2007 ORS 307.112¹
Property held under lease, sublease or lease-purchase by institution, organization or public body other than state

(1) Real or personal property of a taxable owner held under lease, sublease or lease-purchase agreement by an institution, organization or public body, other than the State of Oregon, granted exemption or the right to claim exemption for any of its property under ORS 307.090 (Property of the state, counties and other municipal corporations), 307.130 (Property of art museums, volunteer fire departments or literary, benevolent, charitable and scientific institutions), 307.136 (Property of fraternal organizations), 307.140 (Property of religious organizations), 307.145 (Certain child care facilities, schools and student housing) or 307.147 (Senior services centers), is exempt from taxation if:

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

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

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

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

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

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

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

(3) If the assessor is not satisfied that the rent stated in the lease, sublease or lease-purchase agreement has been established to reflect the savings below market rent resulting from the tax exemption, before the exemption may be granted the lessor shall provide documentary proof, as specified by rule of the Department of Revenue, that the rent has been established to reflect the savings below market rent resulting from the tax exemption.

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

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

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

(b) The exemption first shall apply for the tax year beginning July 1 of the year for which the claim is filed. The exemption shall continue so long as the use of the property remains unchanged and during the period of the lease, sublease or lease-purchase agreement. If the use changes, a new claim shall be filed as provided in this section. If the use changes due to sublease of the property or any portion of the property from the tax exempt entity described in subsection (1) of this section to another tax exempt entity, the entity in possession of the property shall file a new claim for exemption as provided in this section. If the lease, sublease or lease-purchase agreement expires before July 1 of any year, the exemption shall terminate as of January 1 of the same calendar year. [1977 c.673 §2; 1987 c.756 §20; 1991 c.459 §41; 1991 c.851 §4; 1993 c.19 §3; 1993 c.777 §4; 1995 c.513 §1; 1997 c.434 §1; 1997 c.541 §102; 1999 c.579 §18; 2003 c.117 §1; 2007 c.817 §1]

Note: Section 3, chapter 817, Oregon Laws 2007, provides:

Sec. 3. (1) Notwithstanding the time periods set forth in ORS 307.112 (Property held under lease, sublease or lease-purchase by institution, organization or public body other than state), for the tax year beginning July 1, 2007, a sublessee qualifying for exemption from property taxation under ORS 307.112 (Property held under lease, sublease or lease-purchase by institution, organization or public body other than state) may file a claim in writing with the county assessor, on forms supplied by the assessor, by December 31 next following the effective date of this 2007 Act [September 27, 2007].

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

(3) The tax collector shall notify the governing body of the county of any refund required under this section. Upon receipt of notice from the tax collector, the governing body shall cause a refund of the taxes and any interest paid to be made from the unsegregated tax collections account described in ORS 311.385 (Deposit in unsegregated tax collections account). The refund under this subsection shall be made without interest. The county assessor and tax collector shall make the necessary corrections in the records of their offices. [2007 c.817 §3]

Notes of Decisions

Where plaintiff claimed exemp­tion from prop­erty tax for leased prop­erty under ORS 307.166 (Exemption of property leased by exempt institution, organization or public body to another exempt institution, organization or public body) and this statute, court refused to limit opera­tion of one statute in order to give effect to other and plaintiff's mo­tion for summary judg­ment was granted. Mercy Health Promo­tion v. Dept. of Rev., 11 OTR 207 (1989), aff'd 310 Or 123, 795 P2d 1082 (1990)

Incorpora­tion of leased prop­erty into real prop­erty of charitable organiza­tion did not make exemp­tion applied for under 307.130 (Property of art museums, volunteer fire departments or literary, benevolent, charitable and scientific institutions) applicable to leased prop­erty. Garten Founda­tion v. Dept. of Rev., 12 OTR 554 (1993)

For purpose of determining when lease was entered into, where lease specifically recites date on which it was entered into, that date controls over date of execu­tion, date of signing, date lessee took pos­ses­sion, effective date and date first rent was due. Multnomah County v. Dept. of Revenue, 13 OTR 384 (1995)

Exemp­tion of prop­erty is lost where sublease occurs and no applica­tion for exemp­tion is filed by sublessee. Erickson v. Dept. of Revenue, 17 OTR 324 (2004)

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/­ors/­307.­html (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.