2017 ORS 307.340¹
Filing proof for cancellation of assessment
  • abatement

(1) The property described in ORS 307.330 (Commercial facilities under construction) shall be listed for ad valorem property taxation, but the assessor shall cancel the assessment for any assessment year upon receipt of sufficient documentary proof that the property meets all of the conditions contained in ORS 307.330 (Commercial facilities under construction). Such proof shall be filed with the assessor on or before April 1 of such year. No cancellation of assessment shall be made unless the required proof is filed within the time prescribed by this section. Any cancellation of assessment will be abated as to any nonmanufacturing property that is used or occupied within one year from the time construction commences and the assessor shall proceed to correct the assessment and tax roll or rolls from which the property was omitted from taxation, in the manner provided in ORS 311.216 (Notice of intention to add omitted property to rolls) to 311.232 (Mandamus to require placing omitted property on roll).

(2) If the proof required by subsection (1) of this section relates to state-appraised industrial property as defined in ORS 306.126 (Appraisal of industrial property by department) and is filed with the Department of Revenue within the time required by subsection (1) of this section, the proof shall be deemed timely filed with the assessor. [1959 c.246 §2; 1967 c.51 §2; 1971 c.284 §2; 1991 c.459 §56; 1993 c.270 §77; 1997 c.541 §118; 2015 c.36 §8]

Note: Sections 1 to 7, chapter 112, Oregon Laws 2016, provide:

Sec. 1. (1) As used in sections 1 to 5 of this 2016 Act:

(a) “Eligible location” means land and improvements that are located in a rural area.

(b) “Eligible property” means improvements classified as industrial under rules established by the Department of Revenue pursuant to ORS 308.215 (Contents of assessment roll) (1)(a)(C), and associated personal property, that:

(A) Are newly constructed or installed at an eligible location; and

(B) Have a cost of initial investment to the purchaser of at least $1 million and not more than $25 million.

(c) “Qualified property” means eligible property for which an application has been approved under section 2 of this 2016 Act.

(d) “Rural area” means an area located entirely outside of the urban growth boundary of a city with a population of 40,000 or more, as the urban growth boundary is acknowledged on the date on which an applicant submits an application for eligible property under section 2 of this 2016 Act.

(2)(a) The governing body of a city or county may adopt an ordinance or resolution granting a property tax exemption for eligible property located within the boundaries of the city or county, respectively.

(b) The terms of the exemption must conform to the provisions of sections 1 to 5 of this 2016 Act. In addition, an ordinance or resolution adopted under this subsection shall establish standards for the imposition of conditions described in section 2 (4) of this 2016 Act.

(3)(a) Qualified property must be:

(A) Owned or leased by the applicant filing the application under section 2 of this 2016 Act.

(B) Used through the final year of exemption for the purpose, and at the location, identified in the application filed under section 2 of this 2016 Act.

(b) The exemption:

(A) May be granted to eligible property only if the first assessment year to which the application filed under section 2 of this 2016 Act relates is the first assessment year that begins after the eligible property was first placed in service; and

(B) Shall be granted only for qualified property that was first placed in service after the ordinance or resolution was adopted.

(4)(a) The exemption shall be granted as a 100 percent exemption of the real market value of the qualified property for any three out of five consecutive property tax years.

(b) Notwithstanding paragraph (a) of this subsection, the city or county may specify in the ordinance or resolution:

(A) A minimum cost of initial investment greater than $1 million.

(B) Any number of years not greater than five for which the exemption shall be granted.

(C) The percentage of the real market value of the qualified property granted exemption for each year.

(D) Different schedules in each property tax year for the years and percentages described in subparagraphs (B) and (C) of this paragraph, depending on the minimum costs of initial investment of the qualified property.

(5)(a) An ordinance or resolution adopted pursuant to this section may not take effect unless, upon request of the city or county that adopted the ordinance or resolution, the rates of taxation of the taxing districts whose governing bodies agree to grant the exemption, when combined with the rate of taxation of the city or county, equal 75 percent or more of the total combined rate of taxation on the qualified property.

(b) Upon the taking effect of the ordinance or resolution, the exemption shall apply to all property tax levies of all taxing districts in which qualified property is located.

