72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 1921
A-Engrossed
House Bill 2454
Ordered by the House February 12
Including House Amendments dated February 12
Sponsored by Representative VERGER, Senator MESSERLE;
Representatives BARNHART, GARRARD, HANSEN, JOHNSON, KRIEGER,
KROPF, MARCH, MORGAN, NELSON, ZAUNER, Senator FISHER (at the
request of Coos County Airport District Board)
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.
Expands property tax exemption for airport property owned or
leased by certain local governments to include airport property
owned or leased by airport districts.
Applies to tax years beginning on or after July 1, 2004.
A BILL FOR AN ACT
Relating to taxation; creating new provisions; and amending ORS
307.120.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 307.120 is amended to read:
307.120. (1) Real property owned or leased by any municipality
and real and personal property owned or leased by any dock
commission of any city or by any { + airport district or + }
port organized under the laws of this state is exempt from
taxation to the extent to which such property is:
(a) Leased, subleased, rented or preferentially assigned for
the purpose of the berthing of ships, barges or other watercraft
(exclusive of property leased, subleased, rented or
preferentially assigned primarily for the purpose of the berthing
of floating homes, as defined in ORS 830.700), the discharging,
loading or handling of cargo therefrom or for storage of such
cargo directly incidental to transshipment, or the cleaning or
decontaminating of agricultural commodity cargo, to the extent
the property does not further alter or process an agricultural
commodity;
(b) Held under lease or rental agreement executed for any
purpose prior to July 5, 1947, except that this exemption shall
continue only during the term of the lease or rental agreement in
effect on that date; or
(c) Used as an airport owned by and serving a municipality or
port of less than 300,000 inhabitants as determined by the latest
decennial census. Property owned or leased by the
{ - municipality or port, located within or contiguous to the
airport is 'used as an airport' within the meaning of this
subsection - } { + municipality, airport district or port that
is located within or contiguous to the airport is exempt from
taxation under this subsection + } if the proceeds of the lease,
sublease or rental are used by the municipality { - or - }
{ + , airport district or + } port exclusively for purposes of
the maintenance and operation of the airport.
(2) Those persons having on January 1 of any year a lease,
sublease, rent or preferential assignment or other possessory
interest in property exempt from taxation under subsection (1)(a)
of this section, except dock area property, shall make payments
in lieu of taxes to any school district in which the exempt
property is located as provided in subsection (3) of this
section. The annual payment in lieu of taxes shall be one quarter
of one percent (.0025) of the assessed value of the exempt
property and the payment shall be made to the county treasurer on
or before May 1 of each year.
(3)(a) On or before December 31 preceding any year for which a
lease, sublease, rental or preferential assignment or other
possessory interest in property is to be held, or within 30 days
after acquisition of such an interest, whichever is later, any
person described in subsection (2) of this section shall file
with the county assessor a request for computation of the payment
in lieu of tax for the exempt property in which the person has a
possessory interest. The person shall also provide any
information necessary to complete the computation that may be
requested by the assessor. The request shall be made on a form
prescribed by the Department of Revenue.
(b) On or before April 1 of each assessment year the county
assessor shall compute the in lieu tax for the property subject
to subsection (2) of this section for which a request for
computation has been filed under paragraph (a) of this subsection
and shall notify each person who has filed such a request:
(A) That the person is required to pay the amount in lieu of
taxes to the county treasurer on behalf of the school district;
(B) Of the assessed value of the property subject to the
payment in lieu of taxes; and
(C) Of the amount due, the due date of the payment in lieu of
taxes and of the consequences of late payment or nonpayment.
(c) On or before July 15 of each tax year the county treasurer
shall distribute to the school districts the amounts received for
the respective districts under subsection (2) of this section. If
the exempt property is located in more than one school district,
the amount received shall be apportioned to the school districts
on the basis of the ratio that each school district's permanent
limit on the rate of ad valorem property taxes bears to the total
permanent limit on the rate of ad valorem property taxes
applicable to all of the school districts in which the property
is located.
(4) If a person described in subsection (2) of this section
fails to request a computation or make a payment in lieu of taxes
as provided in this section, the property shall not be exempt for
the tax year but shall be assessed and taxed as other property
similarly situated is assessed and taxed.
(5) Upon granting of a lease, sublease, rental, preferential
assignment or other possessory interest in property described in
subsection (1)(a) of this section, except dock area property, the
municipality, dock commission { + , airport district + } or port
shall provide the county assessor with the name and address of
the lessee, sublessee, renter, preferential assignee or person
granted the possessory interest.
(6)(a) Not later than 15 days prior to the date that a request
is required to be made under subsection (3)(a) of this section,
the municipality, dock commission { + , airport district + } or
port granting a lease, sublease, rental, preferential assignment
or other possessory interest in its exempt property for which in
lieu tax payments are imposed under subsection (2) of this
section, shall notify the person granted the interest:
(A) Of the obligation to file with the county assessor a
request for appraisal and computation of in lieu tax no later
than December 31 or within 30 days after the interest is granted,
whichever is later.
(B) Of the obligation to pay the in lieu tax, in the amount of
one-quarter of one percent (.0025) of the assessed value of the
exempt property held, to the county treasurer before May 1
following the date of the request.
(C) That, if the request is not made within the time
prescribed, or if the in lieu tax is not paid, or both, that the
property shall not be exempt from taxation but shall be assessed
and taxed in the same manner as other property similarly situated
is assessed and taxed.
(b) Failure of a municipality, dock commission { + , airport
district + } or port to give the notice as prescribed under this
subsection { - shall - } { + does + } not relieve any person
from the requirements of this section.
(7) As used in this section:
(a) 'Dock' means a structure extended from the shore or area
adjacent to deep water for the purpose of permitting the mooring
of ships, barges or other watercraft.
(b) 'Dock area' means that part of the dock situated
immediately adjacent to the mooring berth of ships, barges or
other watercraft which is used primarily for the loading and
unloading of waterborne cargo, but which shall not encompass any
area other than that area from which cargo is hoisted or moved
aboard a vessel, or to which cargo is set down when unloaded from
a vessel when utilizing shipboard or dockside machinery.
(c) 'Dock area property' means all real property situated in
the dock area, and includes all structures, machinery or
equipment affixed to that property.
(d) 'School district' means a common or union high school
district, but does not include a county education bond district,
an education service district, a community college service
district or a community college district.
SECTION 2. { + The amendments to ORS 307.120 by section 1 of
this 2003 Act apply to tax years beginning on or after July 1,
2004. + }
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