection (1) of this sectionwhen such property is outside the boundariesof the city and owned, used or operated forthe production, transmission, distribution orfurnishing of electric power or energy orelectric service for or to the public. [Amendedby 1953 c.698 §7; 1957 c.649 §1; 1975 c.568 §1; 1977 c.673§1; 1991 c.851 §2; 2005 c.832 §1; 2009 c.804 §1]

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

(a) Property that is held under lease orlease purchase agreement by the housing au-thority; and

(b) Property of a partnership, nonprofitcorporation or limited liability company forwhich the housing authority is a generalpartner, limited partner, director, member,manager or general manager, if the propertyis leased or rented to persons of lower in-come for housing purposes.

(2) Except as provided in subsection (3)of this section, the property of a housing au-thority is declared to be public property usedfor essential public and governmental pur-poses and such property and an authorityshall be exempt from all taxes and specialassessments of the city, the county, the stateor any political subdivision thereof. In lieuof such taxes or special assessments, an au-thority may agree to make payments to thecity, county or any such political subdivisionfor improvements, services and facilities fur-nished by such city, county or political sub-division for the benefit of a housing project,but in no event shall such payments exceedthe estimated cost to the city, county or pol-itical subdivision of the improvements, ser-vices or facilities to be so furnished.

(3) The provisions of subsection (2) ofthis section regarding exemption from taxesand special assessments shall not apply toproperty of the housing authority that iscommercial property leased to a taxable en-tity. [Formerly 456.225; 2007 c.606 §4]

307.095 State property rented forparking subject to ad valorem taxation;computation. (1) Any portion of state prop-erty that is used during the tax year forparking on a rental or fee basis to privateindividuals is subject to ad valorem taxation.

(2) The real market value of such portionshall be computed by determining that per-centage which the total of receipts from pri-vate use bears to the total of receipts fromall use of the property. The assessed valueof such portion shall be computed as pro-vided in ORS 308.146. However, receipts fromany use by a state officer or employee in the



performance of the official duties of the stateofficer or employee shall not be consideredas receipts from private use in computing theportion subject to ad valorem taxation.

(3) This section and ORS 276.592 do notapply to state property that is used by theOregon University System or the OregonHealth and Science University solely to pro-vide parking for employees, students or visi-tors. [1969 c.706 §60; 1989 c.659 §1; 1991 c.459 §39; 1993c.655 §1; 1995 c.162 §67a; 1995 c.748 §1; 1997 c.541 §100;2001 c.67 §1]

307.100 Public property held by taxa-ble owner under contract of purchase.Whenever real and personal property of thestate or any institution or departmentthereof, or any county, municipal corporationor political subdivision of the state is thesubject of a contract of sale or other agree-ment whereby on certain payments beingmade the legal title is or may be acquired byany person and such person uses and pos-sesses such property or has the right ofpresent use and possession, then such prop-erty shall be considered, for all purposes oftaxation, as the property of such person. Nodeed or bill of sale to such property shall beexecuted until all taxes and municipalcharges are fully paid thereon. This sectionshall not apply to standing timber, prior toseverance thereof, of the state or any poli-tical entity referred to above which is thesubject of a contract of sale or other agree-ment. [Amended by 1965 c.159 §2]

307.107 Property used for natural gaspipeline extension project. (1) Propertyused for a natural gas pipeline extensionproject is exempt from ad valorem propertytaxation if:

(a) The project receives or has receivedmoneys from the Oregon Unified Interna-tional Trade Fund to pay any portion of theproject;

(b) The length of the pipeline, includingadditions or improvements, does not exceed115 miles; and

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

(2) The exemption under this section ap-plies to all property used for the project, realand personal, tangible and intangible.

(3) Notwithstanding ORS 307.110 or308.505 to 308.665 or any other provision ofstate law, property that is exempt under thissection is not disqualified from exemption ifa person other than the owner:

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

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

Note: 307.107 was enacted into law by the Legisla-tive Assembly but was not added to or made a part of

ORS chapter 307 or any series therein by legislativeaction. See Preface to Oregon Revised Statutes for fur-ther explanation.

307.110 Public property leased orrented by taxable owner; exceptions. (1)Except as provided in ORS 307.120, all realand personal property of this state or anyinstitution or department thereof or of anycounty or city, town or other municipal cor-poration or political subdivision of this state,held under a lease or other interest or estateless than a fee simple, by any person whosereal property, if any, is taxable, except em-ployees of the state, municipality or politicalsubdivision as an incident to such employ-ment, shall be subject to assessment andtaxation for the assessed or specially as-sessed value thereof uniformly with realproperty of nonexempt ownerships.

(2) Each leased or rented premises notexempt under ORS 307.120 and subject to as-sessment and taxation under this sectionwhich is located on property used as an air-port and owned by and serving a municipal-ity or port shall be separately assessed andtaxed.

(3) Nothing contained in this sectionshall be construed as subjecting to assess-ment and taxation any publicly owned prop-erty described in subsection (1) of thissection that is:

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

(b) Leased to or rented by persons, otherthan sublessees or subrenters, for agricul-tural or grazing purposes and for other thana cash rental or a percentage of the crop.

(c) Utilized by persons under a land usepermit issued by the Department of Trans-portation for which the department’s use re-strictions are such that only anadministrative processing fee is able to becharged.

(d) County fairgrounds and the buildingsthereon, in a county holding annual countyfairs, managed by the county fair board un-der ORS 565.230, if utilized, in addition tocounty fair use, for any of the purposes de-scribed in ORS 565.230 (2), or for horse stallsor storage for recreational vehicles or farmmachinery or equipment.

(e) The properties and grounds managedand operated by the State Parks and Recre-ation Director under ORS 565.080, if utilized,in addition to the purpose of holding the Or-egon State Fair, for horse stalls or for stor-age for recreational vehicles or farmmachinery or equipment.

(f) State property that is used by the Or-egon University System or the Oregon



Health and Science University to provideparking for employees, students or visitors.

(g) Property of a housing authority cre-ated under ORS chapter 456 which is leasedor rented to persons of lower income forhousing pursuant to the public and govern-mental purposes of the housing authority.For purposes of this paragraph, “persons oflower income” has the meaning given thephrase 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 healthcare practitioners practicing within thecounty; and

(B) The county is a frontier rural prac-tice county under rules adopted by the Officeof Rural Health.

(4) Property determined to be an eligibleproject for tax exemption under ORS285C.600 to 285C.626 and 307.123 that wasacquired with revenue bonds issued underORS 285B.320 to 285B.371 and that is leasedby this state, any institution or departmentthereof or any county, city, town or othermunicipal corporation or political subdivisionof this state to an eligible applicant shall beassessed and taxed in accordance with ORS307.123. The property’s continued eligibilityfor taxation and assessment under ORS307.123 is not affected:

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

(b) If any applicable lease or financialagreement is terminated prior to the originaldate of expiration.

(5) The provisions of law for liens andthe payment and collection of taxes leviedagainst real property of nonexempt owner-ships shall apply to all real property subjectto the provisions of this section. Taxes re-maining unpaid upon the termination of alease or other interest or estate less than afee simple, shall remain a lien against thereal or personal property.

(6) If the state enters into a lease ofproperty with, or grants an interest or otherestate less than a fee simple in property to,a person whose real property, if any, is taxa-ble, then within 30 days after the date of thelease, or within 30 days after the date theinterest or estate less than a fee simple iscreated, the state shall file a copy of thelease or other instrument creating or evi-dencing the interest or estate with thecounty assessor. This section applies not-withstanding that the property may other-wise be entitled to an exemption under thissection, ORS 307.120 or as otherwise pro-vided 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]

307.111 Property of shipyard used forship repair, layup, conversion or con-struction. (1) Property within a shipyardcapable of dry-docking oceangoing vessels of200,000 deadweight tons or more and utilizedor leased by a sole contractor for the purposeof ship repair, layup, conversion or construc-tion is exempt from ad valorem property tax-ation.

(2) The public shipyard owner shall notifythe county assessor of the date of the leaseor other possessory interest agreement withthe sole shipyard contractor.

(3) Property subleased by the soleshipyard contractor, or utilized by anotherperson pursuant to a possessory interestagreement with the sole shipyard contractor,is not exempt under this section.

(4) Persons having on January 1 of anyyear a lease, sublease, rent or preferentialassignment or other possessory interest inproperty that is exempt from taxation underthis section are not required to make thepayments in lieu of taxes described in ORS307.120 (2). [2001 c.114 §10]

Note: Section 3, chapter 337, Oregon Laws 1995,provides:

Sec. 3. Section 10 of this 2001 Act [307.111] appliesto property tax years beginning on or after July 1, 1995,and before July 1, 2010. [1995 c.337 §3; 2001 c.114 §11]

307.112 Property held under lease,sublease or lease-purchase by institution,organization or public body other thanstate. (1) Real or personal property of a tax-able owner held under lease, sublease orlease-purchase agreement by an institution,organization or public body, other than theState of Oregon, granted exemption or theright to claim exemption for any of its prop-erty under ORS 307.090, 307.130, 307.136,307.140, 307.145 or 307.147, is exempt fromtaxation if:

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

(b) It is expressly agreed within thelease, sublease or lease-purchase agreementthat the rent payable by the institution, or-ganization or public body has been estab-lished to reflect the savings below marketrent resulting from the exemption from taxa-tion.

(2) To obtain the exemption under thissection, the lessee or, if the lessee is not inpossession of the property, the entity in pos-



session of the property, must file a claim forexemption with the county assessor, verifiedby the oath or affirmation of the presidentor other proper officer of the institution ororganization, or head official of the publicbody or legally authorized delegate, showing:

(a) A complete description of the prop-erty for which exemption is claimed.

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

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

(d) Any other information required by theclaim form.

(3) If the assessor is not satisfied that therent stated in the lease, sublease or lease-purchase agreement has been established toreflect the savings below market rent result-ing from the tax exemption, before the ex-emption may be granted the lessor mustprovide documentary proof, as specified byrule of the Department of Revenue, that therent has been established to reflect thesavings below market rent resulting from thetax exemption.

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

(A) If the lease, sublease or lease-pur-chase agreement is entered into after March1 but not later than June 30, the claim mustbe filed within 30 days after the date thelease, sublease or lease-purchase agreementis entered into if exemption is claimed forthat year; or

(B) If a late filing fee is paid in themanner provided in ORS 307.162 (2), theclaim may be filed within the time specifiedin ORS 307.162 (2).

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

(5)(a) An exemption granted under thissection continues as long as the use of theproperty remains unchanged and during theperiod of the lease, sublease or lease-pur-chase agreement.

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

(c) If the use changes due to sublease ofthe property or any portion of the propertyfrom the tax exempt entity described in sub-section (1) of this section to another tax ex-empt entity, the entity in possession of theproperty must file a new claim for exemptionas provided in this section.

(d) If the lease, sublease or lease-pur-chase agreement expires before July 1 of anyyear, the exemption terminates as of January1 of the same calendar year. [1977 c.673 §2; 1987c.756 §20; 1991 c.459 §41; 1991 c.851 §4; 1993 c.19 §3; 1993c.777 §4; 1995 c.513 §1; 1997 c.434 §1; 1997 c.541 §102; 1999c.579 §18; 2003 c.117 §1; 2007 c.817 §1; 2009 c.626 §1; 2011c.655 §1]


Sec. 4. The amendments to ORS 307.112, 307.162and 307.166 by sections 1 to 3 of this 2011 Act apply toproperty tax years beginning on or after July 1, 2011.[2011 c.655 §4]

307.115 Property of nonprofit corpo-rations held for public parks or recre-ation purposes. (1) Subject to approval bythe appropriate granting authority undersubsection (4) of this section, the followingreal or personal property owned or beingpurchased under contract by any nonprofitcorporation meeting the requirements ofsubsection (2) of this section shall be exemptfrom taxation:

(a) The real or personal property, or pro-portion thereof, as is actually and exclusivelyoccupied or used for public park or publicrecreation purposes.

(b) The real or personal property, or pro-portion thereof, as is held for public parksor public recreation purposes if the propertyis not used for the production of income, forinvestment, or for any trade or business orcommercial purpose, or for the benefit orenjoyment of any private stockholder or in-dividual, but only if the articles of incorpo-ration of the nonprofit corporation prohibituse of property owned or otherwise held bythe corporation, or of proceeds derived fromthe sale of that property, except for publicpark or public recreation purposes.

(2) Any nonprofit corporation shall meetthe following requirements:

(a) The corporation shall be organized forthe principal purpose of maintaining and op-erating a public park and public recreationfacility or acquiring interest in land for de-velopment for public parks or public recre-ation purposes;

(b) No part of the net earnings of thecorporation shall inure to the benefit of anyprivate stockholder or individual; and

(c) Upon liquidation, the assets of thecorporation shall be applied first in paymentof all outstanding obligations, and the bal-ance remaining, if any, in cash and in kind,shall be distributed to the State of Oregonor to one or more of its political subdivisionsfor public parks or public recreation pur-poses.

(3) If any property which is exempt underthis section subsequently becomes disquali-fied for such exemption or the exemption is



not renewed as provided in subsection (4) ofthis section, it shall be added to the nextgeneral property tax roll for assessment andtaxation in the manner provided by law.

(4)(a) Real or personal property shall notbe exempt under this section except uponapproval of the appropriate granting author-ity obtained in the manner provided underthis subsection.

(b) Before any property shall be exemptunder this section, on or before April 1 ofany year the corporation owning or purchas-ing such property shall file an application forexemption with the county assessor. Theprovisions of ORS 307.162 shall apply as tothe form, time and manner of application.Within 10 days of filing in the office of theassessor, the assessor shall refer each appli-cation for classification to the granting au-thority, which shall be the governing bodyof a county for property located outside theboundaries of a city and the governing bodyof the city for property located within theboundaries of the city. Within 60 days there-after, the application shall be granted or de-nied and written notice given to theapplicant and to the county assessor. In de-termining whether an application made forexemption under this section should be ap-proved or disapproved, the granting authorityshall weigh the benefits to the general wel-fare of granting the proposed exemption tothe property which is the subject of the ap-plication against the potential loss in re-venue which may result from granting theapplication.

(c) The granting authority shall not denythe application solely because of the poten-tial loss in revenue if the granting authoritydetermines that granting the exemption tothe property will:

(A) Conserve or enhance natural or sce-nic resources;

(B) Protect air or streams or water sup-plies;

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

(D) Conserve landscaped areas which en-hance the value of abutting or neighboringproperty;

(E) Enhance the value to the public ofabutting or neighboring parks, forests, wild-life preserves, natural reservations, sanctu-aries 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 refugepurposes; or

(J) Affect any other factors relevant tothe general welfare of preserving the currentuse of the property.

(d) The granting authority may approvethe application for exemption with respect toonly part of the property which is the subjectof the application. However, if any part ofthe application is denied, the applicant maywithdraw the entire application.

(e) The exemption shall be granted for a10-year period and may be renewed by thegranting authority for additional periods of10 years each at the expiration of the pre-ceding period, upon the filing of a new ap-plication by the corporation with the countyassessor on or before April 1 of the year fol-lowing the 10th year of exemption. The as-sessor shall refer the application to thegoverning body as provided in paragraph (b)of this subsection, and within 30 days there-after, the governing body shall determine ifrenewing the exemption will continue toserve one of the purposes of paragraph (c) ofthis subsection. Within 30 days after referral,written notice shall be given to the applicantand to the county assessor of the determi-nation made by the governing body.

(5) Any nonprofit corporation aggrievedby the refusal of the granting authority togrant or renew an exemption under subsec-tion (4) of this section may, within 60 daysafter written notice has been sent to thecorporation, appeal from the determinationof the granting authority to the Oregon TaxCourt. The appeal should be perfected in themanner provided in ORS 305.560. The pro-visions of ORS 305.405 to 305.494 shall applyto the appeals. [1971 c.584 §1; 1973 c.214 §1; 1979c.689 §5; 1987 c.416 §1; 1995 c.79 §118; 1997 c.325 §18]

307.118 Wastewater and sewage treat-ment facilities. Upon compliance with ORS307.162, the wastewater treatment facilities,sewage treatment facilities and all otherproperty used for the purpose of wastewatertreatment or sewage treatment, including theland underneath the facilities, shall be ex-empt from taxation if:

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

(2) The nonprofit corporation’s only ac-tivities consist of operating wastewatertreatment and sewage treatment facilitiesthat were constructed and in operation as ofJanuary 1, 1997. [1997 c.485 §2]

Note: Sections 1 to 4, chapter 256, Oregon Laws2001, provide:

Sec. 1. (1) Upon compliance with section 3, chapter256, Oregon Laws 2001, land that is used both as a golfcourse and for the discharge of wastewater or sewageeffluent is exempt from the ad valorem property taxesof taxing districts authorizing the exemption under sec-tion 4, chapter 256, Oregon Laws 2001, if:



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

(b) The nonprofit corporation operates the golfcourse.

(2) Buildings or other improvements that are lo-cated on land that is exempt from ad valorem propertytaxes under subsection (1) of this section and that areused in the operation of the golf course or the dischargeof wastewater or sewage effluent are exempt from advalorem property taxes of the taxing districts that au-thorized 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 Laws2001, 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 advalorem property taxes under section 1 of this 2001 Act,the nonprofit corporation described in section 1 of this2001 Act must apply to the county assessor. The state-ment required under ORS 307.162 to claim an exemptionlisted in ORS 307.162 (1) shall serve as the applicationto be filed with the county assessor to claim the ex-emption under section 1 of this 2001 Act.

(2) The application must be filed on or before July1, 2002. The provisions for late filing described in ORS307.162 do not apply to an application filed under thissection.

(3) The application shall serve as the applicant’sclaim for exemption for all tax years described in sec-tion 2 of this 2001 Act for which, as of each assessmentdate, the applicant and property meet the criteria setforth in section 1 of this 2001 Act.

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

(5) Any property taxes and interest that have beenpaid on behalf of property granted the exemption undersection 1 of this 2001 Act for a tax year beginning be-fore January 1, 2002, shall be refunded in the mannerprescribed in subsection (6) of this section. If the taxeshave not been paid, the taxes and any interest duethereon are abated.

(6) The tax collector shall notify the governingbody of the county of any refund required under thissection and the governing body shall cause a refund ofthe taxes and any interest paid to be made from theunsegregated tax collections account described in ORS311.385. The refund under this subsection shall be madewithout interest. The county assessor and tax collectorshall make the necessary corrections in the records oftheir offices. [2001 c.256 §3]

Sec. 4. The exemption provided in section 1 of this2001 Act applies only to the taxes of a taxing districtthe governing body of which has adopted an ordinanceor resolution authorizing the exemption under section1 of this 2001 Act. [2001 c.256 §4]

307.120 Property owned or leased bymunicipalities, dock commissions, airportdistricts or ports; exception; payments inlieu of taxes to school districts. (1) Realproperty owned or leased by any municipalityand real and personal property owned orleased by any dock commission of any cityor by any airport district or port organizedunder the laws of this state is exempt fromtaxation to the extent to which such prop-erty is:

(a) Leased, subleased, rented or prefer-entially assigned for the purpose of theberthing of ships, barges or other watercraft(exclusive of property leased, subleased,rented or preferentially assigned primarilyfor the purpose of the berthing of floatinghomes, as defined in ORS 830.700), the dis-charging, loading or handling of cargo there-from or for storage of such cargo directlyincidental to transshipment, or the cleaningor decontaminating of agricultural commod-ity cargo, to the extent the property does notfurther alter or process an agricultural com-modity;

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

(c) Used as an airport owned by andserving a municipality or port of less than300,000 inhabitants as determined by the lat-est decennial census. Property owned orleased by the municipality, airport district orport that is located within or contiguous tothe airport is exempt from taxation underthis subsection if the proceeds of the lease,sublease or rental are used by the munic-ipality, airport district or port exclusively forpurposes of the maintenance and operationof the airport.

(2) Those persons having on January 1of any year a lease, sublease, rent or prefer-ential assignment or other possessory inter-est in property exempt from taxation undersubsection (1)(a) of this section, except dockarea property, shall make payments in lieuof taxes to any school district in which theexempt property is located as provided insubsection (3) of this section. The annualpayment in lieu of taxes shall be one quarterof one percent (0.0025) of the real marketvalue of the exempt property and the pay-ment shall be made to the county treasureron or before May 1 of each year.

(3)(a) On or before December 31 preced-ing any year for which a lease, sublease,rental or preferential assignment or otherpossessory interest in property is to be held,or within 30 days after acquisition of suchan interest, whichever is later, any persondescribed in subsection (2) of this sectionshall file with the county assessor a requestfor computation of the payment in lieu of taxfor the exempt property in which the personhas a possessory interest. The person shallalso provide any information necessary tocomplete the computation that may be re-quested by the assessor. The request shall bemade on a form prescribed by the Depart-ment of Revenue.

(b) On or before April 1 of each assess-ment year the county assessor shall compute



the in lieu tax for the property subject tosubsection (2) of this section for which a re-quest for computation has been filed underparagraph (a) of this subsection and shallnotify each person who has filed such a re-quest:

(A) That the person is required to paythe amount in lieu of taxes to the countytreasurer on behalf of the school district;

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

(C) Of the amount due, the due date ofthe payment in lieu of taxes and of the con-sequences of late payment or nonpayment.

(c) On or before July 15 of each tax yearthe county treasurer shall distribute to theschool districts the amounts received for therespective districts under subsection (2) ofthis section. If the exempt property is locatedin more than one school district, the amountreceived shall be apportioned to the schooldistricts on the basis of the ratio that eachschool district’s permanent limit on the rateof ad valorem property taxes bears to thetotal permanent limit on the rate of advalorem property taxes applicable to all ofthe school districts in which the property islocated.

(4) If a person described in subsection (2)of this section fails to request a computationor make a payment in lieu of taxes as pro-vided in this section, the property shall notbe exempt for the tax year but shall be as-sessed and taxed as other property similarlysituated is assessed and taxed.

(5) Upon granting of a lease, sublease,rental, preferential assignment or otherpossessory interest in property described insubsection (1)(a) of this section, except dockarea property, the municipality, dock com-mission, airport district or port shall providethe county assessor with the name and ad-dress of the lessee, sublessee, renter, prefer-ential assignee or person granted thepossessory interest.

(6)(a) Not later than 15 days prior to thedate that a request is required to be madeunder subsection (3)(a) of this section, themunicipality, dock commission, airport dis-trict or port granting a lease, sublease,rental, preferential assignment or otherpossessory interest in its exempt property forwhich in lieu tax payments are imposed un-der subsection (2) of this section, shall notifythe person granted the interest:

(A) Of the obligation to file with thecounty assessor a request for appraisal andcomputation of in lieu tax no later than De-cember 31 or within 30 days after the inter-est is granted, whichever is later.

(B) Of the obligation to pay the in lieutax, in the amount of one-quarter of one per-cent (0.0025) of the real market value of theexempt property held, to the county treas-urer before May 1 following the date of therequest.

(C) That, if the request is not madewithin the time prescribed, or if the in lieutax is not paid, or both, that the propertyshall not be exempt from taxation but shallbe assessed and taxed in the same manneras other property similarly situated is as-sessed and taxed.

(b) Failure of a municipality, dock com-mission, airport district or port to give thenotice as prescribed under this subsectiondoes not relieve any person from the re-quirements of this section.

(7) As used in this section:(a) “Dock” means a structure extended

from the shore or area adjacent to deep wa-ter for the purpose of permitting the mooringof ships, barges or other watercraft.

(b) “Dock area” means that part of thedock situated immediately adjacent to themooring berth of ships, barges or other wa-tercraft which is used primarily for the load-ing and unloading of waterborne cargo, butwhich shall not encompass any area otherthan that area from which cargo is hoistedor moved aboard a vessel, or to which cargois set down when unloaded from a vesselwhen utilizing shipboard or dockside ma-chinery.

(c) “Dock area property” means all realproperty situated in the dock area, and in-cludes all structures, machinery or equip-ment affixed to that property.

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

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

307.123 Property of strategic invest-ment program eligible projects; rules. (1)Except as provided in subsection (3) of thissection, real or personal property that theOregon Business Development Commission,acting pursuant to ORS 285C.606, has deter-mined is an eligible project under ORS285C.600 to 285C.626 shall be subject to as-sessment and taxation as follows:

(a) That portion of the real market valueof the eligible project that equals the mini-mum cost of the project under ORS 285C.606(1)(c), increased annually for growth at the



rate of three percent, shall be taxable at thetaxable portion’s assessed value under ORS308.146. The taxable portion of real marketvalue, as adjusted, shall be allocated as fol-lows until the entire amount is assigned:first to land, second to buildings, third toreal property machinery and equipment andlast to personal property.

(b) The remainder of the real marketvalue shall be exempt from taxation for aperiod of 15 years from the beginning of thetax year after the earliest of the followingdates:

(A) The date the property is certified foroccupancy or, if no certificate of occupancyis issued, the date the property is used toproduce a product for sale; or

(B) The expiration of the exemption forcommercial facilities under construction un-der ORS 307.330.

(2) If the real market value of the prop-erty falls below the value determined undersubsection (1)(a) of this section, the owneror lessee shall pay taxes only on the assessedvalue of the property.

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

(4) The Department of Revenue mayadopt rules and prescribe forms that the de-partment determines are necessary for ad-ministration of this section.

(5) The determination by the OregonBusiness Development Commission that aproject is an eligible project that may receivea tax exemption under this section shall beconclusive, so long as the property includedin the eligible project is constructed and in-stalled in accordance with the applicationapproved by the commission.