(c) The decisions of the taxing districts under paragraph (a) of this subsection may not be changed but are not binding with respect to an ordinance or resolution adopted pursuant to subsection (6) of this section or a new ordinance or resolution adopted pursuant to subsection (2) of this section.

(d) All qualified property shall be granted exemption under this section, or deferral under section 3 of this 2016 Act, on the same terms provided in the ordinance or resolution adopted or amended by the city or county and in effect on the date the application is submitted under section 2 of this 2016 Act.

(6)(a) A city or county may adopt at any time an ordinance or resolution amending the terms of an exemption granted pursuant to this section or a deferral granted pursuant to section 3 of this 2016 Act, subject to approval of the taxing districts under subsection (5)(a) of this section, or terminating the exemption or deferral.

(b) Notwithstanding an ordinance or resolution adopted under paragraph (a) of this subsection, qualified property that has been granted an exemption pursuant to this section, or a deferral pursuant to section 3 of this 2016 Act, shall continue to receive the exemption or deferral under the terms in effect at the time the exemption or deferral was first granted.

(7) If a city or county proposes an ordinance or resolution providing for an exemption on terms other than the terms provided in subsection (4)(a) of this section, the ordinance or resolution may not take effect unless the governing body of the city or county, as applicable, receives testimony from the county assessor at a public hearing on the question regarding the cost and administration of the proposed terms of the exemption.

(8)(a) Qualified property granted an exemption pursuant to this section, or a deferral pursuant to section 3 of this 2016 Act, is not eligible for any other property tax exemption or special assessment.

(b) Otherwise eligible property that has received another property tax exemption or special assessment is not eligible for the exemption or deferral.

(c) Paragraphs (a) and (b) of this subsection do not apply to the exemption granted under ORS 307.330 (Commercial facilities under construction). [2016 c.112 §1]

Sec. 2. (1)(a) The governing body of a city or county that adopts an ordinance or resolution pursuant to section 1 of this 2016 Act shall prescribe exemption application forms and the information required to be included in the application.

(b) If eligible property is located in a city and county, each of which has adopted an ordinance or resolution under section 1 of this 2016 Act, the applicant shall elect the exemption the applicant wishes to receive for the eligible property by submitting the application to the city or county, as applicable.

(c) If the initial cost of investment of the eligible property exceeds $25 million, the applicant shall specify in the application the items of eligible property having a total cost of initial investment of $25 million for which the exemption is sought.

(d) An application must be accompanied by an application fee fixed by the city or county, as applicable, in an amount determined to compensate the city or county for the actual costs of processing the application.

(2)(a) An application must be submitted for review to the city or county, as applicable, on or before March 1 preceding the property tax year to which the application relates.

(b) Notwithstanding paragraph (a) of this subsection, an application may be filed under this section for the current property tax year:

(A) On or before December 31 of the property tax year, if the application 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 eligible property to which the application relates.

(B) On or before April 1 of the property tax year, if the application is accompanied by a late filing fee of $200 and the applicant demonstrates good and sufficient cause, as defined in ORS 307.162 (Claiming exemption), for failing to file a timely application or is a first-time filer, as defined in ORS 307.162 (Claiming exemption).

(c)(A) An application may be filed as provided in paragraph (b) of 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).

(B) A late filing fee collected under paragraph (b) of this subsection must be deposited in the general fund of the city or county, as applicable.

(d) If the ownership of all property included in the application for a prior year remains unchanged, a new application is not required.

(3)(a) Upon receipt of an application submitted pursuant to subsection (2) of this section, the city or county, as applicable, shall determine as soon as practicable:

(A) Whether the property to which the application relates is eligible property located within the boundaries of the city or county;

(B) The cost of initial investment of the eligible property to the purchaser; and

(C) The date on which the eligible property was first placed in service.

(b) If any determination made pursuant to paragraph (a) of this subsection renders the property ineligible for the exemption, the application shall be rejected.

(4) If the property is eligible for the exemption under subsection (3) of this section, the application meets the requirements of the ordinance or resolution of the city or county and the governing body of the city or county and the applicant have agreed to conditions under section 5 of this 2016 Act, the governing body shall adopt a resolution:

(a) Approving the application;

(b) Stating the conditions; and

(c) Notifying the assessor of the county in which the qualified property is located and, if the qualified property is state-appraised industrial property, the Department of Revenue of the approval and including with the notification such information as is necessary for the assessor and department to perform their respective duties with respect to the qualified property.

