Bill Text: OR SB668 | 2013 | Regular Session | Introduced

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Bill Title: Relating to the exemption from tax of property of a political subdivision of the state; prescribing an effective date.

Spectrum: Committee Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB668 Detail]

Download: Oregon-2013-SB668-Introduced.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 3284

                         Senate Bill 668

Sponsored by COMMITTEE ON FINANCE AND REVENUE

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Exempts from property taxation property of political
subdivision used or intended to be used for affordable housing or
leased or rented to persons of lower income for housing. Requires
application.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to the exemption from tax of property of a political
  subdivision of the state; creating new provisions; amending ORS
  307.110 and 307.162; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 307.110 is amended to read:
  307.110. (1) Except as provided in ORS 307.120, all real and
personal property of this state or any institution or department
thereof or of any county or city, town or other municipal
corporation or political subdivision of this state, held under a
lease or other interest or estate less than a fee simple, by any
person whose real property, if any, is taxable, except employees
of the state, municipality or political subdivision as an
incident to such employment, shall be subject to assessment and
taxation for the assessed or specially assessed value thereof
uniformly with real property of nonexempt ownerships.
  (2) Each leased or rented premises not exempt under ORS 307.120
and subject to assessment and taxation under this section which
is located on property used as an airport and owned by and
serving a municipality or port shall be separately assessed and
taxed.
  (3) Nothing contained in this section shall be construed as
subjecting to assessment and taxation any publicly owned property
described in subsection (1) of this section that is:
  (a) Leased for student housing by a school or college to
students attending such a school or college.
  (b) Leased to or rented by persons, other than sublessees or
subrenters, for agricultural or grazing purposes and for other
than a cash rental or a percentage of the crop.
  (c) Utilized by persons under a land use permit issued by the
Department of Transportation for which the department's use
restrictions are such that only an administrative processing fee
is able to be charged.
  (d) County fairgrounds and the buildings thereon, in a county
holding annual county fairs, managed by the county fair board
under ORS 565.230, if utilized, in addition to county fair use,
for any of the purposes described in ORS 565.230 (2), or for
horse stalls or storage for recreational vehicles or farm
machinery or equipment.
  (e) The properties and grounds managed and operated by the
State Parks and Recreation Director under ORS 565.080, if
utilized, in addition to the purpose of holding the Oregon State
Fair, for horse stalls or for storage for recreational vehicles
or farm machinery or equipment.
  (f) State property that is used by the Oregon University System
or the Oregon Health and Science University to provide parking
for employees, students or visitors.
  (g) Property of a housing authority created under ORS chapter
456 which is leased or rented to persons of lower income for
housing pursuant to the public and governmental purposes of the
housing authority. For purposes of this paragraph, 'persons of
lower income' has the meaning given   { - the phrase under - }
 { + that term in + } ORS 456.055.
   { +  (h) Property of a political subdivision of this state
that is used or intended to be used for affordable housing or is
leased or rented to persons of lower income for housing pursuant
to the public and governmental purposes of the political
subdivision. For purposes of this paragraph, 'affordable housing'
and 'persons of lower income' have the meanings given those terms
in ORS 456.055. The exemption under this paragraph shall be
granted upon compliance with ORS 307.162. + }
    { - (h) - }   { + (i) + } Property of a health district if:
  (A) The property is leased or rented for the purpose of
providing facilities for health care practitioners practicing
within the county; and
  (B) The county is a frontier rural practice county under rules
adopted by the Office of Rural Health.
  (4) Property determined to be an eligible project for tax
exemption under ORS 285C.600 to 285C.626 and 307.123 that was
acquired with revenue bonds issued under ORS 285B.320 to 285B.371
and that is leased by this state, any institution or department
thereof or any county, city, town or other municipal corporation
or political subdivision of this state to an eligible applicant
shall be assessed and taxed in accordance with ORS 307.123. The
property's continued eligibility for taxation and assessment
under ORS 307.123 is not affected:
  (a) If the eligible applicant retires the bonds prior to the
original dates of maturity; or
  (b) If any applicable lease or financial agreement is
terminated prior to the original date of expiration.
  (5) The provisions of law for liens and the payment and
collection of taxes levied against real property of nonexempt
ownerships shall apply to all real property subject to the
provisions of this section. Taxes remaining unpaid upon the
termination of a lease or other interest or estate less than a
fee simple, shall remain a lien against the real or personal
property.
  (6) If the state enters into a lease of property with, or
grants an interest or other estate less than a fee simple in
property to, a person whose real property, if any, is taxable,
then within 30 days after the date of the lease, or within 30
days after the date the interest or estate less than a fee simple
is created, the state shall file a copy of the lease or other
instrument creating or evidencing the interest or estate with the
county assessor. This section applies notwithstanding that the
property may otherwise be entitled to an exemption under this
section, ORS 307.120 or as otherwise provided by law.
  SECTION 2. ORS 307.162, as amended by section 3, chapter 42,
Oregon Laws 2012, is amended to read:
  307.162. (1)(a) Before any real or personal property may be
exempted from taxation under ORS  { + 307.110 (3)(h), + }
307.115, 307.118, 307.130 to 307.140, 307.145, 307.147, 307.150,
307.160, 307.181 (3) or 307.580 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 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.
  (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 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 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.
  (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) 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.
  (4)(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 of
Revenue; 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.
  (5) For each tax year for which an exemption granted pursuant
to subsection (2) or (4) 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.
  (b) Any tax, or interest attributable thereto, that remains
unpaid as of the date the exemption is granted must be abated.
  (6) 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.

  SECTION 3.  { + The amendments to ORS 307.110 and 307.162 by
sections 1 and 2 of this 2013 Act apply to property tax years
beginning on or after July 1, 2013. + }
  SECTION 4.  { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
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