(6) Notwithstanding subsection (1) of thissection, if the owner or lessee of propertyexempt under this section fails to pay the feerequired under ORS 285C.609 (4)(b) by theend of the tax year in which it is due, theexemption shall be revoked and the propertyshall be fully taxable for the following taxyear and for each subsequent tax year forwhich the fee remains unpaid. If an unpaidfee is paid after the exemption is revoked,the property shall again be eligible for theexemption provided under this section, be-ginning with the tax year after the paymentis made. Reinstatement of the exemptionunder this subsection shall not extend the15-year exemption period provided for insubsection (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]

307.125 Property of forest protectionagencies. All the real and personal propertyof districts, organizations, associations andagencies organized for the purposes of forestprotection and fire suppression under ORSchapter 477 is exempt from taxation if suchproperty is used exclusively for such pro-tection and suppression. [1957 c.189 §1; 1965 c.253§138]

307.126 Federal CommunicationsCommission licenses. Licenses granted bythe Federal Communications Commission areexempt from ad valorem property taxation,and the value of the licenses may not be re-flected in the value of real or tangible per-sonal property. [2001 c.429 §2]

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

(Institutional, Religious, Fraternal,Interment Properties)

307.130 Property of art museums, vol-unteer fire departments or literary, be-nevolent, charitable and scientificinstitutions. (1) As used in this section:

(a) “Art museum” means a nonprofit cor-poration organized to display works of art tothe public.

(b) “Internal Revenue Code” means thefederal Internal Revenue Code as amendedand in effect on December 31, 2010.

(c) “Nonprofit corporation” means a cor-poration that:

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

(B) Is organized and operated as de-scribed under section 501(c) of the InternalRevenue Code.

(d) “Volunteer fire department” means anonprofit corporation organized to providefire protection services in a specific responsearea.

(2) Upon compliance with ORS 307.162,the following property owned or being pur-chased by art museums, volunteer fire de-partments, or incorporated literary,benevolent, charitable and scientific insti-tutions shall be exempt from taxation:

(a) Except as provided in ORS 748.414,only such real or personal property, or pro-portion thereof, as is actually and exclusivelyoccupied or used in the literary, benevolent,charitable or scientific work carried on bysuch institutions.

(b) Parking lots used for parking or anyother use as long as that parking or otheruse is permitted without charge for no fewerthan 355 days during the tax year.

(c) All real or personal property of a re-habilitation facility or any retail outlet



thereof, including inventory. As used in thissubsection, “rehabilitation facility” meanseither those facilities defined in ORS 344.710or facilities which provide individuals whohave physical, mental or emotional disabili-ties with occupational rehabilitation activ-ities of an educational or therapeutic nature,even if remuneration is received by the indi-vidual.

(d) All real and personal property of aretail store dealing exclusively in donatedinventory, where the inventory is distributedwithout cost as part of a welfare program orwhere the proceeds of the sale of any inven-tory sold to the general public are used tosupport a welfare program. As used in thissubsection, “welfare program” means theproviding of food, shelter, clothing or healthcare, including dental service, to needy per-sons without charge.

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

(A) The retail store deals primarily andon a regular basis in donated and consignedinventory;

(B) The individuals who operate the re-tail store are all individuals who work asvolunteers; and

(C) The inventory is either distributedwithout charge as part of a welfare program,or sold to the general public and the salesproceeds used exclusively to support a wel-fare program. As used in this paragraph,“primarily” means at least one-half of theinventory.

(f) The real and personal property of anart museum that is used in conjunction withthe public display of works of art or used toeducate the public about art, but not includ-ing any portion of the art museum’s real orpersonal property that is used to sell, or holdout for sale, works of art, reproductions ofworks of art or other items to be sold to thepublic.

(g) All real and personal property of avolunteer fire department that is used inconjunction with services and activities forproviding fire protection to all residentswithin a fire response area.

(h) All real and personal property, in-cluding inventory, of a retail store owned bya nonprofit corporation if:

(A) The retail store deals exclusively indonated inventory; and

(B) Proceeds of the retail store sales areused to support a not-for-profit housing pro-gram whose purpose is to:

(i) Acquire property and construct hous-ing for resale to individuals at or below thecost of acquisition and construction; and

(ii) Provide loans bearing no interest toindividuals purchasing housing through theprogram.

(3) An art museum or institution shallnot be deprived of an exemption under thissection solely because its primary source offunding is from one or more governmentalentities.

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

307.134 Definition of fraternal organ-ization. (1) For the purposes of ORS 307.136,“fraternal organization” means a corpo-ration:

(a) Organized as a corporation not forprofit under the laws of any state or nationalgovernment;

(b) That is not solely a social club but isestablished under the lodge system with aritualistic form of work and a representativeform of government;

(c) That regularly engages in or providesfinancial support for some form of benevolentor charitable activity with the purpose ofdoing good to others rather than for theconvenience of its members;

(d) In which no part of the corporation’sincome is distributable to its members, di-rectors or officers;

(e) In which no member, officer, agent oremployee is paid, or directly or indirectly re-ceives, in the form of salary or other com-pensation, an amount beyond that which isjust and reasonable compensation commonlypaid for such services rendered and whichhas been fixed and approved by the members,directors or other governing body of the cor-poration; and

(f) That is not a college fraternity or so-rority.

(2) For the purposes of ORS 307.136,“fraternal organization” includes, but is notlimited to, the grand and subordinate lodgesof the Masons, the grand and subordinatelodges of the Knights of Pythias, the Knightsof Columbus, the Benevolent and ProtectiveOrder of Elks, the Fraternal Order of Eagles,the Loyal Order of Moose, the IndependentOrder of Odd Fellows, the Oregon StateGrange, the American Legion, the Veteransof Foreign Wars, the International Associ-ation of Lions Clubs, the Soroptimist Inter-



national, the Rotary International and theKiwanis International. [1961 c.543 §§3,4; 2005 c.389§1]

307.136 Property of fraternal organ-izations. Upon compliance with ORS307.162, the following property owned or be-ing purchased by fraternal organizationsshall be exempt from taxation:

(1) All the real or personal property, orportion thereof, which is actually occupiedor used in fraternal or lodge work or for en-tertainment and recreational purposes by oneor more fraternal organizations, except thatproperty or portions of property of a frater-nal organization rented or leased by it at anytime to other persons for sums greater thanreasonable expenses for heat, light, water,janitorial services and supplies and facilityrepair and rehabilitation shall be subject totaxation.

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

307.140 Property of religious organiza-tions. Upon compliance with ORS 307.162,the following property owned or being pur-chased by religious organizations shall beexempt from taxation:

(1) All houses of public worship andother additional buildings and property usedsolely for administration, education, literary,benevolent, charitable, entertainment andrecreational purposes by religious organiza-tions, the lots on which they are situated,and the pews, slips and furniture therein.However, any part of any house of publicworship or other additional buildings orproperty which is kept or used as a store orshop or for any purpose other than thosestated in this section shall be assessed andtaxed the same as other taxable property.

(2) Parking lots used for parking or anyother use as long as that parking or otheruse is permitted without charge for no fewerthan 355 days during the tax year.

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

307.145 Certain child care facilities,schools and student housing. (1) If nototherwise exempt by law, upon compliancewith ORS 307.162, the child care facilities,schools, academies and student housing ac-commodations, owned or being purchased byincorporated eleemosynary institutions or byincorporated religious organizations, used

exclusively by such institutions or organiza-tions for or in immediate connection witheducational purposes, are exempt from taxa-tion.

(2) Property described in subsection (1)of this section which is exclusively for or inthe immediate connection with educationalpurposes shall continue to be exempt whenleased to a political subdivision of the Stateof Oregon, or to another incorporatedeleemosynary institution or incorporated re-ligious organization for an amount not toexceed the cost of repairs, maintenance andupkeep.

(3)(a) As used in this section, “child carefacility” means a child care center certifiedby the Child Care Division of the Employ-ment Department under ORS 657A.280 toprovide educational child care.

(b) Before an exemption for a child carefacility is allowed under this section, in ad-dition to any other information required un-der ORS 307.162, the statement shall:

(A) Describe the property and declare orbe accompanied by proof that the corporationis an eleemosynary institution or religiousorganization.

(B) Declare or be accompanied by proofthat the division has issued the child carefacility a certification to provide educationalchild care.

(C) Be signed by the taxpayer subject tothe 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]

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

(a) “Internal Revenue Code” means thefederal Internal Revenue Code as amendedand in effect on December 31, 2010.

(b) “Nonprofit corporation” means a cor-poration that:

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

(B) Is organized and operated as de-scribed under section 501(c) of the InternalRevenue Code.

(c) “Senior services center” means prop-erty that:

(A) Is owned or being purchased by anonprofit corporation;

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

(C) Is open generally to all persons over50 years of age;



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

(E) Is not a residential or dwelling place.(2) Upon compliance with ORS 307.162, a

senior services center is exempt from advalorem property taxation. [1993 c.777 §2; 1997c.541 §104; 1997 c.839 §44; 1999 c.90 §32; 2001 c.660 §27;2003 c.77 §5; 2005 c.94 §31; 2005 c.832 §17; 2007 c.614 §5;2008 c.45 §5; 2009 c.5 §15; 2009 c.909 §15; 2010 c.82 §15;2011 c.7 §15]

307.150 Burial and crematory prop-erty. (1) Notwithstanding ORS 307.022, uponcompliance with ORS 307.162, the followingproperty is exempt from taxation:

(a) Burial grounds, tombs and rights ofburial, and lands and buildings on the land,not exceeding 30 acres, used for the solepurpose of a crematory and burial place toincinerate remains.

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

(c) Burial lots or space for burial ofincinerate remains in buildings or groundsused or held exclusively for burial purposes.

(d) Buildings on land described in para-graph (a) or (b) of this subsection that areused to store machinery or equipment usedexclusively for maintenance of burialgrounds.

(e) Personal property used exclusively forcemetery or crematory purposes.

(2) The statement required under ORS307.162 shall be filed by the owner of theproperty described in subsection (1) of thissection.

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

307.155 When property exempt underORS 97.660, 307.140 or 307.150 taxable;lien. (1) Land that is exempt from ad valoremproperty tax under ORS 97.660, 307.140 (3) or307.150 that ceases to be used or held exclu-sively for cemetery or crematory purposesshall be subject to assessment and taxationuniformly with real property of nonexemptownerships.

(2) There shall be added to the next gen-eral property tax roll, to be collected anddistributed in the same manner as other realproperty taxes, additional taxes equal to thetotal amount of taxes that otherwise wouldhave been assessed against the land had theland not been used or held for cemetery orcrematory purposes for the last 10 years (orsuch lesser number of years, correspondingto the years after 1981 of exemption for theland) preceding the year after 1981 in whichthe land was exempt from taxation.

(3) The lien for the additional taxes im-posed by this section, and the interestthereon, shall attach as of the date precedingthe date of sale or other transfer of the land.

(4) For each year that land is exemptfrom taxation under ORS 97.660, 307.140 (3)or 307.150, or both, the assessor shall enteron the assessment and tax roll, with respectto the land, the notation “(cemetery land-potential additional tax).”

(5) The amount of additional taxes deter-mined to be due under this section may bepaid to the tax collector prior to the com-pletion of the next general property tax roll,pursuant to ORS 311.370.

(6) Additional taxes collected under thissection shall be deemed to have been im-posed in the year to which the additionaltaxes 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 Legisla-tive Assembly but was not added to or made a part ofORS chapter 307 or any series therein by legislativeaction. See Preface to Oregon Revised Statutes for fur-ther explanation.

307.157 Cemetery land acquired byeleemosynary or charitable institution;potential additional taxes. (1) Notwith-standing ORS 307.155, if land was used orheld exclusively for cemetery or crematorypurposes for the preceding tax year and hasceased to be used or held exclusively forcemetery or crematory purposes as of theassessment date for the current tax year, theland shall remain exempt, and the additionaltax that would otherwise be due under ORS307.155 (2) shall remain a potential tax li-ability that is not imposed, if:

(a) As of the date the land ceases to beused or held exclusively for cemetery orcrematory purposes, the land is owned orbeing purchased by an incorporatedeleemosynary or charitable institution de-scribed in ORS 307.130 or 307.145 for use inconnection with educational purposes; and

(b) The incorporated eleemosynary orcharitable institution complies with ORS307.162.

(2) The deferred additional tax describedin subsection (1) of this section shall be col-lected as described in this subsection to theextent that land described in subsection (1)of this section ceases to be used by an in-corporated eleemosynary or charitable insti-tution in connection with educationalpurposes. The amount of additional tax tobe collected shall be reduced by 10 percentfor each 12-month period in which the landwas owned or being purchased by an incor-porated eleemosynary or charitable institu-tion in connection with educational purposes.

(3) For each tax year in which the addi-tional tax continues to be deferred, but may



subsequently be imposed pursuant to thissection, the county assessor shall continueto enter the notation “potential additionaltax liability” on the assessment and tax roll.

(4) ORS 307.155 (3), (5) and (6) apply toany additional tax imposed under this sec-tion. [2001 c.422 §4]


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

307.160 Property of public libraries.Upon compliance with ORS 307.162, all pub-lic libraries and the personal property be-longing thereto and connected therewith, andthe real property belonging thereto and uponwhich the library is situated shall be exemptfrom taxation.

307.162 Claiming exemption; lateclaims; notification of change to nonex-empt use. (1)(a) Before any real or personalproperty may be exempted from taxation un-der ORS 307.115, 307.118, 307.130 to 307.140,307.145, 307.147, 307.150, 307.160 or 307.580for any tax year, the institution or organiza-tion entitled to claim the exemption must filea claim with the county assessor, on or be-fore April 1 preceding the tax year for whichthe exemption is claimed. The claim mustcontain statements, verified by the oath oraffirmation of the president or other properofficer of the institution or organization,that:

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

(B) Cite the statutes under which ex-emption for personal property is claimed.

(b) If the ownership of all property in-cluded in the claim filed with the county as-sessor for a prior year remains unchanged, anew claim is not required.

(c) When the property designated in theclaim for exemption is acquired after March1 and before July 1, the claim for that yearmust be filed within 30 days from the dateof acquisition of the property.

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

(A) On or before December 31 of the taxyear, if the claim is accompanied by a latefiling fee of the greater of $200, or one-tenthof one percent of the real market value asof the most recent assessment date of theproperty to which the claim pertains.

(B) On or before April 1 of the tax year,if the claim is accompanied by a late filing

fee of $200 and the claimant demonstratesgood and sufficient cause for failing to file atimely claim, is a first-time filer or is a pub-lic entity described in ORS 307.090.

(b)(A) Notwithstanding subsection (1) ofthis section, a claimant that demonstratesgood and sufficient cause for failing to file atimely claim, is a first-time filer or is a pub-lic entity described in ORS 307.090 may filea claim under this section for the five taxyears prior to the current tax year:

(i) Within 60 days after the date onwhich the county assessor mails notice ofadditional taxes owing under ORS 311.206 forthe property to which the claim filed underthis subparagraph pertains; or

(ii) At any time if no notice is mailed.(B) A claim filed under this paragraph

must be accompanied by a late filing fee ofthe greater of $200, or one-tenth of one per-cent of the real market value as of the mostrecent assessment date of the property towhich the claim pertains, multiplied by thenumber of prior tax years for which ex-emption is claimed.

(c) If a claim filed under this subsectionis not accompanied by the late filing fee orif the late filing fee is not otherwise paid, anexemption may not be allowed for the taxyears sought by the claim. A claim may befiled under this subsection notwithstandingthat there are no grounds for hardship asrequired for late filing under ORS 307.475.

(d) The value of the property used to de-termine the late filing fee under this subsec-tion and the determination of the countyassessor relative to a claim of good and suf-ficient cause are appealable in the samemanner as other acts of the county assessor.

(e) A late filing fee collected under thissubsection must be deposited in the countygeneral fund.

(3) As used in this section:(a) “First-time filer” means a claimant

that:(A) Has never filed a claim for the prop-

erty that is the subject of the current claim;and

(B) Did not receive notice from thecounty assessor on or before December 1 ofthe tax year for which exemption is claimedregarding the potential property tax liabilityof the property.

(b)(A) “Good and sufficient cause” meansan extraordinary circumstance beyond thecontrol of the taxpayer or the taxpayer’sagent or representative that causes the fail-ure to file a timely claim.

(B) “Good and sufficient cause” does notinclude hardship, reliance on misleading in-



formation unless the information is providedby an authorized tax official in the course ofthe official’s duties, lack of knowledge, over-sight or inadvertence.

(c) “Ownership” means legal and equita-ble title.

(4)(a) Notwithstanding subsection (1) ofthis section, if an institution or organizationowns property that is exempt from taxationunder a provision of law listed in subsection(1) of this section and fails to file a timelyclaim for exemption under subsection (1) ofthis section for additions or improvements tothe exempt property, the additions or im-provements may nevertheless qualify for ex-emption.

(b) The organization must file a claim forexemption with the county assessor to havethe additions or improvements to the exemptproperty be exempt from taxation. The claimmust:

(A) Describe the additions or improve-ments to the exempt property;

(B) Describe the current use of the prop-erty that is the subject of the application;

(C) Identify the tax year and any preced-ing tax years for which the exemption issought;

(D) Contain any other information re-quired by the Department of Revenue; and

(E) Be accompanied by a late filing feeequal to the product of the number of taxyears for which exemption is sought multi-plied by the greater of $200 or one-tenth ofone percent of the real market value as ofthe most recent assessment date of the prop-erty that is the subject of the claim.

(c) Upon the county assessor’s receipt ofa completed claim and late filing fee, the as-sessor shall determine for each tax year forwhich exemption is sought whether the addi-tions or improvements that are the subjectof the claim would have qualified for ex-emption had a timely claim been filed undersubsection (1) of this section. Any propertythat would have qualified for exemption hada timely claim been filed under subsection (1)of this section is exempt from taxation foreach tax year for which the property wouldhave qualified.

(d) A claim for exemption under thissubsection may be filed only for tax years forwhich the time for filing a claim under sub-sections (1) and (2)(a) of this section has ex-pired. A claim filed under this subsection,however, may serve as the claim requiredunder subsection (1) of this section for thecurrent tax year.

(e) A late filing fee collected under thissubsection must be deposited in the countygeneral fund.

(5) For each tax year for which an ex-emption granted pursuant to subsection (2)or (4) of this section applies:

(a) Any tax, or interest attributablethereto, that was paid with respect to theproperty that is declared exempt from taxa-tion must be refunded. Refunds must be madewithout interest from the unsegregated taxcollections account established under ORS311.385.

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

(6) If an institution or organization ownsproperty that is exempt from taxation undera provision of law listed in subsection (1) ofthis section and changes the use of theproperty to a use that would not entitle theproperty to exemption from taxation, the in-stitution or organization must notify thecounty assessor of the change to a taxableuse within 30 days. [Formerly 307.170; 1967 c.51§1; 1967 s.s. c.9 §4; 1969 c.237 §1; 1977 c.478 §2; 1977 c.884§33; 1985 c.613 §3; 1987 c.574 §1; 1987 c.756 §7; 1991 c.459§44; 1993 c.18 §68; 1993 c.19 §4; 1993 c.777 §5; 1995 c.79§120; 1995 c.513 §2; 1997 c.485 §3; 1997 c.541 §106; 1999c.398 §9; 1999 c.579 §1; 2009 c.455 §3; 2009 c.626 §2a; 2011c.655 §2]

Note: See note under 307.112.307.163 [1967 s.s. c.9 §3; repealed by 1977 c.884 §32]307.164 [1973 c.476 §2; repealed by 1977 c.884 §25

(307.166 enacted in lieu of 307.164)]307.165 [1961 c.598 §§2,3 (renumbered 307.169)]

(Leased Public or Institutional Property)307.166 Property leased by exempt in-

stitution, organization or public body toanother exempt institution, organizationor public body. (1) If property is owned orbeing purchased by an institution, organiza-tion or public body that is granted exemptionor the right to claim exemption for any of itsproperty under a provision of law containedin this chapter, and the institution, organ-ization or public body leases or otherwisegrants the use and possession of the propertyto another institution, organization or publicbody that is likewise granted exemption orthe right to claim exemption for propertyunder a provision of law contained in thischapter, the property is exempt from taxationif used by the lessee or possessor in themanner, if any, required by law for the ex-emption of property owned or being pur-chased by the lessee or possessor and therent payable under the lease or other grantof use and possession of the property hasbeen established to reflect the savings belowmarket rent resulting from the exemptionfrom taxation. Likewise, if the property issublet or otherwise the use and possessionof the property is granted to another institu-tion, organization or public body of the kinddescribed in this subsection, the property is



exempt if used by the sublessee or possessorin the manner, if any, required by law for theexemption of property owned or being pur-chased by the sublessee or possessor and therent payable under the sublease or othergrant of use and possession of the propertyhas been established to reflect the savingsbelow market rent resulting from the ex-emption from taxation.

(2) To obtain the exemption under thissection, the lessee or entity in possessionmust file a claim for exemption with thecounty assessor, verified by the oath or af-firmation of the president or other properofficer of the institution or organization, orhead official of the public body or the legallyauthorized delegate of the head official,showing:

(a) A complete description of the prop-erty for which exemption is claimed.

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

(c) All facts relating to the use of theproperty by the lessee or entity in pos-session.

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

(e) Any other information required by theclaim form.

(3)(a) The claim must be filed on or be-fore April 1 preceding the tax year for whichthe exemption is claimed, except:

(A) If the lease, sublease or other grantof use and possession is entered into afterMarch 1 but not later than June 30, theclaim must be filed within 30 days after thedate the lease, sublease or other grant of useand possession is entered into if the ex-emption is claimed for the assessment yearbeginning on the preceding January 1; or

(B) If a late filing fee is paid in themanner provided in ORS 307.162 (2), theclaim may be filed within the time specifiedin ORS 307.162 (2).

(b) The exemption first applies for the taxyear beginning July 1 of the year for whichthe claim is filed. The exemption continuesas long as the ownership and use of theproperty remain unchanged and during theperiod of the lease, sublease or other grantof use and possession. If either the ownershipor use changes, a new claim must be filed asprovided in this section. If the lease, subleaseor other grant of use and possession expiresbefore July 1 of any year, the exemption ter-minates as of January 1 of the same calendaryear. [1977 c.884 §26 (enacted in lieu of 307.164); 1991c.459 §45; 1993 c.104 §1; 1997 c.154 §1; 1997 c.541 §107;1999 c.579 §19; 2009 c.626 §3; 2011 c.655 §3]

Note: See note under 307.112.

307.168 State land under lease. (1)Notwithstanding ORS 307.110, all land leasedby any person from the State Land Board oragency with authority over land under ORS273.141 is exempt from taxation.

(2) As used in this section “land” meansthe land itself, above or under water, butdoes not include:

(a) Any buildings, structures, improve-ments, machinery, equipment or fixtureserected upon, under, above or affixed to theland; or

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

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

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

307.171 Sports facility owned by largecity. Any sports facility owned by a citywith a population of at least 500,000 is ex-empt from taxation, even if leased to or op-erated by a taxpaying entity. [2001 c.931 §2]

(Alternative Energy Systems)307.175 Alternative energy systems. (1)

As used in this section, “alternative energysystem” means property consisting of solar,geothermal, wind, water, fuel cell or methanegas energy systems for the purpose of heat-ing, cooling or generating electricity.

(2) An alternative energy system is ex-empt from ad valorem property taxation ifthe system is:

(a) A net metering facility, as defined inORS 757.300; or

(b) Primarily designed to offset onsiteelectricity use.

(3) Notwithstanding ORS 307.110 and308.505 to 308.665, any portion of the realproperty to which an alternative energy sys-tem is affixed is exempt under this section if:

(a) The real property is otherwise exemptfrom ad valorem property taxation; and

(b) The alternative energy system is ex-empt under this section.

(4) Property equipped with an alternativeenergy system is exempt from ad valoremproperty taxation in an amount that equalsany positive amount obtained by subtractingthe real market value of the property as if itwere not equipped with an alternative energysystem from the real market value of theproperty as equipped with the alternativeenergy system. [1975 c.460 §§1,2; 1977 c.196 §§9,10;1979 c.670 §1; 1991 c.459 §47; 1997 c.534 §1; 2001 c.584 §1;2007 c.885 §1; 2011 c.656 §3]




Sec. 4. The amendments to ORS 307.175 by section3 of this 2011 Act apply to tax years beginning on orafter July 1, 2011, and before July 1, 2018. [2011 c.656§4]


(Indian Properties)307.180 Property of Indians. The real

property of all Indians residing upon Indianreservations who have not severed theirtribal relations or taken lands in severalty,except lands held by them by purchase orinheritance, and situated on an Indian reser-vation, is exempt from taxation. However,the lands owned or held by Indians inseveralty upon any Indian reservation andthe personal property of such Indians uponreservations shall be exempt from taxationonly when so provided by any law of theUnited States. [Amended by 1953 c.698 §7]

307.181 Land acquired by tribe withinancient tribal boundaries. (1) Land ac-quired by an Indian tribe by purchase, giftor without consideration is exempt from tax-ation if:

(a) The land is located within the ancienttribal boundaries of the tribe; and

(b) Acquisition of the land by the UnitedStates in trust status has been requested oris in process.

(2) The exemption under this sectionceases if the federal government enters afinal administrative determination denyingthe request for acquisition of the land intrust status and:

(a) The deadlines for all available federaladministrative appeals and federal judicialreview expire with no appeal or review initi-ated; or

(b) All federal administrative and judicialproceedings arising from or related to therequest for or process of acquisition of theland in trust status that have been initiatedare completed without overturning the ad-ministrative denial of the request. [1993 c.266§2; 1995 c.748 §3; 2001 c.753 §29; 2009 c.453 §1]

(Recreation Facilities and SummerHomes on Federal Land)

307.182 Federal land used by recre-ation facility operators under permit.Notwithstanding ORS 307.060, there shall beexempt from property taxation real propertyused and occupied by commercial recreationfacility operators under permits issued pur-suant 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 aresubject to ad valorem taxation as provided inORS 307.030. [1981 c.405 §1; 2001 c.114 §12]


Sec. 4. ORS 307.182 applies to tax years beginningon or after July 1, 1981, and prior to July 1, 2012. [1981c.405 §4; 1985 c.169 §1; 1995 c.748 §4; 2001 c.67 §4; 2001c.114 §13; 2001 c.509 §8]

Note: 307.182 to 307.184 were enacted into law bythe Legislative Assembly but were not added to or madea part of ORS chapter 307 or any series therein by leg-islative action. See Preface to Oregon Revised Statutesfor further explanation.

