Chapter 67 Oregon Laws 2001

AN ACT

SB 329

Relating to taxation; creating new provisions; and amending ORS 307.095 and 307.110 and section 2, chapter 649, Oregon Laws 1975, section 2, chapter 422, Oregon Laws 1979, and section 4, chapter 405, Oregon Laws 1981.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 307.095 is amended to read:

307.095. (1) Any portion of state property that is used during the tax year for parking on a rental or fee basis to private individuals is subject to ad valorem taxation.

(2) The real market value of such portion shall be computed by determining that percentage which the total of receipts from private use bears to the total of receipts from all use of the property. The assessed value of such portion shall be computed as provided in ORS 308.146. However, receipts from any use by a state officer or employee in the performance of the official duties of the state officer or employee shall not be considered as receipts from private use in computing the portion subject to ad valorem taxation.

(3) [For tax years beginning on or after July 1, 1969, and before July 1, 2002,] This section and ORS 276.592 do not apply to state property that is used by the State System of Higher Education or the Oregon Health Sciences University solely to provide parking for employees, [or] students or visitors.

SECTION 2. 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 Oregon State Fair and Exposition Center under ORS 565.015, 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) [For tax years beginning on or after July 1, 1969, and before July 1, 2002,] State property that is used by the State System of Higher Education or the Oregon Health Sciences University to provide parking for employees, [or] 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 ORS 456.055.

(h) Property within a shipyard capable of dry-docking ocean-going vessels of 200,000 deadweight tons or more and utilized or leased by a sole contractor for the purpose of ship repair, layup, conversion or construction. The public shipyard owner shall notify the county assessor of the date of the lease or other possessory interest agreement with the sole shipyard contractor. Property subleased by the sole shipyard contractor, or utilized by another person pursuant to a possessory interest agreement with the sole shipyard contractor, is not exempt under this paragraph.

(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 285B.383 and 307.123 that was acquired with revenue bonds issued under ORS 285B.320 to 285B.377 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.

(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 3. The amendments to ORS 307.095 and 307.110 by sections 1 and 2 of this 2001 Act apply to tax years beginning on or after July 1, 2002.

SECTION 4. Section 4, chapter 405, Oregon Laws 1981, as amended by section 1, chapter 169, Oregon Laws 1985, and section 4, chapter 748, Oregon Laws 1995, is amended to read:

Sec. 4. ORS 307.182[, the amendments to ORS 307.060 by section 2, chapter 405, Oregon Laws 1981, and the repeal of section 2, chapter 656, Oregon Laws 1975, by section 3, chapter 405, Oregon Laws 1981, apply for] applies to tax years beginning on or after July 1, 1981, and prior to July 1, [2002] 2012.

SECTION 5. Section 2, chapter 649, Oregon Laws 1975, as amended by section 3, chapter 422, Oregon Laws 1979, section 2, chapter 169, Oregon Laws 1985, and section 5, chapter 748, Oregon Laws 1995, is amended to read:

Sec. 2. ORS 307.183 applies to tax years beginning on or after July 1, 1976, but prior to July 1, [2002] 2012.

SECTION 6. Section 2, chapter 422, Oregon Laws 1979, as amended by section 3, chapter 169, Oregon Laws 1985, and section 6, chapter 748, Oregon Laws 1995, is amended to read:

Sec. 2. ORS 307.184 applies to tax years beginning on or after July 1, 1980, but prior to July 1, [2002] 2012.

Approved by the Governor April 10, 2001

Filed in the office of Secretary of State April 10, 2001

Effective date January 1, 2002

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