ORS 307.090¹
Property of the state, counties and other municipal corporations
  • certain property of cities or public entities of other states
  • payments in lieu of taxes on city-owned electric utility property

(1) Except as provided by law, all property of the state and all public or corporate property used or intended for corporate purposes of the several counties, cities, towns, school districts, irrigation districts, drainage districts, ports, water districts, housing authorities and all other public or municipal corporations in this state, is exempt from taxation.

(2) Any city may agree with any school district to make payments in lieu of taxes on all property of the city located in any such school district, and which is exempt from taxation under subsection (1) of this section when such property is outside the boundaries of the city and owned, used or operated for the production, transmission, distribution or furnishing of electric power or energy or electric service for or to the public.

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

(b) The property that is subject to exemption under paragraph (a) of this subsection is tangible or intangible property, property rights or property interests in or related to the Pacific Northwest AC Intertie, as referenced in a written capacity ownership agreement executed before November 4, 2005, between the United States Department of Energy and the city or public entity described in paragraph (a) of this subsection. [Amended by 1953 c.698 §7; 1957 c.649 §1; 1975 c.568 §1; 1977 c.673 §1; 1991 c.851 §2; 2005 c.832 §1]

Notes of Decisions

City did not have incidents of ownership in wa­ter system which would justify exemp­tion from tax under this sec­tion. White City Water System v. Dept. of Rev., 7 OTR 274 (1977), aff'd 285 Or 255, 590 P2d 724 (1979)

Nonprofit corpora­tion organized to provide financing for rehabilita­tion and expansion of wa­ter system to be operated by city was not entitled to exemp­tion under this sec­tion, because exemp­tion is available only for prop­erty actually owned by city. White City Water System v. Dept. of Rev., 285 Or 255, 590 P2d 724 (1979)

Dry boat storage building built over 300 feet from wa­ter and leased to taxable individuals was not exempted from taxa­tion under "berthing" of wa­tercraft exemp­tion in ORS 307.120 (Property owned or leased by municipalities, dock commissions, airport districts or ports). Port of Coos Bay v. Dept. of Rev., 298 Or 229, 691 P2d 100 (1984)

Where plaintiff had legal ownership of subject prop­erty but district had sole equitable ownership, District's ownership satisfied require­ment of this statute and prop­erty was exempt for 1987-88 tax year. Tillamook Community Founda­tion v. Dept. of Rev., 11 OTR 130 (1989)

Where port was obligated under purchase contract to protect and store equip­ment without charge to buyer, buyer had not paid full purchase price and equip­ment was not in immediately useable condi­tion, ownership had not passed to buyer. Kaiser Interna­tional Corp. v. Dept. of Rev., 12 OTR 513 (1993)

"Corporate purposes" of municipality includes any ac­tion consistent with municipal charter and not contrary to express or implied law. City of Eugene v. Dept. of Revenue, 15 OTR 1 (1998)

Property belonging to intergovern­mental unit partially comprised of people's utility district is not immune from taxa­tion. Western Genera­tion Agency v. Dept. of Revenue, 327 Or 327, 959 P2d 80 (1998)

Property owned by partnership in which public body is general partner does not qualify for exemp­tion as public prop­erty. Linn-Benton Housing Authority v. Linn County Assessor, 17 OTR 1 (2003)

Exemp­tion from taxa­tion for various govern­mental entities "in" this state is limited to govern­mental entities formed under laws of this state. P.U.D. No. 1 of Snohomish County v. Dept. of Revenue, 17 OTR 290 (2004)

Central assess­ment statutes (ORS 308.505 (Definitions for ORS 308.505 to 308.665) to 308.665 (Railroad car exemption)) create excep­tion to public prop­erty tax exemp­tion. Pacificorp Power Marketing v. Dept. of Revenue, 340 Or 204, 131 P3d 725 (2006)

Atty. Gen. Opinions

Exemp­tion of real prop­erty held by Depart­ment of General Services under lease-purchase transac­tion, (1978) Vol 39, p 335

Chapter 307

Atty. Gen. Opinions

Validity of ad valorem and severance taxa­tion of logs destined for export, (1975) Vol 37, p 427; applica­tion of Article XI, sec­tion 11b of Oregon Constitu­tion to this chapter, (1990) Vol 46, p 388

Law Review Cita­tions

5 EL 516 (1975)

1 Legislative Counsel Committee, CHAPTER 307—Property Subject to Taxation; Exemptions, https://­www.­oregonlegislature.­gov/­bills_laws/­Archive/­2007ors307.­pdf (2007) (last ac­cessed Feb. 12, 2009).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 307, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­307ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information