307.183 Summer homes on federal landoccupied under permit. NotwithstandingORS 307.060, there shall be exempt fromproperty taxation real property of the UnitedStates used and occupied for summer homesunder a permit issued pursuant to the Actof March 4, 1915, ch. 144 (16 U.S.C. 497), asamended, but improvements thereon are sub-ject to taxation. [1975 c.649 §1]

Note: See second note under 307.182.

307.184 Summer homes on federal landoccupied under lease. NotwithstandingORS 307.060, there shall be exempt fromproperty taxation real property of the UnitedStates used and occupied for summer homesunder a lease issued pursuant to the Act ofJune 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 thereonare subject to taxation. [1979 c.422 §1]

Note: See second note under 307.182.

(Personal Property)307.190 Tangible personal property

held for personal use; inapplicability toproperty required to be registered, float-ing homes, boathouses and manufacturedstructures. (1) All items of tangible personalproperty held by the owner, or for deliveryby a vendor to the owner, for personal use,benefit or enjoyment, are exempt from taxa-tion.

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

(a) Any tangible personal property heldby the owner, wholly or partially for use orsale in the ordinary course of a trade orbusiness, for the production of income, orsolely for investment.

(b) Any tangible personal property re-quired to be licensed or registered under thelaws of this state.

(c) Floating homes or boathouses, as de-fined in ORS 830.700.

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



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

307.195 Household furnishings ownedby nonprofit organization furnishinghousing for students attending insti-tutions of higher education. All furniture,goods and furnishings owned by or situatedin and used solely by a fraternity, sorority,student housing cooperative or student livingorganization is exempt from taxation if suchfraternity, sorority, student housing cooper-ative or student living organization furnishesliving quarters for students attending insti-tutions of higher education and is not con-ducted for profit. [1957 c.631 §1]

307.197 Equipment used for certainemergencies in navigable waters. Commu-nications equipment, emergency responseequipment and other tangible personal prop-erty is exempt from ad valorem propertytaxation if the equipment or property is:

(1) Acquired or used primarily for thepurposes of responding to and maintainingthe capability to respond to shipboard firesor oil spills in navigable waters;

(2) Owned by a nonprofit corporation or-ganized under ORS chapter 65 that operatesas a maritime fire and safety association; and

(3) Made available by the nonprofit cor-poration for use by a federal, state or localemergency response agency pursuant to amutual aid compact. [2010 c.29 §3]

(Public Ways)307.200 Public ways. All lands within

the boundary of any county road, and alldedicated streets and alleys in any incorpo-rated or unincorporated city or town, ortown plat, within this state, are exempt fromassessment and taxation while used for suchpurposes.

(Mobile Home or Manufactured Dwelling Parks)

307.203 Mobile home or manufactureddwelling parks financed by Housing andCommunity Services Department revenuebonds. Notwithstanding any other provisionof law granting an exemption from propertytaxation, specific works or improvements toprovide mobile home or manufactured dwell-ing parks as defined in ORS 446.003 that arefinanced from the proceeds of revenue bondsissued by the Housing and Community Ser-vices Department under the amendments toORS 456.615 [renumbered 456.548 in 2007] bysection 1, chapter 738, Oregon Laws 1991,and ORS 456.548 to 456.725 shall not be eli-gible for a limited assessment or exemptionfrom property taxation unless:

(1) A city or county governing body hasauthorized a limited assessment under ORS

308.450 to 308.481 or an exemption underORS 307.515 to 307.523; and

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


(Railroad Properties)307.205 Property of railroad tempo-

rarily used for public alternate transpor-tation. (1) Real property owned by a railroadand that, on January 1, is temporarily beingput to a public alternate transportation usewith the permission of the railroad is exemptfrom taxation so long as the property is putexclusively to the public alternate transpor-tation use.

(2) On or before April 1 of each year, anyrailroad claiming an exemption under sub-section (1) of this section shall file a writtenstatement with the county assessor of thecounty in which the property is located set-ting out the basis of the claim and the prop-erty to which the claim is made. If thestatement is not filed within the time speci-fied, the exemption shall not be allowed forthat year. However, if the property qualifiesfor exemption after March 1 and before July1, the claim may be filed within 30 days afterthe property becomes qualified for exemption.[1977 c.626 §2; 1987 c.756 §13; 1991 c.459 §48; 1997 c.541§108]

(Water Associations)307.210 Property of nonprofit mutual

or cooperative water associations; dis-qualification; application. (1) After thecounty assessor has approved an applicationfor exemption filed under this section, allproperty consisting of land, improvements,fixtures, equipment or supplies, includingdams and dikes, owned by any association ofpersons, wholly mutual or cooperative incharacter, whether incorporated or unincor-porated, used primarily in storing, conveyingand distributing water to the members ofsuch association for domestic use or irri-gation, where such association has no otherbusiness or purpose and its operations areconducted without profit in money, is exemptfrom taxation.

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

(a) More than 15 percent of the membersof the association were a commercial estab-



lishment or establishments that used any ofthe water for commercial purposes.

(b) More than 25 percent of the total an-nual volume of water furnished by the asso-ciation was used by a commercialestablishment or establishments for commer-cial purposes.

(3) For the purpose of this section serviceto the government of this state, the govern-ment of the United States, or any subdivi-sion, agency or instrumentality, corporate orotherwise, of either of them, shall not beconstrued as a commercial purpose.

(4)(a) An association seeking to claim anexemption under this section shall file anapplication with the county assessor on orbefore April 1 preceding the tax year forwhich the exemption is being claimed.

(b) An application is not required underthis section if the property of the associationwas exempt under this section for the previ-ous tax year and, as of the assessment datefor the current tax year, the ownership oruse of all of the property that was the sub-ject of the application remains unchanged.

(5) The application shall be on such formand shall contain such information as theDepartment of Revenue shall prescribe.

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

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

(Telephone Services)307.220 Property of nonprofit mutual

or cooperative telephone associations. Af-ter the Department of Revenue has taken theaction required by ORS 307.240, all propertyconsisting of improvements, fixtures, equip-ment and supplies, owned by any associationof persons, wholly mutual or cooperative incharacter, whether incorporated or unincor-porated, used exclusively in the construction,maintenance and operation of a telephoniccommunication system for the benefit of themembers of such association, where such as-sociation has no other business or purposeand the operation of such system is con-ducted without intent to produce profit inmoney and without the ownership, operationor lease of telephonic switchboard exchangefacilities, or direct or indirect ownership ofstock in any telephonic switchboard associ-ation, partnership or corporation, shall beexempt from taxation. This exemption shallnot apply to any parcel of land or buildingowned by any such association, which landor building shall be assessed and apportioned

by the Department of Revenue in accordancewith existing law. This exemption shall notapply to any system having a real marketvalue in excess of $2,500. [Amended by 1997 c.325§20]

307.230 Telephonic properties of per-sons not engaged in public telephone ser-vice. After the Department of Revenue hastaken the action required by ORS 307.240, allproperty consisting of improvements, fix-tures, equipment and supplies, owned by anyperson not engaged in public service opera-tion, used exclusively in the construction,maintenance and operation of a telephonecommunication system serving exclusivelyproperty owned or operated by such person,shall be exempt from taxation. This ex-emption shall not apply to any such systemhaving a real market value in excess of$1,500. [Amended by 1997 c.325 §21]

307.240 Department of Revenue actionrequired for telephone association andtelephonic property exemptions. Ex-emptions under ORS 307.220 or 307.230 shallbe granted only upon formal action by theDepartment of Revenue. The departmentshall have authority to prepare forms of pe-titions for exemption and supply the same toapplicants therefor, and shall prescribe suchrules, not inconsistent with ORS 307.220 and307.230, as may appear necessary to the or-derly filing and consideration of such pe-titions and the continuation of suchexemptions. [Amended by 1971 c.258 §2; 1997 c.113§5]

(Nonprofit Corporation Housing for Elderly Persons)

307.241 Policy. The purpose of ORS307.241 to 307.245 is to assist private non-profit corporations to provide permanenthousing, recreational and social facilities,and care to elderly persons. The LegislativeAssembly finds that the housing and relatedfacilities furnished by private nonprofit cor-porations provide inherent benefits that jus-tify the funded property tax exemptionprovided by ORS 307.241 to 307.245. [1977 c.411§1; 2005 c.94 §32]

307.242 Property of nonprofit corpo-ration providing housing to elderly per-sons; necessity of filing claim to secureexemption. (1) Upon compliance with thissection, whenever a corporation, as describedin ORS 307.375, is receiving or has receivedany federal or state financial assistance,such as a loan, mortgage insurance, aid toconstruction, rent supplement or otherwise,under the following federal or state laws, theproperty owned or being purchased by thatcorporation in actual use for corporate pur-poses or in the process of construction foruse for corporate purposes on January 1 of



the assessment year is exempt from advalorem taxation:

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

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

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

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

(e) ORS 456.515 to 456.725 and 458.505 to458.515.

(2) A corporation claiming the exemptionunder subsection (1) of this section shall filewith the county assessor, on forms pre-scribed by the Department of Revenue andsupplied by the assessor, a written claimtherefor in duplicate on or before April 1 ofeach assessment year for which the ex-emption is claimed. If the claim for any yearis not filed within the time specified, the ex-emption may not be allowed on the assess-ment roll for that year. In addition to anyother matters prescribed by the Departmentof Revenue to be contained in or accompanythe claim, the claim shall:

(a) Declare or be accompanied by a dec-laration that the corporation meets the re-quirements of ORS 307.375 and that theproperty meets the requirements of ORS307.243 (1);

(b) Describe or be accompanied by a de-scription of the federal financial assistancethe corporation is receiving or has received;

(c) Contain or be accompanied by astatement showing in detail the sources andamounts of all income received by the cor-poration and the basis for rental amountscharged for occupancy of the facilities; and

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

(3) Notwithstanding subsection (2) of thissection:

(a) If the property qualifies for exemptionon or after March 1 and before July 1, theclaim may be filed within 30 days after thedate of qualification.

(b) A statement may be filed under thissection at any time prior to September 15 ofthe assessment year for which exemption isfirst desired. However, any statement filedafter the time for filing the statement speci-fied in subsection (2) of this section, unlessfiled under paragraph (a) of this subsection,must be accompanied by a late filing fee ofthe greater of $200 or one-tenth of one per-cent of the real market value of the property

to which the statement pertains, as deter-mined as of January 1 of the assessment yearby the assessor for this purpose. If the state-ment is not accompanied by the late filingfee or if the late filing fee is not otherwisepaid, no exemption shall be allowed for theyear based upon a statement filed pursuantto this subsection. A statement may be filedunder this section notwithstanding that thereare no grounds for hardship as required forlate filing under ORS 307.475. The value ofthe property used to determine the late filingfee under this section is appealable in thesame manner as other acts of the county as-sessor. Any filing fee collected under thissection shall be deposited to the county gen-eral fund to be made available for countygeneral governmental expenses.

(4) The assessor shall act upon the claimand shall approve or reject it, noting the ac-tion of the assessor upon both the originaland the duplicate copies. The duplicate copytherefor shall be returned to the claimant.

(5) The Department of Revenue shall fur-nish to a county assessor, upon the requestof the county assessor, a statement certifyingthe qualification or nonqualification of acorporation under ORS 307.375 and this sec-tion based upon the corporation’s claim un-der this section.

(6) Residents of a facility of a corporationexempt from taxation under this section arenot entitled to the tax benefits of ORS307.370 to 307.385. [1977 c.411 §2; 1987 c.372 §1; 1987c.756 §18; 1989 c.803 §13; 1991 c.459 §50; 1995 c.300 §2;1997 c.170 §21; 1997 c.541 §110; 1999 c.579 §2; 2001 c.114§14; 2001 c.753 §22; 2003 c.46 §12]

307.243 Property to which exemptionapplies. (1)(a) Except as provided under par-agraph (b) of this subsection, the exemptionallowed by ORS 307.242 shall apply only toproperty, consisting of land and improve-ments, where the process of construction ofthe improvements on the land is commencedafter January 1, 1977, or to property acquiredafter January 1, 1977.

(b) The exemption allowed by ORS307.242 (1)(e) shall apply only to property,consisting of land and improvements, meet-ing the requirements of ORS 307.241 to307.245 (including paragraph (a) of this sub-section) that on January 1, 1990, is actuallybeing occupied and used, wholly or partially,to furnish permanent residential, recre-ational and social facilities primarily for el-derly persons. Construction, reconstruction,renovation, maintenance, repair or other im-provement (including addition of squarefootage to the existing buildings and struc-tures and the construction or addition ofbuildings and structures within the initialland area) made to property that is in actualuse on January 1, 1990, wholly or partially,



to furnish permanent residential, recre-ational and social facilities primarily for el-derly persons shall not disqualify theproperty for exemption under ORS 307.242 if,during the process of improvement, the prop-erty continues to be in actual use, in wholeor in part, to furnish permanent residential,recreational and social facilities primarily forelderly persons. The property, as improved,may qualify for exemption. However, landarea and the improvements thereon, contig-uous or noncontiguous to the initial landarea and improvements in use, in whole orin part, for the corporate purposes of thecorporation on January 1, 1990, and firstplaced in service for the corporate purposesof the corporation after January 1, 1990,shall not qualify for exemption under ORS307.242 (1)(e).

(2) The exemption allowed by ORS307.242 shall not apply to the property of anycorporation that requires any payment in ex-cess of one month’s rent, including a depositor founder’s fee, to be paid, in addition torent paid for occupancy of the facility, as acondition for occupancy.

(3) The exemption allowed by ORS307.242 shall not apply in any year in whichdelinquencies exist for taxes or otheramounts charged against the property on thetax roll. [1977 c.411 §3; 1989 c.803 §14; 1993 c.19 §5]

307.244 Funded exemption; computa-tion of rate of levy by county assessor;payments to county by department; pro-ration. (1) The assessor shall compute andlist the value and compute and list theamount of tax which would have beencharged on each property receiving an ex-emption under ORS 307.242 had the propertynot received an exemption. On or before Oc-tober 15, the county assessor shall certify thetotal amounts so computed for each countyto the Department of Revenue and to thecounty treasurer.

(2) Not later than November 15, the De-partment of Revenue shall pay to eachcounty treasurer the amount certified undersubsection (1) of this section, less any dis-count provided in ORS 311.505. The paymentsmade by the department under this sectionshall be made from the suspense account re-ferred to in ORS 310.692. If necessary, thepayments may be prorated as provided inORS 310.692.

(3) Payments made by the department tothe various county treasurers under thissection shall be distributed to the taxingunits of the county in accordance with theschedule of percentages computed under ORS311.390. [1977 c.411 §4; 1977 c.761 §6; 1985 c.761 §29;1991 c.459 §51; 2001 c.753 §23]

307.245 Denial of exemption for failureto reflect exemption by rent reduction.The funded property tax exemption grantedunder ORS 307.241 to 307.245 may not begranted in any year following a year forwhich the corporation has failed to satisfythe county assessor or the Department ofRevenue that the exemption granted in theprevious year has been reflected by a re-duction in the amount of rent that wouldotherwise be paid for occupancy of the facil-ity by its residents. [1977 c.411 §5; 2005 c.94 §33]

(Veterans, Surviving Spouses and Dependent Children)

307.250 Property of veterans or sur-viving spouses. (1) As used in this sectionand ORS 307.260, 307.262 and 307.270, “vet-eran” has the meaning given that term inORS 408.225.

(2) Upon compliance with ORS 307.260,there shall be exempt from taxation not toexceed $15,000 of the assessed value of thehomestead or personal property of any of thefollowing residents of this state other thanthose described in subsection (3) of this sec-tion:

(a) Any veteran who is officially certifiedby the United States Department of VeteransAffairs or any branch of the Armed Forcesof the United States as having disabilities of40 percent or more.

(b) Any veteran having served with theUnited States Armed Forces who, as certifiedby one duly licensed physician, is rated ashaving disabilities of 40 percent or more.However, a veteran shall be entitled to theexemption granted under this paragraph onlyif the veteran during the calendar year im-mediately preceding the assessment year forwhich the exemption is claimed had totalgross income, including pensions, disabilitycompensation or retirement pay, or any com-bination of such payments from the UnitedStates Government on account of such ser-vice, of not more than 185 percent of federalpoverty guidelines.

(c) The surviving spouse remaining un-married of a veteran, but the exemption shallapply only to the period preceding the dateof the first remarriage of the survivingspouse.

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

(a) Any veteran who is officially certifiedby the United States Department of VeteransAffairs or any branch of the Armed Forcesof the United States as having service-connected disabilities of 40 percent or more.



(b) The surviving spouse remaining un-married of a veteran, if the veteran died asa result of service-connected injury or illnessor if the veteran received at least one yearof the maximum exemption from taxation al-lowed under paragraph (a) of this subsectionafter 1981 for a veteran certified as havingservice-connected disabilities of 40 percentor more.

(4) The amount of the exemption allowedunder subsection (2) or (3) of this sectionshall equal 103 percent of the amount of theexemption for the prior tax year. [Amended by1953 c.63 §3; 1955 c.248 §1; 1961 c.410 §5; 1969 c.605 §55;1971 c.338 §1; 1973 c.402 §7; 1981 c.530 §3; 1981 c.682 §1;1982 s.s.1 c.33 §2; 1991 c.67 §77; 1991 c.459 §52; 1995 c.610§2; 1997 c.541 §111; 1999 c.221 §1; 2005 c.520 §1; 2009 c.41§1]

307.260 Claiming exemption; alterna-tive procedure for surviving spouse. (1)(a)Each veteran or surviving spouse qualifyingfor the exemption under ORS 307.250 shallfile with the county assessor, on forms sup-plied by the assessor, a claim therefor inwriting on or before April 1 of the assess-ment year for which the exemption isclaimed, except that when the property des-ignated is acquired after March 1 but priorto July 1 the claim shall be filed within 30days after the date of acquisition.

(b) A claim need not be filed under thissection in order to be allowed the exemptiondescribed in ORS 307.250 if:

(A) The homestead or personal propertyof the veteran or surviving spouse was al-lowed the exemption under ORS 307.250 forthe preceding tax year;

(B) The individual claiming the ex-emption is a veteran described in ORS307.250 (2)(a) or (3)(a) or a surviving spousewho meets the requirements of ORS 307.250(2)(c) or (3)(b); and

(C) As of the filing date for the currenttax year, the ownership and use of thehomestead or personal property and all otherqualifying conditions for the homestead orpersonal property to be allowed the ex-emption remain unchanged.

(c)(A) If the individual claiming the ex-emption is a veteran described in ORS307.250 (2)(b), the claimant shall file a claimannually that satisfies the requirements ofsubsection (2) of this section on or before thedate required in paragraph (a) of this sub-section.

(B) If the county assessor has not re-ceived a claim filed under this paragraph onor before April 1 of the current year, notlater than April 10 of each year, the countyassessor shall notify the veteran in thecounty who secured an exemption under ORS307.250 (2)(b) in the preceding year but whodid not make application therefor on or be-

fore April 1 of the current year. The countyassessor may provide the notification on anunsealed postal card. A veteran so notifiedmay secure the exemption, if still qualified,by making application therefor to the countyassessor not later than May 1 of the currentyear, accompanied by a late-filing fee of $10,which shall be deposited in the general fundof the county for general governmental ex-penses. If the claim for any tax year is notfiled within the time specified, the exemptionmay not be allowed on the assessment rollfor that year.

(2)(a) The claim shall set out the basis ofthe claim and designate the property towhich the exemption may apply. Except asprovided in subsection (3) of this section,claims for exemptions under ORS 307.250(2)(a) and (3)(a) shall have affixed thereto thecertificate last issued by United States De-partment of Veterans Affairs or the branchof the Armed Forces of the United States, asthe case may be, but dated within threeyears prior to the date of the claim for ex-emption, certifying the rate of disability ofthe claimant.

(b) Claims for exemption under ORS307.250 (2)(b) shall, except as provided insubsection (3) of this section, have affixedthereto, in addition to the certificate last is-sued by a licensed physician and datedwithin one year prior to the date of the claimfor exemption, certifying the rate of disabil-ity of the claimant, a statement by theclaimant under oath or affirmation settingforth the total gross income received by theclaimant from all sources during the lastcalendar year.

(c) There also shall be affixed to eachclaim the affidavit or affirmation of theclaimant that the statements containedtherein are true.

(3) The provisions of subsection (2) ofthis section that require a veteran to affix tothe claim certificates of the United StatesDepartment of Veterans Affairs, a branch ofthe Armed Forces of the United States or alicensed physician do not apply to a veteranwho has filed the required certificate afterattaining the age of 65 years or to a veteranwho has filed, on or after September 27, 1987,a certificate certifying a disability ratingthat, under federal law, is permanent andcannot be changed.

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

(A) The veteran died during the previoustax year; or

(B) The property designated as thehomestead was acquired after March 1 but



prior to July 1 of the assessment year andthe veteran died within 30 days of the datethe property was acquired.

(b) The claim shall be allowed by thecounty assessor if the surviving spouse meetsall of the qualifications for an exemption un-der ORS 307.250 other than the timely filingof a claim under subsection (1) of this sec-tion.

(c) If taxes on the exempt value havebeen paid, the taxes shall be refunded in themanner prescribed in paragraph (d) of thissubsection. If taxes on the exempt value havenot been paid, the taxes and any interestthereon shall be abated.

(d) The tax collector shall notify thegoverning body of the county of any refundrequired under this section and the govern-ing body shall cause a refund of the taxesand any interest paid to be made from theunsegregated tax collections account de-scribed in ORS 311.385. The refund underthis subsection shall be made without inter-est. The county assessor and tax collectorshall make the necessary corrections in therecords 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; 1991c.459 §53; 1995 c.610 §3; 1997 c.541 §113; 2001 c.351 §1;2003 c.169 §12; 2007 c.615 §1; 2009 c.41 §2]

307.262 Tax years for which exemptionmay be claimed upon receipt of federalcertification of disability; procedure; re-fund. (1) Notwithstanding ORS 307.260, if aveteran receives notice of certification fromthe United States Department of VeteransAffairs or any branch of the Armed Forcesof the United States that the veteran hasdisabilities of 40 percent or more as of a dateset forth in the certification, the veteran mayobtain the exemption set forth in ORS307.250 for each tax year following the dateof certified disability.

(2) A veteran seeking to obtain an ex-emption under ORS 307.250 pursuant to thissection must file a claim for exemption withthe county assessor within six months of thedate the federal government agency notifiesthe veteran of the certified disability.

(3) Notwithstanding subsection (1) of thissection, a veteran may not receive an ex-emption under ORS 307.250 for a tax yearthat is more than three tax years prior to thetax year in which a claim is filed under thissection.

(4) If the county assessor determines thata veteran who has filed a claim under thissection meets the requirements of ORS307.250 for a tax year prior to the currenttax year, property taxes collected on the ex-empt amount for the prior tax year, togetherwith interest at the rate set forth in ORS311.812, shall be refunded to the veteran.

Refunds shall be made from the refund re-serve account established under ORS 311.807.[2001 c.199 §2; 2009 c.41 §3]

307.270 Property to which exemptionof ORS 307.250 applies. (1) The exemptionunder ORS 307.250 shall apply to propertyany such veteran or surviving spouse mayown, or have in possession under a recordedcontract of purchase, on January 1 of theyear in which the exemption is claimed. Theexemption shall first apply to the homesteadof the veteran or surviving spouse and thento the personal property of the veteran orsurviving spouse. Property of the spouse ofany such veteran where they are living to-gether and occupying the same as theirhomestead shall be deemed the homestead ofthe veteran. When any such veteran or sur-viving spouse applies for exemption on prop-erties in two or more counties, the totalamount of the exemption allowed in all suchcounties shall not exceed the maximumamount of exemption under ORS 307.250.

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

307.280 Effect of exemption underORS 307.250 on prior tax levied. Allowanceof the exemption, under ORS 307.250, in anyyear shall not have the effect of canceling orpermitting the cancellation of any tax leviedin any prior year.

307.283 Homesteads of unmarried sur-viving spouses of veterans of Civil Waror Spanish War. The surviving spouse re-maining unmarried of any honorably dis-charged veteran of the Civil War or theSpanish War, who is pensioned and actuallyresides in a homestead, is entitled to an ex-emption of $2,000 of the taxable value ofsuch homestead, in addition to the exemptionfrom taxes on real property otherwise pro-vided by law for such surviving spouse.[Formerly 307.300]

307.285 [1981 c.530 §2; 1982 s.s.1 c.33 §5; repealed by1991 c.459 §81]

(Active Duty Military Service)307.286 Homestead exemption. (1)

Upon compliance with ORS 307.289, thereshall be exempt from taxation up to $60,000of the assessed value of the homestead of anyresident of this state who is:

(a) Serving in the Oregon NationalGuard, military reserve forces or organizedmilitia of any other state or territory of theUnited States; and

(b) Performing service:



(A) Under Title 10 of the United StatesCode or pursuant to a deployment made un-der the authority of the Emergency Manage-ment Assistance Compact; and

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

(2) For each tax year beginning on or af-ter July 1, 2006, the amount of the exemptionallowed under subsection (1) of this sectionshall equal 103 percent of the amount of theexemption for the prior tax year.

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

307.289 Claiming homestead ex-emption; alternative procedures followingdeath of person qualifying for exemption.(1) Each person qualifying for the exemptionunder ORS 307.286 shall file with the countyassessor, on forms supplied by the assessor,a claim in writing on or before August 1 fol-lowing the end of the tax year for which theexemption is claimed.

(2) The claim shall set out the basis ofthe claim and designate the property towhich the exemption may apply. Claims forexemptions under ORS 307.286 shall includea statement by the claimant under oath oraffirmation setting forth the basis for eligi-bility for the exemption. The claim shall alsoinclude an affidavit or affirmation of theclaimant that the statements containedtherein are true.