(5) Provided all other requirements of ORS 305.275 (Persons who may appeal due to acts or omissions) are met, the cost of initial investment of the qualified property as determined under this section may be appealed pursuant to ORS 305.275 (Persons who may appeal due to acts or omissions) even if, for purposes of ORS 305.275 (Persons who may appeal due to acts or omissions) (1)(a), the governing body of the city makes the determination of the cost. The rejection of an application on any basis other than the cost of initial investment may not be appealed.

(6) For each property tax year that qualified property is granted exemption pursuant to this section, the assessor of the county in which the qualified property is located:

(a) Shall enter on the assessment and tax roll the notation “potential additional tax liability”; and

(b) May impose and collect a fee in an amount determined by the assessor to compensate the assessor for the actual costs of administering the exemption for the qualified property. [2016 c.112 §2]

Sec. 3. (1)(a) The governing body of a city or county that adopts an ordinance or resolution pursuant to section 1 of this 2016 Act may, at the time of adoption, elect to grant the amount of the exemption as computed under section 1 (4) of this 2016 Act as a deferral of property taxes rather than as an exemption. Except as otherwise provided in this section, all provisions of sections 1, 2 and 4 of this 2016 Act apply to a property tax deferral elected in accordance with this section. The election to defer rather than exempt property taxes may be changed only in the manner provided by section 1 (6) of this 2016 Act.

(b) An ordinance or resolution that grants a deferral pursuant to paragraph (a) of this subsection may not take effect unless the governing body of the city or county, as applicable, receives testimony from the county assessor at a public hearing on the question regarding the cost and administration of the proposed terms of the deferral.

(2)(a) For each property tax year that qualified property is granted deferral pursuant to this section, and until the taxes have been added to the assessment and tax roll under subsection (3) of this section, the assessor of the county in which the qualified property is located:

(A) Shall enter on the assessment and tax roll the notation “deferred additional tax liability”; and

(B) May impose and collect a fee in an amount determined by the assessor to compensate the assessor for the actual costs of administering the deferral for the qualified property.

(b) Interest shall not accrue on taxes deferred pursuant to this section during the period of deferral.

(3)(a) Taxes deferred pursuant to this section shall be added to the taxes extended against the qualified property on the assessment and tax roll as follows:

(A) The deferred additional taxes for the first property tax year for which deferral was granted shall be added to the tax extended against the qualified property on the assessment and tax roll for the first property tax year that begins after the period of deferral ends; and

(B) The deferred additional taxes for the second, third, fourth and fifth property tax years, as applicable, shall be added to the tax extended against the qualified property on the assessment and tax roll for the second, third, fourth and fifth property tax years, respectively, that begin after the period of deferral ends.

(b) Deferred additional taxes collected pursuant to this section shall be deemed to be assessed and imposed in the property tax year for which the taxes were imposed and deferred.

(c) Deferred additional taxes added to the tax extended against the qualified property may be paid to the tax collector prior to the completion of the assessment and tax roll to which the tax is to be added, pursuant to ORS 311.370 (Receipts for taxes collected in advance of extension on the tax roll). The tax collector may apply prepayments of deferred additional taxes under this paragraph for one or more future property tax years to the taxes imposed on the next following assessment and tax roll.

(4) If any qualified property granted deferral under this section is sold or otherwise transferred or is moved out of the county, the lien for the deferred additional taxes added under this section shall attach and the deferred additional taxes are due and payable as of the day before the sale or transfer or, if the qualified property is removed from the county, five days before the removal, whichever is earlier. [2016 c.112 §3]

Sec. 4. (1) The assessor of the county in which qualified property is located shall immediately disqualify the property for an exemption granted pursuant to section 1 of this 2016 Act, or deferral granted pursuant to section 3 of this 2016 Act, and the disqualified property shall be assessed and taxed in the same manner as other property is assessed and taxed, if, in any year through the final assessment year of the exemption or deferral:

(a) The qualified property is not used for the purpose, or at the location, identified in the application approved under section 2 of this 2016 Act; or

(b) The applicant fails to comply with the conditions established and agreed to under section 5 of this 2016 Act.

