2017 ORS 307.513¹
Eligibility for exemption
  • duration and extensions
  • disqualification
  • additional taxes

(1)(a) Upon compliance with ORS 307.162 (Claiming exemption), land acquired and held by a nonprofit corporation as defined in ORS 307.130 (Property of certain museums, volunteer fire departments and literary, benevolent, charitable and scientific institutions) for the purpose of building on the land one or more residences to be sold to individuals whose income is not greater than 80 percent of area median income, adjusted for family size, as determined by the Housing and Community Services Department, shall be exempt from property taxation.

(b) Notwithstanding paragraph (a) of this subsection, a nonprofit corporation may not claim an exemption for land under this section unless, within the 10 years immediately preceding the filing of a claim pursuant to this section, the nonprofit corporation has sold at least one residence to individuals described in paragraph (a) of this subsection.

(2)(a) The exemption shall be granted to land beginning with the first property tax year for which the nonprofit corporation files a claim for the land under ORS 307.162 (Claiming exemption) and ending on or at the earlier of:

(A) The date on which the nonprofit corporation has transferred title to the residences on the land; or

(B) The end of the seventh consecutive property tax year for which the land is granted an exemption under this section or, if the nonprofit corporation has claimed an extension under paragraph (b) of this subsection, the end of the 10th consecutive property tax year for which the land is granted an exemption under this section.

(b)(A) If, before the end of the sixth consecutive property tax year for which the land is granted an exemption, the nonprofit corporation believes that title to the residences on the land will not be transferred by the end of the next following property tax year, the nonprofit corporation may claim a three-year extension of the exemption period by filing a notice of extension with the county assessor.

(B) The extension becomes effective if the notice of extension is filed on or before April 1 preceding the first property tax year for which the extension is claimed and is accompanied by a filing fee equal to the greater of $200 or one-tenth of one percent of the real market value of the land as of the most recent assessment date.

(3)(a) For each property tax year that land is exempt under this section, the county assessor shall indicate on the assessment and tax roll that the land is exempt from property taxation under this section and is subject to potential additional taxes.

(b) If the nonprofit corporation has not transferred title to the residences on the land by the end of the seventh consecutive property tax year for which the land is granted an exemption under this section, or, if the nonprofit corporation has claimed an extension under subsection (2)(b) of this section, by the end of the 10th consecutive property tax year, the land shall be disqualified for the exemption. Additional taxes shall be imposed on the land on the next assessment and tax roll following the disqualification and shall be collected and distributed in the same manner as other ad valorem property taxes.

(c) The additional taxes shall be imposed in an amount equal to the property taxes that were not imposed on the land because of the exemption, plus interest computed at the rate provided under ORS 311.505 (Due dates) (2).

(d) The additional taxes described in this subsection shall be deemed assessed and imposed in the year to which the additional taxes relate.

(e) The amount determined to be due under this subsection may be paid to the tax collector prior to the time of the next general property tax roll, pursuant to the provisions of ORS 311.370 (Receipts for taxes collected in advance of extension on the tax roll).

(4) An exemption for land under this section does not preempt a county from granting other tax benefits to the land or the nonprofit corporation for any year. [2015 c.520 §1]

Note: 307.513 (Eligibility for exemption) was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 307 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

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.