(3) Notwithstanding subsection (1) of thissection and ORS 307.286 (1), an individualdescribed in ORS 307.286 (1) who appliesprior to the date on which service beginsshall be allowed the exemption if the claim-ant has written orders that require the per-formance of service for at least one dayduring the tax year for which the exemptionis being claimed and the claimant is other-wise eligible for the exemption.

(4)(a) Notwithstanding subsection (1) ofthis section and ORS 307.286 (1), an individ-ual who is lawfully occupying the homesteadof the qualifying person may file a claim forthe exemption under ORS 307.286 by the timeprescribed in subsection (1) of this section ifthe qualifying person died while performingthe service described in ORS 307.286 (1)(b)(A)during the current or prior tax year.

(b) The claim shall be allowed by thecounty assessor if the qualifying person metall of the qualifications for an exemption un-der ORS 307.286 prior to death, other thanthe number of consecutive days of service.

(5) If taxes on the exempt value havebeen paid, the taxes shall be refunded in themanner prescribed in subsection (6) of thissection. If taxes on the exempt value havenot been paid, the taxes and any interestthereon shall be abated.

(6) The tax collector shall notify thegoverning body of the county of any refundrequired under this section and the govern-ing body shall cause a refund of the taxesand any interest paid to be made from theunsegregated tax collections account de-scribed in ORS 311.385. The refund underthis subsection shall be made without inter-est. The county assessor and tax collectorshall make the necessary corrections in therecords of their offices. [2005 c.520 §4; 2007 c.604§2]

307.290 [Repealed by 1977 c.113 §2]307.300 [Amended by 1967 c.293 §31; 1981 c.530 §6;

renumbered 307.283 in 2005]307.310 [Renumbered 307.035]

(Deciduous Plants; Agricultural Products)

307.315 Nursery stock. Nursery stock,as defined in ORS 571.005 (5), whether bareroot, or whether balled or heeled or growingin containers in or upon the ground, is ex-empt from ad valorem taxation in the handsof the grower or wholesalers. [1971 c.285 §2; 1979c.692 §1]

307.320 Deciduous trees, shrubs,plants, crops, cultured Christmas treesor hardwood on agricultural land. Thevalue of any deciduous trees, shrubs, plantsor crops, whether annual or perennial, andany cultured Christmas trees, as defined inORS 215.203, or timber described under ORS321.267 (3) or 321.824 (3), growing upon agri-cultural land devoted to agricultural pur-poses, shall be exempt from assessment andtaxation and shall not be deemed real prop-erty under the provisions of ORS 307.010.[1957 c.615 §1; 1983 c.657 §4; 1985 c.565 §53; 1989 c.887§6; 1991 c.714 §5; 2003 c.454 §118; 2003 c.621 §79a]

307.325 Agricultural products in pos-session of farmer. (1) The items of personalproperty described in subsection (2) of thissection which, on the assessment date, areowned and in the actual or constructive pos-session of the farmer who produced them orwho has procured them for use or consump-tion 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, con-

densed or concentrated milk.(L) Mint.(m) Bivalve mollusks.(n) Livestock.(o) Fur-bearing animals.(p) Bees.(q) Vermiculture supplies and products.

[1965 c.429 §2; 1979 c.692 §2; 1987 c.691 §1; 2001 c.753 §11;2005 c.657 §5]

(Commercial Facilities Under Construction)

307.330 Commercial facilities underconstruction. (1) Except for property cen-trally assessed by the Department of Re-venue, each new building or structure oraddition to an existing building or structureis exempt from taxation for each assessmentyear of not more than two consecutive yearsif the building, structure or addition:

(a) Is in the process of construction onJanuary 1;

(b) Is not in use or occupancy on January1;

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

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

(e) Is, in the case of nonmanufacturingfacilities, to be first used or occupied not lessthan one year from the time constructioncommences. Construction shall not bedeemed to have commenced until after dem-olition, if any, is completed.

(2) If the property otherwise qualifies forexemption under this section and ORS307.340, the exemption shall likewise applyto any machinery or equipment located atthe construction site which is or will be in-stalled in or affixed to such building, struc-ture or addition. [1959 c.246 §1; 1961 c.552 §1; 1971c.284 §1; 1991 c.459 §55; 1997 c.541 §117]

307.340 Filing proof for cancellationof assessment; abatement. (1) The propertydescribed in ORS 307.330 shall be listed forad valorem property taxation, but the asses-sor shall cancel the assessment for any as-sessment year upon receipt of sufficientdocumentary proof that the property meetsall of the conditions contained in ORS307.330. Such proof shall be filed with theassessor on or before April 1 of such year.

No cancellation of assessment shall be madeunless the required proof is filed within thetime prescribed by this section. Any cancel-lation of assessment will be abated as to anynonmanufacturing property that is used oroccupied within one year from the time con-struction commences and the assessor shallproceed to correct the assessment and taxroll or rolls from which the property wasomitted from taxation, in the manner pro-vided in ORS 311.216 to 311.232.

(2) If the proof required by subsection (1)of this section relates to principal or second-ary industrial property as defined by ORS306.126 and is filed with the Department ofRevenue within the time required by subsec-tion (1) of this section, the proof shall bedeemed timely filed with the assessor. [1959c.246 §2; 1967 c.51 §2; 1971 c.284 §2; 1991 c.459 §56; 1993c.270 §77; 1997 c.541 §118]

307.345 [1965 c.615 §19; 1969 c.493 §78; repealed by1971 c.747 §21]

307.347 [1965 c.615 §16; repealed by 1971 c.747 §21]307.350 [1963 c.569 §3; 1963 s.s. c.4 §2; 1965 c.615 §22;

1969 c.578 §1; repealed by 1971 c.747 §21]307.355 [1963 c.569 §2; 1963 s.s. c.4 §1; repealed by

1965 c.615 §27]307.356 [1965 c.615 §17; repealed by 1971 c.747 §21]307.360 [1963 c.569 §4; 1965 c.615 §23; 1969 c.562 §2;

repealed by 1971 c.747 §21]307.362 [1965 c.615 §18; repealed by 1971 c.747 §21]307.365 [1963 c.569 §5; repealed by 1971 c.747 §21]307.366 [1969 c.562 §3; repealed by 1971 c.747 §21]

(Nonprofit Homes for Elderly Persons)307.370 Property of nonprofit homes

for elderly persons; limitation on lessee.(1) In aid of veterans tax exemptions, subjectto the conditions prescribed in ORS 307.370to 307.385 and 308.490, there shall be exemptfrom taxation the personal property and aportion of the real property computed asprovided in ORS 307.380, owned or beingpurchased under a contract by a corporationdescribed in ORS 307.375 which is actuallyand exclusively occupied and used in the op-eration of a nonprofit home for elderly per-sons.

(2) For the purposes of subsection (1) ofthis section, a corporation which is describedin ORS 307.375 which has only a leaseholdinterest in a nonprofit home for elderly per-sons operated by it is deemed to be a pur-chaser of the property if the operating lesseeis specifically obligated by its contract oflease to pay the ad valorem taxes on the realand personal property used in the operationof the home. [1969 c.587 §2; 1974 c.54 §1; 1975 c.780§17]

307.375 Type of corporation to whichexemption under ORS 307.370 applicable.The exemption provided in ORS 307.370 maybe permitted only as to a corporation organ-



ized and operated only for the purpose offurnishing permanent residential, recre-ational and social facilities primarily for el-derly persons, that:

(1) Is organized not for profit, pursuantto ORS chapter 65 or any statute repealedby chapter 580, Oregon Laws 1959;

(2) Receives not less than 95 percent ofits operating gross income, excluding any in-vestment income, solely from payments forliving, medical, recreational and social ser-vices and facilities, paid by or on behalf ofelderly persons using the facilities of suchcorporation;

(3) Permits no part of its net earnings toinure to the benefit of any private stock-holder or individual; and

(4) Provides in its articles or other gov-erning instrument that, upon dissolution, theassets remaining after satisfying all lawfuldebts and liabilities shall be distributed toone or more corporations exempt from taxa-tion under this chapter as corporations or-ganized and operated exclusively forreligious, charitable, scientific, literary oreducational purposes, or to the State of Ore-gon. [1969 c.587 §3]

307.380 Claiming exemption underORS 307.370. (1) Each corporation describedin ORS 307.375, claiming the personal prop-erty tax exemption pursuant to ORS 307.370,shall file with the county assessor, on formssupplied by the assessor, a written claimtherefor in duplicate on or before April 1 ofeach year in which the exemption is claimed,except that when the property designated isacquired after March 1 and before July 1, theclaim for that year shall be filed within 30days after the date of acquisition. If theclaim for any year is not filed within thetime specified, the exemption shall not be al-lowed on the assessment roll for that year.The claim shall be signed by the taxpayersubject to the penalties for false swearing.

(2)(a) Each corporation annually shall aidresidents, who could qualify for property taxexemptions pursuant to ORS 307.250 to307.283, if the living unit of such elderlyperson were the homestead of the person andowned in fee simple, to prepare applicationsin duplicate for property tax exemptions onbehalf of the corporation, for the benefit ofthe elderly person as provided by ORS307.370 to 307.385 and 308.490. The duplicateforms shall be completed and signed by theresident-applicant and filed with the assessoron or before the date required by law.

(b) The corporation shall determine theamount of assessed value that each residentof a nonprofit home who would have quali-fied for an exemption under ORS 307.250 to307.283 would have had exempted if the liv-

ing unit of such elderly person was thehomestead of the person and owned in feesimple. The amount of the property tax ex-emption provided for in ORS 307.370 to307.385 and 308.490 and attributable to theveteran or surviving spouse of the veteranshall be the lesser of:

(A) The maximum amount of exemptionthat the veteran or surviving spouse of aveteran would have qualified for under ORS307.250 or 307.283, whichever is applicable;or

(B) The assessed value of the living unitof the veteran or the surviving spouse.

(c) The assessor shall process each suchapplication in the manner otherwise requiredunder ORS 307.250 to 307.283, except for therequirement of owning or purchasing ahomestead. The total of such exemptamounts in each facility, together with theexemption on personal property, shall consti-tute the exemption allowed the corporation.

(3) The assessor shall act upon the claimand shall approve it or reject it, noting theaction upon both the original and the dupli-cate copies. The duplicate copy thereuponshall be returned to the claimant.

(4) The Department of Revenue shall fur-nish to a county assessor, upon request, astatement certifying the qualification ornonqualification of a corporation under ORS307.375. [1969 c.587 §4; 1971 c.747 §15; 1975 c.780 §1;1981 c.530 §7; 1981 c.682 §4; 1987 c.293 §65; 1987 c.756 §16;1997 c.113 §7]

307.385 Credit to resident’s accountwith share of tax exemption; denial ofexemption if credit not given. Not laterthan December 15 of each year, a corpo-ration that has received a real property ex-emption for the current year under ORS307.370 shall credit the account of each resi-dent of a facility whose living unit was takeninto account in determining the real propertyexemption. The amount of the credit mustequal the amount of real property taxes thatwould have been assessed and collectedagainst the corporation for that portion ofthe assessed value of such living unit in-cluded in computing the corporation’s ex-emption. The county assessor shall furnishthe corporation with the information neces-sary for the corporation to make the compu-tation. Prior to the following February 1, thecorporation shall satisfy the assessor thatcredit has been given each applicable resi-dent as required by this section. If the cor-poration fails to satisfy the assessor that theapplicable resident has received the credit,the assessor must deny the corporation anyproperty tax exemption under ORS 307.370 to307.385 or 308.490 in the next assessmentyear, beginning January 1. [1969 c.587 §6; 1975c.780 §2; 1991 c.459 §57; 1997 c.541 §119; 2005 c.94 §34]



(Agricultural Equipment and Facilities)

307.390 Mobile field incinerators. Mo-bile field incinerators owned by farmers orby groups of farmers that are exclusivelyused for sanitizing grass seed fields by meansother than open field burning shall be ex-empt from taxation if they are purchasedwithin five years after they are certified asa feasible alternative to open field burningsby the Department of Environmental Qualitypursuant to ORS 468A.555 to 468A.620 and468A.992. [1971 c.678 §2; 1977 c.650 §12]

307.391 Field burning smoke manage-ment equipment. Radio communicationsequipment, meteorological equipment orother tangible personal property used inconnection with the operation of the fieldburning smoke management program estab-lished under ORS 468A.555 to 468A.620 and468A.992 is exempt from ad valorem propertytaxation. [2001 c.753 §18]

307.394 Farm machinery and equip-ment; personal property used in farmoperations; limitation. (1) The followingtangible personal property is exempt from advalorem property taxation:

(a) Farm machinery and equipment usedprimarily in the preparation of land, plant-ing, raising, cultivating, irrigating, harvest-ing or placing in storage of farm crops;

(b) Farm machinery and equipment usedprimarily for the purpose of feeding, breed-ing, management and sale of, or the produceof, livestock, poultry, fur-bearing animals orbees or for dairying and the sale of dairyproducts;

(c) Machinery and equipment used pri-marily to implement a remediation plan asdefined in ORS 308A.053 for the period oftime for which the remediation plan is certi-fied; or

(d) Farm machinery and equipment usedprimarily in any other agricultural or horti-cultural use or animal husbandry or anycombination of these activities.

(2)(a) Items of tangible personal property,including but not limited to tools, machineryand equipment that are used predominantlyin the construction, reconstruction, mainte-nance, repair, support or operation of farmmachinery, and equipment and other real orpersonal farm improvements that are usedprimarily in animal husbandry, agriculturalor horticultural activities, or any combina-tion of these activities, are exempt from advalorem property taxation.

(b) An item of tangible personal propertydescribed in paragraph (a) of this subsectionis exempt from ad valorem property taxation

only if the person that owns, possesses orcontrols the item also:

(A) Owns, possesses or controls the farmmachinery, equipment and other real andpersonal farm improvements for which theitem is used; and

(B) Carries on the animal husbandry, ag-ricultural or horticultural activity, or combi-nation of activities, in which the farmmachinery, equipment or other real and per-sonal farm improvements are used. [2001 c.753§15; 2009 c.776 §8]

307.395 [1971 c.141 §§1,2; 1983 c.740 §87; repealed by1991 c.459 §81]

307.397 Certain machinery and equip-ment used in agricultural, aquaculturalor fresh shell egg industry operations. (1)The following items of real property machin-ery and equipment or tangible personalproperty are exempt from ad valorem prop-erty taxation:

(a) Frost control systems used in agricul-tural or horticultural activities carried on bythe farmer;

(b) Trellises used for hops, beans or fruitor for other agricultural or horticulturalpurposes;

(c) Hop harvesting equipment, includingbut not limited to hop pickers;

(d) Oyster racks, trays, stakes and otherin-water structures used to raise bivalvemollusks; or

(e) Equipment used for the fresh shellegg industry that is directly related and rea-sonably necessary to produce, prepare, pack-age and ship fresh shell eggs from the placeof origin to market, whether bolted to thefloor, wired or plumbed to interconnectedequipment, including but not limited to grainbins, conveyors for transporting grain, graingrinding machinery, feed storage hoppers,cages, egg collection conveyors and equip-ment for washing, drying, candling, grading,packaging and shipping fresh shell eggs.

(2) A real property building, structure orimprovement is exempt from ad valoremproperty taxation if it:

(a) Is used primarily to grow plants foragricultural or horticultural production;

(b) Is covered with polyethylene,fiberglass, corrugated polycarbonate acrylicor any other transparent or translucent ma-terial designed primarily to allow passage ofsolar heat and light; and

(c) Does not have a permanent heatsource other than radiant heating providedby direct sunlight. [2001 c.753 §16; 2009 c.776 §11]

307.398 Irrigation equipment. (1) Cen-ter pivots, wheel lines or movable set lines



are exempt from ad valorem property taxa-tion.

(2) As used in this section:(a) “Center pivot” means a piece of self-

propelled machinery that rotates around ariser for the purpose of sprinkling a circulartract of land. “Center pivot” includes all ofthe component parts of the center pivot irri-gation system that are ordinarily locatedabove the ground on the land to be irrigatedand that can be disconnected from the riserand moved to another point. A center pivotconstitutes personal property.

(b) “Center pivot irrigation system”means an irrigation system that uses pump-ing stations and pipelines to convey waterfrom its source to a riser to which a centerpivot may be connected and used for sprin-kling.

(c) “Riser” means a pipe located in thefield to be irrigated that rises verticallythrough the surface of the ground. [2001 c.753§17]

(Inventory)307.400 Inventory. Items of tangible

personal property consisting of inventory, in-cluding but not limited to materials, supplies,containers, goods in process, finished goodsand other personal property owned by or inpossession of the taxpayer, that are or willbecome part of the stock in trade of the tax-payer held for sale in the ordinary course ofbusiness, are exempt from ad valorem prop-erty taxation. [Formerly 310.608; 1983 c.600 §2; 1987c.691 §2; part renumbered 307.402 in 1991; 1995 c.379 §1;1997 c.325 §22; 2001 c.753 §12]

(Beverage Containers)307.402 Beverage containers. Any bev-

erage container having a refund value as re-quired under ORS 459A.700 to 459A.740 isexempt from ad valorem taxation. [Formerly310.608; 1983 c.600 §2; 1987 c.691 §2; formerly part of307.400]

(Pollution Control Facilities)307.405 Pollution control facilities;

qualifications; expiration; revocation;limitations. (1) A pollution control facilityor facilities which have been constructed inaccordance with the requirements of ORS468.165 (1), and have been certified by theEnvironmental Quality Commission pursuantto ORS 468.170 are exempt to the extent ofthe highest percentage figure certified by theEnvironmental Quality Commission as theportion of the actual cost properly allocableto the prevention, control or reduction ofpollution. The exemption shall be allowedonly if the taxpayer is a corporation organ-ized under ORS chapter 62 or 65, or any

predecessor to ORS chapter 62 relating toincorporation of cooperative associations, oris a subsequent transferee of such a corpo-ration. If the subsequent transferee is organ-ized under other than ORS chapter 62 or 65,the exemption shall only be allowed if thetransfer occurs after the expiration of fiveyears from the date of original certificationby the commission.

(2) To qualify for the ad valorem tax re-lief:

(a) The pollution control facility must beerected, constructed or installed in con-nection with the trade or business conductedby the taxpayer on Oregon property ownedor leased by said taxpayer.

(b) The taxpayer must be the owner ofthe trade or business that utilizes Oregonproperty requiring a pollution control facilityto prevent or minimize pollution or a personwho, as a lessee under a written lease orpursuant to a written agreement, conductsthe trade or business that operates or utilizessuch property and who by the terms of suchlease or agreement is obliged to pay the advalorem taxes on such property. As used inthis subsection, “owner” includes a contractpurchaser.

(3) The ad valorem exemption of a facilityshall expire, in any event, 20 years from thedate of its first certification for any owneror lessee by the Environmental QualityCommission.

(4) Upon any sale, exchange, or otherdisposition of a facility, notice thereof shallbe given to the Environmental Quality Com-mission who shall revoke the certificationcovering such facility as of the date of suchdisposition. The transferee may apply for anew certificate under ORS 468.170, but thenumber of years of ad valorem tax exemptionthat may be claimed by the transferee is theremainder of the exemption period specifiedin subsection (3) of this section.

(5) If the facility also functions to pre-vent pollution from operations conducted onother property owned or leased by the tax-payer the Environmental Quality Commis-sion shall state in its certification of thefacility the percentage of the facility used toprevent pollution from such qualifying tradeor business conducted on such qualifyingproperty. The exemption from ad valoremtaxes under this section shall be limited tosuch percentage of the value of the facility.[1967 c.592 §13; 1969 c.340 §1; 1971 c.678 §1; 1973 c.831§7; 1977 c.795 §9; 1987 c.596 §1; 1989 c.802 §1]

307.420 Filing claim and environ-mental certificate for exemption; annualstatements of ownership. (1) Before anyexemption from taxation is allowed underORS 307.405, the person claiming the ex-



emption shall file with the county assessor awritten claim for such exemption preparedon a form prescribed by the Department ofRevenue and furnished by the assessor, andshall file with the assessor with the firstclaim for exemption the certificate issued bythe Environmental Quality Commission un-der ORS 468.170 covering the property forwhich exemption is sought. The claim shallbe filed not later than April 1 of the assess-ment year for which the exemption isclaimed; except that if the person receives acertificate after April 1 but before July 1, theperson may file a claim on or before July 15of that year. The county clerk shall recordthe certificate in the county record of deeds,upon presentation by the assessor. Each yearthereafter to continue such exemption, thetaxpayer must file not later than April 1 astatement with the county assessor, on aform prescribed by the Department of Re-venue and furnished by the assessor, statingthat the ownership of all property includedin the certificate and its use remain un-changed.

(2) If a claim required by subsection (1)of this section relates to principal or second-ary industrial property as defined by ORS306.126 and is filed with the Department ofRevenue within the time required by subsec-tion (1) of this section, the claim shall bedeemed timely filed with the assessor. [1967c.592 §14; 1973 c.831 §10; 1983 c.637 §5; 1991 c.459 §58;1993 c.270 §79; 1997 c.541 §120]

307.430 Correction of assessment andtax rolls; termination of exemption. (1)Upon receipt of notice of the revocation of acertification of a pollution control facilitypursuant to ORS 468.185 (1)(a), the countyassessor shall proceed to correct the assess-ment and tax roll or rolls from which thefacility was omitted from taxation, in themanner provided in ORS 311.216 to 311.232,and in all cases shall add interest in themanner provided in ORS 311.229. The five-year limitation provided for in ORS 311.205shall not apply to such corrections.

(2) Upon receipt of notice of the revoca-tion of a certification of a pollution controlfacility pursuant to ORS 468.185 (1)(b), if thefinal revocation occurs before September 15of any assessment year, the exemption oth-erwise allowable shall terminate and not beallowed beginning with the assessment andtax rolls prepared as of January 1 of the as-sessment year. [1967 c.592 §15; 1991 c.459 §59; 1997c.541 §121]

(Beach Lands)307.450 Certain beach lands. The land,

but not the improvements to the land, withinthe area described by ORS 390.770 is exemptfrom taxation. [1969 c.601 §15; 1999 c.21 §14]

(Food Processing Equipment)307.453 Findings. The Legislative As-

sembly finds that food processing activitiesmake significant contributions to the econ-omy of this state and are important in sup-porting and maintaining a high level ofagricultural diversity, upon which consistenteconomic performance is based. The Legisla-tive Assembly declares that a property taxexemption for qualified real property ma-chinery and equipment encourages continuedoperation and expansion of the food process-ing industry in this state. [2005 c.637 §2]

307.455 Definitions; application for ex-emption; exemption. (1) As used in thissection and ORS 307.457:

(a) “Assessor” means the county asses-sor, or the Department of Revenue if underORS 306.126 the department is responsiblefor appraisal of the facility at which thequalified machinery and equipment is lo-cated.

(b) “Food processor”:(A) Means a person engaged in the busi-

ness of freezing, canning, dehydrating, con-centrating, preserving, processing orrepacking for human consumption raw orfresh fruit, vegetables, nuts, legumes orseafood in any procedure that occurs prior tothe point of first sale by the processor.

(B) Does not include persons engaged inthe business of producing alcoholic bever-ages.

(c) “Integrated processing line” does notinclude forklifts, trucks or other rollingstock used to transport material to or froma point of manufacture or assembly.

(d) “Qualified machinery and equipment”means property, whether new or used, thatis newly acquired by a food processor andplaced into service prior to January 1 pre-ceding the first tax year for which an ex-emption under this section is sought, andthat consists of:

(A) Real property machinery and equip-ment that is used by a food processor in theprimary processing of raw or fresh fruit,vegetables, nuts, legumes or seafood; or

(B) Personal property machinery andequipment that is used in an integrated pro-cessing line for the primary processing ofraw or fresh fruit, vegetables, nuts, legumesor seafood.

(2)(a) On or before March 1 preceding thefirst tax year for which property is to be ex-empt from taxation under this section, a foodprocessor seeking an exemption under thissection shall apply to the assessor for ex-emption. The application shall be on a formprescribed by the Department of Revenue



and shall include any information requiredby the department, including a schedule ofthe qualified machinery and equipment forwhich certification is sought.

(b) Notwithstanding paragraph (a) of thissubsection, the assessor may approve an ap-plication that is filed after March 1, and onor before December 31 of the assessmentyear, if the statement is accompanied by alate filing fee of the greater of $200 or one-tenth of one percent of the real market valueof the property that is the subject of the ap-plication.

(c) The assessor shall review the applica-tion and, if the machinery and equipmentthat is the subject of the application consti-tutes qualified machinery and equipmentcertified by the State Department of Agri-culture under ORS 307.457, shall approve theapplication and exempt the qualified machin-ery and equipment.

(d) If any of the machinery and equip-ment that is the subject of the applicationdoes not constitute qualified machinery andequipment certified by the State Departmentof Agriculture under ORS 307.457, the asses-sor shall exclude the nonqualified machineryand equipment from the application.

(3) Qualified machinery and equipmentfor which an application has been approvedunder subsection (2) of this section shall beexempt for the tax year for which the appli-cation was approved and for the next foursucceeding tax years, if as of the assessmentdate for each year the property constitutesqualified machinery and equipment.

(4) The duration of the exemption undersubsection (3) of this section may not be ex-tended as the result of the value of changesto qualified machinery and equipment thatare attributable to rehabilitation, recondi-tioning or ongoing maintenance or repair.[2005 c.637 §3]


Sec. 7. Property may not qualify for a first yearof exemption under ORS 307.455 for a tax year begin-ning on or after July 1, 2013. [2005 c.637 §7; 2011 c.656§1]


Sec. 2. (1) A food processor may apply for ex-emption under ORS 307.455 for the tax year beginningon July 1, 2011, by submitting to the Department ofRevenue on or before December 31, 2011, the applicationand information required under ORS 307.455 (2)(a) ac-companied by the late filing fee required under ORS307.455 (2)(b).

(2) If tax on the exempt value has not been paid,the tax and any interest are abated.

