74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
Enrolled
Senate Bill 653
Sponsored by Senator WALKER
CHAPTER ................
AN ACT
Relating to tax exemption for property subleased by tax-exempt
entities; creating new provisions; amending ORS 307.112; and
prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
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
Enrolled Senate Bill 653 (SB 653-A) Page 1
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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Enrolled Senate Bill 653 (SB 653-A) Page 2
Passed by Senate April 12, 2007
Repassed by Senate June 15, 2007
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House June 13, 2007
...........................................................
Speaker of House
Enrolled Senate Bill 653 (SB 653-A) Page 3
Received by Governor:
......M.,............., 2007
Approved:
......M.,............., 2007
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2007
...........................................................
Secretary of State
Enrolled Senate Bill 653 (SB 653-A) Page 4