74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
HA to SB 653
 
LC 2005/SB 653-5
 
                       HOUSE AMENDMENTS TO
                         SENATE BILL 653
 
                     By COMMITTEE ON REVENUE
 
                             June 7
 
  On page 1 of the printed bill, line 2, after the semicolon
delete the rest of the line and insert 'creating new provisions;
amending ORS 307.112; and prescribing an effective date.'.
  Delete lines 4 through 31 and delete page 2 and insert:
  '  { +  SECTION 1. + } ORS 307.112 is amended to read:
  ' 307.112. (1) Real or personal property of a taxable owner
held under lease { + , sublease + } or lease-purchase agreement
by an institution, organization or public body, other than the
State of Oregon, granted exemption or the right to claim
exemption for any of its property under ORS 307.090, 307.130,
307.136, 307.140, 307.145 or 307.147, is exempt from taxation if:
  ' (a) The property is used by the lessee { +  or, if the lessee
is not in possession of the property, the entity in possession of
the property + } in the manner, if any, required by law for the
exemption of property owned { + , leased, subleased + } or being
purchased by it; and
  ' (b) It is expressly agreed within the lease { + ,
sublease + } or lease-purchase agreement that the rent payable by
the institution, organization or public body has been established
to reflect the savings below market rent resulting from the
exemption from taxation.
  ' (2) The lessee  { + or, if the lessee is not in possession of
the property, the entity in possession of the property + } shall
file a claim for exemption with the county assessor, verified by
the oath or affirmation of the president or other proper officer
of the institution or organization, or head official of the
public body or legally authorized delegate, showing:
  ' (a) A complete description of the property for which
exemption is claimed.
  ' (b) If applicable, all facts relating to the use of the
property by the lessee { +  or, if the lessee is not in
possession of the property, all facts relating to the use of the
property by the entity in possession of the property + }.
  ' (c) A true copy of the lease { + , sublease + } or
lease-purchase agreement covering the property for which
exemption is claimed.
  ' (d) Any other information required by the claim form.
  ' (3) If the assessor is not satisfied that the rent stated in
the lease { + , sublease + } or lease-purchase agreement has been
established to reflect the savings below market rent resulting
from the tax exemption, before the exemption may be granted the
lessor shall provide documentary proof, as specified by rule of
the Department of Revenue, that the rent has been established to
reflect the savings below market rent resulting from the tax
exemption.
  ' (4)(a) The claim shall be filed on or before April 1, except
as follows:
  ' (A) If the lease { + , sublease + } or lease-purchase
agreement is entered into after March 1 but not later than June
30, the claim shall be filed within 30 days after the date the
lease { + , sublease + } or lease-purchase agreement is entered
into if exemption is claimed for that year; or
  ' (B) Notwithstanding that no hardship grounds exist, if a late
filing fee is determined, paid and distributed in the manner
provided in ORS 307.162 (2), the claim shall be filed on or
before December 31 of the tax year for which exemption is first
claimed.
  ' (b) The exemption first shall apply for the tax year
beginning July 1 of the year for which the claim is filed. The
exemption shall continue so long as the use of the property
remains unchanged and during the period of the lease { + ,
sublease + } or lease-purchase agreement. If the use changes, a
new   { - application - }  { + claim + } shall be filed as
provided in this section.  { + If the use changes due to sublease
of the property or any portion of the property from the tax
exempt entity described in subsection (1) of this section to
another tax exempt entity, the entity in possession of the
property shall file a new claim for exemption as provided in this
section. + } If the lease { + , sublease + } or lease-purchase
agreement expires before July 1 of any year, the exemption shall
terminate as of January 1 of the same calendar year.
  '  { +  SECTION 2. + }  { + The amendments to ORS 307.112 by
section 1 of this 2007 Act apply to tax years beginning on or
after July 1, 2007. + }
  '  { +  SECTION 3. + }  { + (1) Notwithstanding the time
periods set forth in ORS 307.112, for the tax year beginning July
1, 2007, a sublessee qualifying for exemption from property
taxation under ORS 307.112 may file a claim in writing with the
county assessor, on forms supplied by the assessor, by December
31 next following the effective date of this 2007 Act.
  ' (2) If taxes on the exempt value have been paid, the taxes
shall be refunded in the manner prescribed in subsection (3) of
this section. If taxes on the exempt value have not been paid,
the taxes and any interest thereon shall be abated.
  ' (3) The tax collector shall notify the governing body of the
county of any refund required under this section. Upon receipt of
notice from the tax collector, the governing body shall cause a
refund of the taxes and any interest paid to be made from the
unsegregated tax collections account described in ORS 311.385.
The refund under this subsection shall be made without interest.
The county assessor and tax collector shall make the necessary
corrections in the records of their offices. + }
  '  { +  SECTION 4. + }  { + 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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