(3) If tax on the exempt value has been paid, thetax collector shall notify the governing body of thecounty of the refund required under ORS 307.455. Uponreceipt of notice from the tax collector, the governingbody shall cause a refund of the tax and any fee and

interest paid to be made from the refund reserve ac-count, if the county has established a refund reserveaccount under ORS 311.807, or from the unsegregatedtax collections account described in ORS 311.385. Therefund under this subsection shall be made without in-terest. The county assessor and tax collector shall makethe necessary corrections in the records of their offices.[2011 c.656 §2]

307.457 Certification of eligibility ofmachinery and equipment. (1) At the re-quest of a food processor or under the StateDepartment of Agriculture’s own initiative,the department shall certify qualified ma-chinery and equipment as eligible for ex-emption under ORS 307.455.

(2) The method of certification under thissection shall be provided by rules adopted bythe State Department of Agriculture, afterconsultation with the Department of Re-venue.

(3) A decision by the State Departmentof Agriculture to deny certification of certainproperty may be appealed to the Director ofAgriculture as a contested case under ORSchapter 183. [2005 c.637 §4]

307.459 Rules. The Department of Re-venue and the State Department of Agricul-ture may adopt rules to implement theprovisions of ORS 307.455 and 307.457. [2005c.637 §5]

307.460 [1973 c.822 §1; 1979 c.105 §1; 1983 c.634 §1;1987 c.756 §17; 1991 c.459 §60; 1995 c.650 §75; 1997 c.170§§22,23; 1997 c.271 §§5,6; 1997 c.325 §§23,24; 1997 c.541§§122,123; 1997 c.600 §§6,7; 1999 c.21 §15; renumbered307.471 in 2007]

(Egg Processing Equipment)307.462 Definitions; application for ex-

emption. (1) As used in this section andORS 307.464:

(a) “Assessor” means the county asses-sor, or the Department of Revenue if underORS 306.126 the department is responsiblefor appraisal of the facility at which thequalified machinery and equipment is lo-cated.

(b) “Egg processor” means a person en-gaged in the business of freezing, canning,dehydrating, concentrating, preserving, pro-cessing or repacking eggs for human con-sumption in any procedure that occurs priorto the point of first sale by the processor.

(c) “Integrated processing line” does notinclude forklifts, trucks or other rollingstock used to transport material to or froma point of manufacture or assembly.

(d) “Qualified machinery and equipment”means property, whether new or used, thatis newly acquired by an egg processor andplaced into service prior to January 1 pre-ceding the first tax year for which an ex-emption under this section is sought, andthat consists of:



(A) Real property machinery and equip-ment that is used by an egg processor in theprimary processing of eggs; or

(B) Personal property machinery andequipment that is used in an integrated pro-cessing line for the primary processing ofeggs.

(2)(a) On or before March 1 preceding thefirst tax year for which property is to be ex-empt from taxation under this section, anegg processor seeking an exemption underthis section shall apply to the assessor forexemption. The application shall be on aform prescribed by the Department of Re-venue and shall include any information re-quired by the department, including aschedule of the qualified machinery andequipment for which certification is sought.

(b) Notwithstanding paragraph (a) of thissubsection, the assessor may approve an ap-plication that is filed after March 1, and onor before December 31 of the assessmentyear, if the statement is accompanied by alate filing fee of the greater of $200 or one-tenth of one percent of the real market valueof the property that is the subject of the ap-plication.

(c) The assessor shall review the applica-tion and, if the machinery and equipmentthat is the subject of the application consti-tutes qualified machinery and equipmentcertified by the State Department of Agri-culture under ORS 307.464, shall approve theapplication and exempt the qualified machin-ery and equipment.

(d) If any of the machinery and equip-ment that is the subject of the applicationdoes not constitute qualified machinery andequipment certified by the State Departmentof Agriculture under ORS 307.464, the asses-sor shall exclude the nonqualified machineryand equipment from the application.

(3) Qualified machinery and equipmentfor which an application has been approvedunder subsection (2) of this section shall beexempt for the tax year for which the appli-cation was approved and for the next foursucceeding tax years, if as of the assessmentdate for each year the property constitutesqualified machinery and equipment.

(4) The duration of the exemption undersubsection (3) of this section may not be ex-tended as the result of the value of changesto qualified machinery and equipment thatare attributable to rehabilitation, recondi-tioning or ongoing maintenance or repair.[2007 c.843 §70]


Sec. 75. Section 70 of this 2007 Act [307.462] appliesto tax years beginning on or after July 1, 2007, and be-fore July 1, 2012. [2007 c.843 §75]

307.464 Certification of eligibility ofmachinery and equipment. (1) At the re-quest of an egg processor or under the StateDepartment of Agriculture’s own initiative,the department shall certify qualified ma-chinery and equipment as eligible for ex-emption under ORS 307.462.

(2) The method of certification under thissection shall be provided by rules adopted bythe State Department of Agriculture, afterconsultation with the Department of Re-venue.

(3) A decision by the State Departmentof Agriculture to deny certification of certainproperty may be appealed to the Director ofAgriculture as a contested case under ORSchapter 183. [2007 c.843 §71]

307.466 Exemption limited to taxes ofdistrict adopting ORS 307.462; rules. (1)The exemption provided in ORS 307.462 ap-plies only to the taxes of a taxing district thegoverning body of which has adopted an or-dinance or resolution authorizing the ex-emption under ORS 307.462.

(2) The Department of Revenue and theState Department of Agriculture may adoptrules to implement the provisions of ORS307.462 and 307.464. [2007 c.843 §§72,73]

307.470 [1973 c.486 §1; repealed by 1979 c.692 §13]

(Student Housing)307.471 Student housing exempt from

school district taxes; application proce-dure; disqualification. (1)(a) Upon compli-ance with subsection (2) of this section,student housing shall be exempt from all advalorem property taxes levied by a schooldistrict, a county education bond district, aneducation service district, a community col-lege service district or a community collegedistrict.

(b) As used in this subsection, “studenthousing” means housing that is:

(A) Rented exclusively to students of anyeducational institution, public or private,that offers at least a two-year program ac-ceptable for full credit towards a baccalau-reate degree;

(B) Rented upon a nondiscriminatory ba-sis, without regard to race, creed, color ornational origin;

(C) Owned by a nonprofit corporationhaving articles of incorporation that providethat on dissolution or liquidation, the right,title and interest of the corporation in andto all accommodations and facilities with re-spect to which exemption is sought will beconveyed to the educational institution orinstitutions whose students are served by thehousing, and all its other remaining assetswill be conveyed to one or more organiza-



tions exempt from federal income tax underSection 501(c) (3) of the Internal RevenueCode;

(D) Owned by a nonprofit corporationthat has made legally enforceable arrange-ments to convey its interest in any propertywith respect to which exemption is claimedto the educational institution or institutionswhose students are served by the housingupon final payment of the mortgage indebt-edness incurred in connection with the con-struction or acquisition of the housing; and

(E) Regulated by federal or state law inregard to rents, charges, development costsand methods of operation. The renting of theproperty for safekeeping purposes during thesummer months shall not disqualify theproperty from the exemption granted by thissection.

(2)(a) Except as provided in paragraph (b)of this subsection, the nonprofit corporationshall apply to the assessor for the exemptionon or before April 1 of the assessment yearfor which the exemption is claimed on formsprescribed by the Department of Revenue.The exemption claim shall include a certi-fication by the university, college or commu-nity college attended by a majority of thestudent occupants that the property is beingused for student housing during the currentschool year. Once an exemption has beengranted, the exemption shall continue in ef-fect, without reapplication, until the propertyfails to meet the qualifications of subsection(1) of this section as exempt student housing.

(b) If the property designated in theclaim for exemption under paragraph (a) ofthis subsection is acquired after March 1 andbefore July 1, or if there is a change in useof the property qualifying the property forexemption under this section after March 1and before July 1, the initial claim for ex-emption shall be filed within 30 days fromthe date of acquisition or change of use ofthe property.

(3) When, for any reason, the property orany portion thereof ceases to meet the quali-fications of subsection (1) of this section, theowner at the time of the change shall notifythe assessor of such change prior to the nextJanuary 1, or within 60 days after the dateof disqualification, whichever is the earlier.

(4) When property that has received spe-cial exemption as student housing undersubsection (1) of this section thereafter be-comes disqualified for such exemption, andthe notice required by subsection (3) of thissection is not given, the assessor shall de-termine the date that the notice should havebeen given, shall notify the owner thereofand notwithstanding ORS 311.235, there shallbe added to the tax extended against theproperty on the next general property tax

roll, to be collected and distributed in thesame manner as the remainder of the realproperty tax, an amount equal to the sum ofthe following:

(a) The total amount by which taxes as-sessed against the property would have beenincreased if it had been subject to tax with-out regard to subsection (1) of this sectionduring the tax year for which the noticeshould have been given and each tax yearthereafter together with the interest whichwould have accrued had the taxes beenproperly assessed and the exemption notbeen granted in the applicable years; and

(b) A penalty equal to 20 percent of theamount specified in paragraph (a) of thissubsection, however, no penalty shall be im-posed on any amount attributable to interest.

(5) A fraternity, sorority or cooperativehousing organization, or an associatedalumni nonprofit corporation organized ex-clusively for the purpose of owning propertyhousing the fraternity, sorority or cooper-ative housing organization and providing re-lated financial and operational support, mayqualify for the exemption provided by sub-section (1) of this section if the requirementsof subsection (1)(b)(A) and (B) of this sectionare met, provided that any of its housing ac-commodations not occupied by members ofthe organization shall be open to occupancyby students who are not members of or affil-iated with the organization, on a nondis-criminatory basis, without regard to race,creed, color or national origin, under rulesor conditions set by the school.

(6) Additional taxes collected under thissection shall be deemed to have been im-posed in the year to which the additionaltaxes relate. [Formerly 307.460]

(Hardship Situations)307.475 Hardship relief for failure to

file for exemption, cancellation of assess-ment or redetermination of value. (1) Anytaxpayer may apply to the Director of theDepartment of Revenue for a recommen-dation that the value of certain property be:

(a) Stricken from the assessment roll andthat any taxes assessed against such propertybe stricken from the tax roll on the groundsof hardship; or

(b) Redetermined pursuant to ORS308.146 (6) or 308.428.

(2) As used in this section, “hardship”means a situation where property is subjectto taxation but would have received reliefhad there been a timely filing of a validclaim for exemption, for cancellation of as-sessment or for a redetermination of valuepursuant to ORS 308.146 (6) or 308.428, andwhere the failure to make timely application



for the exemption, cancellation or change inassessment date was by reason of good andsufficient cause.

(3) An application to the director for arecommendation of tax relief on the groundsof hardship must be made not later than De-cember 15 of the year in which the failure totimely file a valid claim for exemption, forcancellation of assessment or for a redeter-mination of value pursuant to ORS 308.146(6) or 308.428 occurred.

(4) If the director, in the discretion of thedirector, finds that tax relief should begranted on the grounds of hardship, the di-rector shall send the written recommen-dation of the director to the assessor of thecounty in which the property is located. Ifthe assessor agrees with the recommen-dation, the assessor shall note approvalthereon. The person in charge of the rollshall:

(a) Enter an assessment consistent witha redetermination of the value of the prop-erty as of July 1 of the assessment year;

(b) Strike all or a portion of taxes on thetax roll; or

(c) Issue a refund of taxes already paid.A refund of taxes paid shall be treated as anyrefund granted under ORS 311.806. [1973 c.218§1; 1979 c.689 §8; 1999 c.398 §3; 2007 c.449 §1; 2011 c.83§7]

(Farm Labor Camps; Child Care Facilities)

307.480 Definitions for ORS 307.480 to307.510. As used in ORS 307.480 to 307.510unless the context requires otherwise:

(1) “Eligible child care facility” means achild care facility certified under ORS657A.030 and 657A.250 to 657A.450 andowned or operated by a nonprofit corporationas a nonprofit facility which is operated inconjunction or cooperation with an eligiblefarm labor camp.

(2) “Eligible farm labor camp” means afarm labor camp owned or operated by anonprofit corporation as a nonprofit facilitywhich complies with the health code for farmlabor camps adopted under the Oregon SafeEmployment Act.

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

(a) By a person engaged in the businessof providing housing, sleeping places orcamping grounds for employees or prospec-tive employees of another person and theimmediate families of the employees or pro-spective employees if the employees or pro-spective employees are or will be engaged in

agricultural work. Eligible farm labor campsmay provide housing to workers not cur-rently engaged in agricultural work if agri-cultural work is not available and employeesor prospective employees are required to ei-ther engage in agricultural work or leave thefarm labor camp once agricultural work be-comes available in the area.

(b) In connection with any work or placewhere agricultural work is being performed,whether the housing, sleeping places orcamping grounds are owned or maintainedby the employer or by another person.

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

(a) The possession or operation of childcare facility or farm labor camp property bynonprofit corporation pursuant to a writtenlease or lease-purchase agreement if:

(A) The nonprofit corporation is obligatedunder the terms of the lease or lease-pur-chase agreement to pay the ad valorem taxeson the property used in operating the farmlabor camp or child care facility; or

(B) The rent payable by the nonprofitcorporation has been established to reflectthe savings resulting from the exemptionfrom taxation.

(b) The possession or operation of theproperty by a partnership of which the non-profit corporation is:

(A) Either a general partner or the gen-eral manager; and

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

(5) “Rental” means the net amount of in-come from the eligible child care facility orfrom the eligible farm labor camp after de-duction of costs paid or incurred in the op-eration of the facility or camp including, butnot limited to, salaries or other compensa-tion, insurance, utilities, garbage disposal,supplies, repairs and maintenance, interestand capital costs (whether capitalized anddepreciated or amortized or deducted cur-rently) but not including the in lieu taxesimposed under ORS 307.490. [1973 c.382 §1; 1991c.232 §1; 1993 c.168 §1; 1995 c.278 §33]

307.485 Farm labor camp and childcare facility property. Subject to ORS307.490 and 307.495, there shall be exemptfrom taxation the assessed value of all realand personal property of an eligible farm la-bor camp, or an eligible child care facility.[1973 c.382 §2; 1991 c.459 §61; 1995 c.278 §34; 1997 c.541§125]

307.490 Payments in lieu of taxes; dis-position of moneys received. (1) In lieu ofreal and personal property taxes, each non-profit corporation eligible for a tax ex-



emption under ORS 307.485 shall pay to thetreasurer of the county on or before Novem-ber 15 an amount equal to 10 percent of therentals for the period ending the precedingOctober 15, submitting with the remittancea form supplied by the Department of Re-venue stating the rental and certifying com-pliance with the requirements of the StateFire Marshal, local health officer or ChildCare Division, as applicable.

(2) The treasurer shall, with the assist-ance of the assessor, allocate the money re-ceived by the treasurer under subsection (1)of this section, to the districts in which theexempt property is located in the same pro-portion that the tax rate for the current taxyear for each district bears to the total taxrate for all districts.

(3) The moneys received by the districtshall be considered as a budget resource forthe next ensuing fiscal year. [1973 c.382 §3; 1997c.325 §26]

307.495 Claiming exemption. (1) Eachnonprofit corporation claiming exemptionunder ORS 307.485 shall file with the countyassessor a written claim therefor in fivecopies on or before April 1 of each assess-ment year for which the exemption isclaimed, except that when the property des-ignated is acquired after March 1 and beforeJuly 1, the claim shall be filed within 30 daysafter acquisition.

(2) The claim shall designate the propertyto which the exemption may apply, shallstate the facts which make the property eli-gible within the definitions of ORS 307.480,and shall certify that the eligible farm laborcamp or eligible child care facility is, to thebest of taxpayer’s knowledge, in compliancewith the requirements of the State FireMarshal, the health code for farm laborcamps or is a certified child care facility.

(3) No exemption shall be allowed for anyyear subsequent to the first unless the cor-poration submits to the assessor details as tothe rentals for the prior year and proof thatthe payments required by ORS 307.490 havebeen made. [1973 c.382 §4; 1991 c.459 §62; 1995 c.278§35; 1997 c.541 §126]

307.500 Transmittal of claim to de-partment and other agencies; health codecompliance. (1) Immediately upon receipt ofthe claim or any subsequent rental state-ment, the county assessor shall promptlytransmit one copy of the claim to the De-partment of Revenue. The rent subsequentlyreported for the eligible child care facility oreligible farm labor camp for which the claimis made is subject to verification and modifi-cation by the Department of Revenue.

(2) The county assessor shall promptlytransmit one copy of each claim or statementfor exemption to the State Fire Marshal forverification of compliance with applicablelaws and rules and regulations relating tosafety from fire. If the State Fire Marshalrefuses such verification, the county assessorshall deny the claim and cause the nonprofitcorporation to be billed for the real and per-sonal property taxes it would otherwise beliable to pay.

(3) The county assessor shall promptlytransmit one copy of each claim or statementfor exemption of an eligible farm labor campto the appropriate authority under the Ore-gon Safe Employment Act for verification ofcompliance with the health code for farm la-bor camps. That authority shall refuse toverify compliance if the farm labor campdoes not comply with the health code appli-cable to it or if access to the camp for in-spection has been denied the county assessoror the authorized representative of thecounty assessor. If verification is refused, thecounty assessor shall deny the claim andcause the nonprofit corporation to be billedfor the real and personal property taxes itwould otherwise be liable to pay.

(4) If the claim or statement or any partthereof applies to property used for an eligi-ble child care facility, the county assessorshall promptly transmit a copy to the ChildCare Division for verification of certification.If the division refuses such verification, thecounty assessor shall deny the claim andcause the nonprofit corporation to be billedfor the real and personal property taxes itwould otherwise be liable to pay. [1973 c.382§5; 1995 c.278 §36]

307.505 Inspection of farm laborcamps; failure to comply with healthcode. The appropriate authority under theOregon Safe Employment Act shall cause aninspection to be made of any farm laborcamp that has filed for an exemption at anytime prior to August 15. If the conditions ofthe camp would not justify verification ofcompliance with the health code for farm la-bor camps, even though verification has beenmade under ORS 307.500, the appropriateauthority shall notify the county assessorwho shall cancel the exemption and causethe owner to be billed for the real and per-sonal property taxes the owner would other-wise be liable to pay. [1973 c.382 §6]

307.510 Appeal to tax court by tax-payer. Any taxpayer aggrieved by any deci-sion under ORS 307.480 to 307.510 mayappeal to the tax court within the time pro-vided and in the manner specified by ORS305.404 to 305.560. [1973 c.382 §7; 1995 c.650 §76]



(Low Income Rental Housing)307.515 Definitions for ORS 307.515 to

307.523. As used in ORS 307.515 to 307.523:(1) “Governing body” means the city or

county legislative body having jurisdictionover the property for which an exemptionmay be applied for under ORS 307.515 to307.523.

(2) “Lender” means the provider of a loansecured by the recorded deed of trust or re-corded mortgage made to finance the pur-chase, construction or rehabilitation of aproperty used for low income housing underthe criteria listed in ORS 307.517 or 307.518.

(3) “Low income” means income at orbelow 60 percent of the area median incomeas determined by the State Housing Councilbased on information from the United StatesDepartment of Housing and Urban Develop-ment. [1989 c.803 §1; 1991 c.930 §3; 1993 c.168 §3]

307.517 Criteria for exemption. (1)Property or a portion of the property thatmeets the following criteria shall be exemptfrom taxation as provided in ORS 307.515 to307.523:

(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 governingbody adopted the provisions of ORS 307.515to 307.523.

(2) For the purposes of subsection (1) ofthis section, a person that has only aleasehold interest in property is deemed tobe a purchaser of that property if:

(a) The person is obligated under theterms of the lease to pay the ad valoremtaxes on the real and personal property usedin this activity on that property; or

(b) The rent payable has been establishedto reflect the savings resulting from the ex-emption from taxation. [1989 c.803 §2; 1997 c.752§5; 2005 c.94 §36]

307.518 Alternative criteria for ex-emption. (1) Property or a portion of prop-erty that meets all of the following criteriashall be exempt from taxation as providedunder ORS 307.515 to 307.523:

(a) If unoccupied, the property:(A) Is offered for rental solely as a resi-

dence for low income persons; or

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

(b) If occupied, the property is occupiedsolely as a residence for low income persons.

(c) An exemption for the property hasbeen approved as provided under ORS307.523, pursuant to an application filed be-fore January 1, 2020.

(d) The property is owned or being pur-chased by a nonprofit corporation organizedin a manner that meets the criteria for apublic benefit corporation, as described un-der ORS 65.001 (37) or for a religious corpo-ration, as described under ORS 65.001 (39).

(e) The property is owned or being pur-chased by a nonprofit corporation that ex-pends no more than 10 percent of its annualincome from residential rentals for purposesother than the acquisition, maintenance orrepair of residential rental property for lowincome persons or for the provision of on-sitechild care services for the residents of therental property.

(2) For the purposes of this section, anonprofit corporation that has only aleasehold interest in property is consideredto be a purchaser of that property if:

(a) The nonprofit corporation is obligatedunder the terms of the lease to pay the advalorem taxes on the real and personal prop-erty used in the rental activity on that prop-erty; or

(b) The rent payable has been establishedto reflect the savings resulting from the ex-emption from taxation.

(3) A partnership shall be considered anonprofit corporation for purposes of thissection if:

(a) A nonprofit corporation is a generalpartner of the partnership; and

(b) The nonprofit corporation is responsi-ble for the day-to-day operation of the prop-erty that is the subject of the exemptionunder ORS 307.515 to 307.523. [1991 c.930 §2;1993 c.168 §4; 1995 c.79 §121; 1995 c.702 §1; 1997 c.541§127; 1997 c.752 §6; 1999 c.487 §1; 2001 c.315 §55; 2005 c.94§37; 2010 c.29 §6]

307.519 Exemption limited to tax levyof governing body that adopts ORS307.515 to 307.523; exception. (1) Except asprovided in subsection (2) of this section, theexemptions provided by ORS 307.515 to307.523 only apply to the tax levy of a gov-erning body that adopts the provisions ofORS 307.515 to 307.523.

(2) The exemptions provided by ORS307.515 to 307.523 shall apply to the tax levyof all taxing districts in which property cer-tified for exemption is located when, uponrequest of a governing body that has adoptedthe provisions of ORS 307.515 to 307.523, the



rates of taxation of such taxing districtswhose governing boards agree to the policyof exemption under ORS 307.515 to 307.523,when combined with the rate of taxation ofthe governing body that adopts the pro-visions of ORS 307.515 to 307.523, equal 51percent or more of the total combined rateof taxation on the property certified for ex-emption. [1989 c.803 §3; 1991 c.930 §4]

307.521 Application for exemption;policies for approving application. (1) Toqualify for an exemption provided by ORS307.515 to 307.523, the person shall file anapplication for exemption with the governingbody. The exemption shall be for a period of20 years. The application shall be filed as setforth in ORS 307.523. The application shallinclude the following information, if applica-ble:

(a) A description of the property or aportion of the property for which the ex-emption is requested;

(b) A description of the purpose of theproject and whether all or a portion of theproperty is being used for that purpose;

(c) A certification of income levels of lowincome occupants;

(d) A description of how the tax ex-emption will benefit project residents;

(e) If the exemption is an exemption de-scribed under ORS 307.518, evidence satis-factory to the governing body that thecorporation is nonprofit and meets the crite-ria for a public benefit corporation or a reli-gious corporation; and

(f) A description of the plans for devel-opment of the property if the property is be-ing held for future low income rentalhousing development.

(2) The applicant shall verify the infor-mation in the application by oath or affirma-tion.

(3) Prior to accepting an application un-der ORS 307.515 to 307.523, a local jurisdic-tion shall adopt standards and guidelines tobe utilized in considering applications andmaking determinations required by ORS307.515 to 307.537. The standards and guide-lines shall establish policy governing basicrequirements for approving an application.Policies considered may include, but are notlimited to:

(a) Rent regulatory agreements or otherenforcement mechanisms to demonstrate thatthe required rent payment reflects the fullvalue of the property tax exemption.

(b) Enforcement mechanisms to ensurethat housing that is exempt under ORS307.515 to 307.523 is maintained in decent,safe and sanitary conditions for the occu-pants.

(c) Methodology and timing for submit-ting evidence of use of rentals received fromlow income persons. [1989 c.803 §4; 1991 c.459 §63;1991 c.930 §5; 1997 c.752 §7; 2005 c.94 §38]

307.523 Time for filing application;certification of exemption. (1) Applicationshall be made on or before December 1 of thecalendar year immediately preceding the firstassessment year for which exemption is re-quested, and shall be accompanied by theapplication fee required under ORS 307.527.However, if the property is acquired afterNovember 1, the application shall be madewithin 30 days after the date of acquisition.

(2) Within 60 days of the filing of an ap-plication under ORS 307.521, the governingbody shall take final action upon the appli-cation as provided under ORS 307.527, andcertify the results of the action to the countyassessor.

(3) Upon receipt of certification undersubsection (2) of this section, the county as-sessor shall exempt the property from taxa-tion to the extent certified by the governingbody. [1989 c.803 §5; 1991 c.459 §64; 1991 c.930 §6; 1997c.541 §128]

307.525 Action against landlord forfailure to reduce rent. In addition to anyother provision of law, if a landlord violatesORS 307.517 (1)(c), a tenant may recoverdamages in an amount triple the actualdamages sustained as a result of the vio-lation. The court may award reasonable at-torney fees to the prevailing party in anaction under this section. [1989 c.803 §6; 1995c.618 §62]

307.527 Ordinance approving or disap-proving application; application fee. (1)Final action upon an application by the gov-erning body shall be in the form of an ordi-nance or resolution that shall contain theowner’s name and address, a description ofthe housing unit, either the legal descriptionof the property or the county assessor’sproperty account number, any specific condi-tions upon which the approval of the appli-cation is based and if only a portion of theproperty is approved, a description of theportion that is approved.

