2017 ORS 307.162¹
Claiming exemption
  • late claims
  • notification of change to nonexempt use

(1)(a) Before any real or personal property may be exempted from taxation under ORS 307.092 (Property of housing authority), 307.110 (Public property leased or rented by taxable owner) (3)(h), 307.115 (Property of nonprofit corporations held for public parks or recreation purposes), 307.118 (Wastewater and sewage treatment facilities), 307.130 (Property of certain museums, volunteer fire departments and literary, benevolent, charitable and scientific institutions) to 307.140 (Property of religious organizations), 307.145 (Certain child care facilities, schools and student housing), 307.147 (Senior services centers), 307.150 (Burial and crematory property), 307.160 (Property of public libraries), 307.181 (Land acquired or owned by Indian tribe) (3), 307.513 (Eligibility for exemption) or 307.580 (Property of industry apprenticeship or training trust) for any tax year, the institution or organization entitled to claim the exemption must file a claim with the county assessor, on or before April 1 preceding the tax year for which the exemption is claimed. The claim must contain statements, verified by the oath or affirmation of the president or other proper officer of the institution or organization, that:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(4) As used in this section:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Notes of Decisions

Duty of assessor to notify prop­erty owner of intent to assess presumes that owner has given assessor cause to know that owner may qualify for exemp­tion. Renewal House, Inc. v. Dept. of Rev., 5 OTR 638 (1975)

County assessor is re­quired to notify only pre­vi­ously exempted prop­erty owners before assessing their prop­erty for failure to file for an exemp­tion in the current year. Sky­line Assembly of God v. Dept. of Rev., 274 Or 259, 545 P2d 879 (1976)

Although applica­tion under this sec­tion must generally be filed before April 1, applica­tion for prop­erty acquired by exempt owner or changed from taxable to exempt use after filing date but before July 1, may be filed within 30 days after acquisi­tion or change in use but if prop­erty is acquired or changed from taxable to exempt use on or after July 1 of tax year, there is no filing time under this sec­tion because exemp­tion for year is not allowed under ORS 311.410 (Effect of property transfer or lease termination on lien and on taxability of property). Christian Life Fellowship, Inc., v. Dept. of Rev., 12 OTR 94 (1991)

Where church purchased prop­erty from an­oth­er church under land sale contract and continued to use prop­erty for religious purposes, no change of ownership or use occurred and new applica­tion for exemp­tion was not re­quired under this sec­tion because under this sec­tion, change of “ownership” means change of “legal ownership.” First Love Ministries v. Dept. of Rev., 12 OTR 97 (1991)

Where nonprofit taxpayer acquired prop­erty adjacent to prop­erty that taxpayer already owned and that was qualified as exempt from taxa­tion, newly acquired prop­erty is not addi­tion or improve­ment made to qualified prop­erty and must instead separately qualify for exemp­tion from taxa­tion. B’nai Brith Mens Camp Associa­tion v. Dept. of Revenue, 21 OTR 357 (2014)

Under this sec­tion, time period for relief parallels with time period set forth in ORS 311.216 (Notice of intention to add omitted property to rolls) within which assessor can add prop­erty to tax rolls where no otherwise timely exemp­tion has been filed. Where 2011-2012 tax year was “current tax year” and first year exemp­tion was authorized and fell within five year retrospective period defined under ORS 311.216 (Notice of intention to add omitted property to rolls), taxpayer’s claim exemp­tion for 2011-2012 tax year was authorized. Washington County Assessor v. Christ Gospel Church, 21 OTR 452 (2014)

Completed Cita­tions

Emanuel Lutheran Charity Bd. v. Dept. of Rev., 4 OTR 410 (1971), aff’d 263 Or 287, 502 P2d 251 (1972)

Notes of Decisions

Assessor Must Notify Owner of Property Which Would Otherwise Be Exempt Under These Sec­tions of Intent to Assess Taxes Against Such Property Only When

(1) prop­erty was treated as exempt in immediately preceding year and, (2) assessor contemplates assess­ment of prop­erty in current year because of change of ownership or use for which no applica­tion for exemp­tion has been made. Worrell v. Dept. of Rev., 7 OTR 128 (1977)

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/­ors307.­html (2017) (last ac­cessed Mar. 30, 2018).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 307, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano307.­html (2017) (last ac­cessed Mar. 30, 2018).
 
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.