74th OREGON LEGISLATIVE ASSEMBLY--2007 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 3773
 
                           A-Engrossed
 
                         House Bill 3537
                  Ordered by the Senate June 8
            Including Senate Amendments dated June 8
 
Sponsored by Representatives MERKLEY, WHISNANT; Representatives
  BERGER, BURLEY
 
 
                             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.
 
  Exempts from taxation real and personal property of retail
stores operated to provide funding for nonprofit housing
programs.
  Applies to tax years beginning on or after July 1,
 { - 2008 - }  { +  2007 + }.
  Takes effect on 91st day following adjournment sine die.
 
                        A BILL FOR AN ACT
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. + }
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