Chapter 642 Oregon Laws 2001

AN ACT

SB 684

Relating to taxation.

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

SECTION 1. Sections 2 and 3 of this 2001 Act are added to and made a part of ORS chapter 307.

SECTION 2. (1) As used in this section and section 3 of this 2001 Act, “rural health care facility” means a health care facility that:

(a) Is located in a rural health service area with an average travel time of more than 30 minutes from a population center of 30,000 or more, as determined by the Office of Rural Health; and

(b) Is used exclusively to provide medical care.

(2) Real and personal property of a rural health care facility is exempt from the ad valorem property taxes of the county in which the facility is located, and from the ad valorem property taxes of each other local taxing district in which the facility is located that authorizes the exemption under section 3 of this 2001 Act, if all of the following apply:

(a) The property constitutes new construction, new additions, new modifications or new installations of property as of the first assessment date for which the facility is in service. Land and other property that was in existence at the location of the facility prior to the date work began on the construction, addition, modification or installation of property at the facility is not exempt under this section.

(b) The exemption has been authorized by the governing body of the county in which the facility is located in the manner set forth in section 3 of this 2001 Act.

(3) To receive the exemption provided under this section, the rural health care facility must annually file its intention to take the exemption. The filing must be with the county assessor of the county that authorized the exemption under section 3 of this 2001 Act and must be made by April 1 preceding the tax year for which the exemption is being claimed.

(4) A rural health care facility described in this section shall be exempt from the taxes to which the exemption applies for the tax year in which the facility is first in service as of the assessment date and for the next two succeeding tax years.

SECTION 3. (1) In order for a rural health care facility to be exempt from tax under section 2 of this 2001 Act, prior to the construction, addition, modification or installation of the facility the governing body of the county in which the facility is to be located must, by ordinance or resolution, authorize the exemption provided under section 2 of this 2001 Act.

(2) Within 10 days following adoption of the ordinance or resolution that authorizes the exemption provided under section 2 of this 2001 Act, the county governing body must give written notice of the authorization of the exemption to:

(a) Each taxing district located in the county; and

(b) The county assessor.

(3) The notice must state that:

(a) The county has authorized the exemption provided under section 2 of this 2001 Act; and

(b) The exemption will apply to the taxes of the local taxing district receiving the notice if that district elects to authorize the exemption under subsection (4) of this section.

(4)(a) A local taxing district that receives a notice described in this section may elect to authorize the exemption within 180 days of the date of the notice.

(b) The governing body of a taxing district makes an election by passing an ordinance or resolution stating that the taxing district is authorizing the exemption.

(c) A taxing district making an election shall mail copies of the ordinance or resolution in which the election is made to the county governing body and to the county assessor within 10 days of the date the election is made.

(5) A county that has authorized exemptions provided under section 2 of this 2001 Act may revoke authorization by repealing the ordinance or resolution described in subsection (1) of this section. Authorization revocation under this subsection does not affect the continued exemption of any rural health care facility that has already qualified for the exemption, but a rural health care facility that has not qualified for an exemption as of the date of revocation may not qualify for an exemption after the date of revocation.

SECTION 4. Sections 2 and 3 of this 2001 Act apply to tax years beginning on or after July 1, 2002.

Approved by the Governor June 27, 2001

Filed in the office of Secretary of State June 27, 2001

Effective date January 1, 2002

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