(2) On or before April 1 following ap-proval, the governing body shall file with thecounty assessor and send to the applicant acopy of the ordinance or resolution approv-ing or disapproving the application. The copyshall contain or be accompanied by a noticeexplaining the grounds for possible termi-nation of the exemption prior to the end ofthe exemption period or thereafter, and theeffects of termination. In addition, the gov-erning body shall file with the county asses-sor on or before April 1 a document listingthe same information otherwise required tobe in an ordinance or resolution under sub-



section (1) of this section, as to each appli-cation deemed approved under this section.

(3) If the application is denied, the gov-erning body shall state in writing the rea-sons for denial and send the notice of denialto the applicant within 10 days after the de-nial. The notice shall inform the applicantof the right to appeal under ORS 307.533.

(4) The governing body, after consulta-tion with the county assessor, shall establishan application fee in an amount sufficient tocover the cost to be incurred by the govern-ing body and the county assessor in adminis-tering ORS 307.515 to 307.523. Theapplication fee shall be paid to the governingbody at the time the application for ex-emption is filed. If the application is ap-proved, the governing body shall pay theapplication fee to the county assessor for de-posit in the county general fund, after firstdeducting that portion of the fee attributableto its own administrative costs in processingthe application. If the application is denied,the governing body shall retain that portionof the application fee attributable to its ownadministrative costs and shall refund thebalance to the applicant. [1989 c.803 §7; 1995 c.79§122]

307.529 Notice of proposed terminationof exemption; grounds; ordinance termi-nating exemption. (1) Except as provided inORS 307.531, if, after an application for ex-emption under ORS 307.517 has been ap-proved under ORS 307.527, the governingbody finds that construction or developmentof the exempt property differs from the con-struction or development described in theapplication for exemption, or is not com-pleted on or before January 1, 2020, or thatany provision of ORS 307.515 to 307.523 isnot being complied with, or any provisionrequired by the governing body pursuant toORS 307.515 to 307.523 is not being compliedwith, the governing body shall give notice ofthe proposed termination of the exemption tothe owner, by mailing the notice to the last-known address of the owner, and to everyknown lender, by mailing the notice to thelast-known address of every known lender.The notice shall state the reasons for theproposed termination and shall require theowner to appear at a specified time, not lessthan 20 days after mailing the notice, toshow cause, if any, why the exemptionshould not be terminated.

(2) If the owner fails to appear and showcause why the exemption should not be ter-minated, the governing body shall notify ev-ery known lender, and shall allow any lendernot less than 30 days after the date the no-tice of the failure to appear and show causeis mailed to cure any noncompliance or toprovide assurance adequate to the governing

body that all noncompliance shall be reme-died.

(3) If the owner fails to appear and showcause why the exemption should not be ter-minated, and the lender fails to cure or giveadequate assurance of the cure of any non-compliance, the governing body shall adoptan ordinance or resolution stating its find-ings terminating the exemption. A copy ofthe ordinance or resolution shall be filedwith the county assessor, and a copy shallbe 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 daysafter its adoption. [1989 c.803 §8; 1991 c.459 §65; 1991c.930 §7; 1993 c.168 §5; 1997 c.541 §129; 1997 c.752 §8; 1999c.487 §2; 2010 c.29 §7]

307.530 Termination if property heldfor future development or other purpose.An exemption granted under ORS 307.515 to307.523 shall be immediately terminated andadditional taxes imposed as provided in ORS307.531 if the exempt property:

(1) Is being held for future developmentof low income rental housing; and

(2) Is used for any purpose other than theprovision of low income rental housing. [1997c.752 §10]

307.531 Termination of exemptionwithout notice; grounds; additional taxesafter termination. (1) If, after applicationhas been approved under ORS 307.527, adeclaration as defined in ORS 100.005 withrespect to the property is presented to thecounty assessor or tax collector for approvalunder ORS 100.110, or if the governing bodyshould file its termination findings with thecounty assessor pursuant to ORS 307.529:

(a) The exemption granted the housingunit or portion under ORS 307.515 to 307.523shall terminate immediately, without rightof notice or appeal;

(b) The property or a portion of theproperty shall be assessed and taxed as otherproperty similarly situated is assessed andtaxed; and

(c) Notwithstanding ORS 311.235, thereshall be added to the general property taxroll for the tax year next following the pres-entation or discovery, to be collected anddistributed in the same manner as other realproperty tax, an amount equal to the differ-ence between the taxes assessed against theproperty and the taxes that would have beenassessed against the property had it not beenexempt under ORS 307.515 to 307.523 foreach of the years, not to exceed the last 10years, during which the property was exemptfrom taxation under ORS 307.515 to 307.523.

(2) If, at the time of presentation or dis-covery, the property is no longer exempt, ad-ditional taxes shall be collected as provided



in this section, but the number of years forwhich the additional taxes shall be collectedshall be reduced by one year for each yearthat has elapsed since the year the propertywas last granted exemption beginning withthe oldest year for which additional taxes aredue.

(3) The assessment and tax rolls shallshow potential additional tax liability foreach property granted exemption under ORS307.515 to 307.523.

(4) Additional taxes collected under thissection shall be deemed to have been im-posed in the year to which the additionaltaxes relate. [1989 c.803 §9; 1991 c.459 §66; 1991 c.930§8]

307.533 Review; correction of tax rolls;payment of tax after exemption termi-nates. (1) Review of a denial of an applica-tion under ORS 307.527, or of thetermination of an exemption under ORS307.529, shall be as provided by ORS 34.010to 34.100.

(2) If no review of the termination of anexemption as provided in subsection (1) ofthis section is effected, or upon final adjudi-cation, the county officials having possessionof the assessment and tax rolls shall correctthe rolls in the manner provided for omittedproperty under ORS 311.216 to 311.232 toprovide for the assessment and taxation ofany property for which exemption was ter-minated by the governing body or by a court,in accordance with the finding of the gov-erning body or the court as to the assess-ment year in which the exemption is first tobe terminated. The county assessor shallmake such valuation of the property as shallbe necessary to permit such correction of therolls. The owner may appeal any such valu-ation in the same manner as provided forappeals under ORS 311.216 to 311.232.

(3) Where there has been a failure tocomply with ORS 307.529, the property shallbecome taxable beginning January 1 of thefirst assessment year following the date onwhich the noncompliance first occurred. Anyadditional taxes becoming due shall be pay-able without interest if paid in the periodprior to the 16th day of the month next fol-lowing the month of correction. If not paidwithin such period, the additional taxes shallbe delinquent on the date they wouldnormally have become delinquent if timelyextended on the roll or rolls in the year oryears for which the correction was made.[1989 c.803 §10; 1991 c.459 §67; 1991 c.930 §9; 1997 c.541§131]

307.535 Extension of deadline forcompletion; exception to imposition ofadditional taxes. Notwithstanding any pro-vision of ORS 307.515 to 307.523:

(1) If the governing body finds that con-struction of the housing unit otherwise enti-tled to exemption under ORS 307.517 was notcompleted by January 1, 2020, due to cir-cumstances beyond the control of the owner,and that the owner had been acting andcould reasonably be expected to act in goodfaith and with due diligence, the governingbody may extend the deadline for completionof construction for a period not to exceed 12consecutive months.

(2) If property granted exemption underORS 307.515 to 307.523 is destroyed by fireor act of God, or is otherwise no longer ca-pable of owner-occupancy due to circum-stances beyond the control of the owner, theexemption shall cease but no additional taxesshall be imposed upon the property underORS 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; 2010c.29 §8]

307.537 Application. The amendments toORS 307.521 (1) by section 5, chapter 930,Oregon Laws 1991, changing the period ofthe exemption provided under ORS 307.515 to307.523 from 10 to 20 years, apply to propertygranted exemption pursuant to applicationsfiled on or after September 29, 1991. [1989 c.803§12; 1991 c.459 §69; 1991 c.930 §11; 1997 c.752 §16; 2001c.114 §15]

(Nonprofit Corporation Low Income Housing)

307.540 Definitions for ORS 307.540 to307.548. As used in ORS 307.540 to 307.548:

(1) “Governing body” means the city orcounty legislative body having jurisdictionover the property for which an exemptionmay be applied for under ORS 307.540 to307.548.

(2) “Low income” means income at orbelow 60 percent of the area median incomeas determined by the State Housing Councilbased on information from the United StatesDepartment of Housing and Urban Develop-ment. [1985 c.660 §1; 1993 c.168 §7; 2005 c.94 §39]


Sec. 6. ORS 307.540 to 307.548 apply to tax yearsbeginning on or after January 1, 1985, and before July1, 2027. [1985 c.660 §6; 1993 c.108 §1; 2003 c.215 §1; 2011c.191 §1]

307.541 Nonprofit corporation low in-come housing; criteria for exemption. (1)Property that meets all of the following cri-teria shall be exempt from taxation as pro-vided in ORS 307.540 to 307.548:

(a) The property is owned or being pur-chased by a corporation that is exempt fromincome taxes under section 501(c) (3) or (4)of the Internal Revenue Code, as amendedbefore December 1, 1984.



(b) Upon liquidation, the assets of thecorporation are required to be applied firstin payment of all outstanding obligations,and the balance remaining, in cash and inkind, to be distributed to corporations ex-empt from taxation and operated exclusivelyfor religious, charitable, scientific, literaryor educational purposes or to the State ofOregon.

(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 prop-

erty receiving the exemption, if occupied, isactually and exclusively used for the pur-poses described in section 501(c) (3) or (4) ofthe Internal Revenue Code, as amended be-fore December 1, 1984.

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

(2) For the purposes of subsection (1) ofthis section, a corporation that has only aleasehold interest in property is deemed tobe a purchaser of that property if:

(a) The corporation is obligated under theterms of the lease to pay the ad valoremtaxes on the real and personal property usedin this activity on that property; or

(b) The rent payable by the corporationhas been established to reflect the savingsresulting from the exemption from taxation.

(3) A partnership shall be treated thesame as a corporation to which this sectionapplies if the corporation is:

(a) A general partner of the partnership;and

(b) Responsible for the day-to-day opera-tion of the property that is the subject of theexemption. [1985 c.660 §2; 1995 c.702 §2; 1997 c.752§11; 2005 c.94 §40]


307.543 Exemption limited to levy ofgoverning body adopting ORS 307.540 to307.548; exception. (1) Except as provided insubsection (2) of this section, the exemptionprovided by ORS 307.541 only applies to thetax levy of a governing body that adopts theprovisions of ORS 307.540 to 307.548.

(2) The exemption provided by ORS307.541 shall apply to the tax levy of all tax-ing districts in which property certified forexemption is located when, upon request ofa governing body that has adopted the pro-visions of ORS 307.540 to 307.548, the ratesof taxation of such taxing districts whosegoverning boards agree to the policy of ex-emption under ORS 307.540 to 307.548, whencombined with the rate of taxation of thegoverning body that adopts the provisions of

ORS 307.540 to 307.548, equal 51 percent ormore of the total combined rate of taxationon the property certified for limited assess-ment. [1985 c.660 §3]


307.545 Application for exemption. (1)To qualify for the exemption provided byORS 307.541, the corporation shall file anapplication for exemption with the governingbody for each assessment year the corpo-ration wants the exemption. The applicationshall be filed on or before April 1 of the as-sessment year for which the exemption issought, except that when the property desig-nated is acquired after April 1 and beforeJuly 1, the claim for that year shall be filedwithin 30 days after the date of acquisition.The application shall include the followinginformation, if applicable:

(a) A description of the property forwhich the exemption is requested;

(b) A description of the charitable pur-pose of the project and whether all or a por-tion of the property is being used for thatpurpose;

(c) A certification of income levels of lowincome occupants;

(d) A description of how the tax ex-emption will benefit project residents;

(e) A description of the development ofthe property if the property is being held forfuture low income housing development; and

(f) A declaration that the corporation hasbeen granted an exemption from incometaxes under section 501(c) (3) or (4) of theInternal Revenue Code, as amended beforeDecember 1, 1984.

(2) The applicant shall verify the infor-mation in the application by oath or affirma-tion. [1985 c.660 §4; 1987 c.756 §15; 1993 c.108 §2; 1993c.270 §25; 1997 c.541 §§133,133a]


307.547 Determination of eligibility;notice to county assessor. (1) Within 30days of the filing of an application underORS 307.545, the governing body shall deter-mine whether the applicant qualifies for theexemption under ORS 307.541. If the govern-ing body determines the applicant qualifies,the governing body shall certify to the as-sessor of the county where the real propertyis located that all or a portion of the prop-erty shall be exempt from taxation under thelevy of the certifying governing body.

(2) Upon receipt of certification undersubsection (1) of this section, the county as-sessor shall exempt the property from taxa-tion to the extent certified by the governingbody. [1985 c.660 §5]




307.548 Termination of exemption. (1)If the governing body that has granted anexemption under ORS 307.540 to 307.548 toproperty in anticipation of future develop-ment of low income housing in connectionwith the exempt property finds that theproperty is being used for any purpose otherthan the provision of low income housing, orthat any provision of ORS 307.540 to 307.548is not being complied with, the governingbody shall give notice of the proposed termi-nation of the exemption to the owner, bymailing the notice to the last-known addressof the owner, and to every known lender, bymailing the notice to the last-known addressof every known lender. The notice shall statethe reasons for the proposed termination andshall require the owner to appear at a speci-fied time, not less than 20 days after mailingthe notice, to show cause, if any, why theexemption should not be terminated.

(2) If the owner fails to appear and showcause why the exemption should not be ter-minated, the governing body shall notify ev-ery known lender, and shall allow any lendernot less than 30 days after the date the no-tice of the failure to appear and show causeis mailed to cure any noncompliance or toprovide assurance adequate to the governingbody that all noncompliance shall be reme-died.

(3) If the owner fails to appear and showcause why the exemption should not be ter-minated, and the lender fails to cure or giveadequate assurance of the cure of any non-compliance, the governing body shall adoptan ordinance or resolution stating its find-ings that terminate the exemption. A copyof the ordinance or resolution shall be filedwithin 10 days after its adoption with thecounty assessor, and a copy shall be sent tothe owner at the owner’s last-known addressand to the lender at the last-known addressof the lender within 10 days after its adop-tion.

(4) Upon the county assessor’s receipt ofthe governing body’s termination findings:

(a) The exemption granted the housingunit or portion under ORS 307.540 to 307.548shall terminate immediately, without rightof notice or appeal;

(b) The property shall be assessed andtaxed as other property similarly situated isassessed and taxed; and

(c) Notwithstanding ORS 311.235, thereshall be added to the general property taxroll for the tax year next following the pres-entation or discovery, to be collected anddistributed in the same manner as other realproperty tax, an amount equal to the differ-ence between the taxes assessed against theproperty and the taxes that would have been

assessed against the property had it not beenexempt under ORS 307.540 to 307.548 foreach of the years, not to exceed the last 10years, during which the property was exemptfrom taxation under ORS 307.540 to 307.548.

(5) The assessment and tax rolls shallshow potential additional tax liability foreach property granted exemption under ORS307.540 to 307.548 because the property isbeing held for future development of low in-come housing.

(6) Additional taxes collected under thissection shall be deemed to have been im-posed in the year to which the additionaltaxes relate. [1997 c.752 §14]

Note: See note under 307.540.307.550 [1983 c.786 §10; 1991 c.459 §70; 1997 c.541

§134; repealed by 2001 c.114 §16]307.560 [1983 c.786 §11; 1991 c.459 §71; 1999 c.314 §63;

repealed by 2001 c.114 §16]

(Property of Industry Apprenticeship or Training Trust)

307.580 Property of industry appren-ticeship or training trust. (1) If not other-wise exempt by law and upon compliancewith ORS 307.162, all real and personalproperty or proportion thereof owned or be-ing purchased by an industry apprenticeshipor training trust is exempt from propertytaxation if:

(a) The trust is organized pursuant to atrust instrument solely for the purpose ofaiding or assisting in the implementation oroperation of one or more apprenticeship ortraining programs that conform to and areconducted under ORS 660.002 to 660.210;

(b) The property or proportion thereofthat is the subject of the exemption is actu-ally and exclusively occupied and used in theimplementation or operation of an appren-ticeship or training program or programsthat are established under, conform to andare conducted under ORS 660.002 to 660.210;and

(c) The trust is considered an organiza-tion exempt from federal income taxes underthe federal Internal Revenue Code or otherlaws of the United States relating to federalincome taxes.

(2) If property described under subsection(1) of this section would be exempt from tax-ation except that it is held under lease orlease-purchase agreement by the trust ratherthan owned or being purchased by it, theproperty shall be exempt from taxation uponcompliance with and subject to ORS 307.112.

(3) No exemption shall be allowed undersubsection (1) or (2) of this section if theproperty is used in the implementation oroperation of an apprenticeship or trainingprogram that discriminates with respect to



its participants on the basis of age, race, re-ligion, sex or national origin. [1983 c.619 §2]

(Multiple-Unit Housing)307.600 Legislative findings. (1) The

Legislative Assembly finds that it is in thepublic interest to stimulate the constructionof transit supportive multiple-unit housing inthe core areas of Oregon’s urban centers toimprove the balance between the residentialand commercial nature of those areas, and toensure full-time use of the areas as placeswhere citizens of the community have an op-portunity to live as well as work.

(2) The Legislative Assembly furtherfinds that it is in the public interest to pro-mote private investment in transit supportivemultiple-unit housing in light rail stationareas and transit oriented areas in order tomaximize Oregon’s transit investment to thefullest extent possible and that the cities andcounties of this state should be enabled toestablish and design programs to attract newdevelopment of multiple-unit housing, andcommercial and retail property, in areas lo-cated within a light rail station area ortransit oriented area.

(3) The Legislative Assembly furtherfinds that the cities and counties of this stateshould be enabled to establish and designprograms to attract new development ofmultiple-unit housing in light rail stationareas, in transit oriented areas or in citycore areas by means of the local property taxexemption authorized under ORS 307.600 to307.637. The programs shall emphasize thefollowing:

(a) The development of vacant or under-utilized sites in light rail station areas,transit oriented areas or core areas, ratherthan sites where sound or rehabilitablemultiple-unit housing exists.

(b) The development of multiple-unithousing, with or without parking, in struc-tures that may include ground level com-mercial space.

(c) The development of multiple-unithousing, with or without parking, on siteswith existing single-story commercial struc-tures.

(d) The development of multiple-unithousing, with or without parking, on existingsurface parking lots.

(4) The Legislative Assembly furtherfinds that it is in the public interest to pre-serve or establish existing housing that isaffordable to low income persons by provid-ing the incentives authorized in ORS 307.600to 307.637 to:

(a) Existing multiple-unit housing subjectto a low income housing assistance contract

with an agency or subdivision of this stateor the United States; and

(b) Existing multiple-unit housing thatbecomes subject to a low income housing as-sistance contract with an agency or subdivi-sion of this state or the United States inorder to use the incentives authorized inORS 307.600 to 307.637.

(5) The programs shall result in thepreservation, construction, addition or con-version of units at rental rates or sale pricesaccessible to a broad range of the generalpublic. [1975 c.428 §2; 1995 c.596 §1; 1999 c.808 §1; 2003c.457 §1]


(1) “Establish” means, unless the contextrequires otherwise, making existingmultiple-unit housing subject to a low in-come housing assistance contract.

(2) “Lender” means any person whomakes a loan, secured by a recorded mort-gage or trust deed, to finance the acquisition,construction, addition or conversion ofmultiple-unit housing.

(3) “Light rail station area” means anarea defined in regional or local transporta-tion plans to be within a one-half mile radiusof an existing or planned light rail station.

(4) “Low income housing assistance con-tract” means an agreement between a publicagency and a property owner that results inthe production, rehabilitation, establishmentor preservation of housing affordable to thosewith a defined level of household income.

(5) “Multiple-unit housing” means:(a) Housing that is or becomes subject to

a low income housing assistance contractwith an agency or subdivision of this stateor the United States; or

(b) Newly constructed structures, storiesor other additions to existing structures andstructures converted in whole or in part fromother use to housing that meet the followingcriteria:

(A) The structure must have a minimumnumber of dwelling units as specified by thecity or county pursuant to ORS 307.606 (4).

(B) The structure must not be designedor used as transient accommodations, includ-ing but not limited to hotels and motels.

(C) The structure must have those designelements benefiting the general public, in-cluding any commercial use of a portion ofthe structure, as specified by the city orcounty pursuant to ORS 307.618.

(D) If in a light rail station area ortransit oriented area, the structure must:



(i) Be physically or functionally relatedto a light rail line or mass transportationsystem; and

(ii) Enhance the effectiveness of a lightrail line or mass transportation system.

(6) “Transit oriented area” means an areadefined in regional or local transportationplans to be within one-quarter mile of a fixedroute transit service. [Formerly 307.605; 2011 c.266§1]


Sec. 5. The amendments to ORS 307.603, 307.612and 307.618 by sections 1 to 3 of this 2011 Act apply toapplications for exemption filed on or after the effectivedate of this 2011 Act [September 29, 2011]. [2011 c.266§5]

307.605 [1975 c.428 §1; 1979 c.425 §1; 1989 c.1051 §1;1995 c.596 §2; 1999 c.808 §2; 2003 c.457 §2; renumbered307.603 in 2005]

307.606 Exemption limited to tax levyof city or county that adopts ORS 307.600to 307.637; designated areas; public hear-ings; standards and guidelines for con-sidering applications. (1) ORS 307.600 to307.637 apply to multiple-unit housing pre-served, constructed, established, added to orconverted in cities or counties that adopt,after a public hearing and determinationpursuant to subsection (3) of this section, byresolution or ordinance, the provisions ofORS 307.600 to 307.637. The tax exemptionprovided by ORS 307.600 to 307.637 only ap-plies to the tax levy of a city or county thatadopts the provisions of ORS 307.600 to307.637, except that the tax exemption shallapply to the ad valorem property taxes of alltaxing districts when upon request of thecity or county that has adopted the pro-visions of ORS 307.600 to 307.637, the ratesof ad valorem taxation of taxing districtswhose governing boards agree by resolutionto the policy of providing tax exemptions formultiple-unit housing as provided in ORS307.600 to 307.637, when combined with therate of taxation of the city or county thatadopts the provisions of ORS 307.600 to307.637, equal 51 percent or more of the totalcombined rate of taxation levied on theproperty which is tax exempt under ORS307.600 to 307.637.

(2) The city or county shall designate anarea within which it proposes to allow ex-emptions provided for under the provisionsof ORS 307.600 to 307.637. Core areas, lightrail station areas or transit oriented areasmay be designated by a city. A city may des-ignate the entire city as the area in whichthe city proposes to allow exemptions underORS 307.600 to 307.637 for housing that is orbecomes subject to a low income housing as-sistance contract with an agency or subdivi-sion of this state or the United States. Acounty may designate areas as light rail sta-

tion areas or transit oriented areas but maynot designate areas as core areas. A countymay designate the entire county as the areain which the county proposes to allow ex-emptions under ORS 307.600 to 307.637 forhousing that is or becomes subject to a lowincome housing assistance contract with anagency or subdivision of this state or theUnited States. A city or county from time totime may, by amending its resolution or or-dinance, add or withdraw territory from thearea originally designated as a light rail sta-tion area or a transit oriented area, but anyarea added must be within the boundaries ofthe area as limited by ORS 307.603 (3) or (6).

(3) The city or county shall, prior to pas-sage of a resolution or ordinance electing toutilize the provisions of ORS 307.600 to307.637, hold a public hearing in order to de-termine whether multiple-unit housing meet-ing the qualifications of subsection (4) of thissection would not otherwise be built in thedesignated area or preserved without thebenefits provided by ORS 307.600 to 307.637.

(4) Prior to accepting project applicationsunder ORS 307.600 to 307.637, cities orcounties shall promulgate standards andguidelines to be utilized in considering appli-cations and making the determinations re-quired by ORS 307.618. The standards andguidelines shall establish policy governingbasic requirements for an application, in-cluding but not limited to:

(a) Existing utilization of proposed proj-ect site, including justification of the elimi-nation of any existing sound or rehabilitablehousing.

(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 contractwith an agency or subdivision of this stateor the United States, a demonstration thatthe exemption is necessary to preserve orestablish the low income units.

(g) For housing that is to become subjectto a low income housing assistance contractwith an agency or subdivision of this stateor the United States, the date on which thehousing must be established in order to beexempt under ORS 307.600 to 307.637.[Formerly 307.610]

307.609 Applicability of ORS 307.600 to307.637 in cities and certain counties. Inany city, or in any county with a populationof over 300,000, the exemption shall applyonly to multiple-unit housing preserved, es-tablished, constructed, added to or converted



on land within an area designated underORS 307.606 (2) or within a designated urbanrenewal or redevelopment area formed pur-suant to ORS chapter 457. [Formerly 307.620]

307.610 [1975 c.428 §3; 1979 c.425 §2; 1983 c.493 §1;1989 c.1051 §2; 1991 c.459 §72; 1995 c.596 §3; 1997 c.325§27; 1999 c.808 §3; 2003 c.457 §3; renumbered 307.606 in2005]

307.612 Duration of exemption; exclu-sions. (1) Multiple-unit housing that quali-fies for exemption under ORS 307.600 to307.637 may be exempt from ad valorem tax-ation for no more than 10 successive years.The first year of exemption is the assessmentyear beginning January 1 immediately fol-lowing the calendar year in which construc-tion, addition or conversion is completed,determined by that stage in the constructionprocess when, pursuant to ORS 307.330, theimprovement would have gone on the taxrolls in the absence of the exemption pro-vided for in ORS 307.600 to 307.637 or, in thecase of multiple-unit housing that is or be-comes subject to a low income housing as-sistance contract, the application isapproved.

(2)(a) The exemption may not include theland or any improvements not a part of themultiple-unit housing.

(b) The exemption may include:(A) Parking constructed as part of the

multiple-unit housing construction, additionor conversion; and

(B) Commercial property to the extentthat the commercial property is a requireddesign or public benefit element of amultiple-unit housing construction, additionor conversion approved by an authorizingcity or county.

(c) In the case of a structure to whichstories or other improvements are added ora structure that is converted in whole or inpart from other use to dwelling units, onlythe increase in value attributable to the ad-dition or conversion may be exempt fromtaxation.

