Chapter 694
AN ACT
HB 3537
Relating to taxation of nonprofit corporation retail stores operating
for the purpose of funding low-cost housing programs; creating new provisions;
amending ORS 307.130; and prescribing an effective date.
Be It Enacted by the People of
the State of Oregon:
SECTION 1.
ORS 307.130 is amended to read:
307.130. (1) Upon
compliance with ORS 307.162, the following property owned or being purchased by
art museums, volunteer fire departments, or incorporated literary, benevolent,
charitable and scientific institutions shall be exempt from taxation:
(a) Except as provided
in ORS 748.414, only such real or personal property, or proportion thereof, as
is actually and exclusively occupied or used in the literary, benevolent,
charitable or scientific work carried on by such institutions.
(b) Parking lots used
for parking or any other use as long as that parking or other use is permitted
without charge for no fewer than 355 days during the tax year.
(c) All real or personal
property of a rehabilitation facility or any retail outlet thereof, including
inventory. As used in this subsection, “rehabilitation facility” means either
those facilities defined in ORS 344.710 or facilities which provide physically,
mentally or emotionally disabled individuals with occupational rehabilitation
activities of an educational or therapeutic nature, even if remuneration is
received by the individual.
(d) All real and
personal property of a retail store dealing exclusively in donated inventory,
where the inventory is distributed without cost as part of a welfare program or
where the proceeds of the sale of any inventory sold to the general public are
used to support a welfare program. As used in this subsection, “welfare program”
means the providing of food, shelter, clothing or health care, including dental
service, to needy persons without charge.
(e) All real and
personal property of a retail store if:
(A) The retail store
deals primarily and on a regular basis in donated and consigned inventory;
(B) The individuals who
operate the retail store are all individuals who work as volunteers; and
(C) The inventory is
either distributed without charge as part of a welfare program, or sold to the
general public and the sales proceeds used exclusively to support a welfare
program. As used in this paragraph, “primarily” means at least one-half of the
inventory.
(f) The real and
personal property of an art museum that is used in conjunction with the public
display of works of art or used to educate the public about art, but not
including any portion of the art museum’s real or personal property that is
used to sell, or hold out for sale, works of art, reproductions of works of art
or other items to be sold to the public.
(g) All real and personal
property of a volunteer fire department that is used in conjunction with
services and activities for providing fire protection to all residents within a
fire response area.
(h) All real and
personal property, including inventory, of a retail store owned by a nonprofit
corporation if:
(A) The retail store
deals exclusively in donated inventory; and
(B) Proceeds of the
retail store sales are used to support a not-for-profit housing program whose
purpose is to:
(i) Acquire property and
construct housing for resale to individuals at or below the cost of acquisition
and construction; and
(ii) Provide loans
bearing no interest to individuals purchasing housing through the program.
(2) An art museum or
institution shall not be deprived of an exemption under this section solely
because its primary source of funding is from one or more governmental
entities.
(3) An institution shall
not be deprived of an exemption under this section because its purpose or the
use of its property is not limited to relieving pain, alleviating disease or
removing constraints.
(4) As used in this
section:
(a) “Art museum” means a
nonprofit corporation organized to display works of art to the public.
(b) “Internal Revenue
Code” means the federal Internal Revenue Code as amended and in effect on
December 31, 2004.
(c) “Nonprofit
corporation” means a corporation that:
(A) Is organized not for
profit, pursuant to ORS chapter 65 or any predecessor of ORS chapter 65; or
(B) Is organized and
operated as described under section 501(c) of the Internal Revenue Code.
(d) “Volunteer fire
department” means a nonprofit corporation organized to provide fire protection
services in a specific response area.
SECTION 2. The
amendments to ORS 307.130 by section 1 of this 2007 Act apply to tax years
beginning on or after July 1, 2007.
SECTION 3. This
2007 Act takes effect on the 91st day after the date on which the regular
session of the Seventy-fourth Legislative Assembly adjourns sine die.
Approved by the Governor June 27, 2007
Filed in the office of Secretary of State June 27, 2007
Effective date September 27, 2007
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