(2)(a) If the disqualified property was granted an exemption, additional taxes shall be assessed against the property for the first property tax year following the disqualification in an amount equal to the difference between the taxes assessed against the property and the taxes that would have been assessed against the property without the exemption, for the number of years that the exemption was granted.

(b) If the disqualified property was granted a deferral, deferred additional taxes shall be assessed against the property for the first property tax year following the disqualification in an amount equal to the deferred taxes for all years for which the deferral was granted. [2016 c.112 §4]

Sec. 5. (1) As used in this section:

(a) “Annual average employment of the applicant” means the average employment of the applicant, calculated over the 12 months preceding the date of the application submitted under section 2 of this 2016 Act.

(b) “Employment of the applicant” means the number of employees working for the applicant a majority of their time in eligible operations at locations in this state.

(c) “First-source hiring agreement” means an agreement between an applicant and a publicly funded job training provider whereby the provider refers qualified candidates to the firm for new jobs and job openings in the firm.

(2) An application for exemption may not be approved under section 2 of this 2016 Act unless the applicant and the governing body of the city or county have agreed to, and the applicant has complied with, the conditions of this section.

(3) The applicant must agree to enter into a first-source hiring agreement with the governing body of the city or county for the period of the exemption.

(4) No later than the date on which the application is submitted, the employment of the applicant may not be less than the greater of:

(a) 110 percent of the annual average employment of the applicant; or

(b) The annual average employment of the applicant plus one employee.

(5)(a) The applicant or another firm under common control may not close or permanently curtail operations in another part of the state that is more than 30 miles from the eligible location. This subsection applies to the transfer of any of the applicant’s operations to an eligible location from another part of the state, if the closure or permanent curtailment in the other part of the state decreased the applicant’s employment in the other part of the state.

(b) The applicant or another firm under common control may not close or permanently curtail operations in another part of the state that is 30 miles or less from the eligible location unless the employment of the applicant at the eligible location and at the other locations from which employees were transferred has been increased to not less than 110 percent of the annual average employment of the firm at the eligible location and the other locations from which the employees were transferred.

(6) The governing body of the city or county may establish other reasonable conditions related to economic development with respect to the qualified property, including greater employment requirements under this section.

(7) The conditions established under this subsection may be modified at the request of the applicant at any time before the beginning of the first property tax year for which the exemption is granted.

(8) The governing body of the city or county shall establish procedures for monitoring and verifying the compliance of the applicant with the conditions imposed under this section and shall require the applicant to agree to the procedures as a condition for granting the exemption.

(9) The conditions established under this subsection shall be set forth in the resolution adopted under section 2 (4) of this 2016 Act and shall remain in effect throughout the period for which the exemption is granted. [2016 c.112 §5]

Sec. 6. (1) Sections 1 to 5 of this 2016 Act are repealed on January 2, 2024.

(2) Notwithstanding the date specified in subsection (1) of this section, newly constructed or installed industrial improvements that are granted exemption or deferral under an ordinance or resolution adopted pursuant to section 1 of this 2016 Act shall continue to receive the exemption or deferral under the provisions of the ordinance or resolution. [2016 c.112 §6]

Sec. 7. (1) As soon as practicable after December 1 of each year, a city or county that has granted a property tax exemption or deferral pursuant to sections 1 to 5 of this 2016 Act shall submit the following information from the current property tax year to the Department of Revenue:

(a) The kind and value of the qualified property;

(b) The name of the owner or lessee that submitted the application approved under section 2 of this 2016 Act;

(c) The real market value of the qualified property;

(d) The amount of ad valorem property taxes that were not imposed on the property because of the exemption or deferral;

(e) The number of years and the percentage of real market value for which the exemption or deferral was granted; and

(f) A copy of the employment and other conditions established for the property under section 2 (4) of this 2016 Act.

(2) The department shall submit the information in a report to the Chief State Information Officer for posting on the Oregon transparency website under ORS 184.484 [renumbered 276A.256 (Reports of tax expenditures connected to economic development)]. [2016 c.112 §7]

Notes of Decisions

Legislature contemplated filing of applica­tion with assessor. Urban Off. & Parking v. Dept. of Rev., 4 OTR 523 (1971)

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.