(3) Notwithstanding subsection (1) of thissection, if the multiple-unit housing is or be-comes subject to a low income housing as-sistance contract with an agency orsubdivision of this state or the United States,the city or county may extend the exemptionprovided by ORS 307.600 to 307.637 throughJune 30 of the tax year during which thetermination date of the contract falls.

(4)(a) The exemption provided by ORS307.600 to 307.637 is in addition to any otherexemption provided by law. However, noth-ing in ORS 307.600 to 307.637 may be con-strued to exempt any property beyond 100percent of its real market value.

(b) If property is located within a corearea and within a light rail station area ora transit oriented area, or both, and applica-tion for exemption under more than one pro-gram is made, only the exemption for whichapplication is first made and approved maybe granted. If property is granted exemptionunder ORS 307.600 to 307.637 pursuant to anordinance or resolution adopted by a city,the property may not be granted exemptionpursuant to an ordinance or resolutionadopted by a county. If property is grantedexemption under ORS 307.600 to 307.637 pur-suant to an ordinance or resolution adoptedby a county, the property may not be grantedexemption pursuant to an ordinance or reso-lution adopted by a city. Property may begranted exemption under ORS 307.600 to307.637 only once. [Formerly 307.630; 2011 c.266 §2]


307.615 City or county to provide ap-plication forms; contents of applicationform; filing deadline; revision of applica-tion. An owner desiring an exemption underORS 307.600 to 307.637 shall first apply tothe city or county, whichever is appropriate,on forms supplied by the city or county. Theapplication shall describe the property forwhich an exemption is requested, set forththe grounds supporting the requested ex-emption and be verified by oath or affirma-tion of the applicant. Application shall bemade on or before February 1 immediatelypreceding the first assessment year for whichexemption is requested, and shall be accom-panied by the application fee required byORS 307.621. The city or county may permitthe applicant to revise an application priorto final action by the city or county.[Formerly 307.640]

307.618 City or county findings re-quired for approval. The city or countymay approve an application filed under ORS307.615 if the city or county finds that:

(1) In the case of the construction, addi-tion or conversion of multiple-unit housing:

(a) The owner has agreed to include inthe construction, addition or conversion as apart of the multiple-unit housing one or moredesign or public benefit elements as specifiedby the city or the county, including but notlimited to commercial uses of a portion ofthe multiple-unit housing structure, openspaces, parks and recreational facilities,common meeting rooms, child care facilities,transit amenities and transit or pedestriandesign elements.

(b) The proposed construction, additionor conversion project is or will be, at thetime of completion, in conformance with alllocal plans and planning regulations, includ-ing special or district-wide plans developedand adopted pursuant to ORS chapters 195,



196, 197, 215 and 227, that are applicable atthe time the application is approved.

(2) In the case of housing that is or be-comes subject to a low income housing as-sistance contract with an agency orsubdivision of this state or the United States,it is important to the community to preserveor establish the housing as low incomehousing and it is probable that the housingwould not be produced, be established or re-main as low income housing without the ex-emption being granted.

(3) The owner has complied with allstandards and guidelines adopted by cities orcounties pursuant to ORS 307.606 (4).[Formerly 307.650; 2011 c.266 §3]

Note: See note under 307.603.307.620 [1975 c.428 §4; 1989 c.1051 §3; 1995 c.596 §4;

1999 c.808 §4; 2003 c.457 §4; renumbered 307.609 in 2005]

307.621 Approval or denial of applica-tions; city or county to state in writingreasons for denial of exemption; applica-tion fees. (1) The city or county shall ap-prove or deny an application filed under ORS307.618 within 180 days after receipt of theapplication. An application not acted uponwithin 180 days shall be deemed approved.

(2) Final action upon an application bythe city or county shall be in the form of anordinance or resolution that shall containthe owner’s name and address, a descriptionof the subject multiple-unit housing, eitherthe legal description of the property or theassessor’s property account number, and thespecific conditions upon which the approvalof the application is based. On or beforeApril 1 following approval, the city or countyshall file with the county assessor and sendto the owner at the last-known address of theowner a copy of the ordinance or resolutionapproving or disapproving the application. Inaddition, the city or county shall file withthe county assessor on or before April 1 adocument listing the same information oth-erwise required to be in an ordinance orresolution under this subsection, as to eachapplication deemed approved under subsec-tion (1) of this section.

(3) If the application is denied, the cityor county shall state in writing the reasonsfor denial and send notice of denial to theapplicant at the last-known address of theapplicant within 10 days after the denial.

(4) The city or county, after consultationwith the county assessor, shall establish anapplication fee in an amount sufficient tocover the cost to be incurred by the city orcounty and the assessor in administeringORS 307.600 to 307.637. The application feeshall be paid to the city or county at thetime the application for exemption is filed. Ifthe application is approved, the city orcounty shall pay the application fee to the

county assessor for deposit in the countygeneral fund, after first deducting that por-tion of the fee attributable to its own ad-ministrative costs in processing theapplication. If the application is denied, thecity or county shall retain that portion of theapplication fee attributable to its own ad-ministrative costs and shall refund the bal-ance to the applicant. [Formerly 307.660]

307.624 Termination of exemption forfailure to complete construction or non-compliance; notice. (1) Except as providedin ORS 307.627, if the city or county findsthat construction of multiple-unit housingwas not completed on or before the datespecified in ORS 307.637, or that any pro-vision of ORS 307.600 to 307.637 is not beingcomplied with, or any provision required bythe city or county pursuant to ORS 307.600to 307.637 is not being complied with, thecity or county shall give notice to the owner,mailed to the owner’s last-known address,and to any known lender, mailed to thelender’s last-known address, of the proposedtermination of the exemption. The noticeshall state the reasons for the proposed ter-mination and shall require the owner to ap-pear at a specified time, not less than 20days after mailing the notice, to show cause,if any, why the exemption should not be ter-minated.

(2) If the owner fails to appear and showcause why the exemption should not be ter-minated, the city or county shall further no-tify every known lender and shall allow thelender a period of not less than 30 days, be-ginning with the date that the notice of fail-ure to appear and show cause is mailed tothe lender, to cure any noncompliance or toprovide assurance that is adequate, as deter-mined by the governing body, to assure thegoverning body that the noncompliance willbe remedied.

(3) If the owner fails to appear and showcause why the exemption should not be ter-minated, and a lender fails to cure or giveadequate assurance that any noncompliancewill be cured, the city or county shall adoptan ordinance or resolution stating its find-ings terminating the exemption. A copy ofthe ordinance or resolution shall be filedwith the county assessor and a copy sent tothe owner at the owner’s last-known address,and to any lender at the lender’s last-knownaddress, within 10 days after its adoption.[Formerly 307.670]

307.627 Termination of exemption. (1)If, after application has been approved underORS 307.600 to 307.637, a declaration definedin ORS 100.005 with respect to the propertyis presented to the county assessor or taxcollector for approval under ORS 100.110, orif the county assessor discovers that the



multiple-unit housing or a portion of themultiple-unit housing is changed to a usethat is other than residential or housing, orif the exemption was granted for housing be-ing or becoming subject to a low incomehousing assistance contract with an agencyor subdivision of this state or the UnitedStates and the housing is not housing subjectto a low income housing assistance contractas of a date the housing is required to besubject to a low income housing assistancecontract in order to receive the exemption:

(a) The exemption granted the multiple-unit housing or portion under ORS 307.600to 307.637 shall terminate immediately, with-out right of notice or appeal;

(b) The property or portion shall be as-sessed and taxed as other property similarlysituated is assessed and taxed; and

(c)(A) Notwithstanding ORS 311.235,there shall be added to the general propertytax roll for the tax year next following thepresentation or discovery, to be collected anddistributed in the same manner as other realproperty tax, an amount equal to the differ-ence between the amount of tax that wouldhave been due on the property or portion hadit not been exempt under ORS 307.600 to307.637 for each of the years, not to exceedthe last 10 years, during which the propertywas exempt from taxation under ORS 307.600to 307.637.

(B) In the case of multiple-unit housingdescribed in ORS 307.603 (5)(a), this para-graph applies only if the low income housingassistance contract to which the housing wasor was to become subject was not enteredinto, breached or terminated prematurely.

(2) If, at the time of presentation or dis-covery, the property is no longer exempt, ad-ditional taxes shall be imposed as provided inthis section, but the number of years thatwould otherwise be used to compute the ad-ditional taxes shall be reduced one year foreach year that has elapsed since the year theproperty was last granted exemption begin-ning with the oldest year for which addi-tional taxes are due.

(3) The assessment and tax rolls shallshow “potential additional tax liability” foreach property granted exemption under ORS307.600 to 307.637.


307.630 [1975 c.428 §5; 1979 c.425 §3; 1989 c.1051 §3a;1991 c.459 §73; 1995 c.596 §5; 1997 c.541 §136; 1999 c.808§5; 2003 c.457 §5; renumbered 307.612 in 2005]

307.631 Review of denial of applicationor termination of exemption; correctionof assessment and tax rolls; owner’s ap-peal of valuation; effective date of termi-nation of exemption. (1) Review of a denialof an application under ORS 307.621, or ofthe termination of an exemption under ORS307.624, shall be as provided by ORS 34.010to 34.100.

(2) If no review of the termination of anexemption as provided in subsection (1) ofthis section is affected, or upon final adjudi-cation, the county officials having possessionof the assessment and tax rolls shall correctthe rolls in the manner provided for omittedproperty under ORS 311.216 to 311.232, toprovide for the assessment and taxation ofany property for which exemption was ter-minated 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 inwhich the exemption is first to be termi-nated. The county assessor shall make suchvaluation of the property as shall be neces-sary to permit such correction of the rolls.The owner may appeal any such valuation inthe same manner as provided for appeals un-der ORS 311.216 to 311.232. Where there hasbeen a failure to comply with ORS 307.624,the property shall become taxable beginningJanuary 1 of the assessment year followingthe assessment year in which the noncompli-ance first occurred. Any additional taxes be-coming due shall be payable without interestif paid in the period prior to the 16th of themonth next following the month of cor-rection. If not paid within such period, theadditional taxes shall be delinquent on thedate they would normally have become de-linquent if timely extended on the roll orrolls in the year or years for which the cor-rection was made. [Formerly 307.680]

307.634 Extension of deadline forcompletion of construction, addition orconversion. Notwithstanding any provisionof ORS 307.624, if the city or county findsthat construction, addition or conversion ofthe multiple-unit housing was not completedby the date specified in ORS 307.637, due tocircumstances beyond the control of theowner, and that the owner had been actingand could reasonably be expected to act ingood faith and with due diligence, the cityor county may extend the deadline for com-pletion of construction, addition or conver-sion for a period not to exceed 12consecutive months. [Formerly 307.690]

307.637 Deadlines for actions requiredfor exemption. An exemption for multiple-unit housing may not be granted under ORS307.600 to 307.637 unless:

(1) In the case of multiple-unit housingdescribed in ORS 307.603 (5)(a), the applica-



tion for exemption is made to the city orcounty on or before January 1, 2022.

(2) In the case of multiple-unit housingdescribed in ORS 307.603 (5)(b), the con-struction, addition or conversion is com-pleted on or before January 1, 2022. [Formerly307.691; 2011 c.266 §4]

Note: Sections 4, 5 and 9, chapter 29, Oregon Laws2010, provide:

Sec. 4. (1) If a city or county approved an ex-emption under ORS 307.600 to 307.637 for property usedfor other than residential or housing purposes, the ex-emption from ad valorem taxation applies for the termof the exemption approved by the city or county as de-termined under ORS 307.612, provided that the propertyfor which the exemption was approved:

(a) Was first approved for exemption under ORS307.600 to 307.637 before August 26, 2009, for a tax yearbeginning before July 1, 2009; and

(b) Otherwise continues to be eligible for exemptionunder ORS 307.600 to 307.637.

(2) If, before January 1, 2010, a county assessorterminated all or a portion of an exemption grantedunder ORS 307.600 to 307.637 for property described insubsection (1) of this section because the exemption hadbeen approved for or applied to property used for otherthan residential or housing purposes, or if, before Jan-uary 1, 2010, a city, county or county assessor issued adetermination that all or a portion of an exemption forproperty described in subsection (1) of this section wasin error because property used for other than residen-tial or housing purposes did not qualify for the ex-emption, the termination or determination is reversed.[2010 c.29 §4]

Sec. 5. (1) If taxes on the exempt value describedin section 4 (1) of this 2010 Act have not been paid, thetaxes and any interest are abated.

(2) If taxes have been paid on the value of propertyadded to the tax roll as a result of a termination ordetermination described in section 4 (2) of this 2010 Act,the tax collector shall refund the taxes. A refund oftaxes under this section shall be considered a refunddescribed in ORS 311.812 (2) except that interest shallbe paid at the rate of one-half of one percent per monthor fraction of a month. Refunds and interest associatedwith the refunds shall be withheld from future distrib-utions to the taxing districts that received the taxespaid as a result of the termination or determinationdescribed in section 4 (2) of this 2010 Act.

(3) The county assessor and tax collector shallmake the necessary corrections in the records of theiroffices required by this section and section 4 of this 2010Act. [2010 c.29 §5]

Sec. 9. Sections 4 and 5 of this 2010 Act are re-pealed on January 2, 2020. [2010 c.29 §9]

307.640 [1975 c.428 §6; 1991 c.459 §74; 1995 c.596 §6;1997 c.541 §138; renumbered 307.615 in 2005]


(Single-Unit Housing)307.651 Definitions for ORS 307.651 to

307.687. As used in ORS 307.651 to 307.687,unless the context requires otherwise:

(1) “Distressed area” means a primarilyresidential area of a city designated by a cityunder ORS 307.657 which, by reason of dete-rioration, inadequate or improper facilities,the existence of unsafe or abandoned struc-

tures, including but not limited to a signif-icant number of vacant or abandoned singleor multifamily residential units, or any com-bination of these or similar factors, is detri-mental to the safety, health and welfare ofthe community.

(2) “Governing body” means the city leg-islative body having jurisdiction over theproperty for which an exemption may be ap-plied for under ORS 307.651 to 307.687.

(3) “Qualified dwelling unit” means adwelling unit that, upon completion, has amarket value (land and improvements) of nomore than 120 percent, or a lesser percent-age as adopted by the governing body byresolution, of the median sales price ofdwelling units located within the city.

(4) “Single-unit housing” means a newlyconstructed structure having one or moredwelling units that:

(a) Is, or will be, at the time that con-struction is completed, in conformance withall local plans and planning regulations, in-cluding special or district-wide plans devel-oped and adopted pursuant to ORS chapters195, 196, 197 and 227.

(b) Is constructed on or after January 1,1990, and is completed within two years afterapplication for exemption is approved underORS 307.674 or before July 1, 2015, which-ever is earlier.

(c) Upon completion, is designed for eachdwelling unit within the structure to be pur-chased by and lived in by one person or onefamily.

(d) Upon completion, has one or morequalified dwelling units within the single-unit housing.

(e) Is not a floating home, as defined inORS 830.700, or a manufactured structure,as defined in ORS 446.561, other than amanufactured home described in ORS 197.307(8)(a) to (f).

(5) “Structure” does not include the land,nor any site development to the land, as bothare defined under ORS 307.010. [Formerly458.005; 2011 c.354 §8]

307.654 Legislative findings. (1) TheLegislative Assembly finds it to be in thepublic interest to stimulate the constructionof new single-unit housing in distressed ur-ban areas in this state in order to improvein those areas the general life quality, topromote residential infill development on va-cant or underutilized lots, to encouragehomeownership and to reverse decliningproperty values.

(2) The Legislative Assembly furtherfinds and declares that the cities of this statebe able to establish and design programs tostimulate the construction of new single-unit



housing in distressed urban areas by meansof a limited property tax exemption, as pro-vided under ORS 307.651 to 307.687. [Formerly458.010]

307.657 Local government action todesignate distressed areas; scope of ex-emption; standards and guidelines. (1)(a)ORS 307.651 to 307.687 apply to single-unithousing located within the jurisdiction of agoverning body that adopts, by resolution orordinance, ORS 307.651 to 307.687. Except asprovided in subsection (2) of this section, theexemption provided by ORS 307.651 to307.687 applies only to the tax levy of a gov-erning body that adopts ORS 307.651 to307.687.

(b) Each governing body that adopts, byresolution or ordinance, ORS 307.651 to307.687 shall adopt rules specifying the proc-ess for determining the boundaries of a dis-tressed area and for distressed area boundarychanges. The cumulative land area withinthe boundaries of distressed areas within acity, determined for purposes of ORS 307.651to 307.687, may not exceed 20 percent of thetotal land area of the city.

(2) The tax exemption provided underORS 307.651 to 307.687 applies to the taxlevy of all taxing units when upon requestof the city that has adopted ORS 307.651 to307.687, the rates of taxation of taxing unitswhose governing bodies agree by resolutionto the policy of providing tax exemptions forsingle-unit housing as described in ORS307.651 to 307.687, when combined with therate of taxation of the city, equal 51 percentor more of the total combined rate of taxa-tion levied on the property which is tax ex-empt under ORS 307.651 to 307.687.

(3) The city shall designate one or moredistressed areas, located within the territo-rial boundaries of the city, within which thecity proposes to allow exemptions under ORS307.651 to 307.687.

(4) The city shall adopt standards andguidelines to be utilized in considering appli-cations and making the determinations re-quired under ORS 307.651 to 307.687,including but not limited to:

(a) Standards and guidelines for desig-nating a distressed area, including but notlimited to the probability of revitalization inthe area without the assistance of the prop-erty tax exemption provided under ORS307.651 to 307.687.

(b) Design elements for construction ofthe single-unit housing proposed to be ex-empt.

(c) Extensions of public benefits from theconstruction of the single-unit housing be-yond the period of exemption. [Formerly 458.015]

307.660 [1975 c.428 §8; 1995 c.596 §8; renumbered307.621 in 2005]

307.661 Median sales price. Prior toJanuary 1 of each assessment year, the gov-erning body of a city that adopts ORS 307.651to 307.687 shall adopt by resolution the me-dian sales price to be used for purposes ofdetermining if dwelling units are qualifiedunder ORS 307.651 to 307.687. In determiningthe median sales price, the governing body,assisted by the county assessor, shall use thesales data collected under ORS 309.200 in thecounty in which the greater portion of thetaxable assessed value of single-unit housingin the city is located, as of the period endingthe prior November 30. [2005 c.470 §5]

307.664 Exemption; limitations. Eachqualified dwelling unit of single-unit housingthat qualifies for exemption under ORS307.651 to 307.687 shall be exempt from advalorem taxation for no more than 10 suc-cessive tax years beginning July 1 of the firsttax year following approval of the applicationunder ORS 307.674, as determined underrules adopted by the Department of Revenue.The exemption provided by this section shallbe in addition to any other exemption pro-vided by law for the property. However, theamount of assessed value exempted underthis section may not exceed the real marketvalue of the structure determined as of thedate that the property is inspected for pur-poses of making a determination under ORS307.674. [Formerly 458.020]

307.667 Application for exemption. (1)Any owner desiring an exemption under ORS307.651 to 307.687 shall first apply to the cityon forms supplied by the city.

(2) The application shall describe theproperty for which an exemption is re-quested, set forth the grounds for the ex-emption and be verified by oath oraffirmation of the applicant.

(3) The city may permit the applicant torevise an application made under this sectionprior to final action by the city. [Formerly458.025]

307.670 [1975 c.428 §9; 1979 c.425 §4; 1981 c.697 §6;1983 c.493 §2; 1989 c.1051 §4; 1991 c.459 §75; 1995 c.596§9; renumbered 307.624 in 2005]

307.671 Approval criteria. The city mayapprove an application made under ORS307.667 if it finds that:

(1) The proposed construction will be lo-cated in a distressed area.

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

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



(4) The construction will result in publicbenefits beyond the period of exemption.[Formerly 458.035]

307.674 Application, approval and de-nial procedures; filing with assessor; fee.(1) The city shall approve or deny an appli-cation filed under ORS 307.667 within 180days after receipt of the application. An ap-plication not acted upon within 180 daysshall be deemed approved.

(2) Final action upon an application bythe city shall be in the form of an ordinanceor resolution that shall contain the owner’sname and address, a description of thestructure that is the subject of the applica-tion that includes either the legal descriptionof the property or the assessor’s property ac-count number and the specific conditionsupon which the approval of the applicationis based.

(3) On or before April 1 following ap-proval, the city shall file with the countyassessor and send to the owner at the last-known address of the owner a copy of theordinance or resolution approving the appli-cation. The copy shall contain or be accom-panied by a notice explaining the grounds forpossible termination of the exemption priorto the end of the exemption period or there-after, and the effects of termination. In addi-tion, the city shall file with the countyassessor on or before April 1 a documentlisting the same information otherwise re-quired to be in an ordinance or resolutionunder subsection (2) of this section, as toeach application deemed approved undersubsection (1) of this section.

(4) If the application is denied, the cityshall state in writing the reasons for denialand send notice of denial to the applicant atthe last-known address of the applicantwithin 10 days after the denial. The noticeshall inform the applicant of the right to ap-peal under ORS 307.687.

(5) The city, after consultation with thecounty assessor, shall establish an applica-tion fee in an amount sufficient to cover thecost to be incurred by the city and the as-sessor in administering ORS 307.651 to307.687. The application fee shall be paid tothe city at the time the application for ex-emption is filed. If the application is ap-proved, the city shall pay the application feeto the county assessor for deposit in thecounty general fund, after first deductingthat portion of the fee attributable to its ownadministrative costs in processing the appli-cation. If the application is denied, the cityshall retain that portion of the applicationfee attributable to its own administrativecosts and shall refund the balance to the ap-plicant. [Formerly 458.040]


307.677 Extension of construction pe-riod; effect of destruction of property.Notwithstanding any provision of ORS307.651 to 307.687:

(1) If the city finds that construction ofthe single-unit housing was not completed bya date that is 12 months after the date onwhich applications may no longer be ap-proved under ORS 307.674, and further findsthat the failure to complete construction wasdue to circumstances beyond the control ofthe owner, and that the owner had been act-ing and could reasonably be expected to actin good faith and with due diligence, the citymay extend the deadline for completion ofconstruction for a period not to exceed anadditional 12 consecutive months.

(2) If property granted exemption underORS 307.651 to 307.687 is destroyed by fireor act of God, or is otherwise no longer ca-pable of occupancy due to circumstances be-yond the control of the owner, the exemptionshall cease but no additional taxes or penaltyshall be imposed under ORS 307.651 to307.687 upon the property. [Formerly 458.065]

307.680 [1975 c.428 §10; 1991 c.459 §77; 1995 c.596 §10;1997 c.541 §141; renumbered 307.631 in 2005]

307.681 Exemption termination forfailure to meet requirements; procedures.(1) Except as provided in ORS 307.684, if, af-ter an application has been approved underORS 307.674, the city finds that constructionof single-unit housing was not completedwithin two years after the date the applica-tion was approved or on or before January1, 2015, whichever is earlier, or that anyprovision of ORS 307.651 to 307.687 is notbeing complied with, or any provision re-quired by the city pursuant to ORS 307.651to 307.687 is not being complied with, thecity shall give notice to the owner, mailed tothe owner’s last-known address, of the pro-posed termination of the exemption. Thenotice shall state the reasons for the pro-posed termination and shall require theowner to appear at a specified time, not lessthan 20 days after mailing the notice, toshow cause, if any, why the exemptionshould not be terminated.

(2) If the owner fails to show cause whythe exemption should not be terminated, thecity shall adopt an ordinance or resolutionstating its findings and terminating the ex-emption. A copy of the ordinance or resolu-tion shall be filed with the county assessorand a copy sent to the owner at the owner’slast-known address within 10 days after itsadoption. [Formerly 458.045]



307.684 Immediate termination of ex-emption; additional tax. (1) If, after appli-cation has been approved under ORS 307.674,the county assessor discovers that thesingle-unit housing or a portion of thesingle-unit housing is changed to a use thatis other than single-unit housing:

(a) The exemption granted the single-unithousing or portion under ORS 307.651 to307.687 shall terminate immediately, withoutright of notice or appeal;

(b) The property or portion shall be as-sessed and taxed as other property similarlysituated is assessed and taxed; and

(c) Notwithstanding ORS 311.235, thereshall be added to the general property taxroll for the tax year next following the dis-covery, to be collected and distributed in thesame manner as other real property tax, anamount equal to the difference between theamount of tax due on the property and theamount of the tax that would have been dueon the property had it not been exempt underORS 307.651 to 307.687 for each of the years,not to exceed the last 10 years, during whichthe property was exempt from taxation underORS 307.651 to 307.687.

(2) If, at the time of discovery, the prop-erty is no longer exempt, additional taxesshall be imposed as provided in this section,but the number of years that would other-wise be used to compute the additional taxesshall be reduced by one year for each yearthat has elapsed since the year the propertywas last granted exemption.

(3) The assessment and tax rolls shallshow potential additional tax liability foreach property granted exemption under ORS307.651 to 307.687.


307.687 Review of denial of applica-tion; procedures following termination ofexemption; correction of tax roll; addi-tional tax. (1) Review of a denial of an ap-plication under ORS 307.674 shall be asprovided by ORS 34.010 to 34.100.

(2) Upon termination of an exemption,the county officials having possession of theassessment and tax rolls shall correct therolls in the manner provided for omittedproperty under ORS 311.216 to 311.232 toprovide for the assessment and taxation ofany property for which exemption was ter-minated by the city or by a court, in accor-dance with the finding of the city or thecourt as to the year in which the exemptionis first to be terminated. The county asses-sor shall make such valuation of the propertyas shall be necessary to permit such cor-

rection of the rolls. The owner may appealany such valuation in the same manner asprovided for appeals under ORS 311.216 to311.232.

(3) Unless the exemption is terminatedpursuant to ORS 307.684, where there hasbeen a failure to comply with ORS 307.681,the property shall become taxable beginningJuly 1 of the tax year in which the noncom-pliance first occurred. Any additional taxesbecoming due shall be payable without inter-est if paid in the period prior to the 16th dayof the month next following the month ofcorrection. If not paid within such period,the additional taxes shall be delinquent onthe date they would normally have becomedelinquent if timely extended on the roll orrolls in the year or years for which the cor-rection was made. [Formerly 458.060]

307.690 [1975 c.428 §11; 1979 c.425 §5; 1983 c.493 §3;1989 c.1051 §5; 1991 c.459 §78; 1995 c.596 §11; 1997 c.325§29; renumbered 307.634 in 2005]

307.691 [1995 c.596 §13; 1997 c.541 §143; 1999 c.808§8; 2003 c.457 §8; 2005 c.176 §1; renumbered 307.637 in2005]

307.700 [1979 c.561 §1; repealed by 1993 c.475 §3]307.701 [1993 c.475 §2; 1997 c.541 §144; repealed by

1993 c.475 §4]307.705 [1979 c.561 §2; 1991 c.459 §79; repealed by

1993 c.475 §3]

(Rural Health Care Facilities)307.804 Rural health care facilities;

claim procedures; duration of exemption.(1) As used in this section and ORS 307.806,“rural health care facility” means a healthcare facility that:

(a) Is located in a rural health servicearea with an average travel time of morethan 30 minutes from a population center of30,000 or more, as determined by the Officeof Rural Health; and

(b) Is used exclusively to provide medicalcare.

(2) Real and personal property of a ruralhealth care facility is exempt from the advalorem property taxes of the county inwhich the facility is located, and from the advalorem property taxes of each other localtaxing district in which the facility is locatedthat authorizes the exemption under ORS307.806, if all of the following apply:

(a) The property constitutes new con-struction, new additions, new modificationsor new installations of property as of thefirst assessment date for which the facility isin service. Land and other property that wasin existence at the location of the facilityprior to the date work began on the con-struction, addition, modification or installa-tion of property at the facility is not exemptunder this section.



(b) The exemption has been authorized bythe governing body of the county in whichthe facility is located in the manner set forthin ORS 307.806.

(3) To receive the exemption providedunder this section, the rural health care fa-cility must annually file its intention to takethe exemption. The filing must be with thecounty assessor of the county that authorizedthe exemption under ORS 307.806 and mustbe made by April 1 preceding the tax year forwhich the exemption is being claimed.

(4) A rural health care facility describedin this section shall be exempt from thetaxes to which the exemption applies for thetax year in which the facility is first in ser-vice as of the assessment date and for thenext two succeeding tax years. [2001 c.642 §2]

307.806 Exemption limited to taxes ofdistrict adopting ORS 307.804; procedures.(1) In order for a rural health care facility tobe exempt from tax under ORS 307.804, priorto the construction, addition, modification orinstallation of the facility the governing bodyof the county in which the facility is to belocated must, by ordinance or resolution, au-thorize the exemption provided under ORS307.804.

(2) Within 10 days following adoption ofthe ordinance or resolution that authorizesthe exemption provided under ORS 307.804,the county governing body must give writtennotice of the authorization of the exemptionto:

(a) Each taxing district located in thecounty; and

(b) The county assessor.(3) The notice must state that:(a) The county has authorized the ex-

emption provided under ORS 307.804; and(b) The exemption will apply to the taxes

of the local taxing district receiving the no-tice if that district elects to authorize theexemption under subsection (4) of this sec-tion.

(4)(a) A local taxing district that receivesa notice described in this section may electto authorize the exemption within 180 daysof the date of the notice.

(b) The governing body of a taxing dis-trict makes an election by passing an ordi-nance or resolution stating that the taxingdistrict is authorizing the exemption.

(c) A taxing district making an electionshall mail copies of the ordinance or resolu-tion in which the election is made to thecounty governing body and to the county as-sessor within 10 days of the date the electionis made.

(5) A county that has authorized ex-emptions provided under ORS 307.804 mayrevoke authorization by repealing the ordi-nance or resolution described in subsection(1) of this section. Authorization revocationunder this subsection does not affect thecontinued exemption of any rural health carefacility that has already qualified for the ex-emption, but a rural health care facility thathas not qualified for an exemption as of thedate of revocation may not qualify for an ex-emption after the date of revocation. [2001c.642 §3]

(Long Term Care Facilities)307.808 Findings and declarations. The

Legislative Assembly finds that owners oflong term care facilities who devote substan-tial proportions of those facilities to provid-ing long term care to residents eligible formedical services under Medicaid provide anessential community service. The LegislativeAssembly declares that a property tax ex-emption will enable these essential commu-nity provider long term care facilities toincrease the quality of care provided to fa-cility residents. The Legislative Assemblyfurther declares that the quality of care isincreased most efficiently when the fullvalue of the exemption is applied to increas-ing direct caregiver wages, physical plantimprovements and other expenditures thatdirectly benefit the facility residents andstaff. [1999 c.476 §1]

307.810 [1959 c.659 §1; repealed by 1979 c.692 §13]

307.811 Essential community providerlong term care facilities. (1) Real and per-sonal property that is used solely in the op-erations of a long term care facility that hasbeen certified for the tax year as an essentialcommunity provider long term care facilityunder ORS 443.888 shall be exempt from advalorem property taxation.

(2)(a) In order for the long term care fa-cility to be exempt from taxation under thissection, the owner of the facility shall filewith the county assessor a copy of a certif-icate issued by the Department of HumanServices under ORS 443.888, certifying thefacility as an essential community providerlong term care facility.

(b) The certificate must be filed with theassessor on or before April 1 preceding thetax year for which the exemption is beingclaimed.

(c) Notwithstanding paragraph (b) of thissubsection, a certificate may be filed withthe assessor on or before December 31 of thetax year if accompanied by a late filing feeof the greater of $200 or one-tenth of onepercent of the real market value of theproperty to which the certificate applies.



(3) As used in this section and ORS307.808, “long term care facility” means anursing facility, assisted living facility, resi-dential care facility or adult foster home asdefined in ORS 443.705. [1999 c.476 §2]

307.815 Exemption limited to taxes ofdistrict adopting ORS 307.811. The ex-emption provided in ORS 307.811 applies onlyto the taxes of a taxing district the govern-ing body of which has adopted, by ordinanceor resolution, the provisions of ORS 307.811.[1999 c.476 §2a]

(Public Beach Access Sites)307.818 Beach access sites; claim pro-

cedures. (1) Upon compliance with subsec-tion (2) of this section, the portion of realproperty owned by a private individual ororganization that is subject to an easementfor public beach access shall be exempt fromtaxation if:

(a) The property is designated as a beachaccess site for free and open use by the pub-lic and the easement contains or is accom-panied by a description of the property thatconforms with the requirements of ORS93.600 and allows the county assessor to lo-cate the boundaries of and otherwise identifythe property;

(b) The easement and legal descriptionare recorded in the records of the county re-cording officer and a copy of the recordedeasement and the property description isfiled in the office of the county assessor; and

(c) The beach access site is free and opento the public permanently and continuallythroughout the year and is of sufficient sizeto accommodate parking for at least threeautomobiles.

(2) On or before April 1 preceding thefirst tax year for which exemption undersubsection (1) of this section is desired, theowner shall file a claim for exemption withthe county assessor, except that if the prop-erty becomes qualified for the exemption af-ter March 1 but before July 1, the claimshall be filed within 30 days after the prop-erty qualified for the exemption. [1999 c.872 §4]

307.820 [1959 c.659 §2; 1965 c.395 §1; repealed by 1979c.692 §13]

307.821 Disqualification; additionaltaxes. (1) If, after an exemption under ORS307.818 is granted, the county assessor de-termines that the property or a portion ofthe property is not managed, operated ormaintained in a manner consistent with ORS307.818:

(a) The exemption granted under ORS307.818 may be terminated;

(b) For the first tax year following thedate of termination and each succeeding tax

year, the property or portion shall be as-sessed and taxed as other property similarlysituated is assessed and taxed; and

(c) Notwithstanding ORS 311.235, thereshall be added to the general property taxroll for the tax year next following the de-termination, to be collected and distributedin the same manner as other real propertytax, an amount equal to the amount of taxthat would have been due on the propertyhad it not been exempt under ORS 307.818for each of the years during which the prop-erty was exempt from taxation under ORS307.818, not to exceed 15 tax years.

(2) The assessment and tax rolls shallshow “potential additional tax liability” foreach property granted exemption under ORS307.818.

(3) No additional taxes shall be imposedunder subsection (2) of this section if theproperty becomes disqualified for exemptionunder ORS 307.818 because the property isdestroyed by fire, act of God or other naturaldisaster.

(4) Additional taxes collected under thissection shall be deemed to have been im-posed in the year to which the additionaltaxes relate.

(5) A property that has lost eligibility forexemption under ORS 307.818 may requalifyfor exemption beginning with the tax yearfollowing payment of any additional taxes.[1999 c.872 §5]

(Environmentally Sensitive Logging Equipment)

307.824 Findings and declarations. TheLegislative Assembly finds and declares that:

(1) The public policy of this state is tofacilitate the transition of older loggingequipment to newer equipment designed andmanufactured to be as environmentally sen-sitive as current technology can provide,consistent with the need to match the equip-ment to the specifics of the site being har-vested.

(2) Personal property taxes paid on log-ging equipment act as a disincentive to atransition to environmentally sensitive tech-nology, because older equipment has a lowerassessed value and therefore generates acorrespondingly reduced property tax liabil-ity. In contrast, newer equipment, the use ofwhich benefits the environment more thanthe use of older equipment, has a higher as-sessed value and a correspondingly higherproperty tax liability.

(3) A property tax incentive is a meansof facilitating the transition to newer, envi-ronmentally sensitive equipment and accom-plishing the declared public policy. [1999 c.957§2]



307.827 Environmentally sensitive log-ging equipment. (1) Environmentally sensi-tive logging equipment is exempt from advalorem property taxation.

(2) As used in this section:(a) “Environmentally sensitive logging

equipment” means logging equipment thatwas originally manufactured after 1992.

(b) “Logging equipment” means machin-ery and equipment:

(A) Used in logging or forest manage-ment operations involving timber harvest,including the felling, bucking, yarding, load-ing or utilization of timber, logs or wood fi-ber in the forest, or used in reforestation,forest vegetation restoration, site prepara-tion, vegetation control, stand and tree im-provement or thinning;

(B) That is specifically designed for ac-tivities related to water quality or fish andwildlife habitat protection in the forest; or

(C) Consisting of excavators used in log-ging road construction, maintenance, recon-struction or improvements, including theclosing or obliterating of existing forestroads.

(c) “Logging equipment” does not in-clude:

(A) Equipment used in nonforest applica-tions for more than 20 percent of the taxyear, as measured by the operating hours ofthe equipment.

(B) Equipment used in the manufacturingor milling of forest products.

(C) Power saws, hand tools, blocks orpulleys that are not a part of the equipment,rigging, shop equipment or support equip-ment.

(D) Logging equipment that is exemptfrom tax under ORS 307.831. [1999 c.957 §3; 2009c.852 §1]

307.830 [1959 c.659 §3; repealed by 1979 c.692 §13]

307.831 Skyline and swing yarders.Logging equipment consisting of a skylineyarder and carriage in the form of a mobiletower or swing yarder that is capable of fulllog suspension during inhaul is exempt fromad valorem property taxation. [1999 c.957 §6]

(Cargo Containers)307.835 Cargo containers. All cargo

containers principally used for the transpor-tation of cargo by vessels in trade and oceancommerce shall be exempt from taxation. Theterm “cargo container” means a receptacle:

(1) Of a permanent character and ac-cordingly strong enough to be suitable forrepeated use;

(2) Specially designed to facilitate thecarriage 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 itsready handling, particularly its transfer fromone mode of transport to another. [1979 c.783§1]


Sec. 2. Cargo containers, as defined in ORS307.835, are exempt from taxation for tax years begin-ning on or after July 1, 1974, but prior to July 1, 2014.[1979 c.783 §2; 1987 c.583 §1; 1995 c.748 §7; 2003 c.218 §1;2009 c.548 §1]


307.840 [1959 c.659 §4; repealed by 1979 c.692 §13]

VERTICAL HOUSING DEVELOPMENT ZONES


(1) “Construction” means the develop-ment of land and the construction of im-provements to land, and may be furtherdefined by the Housing and Community Ser-vices Department by rule.

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

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

(4) “Low income residential housing”means housing that is restricted to occu-pancy by persons or families whose incomeis no greater than 80 percent of area medianincome, adjusted for family size, as deter-mined by the department.

(5) “Rehabilitation” means the substan-tial repair of improvements or land develop-ments, and may be further defined by thedepartment by rule.

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

(7) “Vertical housing developmentproject” or “project” means the constructionor rehabilitation of a multiple-story building,or a group of buildings, including at leastone multiple-story building, so that a portionof the project is to be used for nonresidentialuses and a portion of the project is to beused for residential uses.

(8) “Vertical housing development zone”or “zone” means an area that has been des-ignated a vertical housing development zoneunder ORS 307.847. [Formerly 285C.450]

307.844 Zone designation; application;special district election to not participatein zone. (1)(a) A city may apply to theHousing and Community Services Depart-



ment for designation of an area within thecity as a vertical housing development zone.

(b) A county may apply to the Housingand Community Services Department fordesignation of an unincorporated area withinthe county as a vertical housing developmentzone.

(2) With the prior consent of the govern-ing body of each city in which a proposedzone is to be located, a county may apply tothe department for designation of any areawithin each city that has given consent forvertical housing development zone desig-nation.

(3) A city and a county, or any combina-tion of cities and counties, may apply to thedepartment for designation of an area situ-ated within each applying jurisdiction as avertical housing development zone.

(4) A district listed in ORS 198.010 or198.180 may elect not to participate in avertical housing development zone. A districtthat elects not to participate may continueto impose taxes on property otherwise ex-empt from ad valorem property tax underORS 307.864.

(5) An application for designation of avertical housing development zone must besubmitted to the department. The applicationshall be in the form and contain the infor-mation required by the department, includ-ing:

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

(b) A copy of a written notification thatthe applicant mailed to the districts listedpursuant to paragraph (a) of this subsectionthat:

(A) Describes the proposed vertical hous-ing development zone;

(B) Explains the exemption described inORS 307.864 that would apply if the proposedzone is designated;

(C) Explains the process by which a dis-trict listed in ORS 198.010 or 198.180 mayelect not to participate in the vertical hous-ing development zone; and

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

(c) A statement signed by the applicantattesting that the notification described inparagraph (b) of this subsection was sent byregular mail to each district listed pursuantto 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 thegoverning body of each applicant;

(b) Contain a description of the areasought to be designated as a vertical housingdevelopment zone, including proposed zoneboundaries;

(c) Contain the reasons that all or a por-tion of a proposed zone constitutes a corearea of an urban center, a light rail systemarea or a transit oriented area; and

(d) Contain any other information re-quired by the department.

(7) The applicant shall submit to the de-partment, within 30 days following the datethe application is filed with the department,a list of the districts that elected not to par-ticipate in the vertical housing developmentzone. [Formerly 285C.453]

307.847 Approval or disapproval of ap-plication. (1) The Housing and CommunityServices Department shall review each ap-plication filed under ORS 307.844 and shallapprove or disapprove each application.

(2) The department may approve an ap-plication and designate all or a portion of thearea that is the subject of the application asa vertical housing development zone if thedepartment determines that the area meetsthe criteria set forth in ORS 307.851.

(3) The determination of the departmentto approve or disapprove an application is adiscretionary determination. The determi-nation is final and is not subject to judicialor administrative review. [Formerly 285C.456]

307.850 [1965 c.278 §1; 1993 c.70 §1; 1997 c.499 §1;renumbered 285A.325 in 1997]

307.851 Criteria for designation ofzone; notice to county assessor. TheHousing and Community Services Depart-ment shall:

(1) Designate a vertical housing develop-ment zone upon application made under ORS307.844 if the department determines that theproposed zone meets the criteria establishedby the department by rule for a zone.

(2) Notify the county assessor of thecounty in which the vertical housing devel-opment zone is located of the designation ofthat zone and of the districts that elected notto participate in the zone. [Formerly 285C.459]

307.854 Acquisition, disposition anddevelopment of real property within zone.Following the designation of a vertical hous-ing development zone under ORS 307.847, thecity or county that sought zone designationmay acquire or dispose of real propertywithin the zone for the purpose of developingvertical housing development projects withinthe zone. The development of projects maybe undertaken by the city or county inde-pendently, jointly or in partnership with aprivate entity or may be undertaken by aprivate entity acting independently. The en-



tities undertaking the development of prop-erty under this section may own and operatethe developed property or may sell or other-wise dispose of the property at any timeduring or after development. The propertymay be sold at the property’s real marketvalue or at a lesser value. [Formerly 285C.462]

307.857 Application for exemption; re-view; certification; fees. (1) Following thedesignation of a vertical housing develop-ment zone under ORS 307.847, a person pro-posing to undertake a proposed verticalhousing development project and seeking thepartial property tax exemption set forth inORS 307.864 shall apply to the Housing andCommunity Services Department for certi-fication of the project.

(2) The application must be satisfactoryto the department in form and content andshall contain any information required by thedepartment, including all of the following:

(a) The address and boundaries of theproposed vertical housing development proj-ect;

(b) A description of the existing state ofthe property;

(c) A description of the proposed projectconstruction or rehabilitation, including thedesign of the construction or rehabilitation,the cost of the construction or rehabilitationand the number of floors and residentialunits to be constructed or rehabilitated;

(d) A description of the nonresidentialuses to which any portion of the proposedproject is to be put, including the proportionof total square footage of the project pro-posed for nonresidential uses;

(e) A description of the proposed portionof the project to be used for residential uses,including the proportion of total squarefootage of the project proposed for residentialuses;

(f) A description of the number and na-ture of residential units in the proposedproject that are to be low income residentialhousing, including the proportion of totalsquare footage of the project proposed forlow income residential housing uses;

(g) The calculation and allocations de-scribed under subsection (3) of this section;and

(h) A commitment that is satisfactory tothe department, including documentation andevidence of recording of the documentation,that the project will be maintained and op-erated in a manner consistent with the ap-plication submitted under this section for theduration of the commitment. The duration ofthe commitment may not be less than thenumber of tax years for which the project is

intended to be partially exempt from advalorem property taxes under ORS 307.864.

(3)(a) Each application filed under thissection shall contain a calculation of equal-ized floors, an allocation of equalized floorsto residential uses and an allocation ofequalized floors to low income residentialhousing uses as determined under this sub-section.

(b) An equalized floor is the quotient thatresults from the division of total squarefootage of a project by the number of actualfloors of the project that are at least 500square feet per floor, or as may be increasedor otherwise qualified by the department byrule.

(c) To allocate equalized floors to resi-dential uses, divide the total square footageof residential property in the project by thesquare footage of an equalized floor.

(d) To allocate equalized floors to low in-come residential housing use, divide the totalsquare footage of low income residentialhousing property in the project by the squarefootage of an equalized floor. In determiningthe square footage of low income residentialhousing property, include that proportion ofthe square footage of residential commonspace that is the same as the proportion ofthe total square footage of low income resi-dential housing units to the total squarefootage of all residential housing units.

(4) The application must be filed underthis section on or before the date residentialunits that are a part of the vertical housingdevelopment project are ready for occupancy.

(5) The department shall review each ap-plication submitted under this section andshall certify or deny certification based onwhether the proposed vertical housing devel-opment project meets criteria established bythe department by rule that are consistentwith ORS 307.841 to 307.867.

(6) The department may request any doc-umentation or undertake any investigationnecessary to ascertain the veracity of anystatement made on an application under thissection.

(7) The certification issued by the de-partment shall:

(a) Identify the property included in thecertified vertical housing development proj-ect;

(b) Identify the number of equalizedfloors of residential housing in the projectand include a description of the property ofeach equalized floor;

(c) Identify the number of equalizedfloors of low income residential housing inthe project and include a description of theproperty of each equalized floor; and



(d) Contain any other information pre-scribed by the department.

(8) The determination of the departmentto certify or deny certification is a discre-tionary determination. The determination isfinal and is not subject to judicial or admin-istrative review.

(9) The department may charge appropri-ate fees to offset the cost of administeringthe application and certification process un-der this section and any other related costs.[Formerly 285C.465]


Sec. 11. (1) Property that was constructed pursuantto a certification for a partial property tax exemptionunder ORS 285C.465 [renumbered 307.857], prior to theeffective date of this 2005 Act [November 4, 2005], shallcontinue to receive the exemption according to the sameschedule and subject to the disqualification provisionsof ORS 285C.450 to 285C.480 [renumbered 307.841 to307.867] that were in effect and applied at the time thevertical housing development project was certified forpartial property tax exemption.

(2) If an application for certification was filed withthe Economic and Community Development Departmentprior to the effective date of this 2005 Act but not actedupon as of the effective date of this 2005 Act, the Eco-nomic and Community Development Department shallforward the application to the Housing and CommunityServices Department. [2005 c.119 §11]


Sec. 13. The Housing and Community ServicesDepartment may not issue a certification under ORS285C.450 to 285C.480 [renumbered 307.841 to 307.867] onor after January 1, 2016. [2005 c.119 §13]

307.861 Monitoring of certified proj-ects; decertification. (1) Upon determiningto certify a vertical housing developmentproject, the Housing and Community Ser-vices Department shall send a copy of thecertification to the county assessor of thecounty in which the project is to be located.

(2) At any time after certification andprior to the end of the exemption period, thedepartment may:

(a) Request documentation, undertake in-vestigations or otherwise review and monitorthe project to ensure ongoing compliance byproject applicants and owners; and

(b) Undertake any remedial action thatthe department determines to be necessaryor appropriate to fulfill the purposes of ORS307.841 to 307.867, including issuing a noticeof decertification directing the county asses-sor to disqualify all or a portion of a project.The decertification notice shall identify:

(A) The property decertified from thevertical housing development project;

(B) The number of equalized floors thathave ceased qualifying as residential housingfor purposes of ORS 307.841 to 307.867;

(C) The number of equalized floors thathave ceased qualifying as low income resi-

dential housing for purposes of ORS 307.841to 307.867;

(D) The remaining number of equalizedfloors of residential housing in the projectand include a description of the property ofeach remaining equalized floor; and

(E) The remaining number of equalizedfloors of low income residential housing inthe project and include a description of theproperty of each remaining equalized floor oflow income residential housing.

(3) A notice of decertification issued un-der subsection (2) of this section shall in-clude any other information prescribed bythe department.

(4) The department shall send copies ofa notice of decertification issued under sub-section (2) of this section to the propertyowner and the county assessor of the countyin which the property is located. [Formerly285C.468]

307.864 Partial property tax ex-emption; disqualification. (1) For the firsttax year in which, as of the assessment date,a vertical housing development project is oc-cupied or ready for occupancy following cer-tification under ORS 307.857, and for thenext nine consecutive tax years:

(a) The property of the vertical housingdevelopment project, except for the land ofthe project, shall be partially exempt from advalorem property taxes imposed by local tax-ing districts, other than the districts thatelected not to participate in the verticalhousing development zone as described inORS 307.844 (4), according to the followingschedule and as identified in the certificationissued by the department under ORS 307.857(7):

(A) If the project consists of the equiv-alent of one equalized floor allocated to resi-dential housing, the project shall be 20percent exempt.

(B) If the project consists of the equiv-alent of two equalized floors allocated toresidential housing, the project shall be 40percent exempt.

(C) If the project consists of the equiv-alent of three equalized floors allocated toresidential housing, the project shall be 60percent exempt.

(D) If the project consists of the equiv-alent of four or more equalized floors allo-cated to residential housing, the project shallbe 80 percent exempt.

(b) The land of the vertical housing de-velopment project shall be partially exemptfrom ad valorem property taxes imposed by



local taxing districts, other than the districtsthat elected not to participate in the verticalhousing development zone as described inORS 307.844 (4), in the same percentages de-termined under paragraph (a) of this subsec-tion, for each equalized floor allocated to lowincome residential housing, as identified inthe certification issued by the departmentunder ORS 307.857 (7).

(2) In order to receive the partial prop-erty tax exemption described in subsection(1) of this section, the vertical housing de-velopment project property owner, projectapplicant or other person responsible for thepayment of property taxes on the projectshall notify the county assessor of the countyin which the project exists, that the projectmeets the requirements of subsection (1) ofthis section. The notification must be givento the assessor in writing on or before April1 preceding the first tax year for which thepartial property tax exemption is sought.

(3) During the period in which propertywould otherwise be partially exempt undersubsection (1)(a) of this section, if all or aportion of a project has been decertified bythe Housing and Community Services De-partment under ORS 307.861, the propertyshall be disqualified from exemption underthis section in proportion to the equivalentof each equalized floor that has ceased qual-ifying as residential housing, as set forth inthe notice of decertification.

(4) During the period in which landwould otherwise be partially exempt undersubsection (1)(b) of this section, if all or aportion of a project has been decertified by

the Housing and Community Services De-partment under ORS 307.861, the land shallbe disqualified from exemption under thissection in proportion to the equivalent num-ber of equalized floors that have ceasedqualifying as low income residential housing,as set forth in the notice of decertification.[Formerly 285C.471]

307.867 Termination of zone; effect oftermination. (1) Following vertical housingdevelopment zone designation under ORS307.847, if the Housing and Community Ser-vices Department receives a request to ter-minate a vertical housing development zonefrom the applicant for zone designation un-der ORS 307.844, the department shall termi-nate the zone.

(2) The termination of a zone under thissection does not affect the exemption of anyproperty from tax under ORS 307.864 if anapplication for the exemption was approvedprior to the zone termination. [Formerly285C.480]

PENALTIES

307.990 Penalties. If any person willfullydelivers any statement containing a falsestatement of a material fact to the officercharged with assessment of property for taxpurposes in the county of the person,whether it be an owner, shipper, the agentof the person, or a storehouse or warehouseoperator of the agent of the person, the per-son commits a Class B misdemeanor. [1959c.659 §5; 2011 c.83 §8; 2011 c.597 §180]


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