75th OREGON LEGISLATIVE ASSEMBLY--2009 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 1047
                     (To Resolve Conflicts)
 
                           B-Engrossed
 
                         House Bill 2700
                  Ordered by the Senate June 4
 Including House Amendments dated April 29 and Senate Amendments
                dated June 4 to resolve conflicts
 
Sponsored by Representative BERGER
 
 
                             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.
 
  Extends deadline for claiming property tax exemption by certain
public and other exempt entities.
  Applies to claims for exemption for tax years beginning on or
after July 1, 2009.
  Takes effect on 91st day following adjournment sine die.
 
                        A BILL FOR AN ACT
Relating to claims for property tax exemption; creating new
  provisions; amending ORS 307.112, 307.162 and 307.166; 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)  { + To obtain the exemption under this section, + } the
lessee or, if the lessee is not in possession of the property,
the entity in possession of the property   { - shall - }
 { + must + } 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 - }   { + must + } 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 - }  { +  must + } be filed on or
before April 1  { +  preceding the tax year for which the
exemption is claimed + }, 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 - }  { +  must + } 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 - }   { + paid + } in the manner provided in ORS
307.162 (2),  { + as applicable and notwithstanding the
limitation of scope in ORS 307.162 (1), + } the claim
 { - shall - }   { + may + } be filed on or before December 31 of
the tax year for which exemption is first claimed.
  (b) The exemption first   { - shall apply - }   { + applies + }
for the tax year beginning July 1 of the year for which the claim
is filed.  The exemption   { - shall continue so - }
 { + continues as + } 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 claim
 { - shall - }   { + must + } 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 - }
 { + must + } 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 - }   { + terminates + } as of January 1 of the same
calendar year.
  SECTION 2. ORS 307.162 is amended to read:
  307.162. (1) Before any real or personal property may be
exempted from taxation under ORS 307.115, 307.118, 307.130 to
307.140, 307.145, 307.147, 307.150, 307.160 or 307.580 for any
tax year, the institution or organization   { - claiming - }
 { + entitled to claim + } the exemption   { - shall - }
 { + must + } file  { + a claim + } with the county assessor, on
or before April 1   { - of the assessment year, a statement - }
 { +  preceding the tax year for which the exemption is claimed.
The claim must contain statements + } verified by the oath or
affirmation of the president or other proper officer of the
institution or organization, listing all real or personal
property claimed to be exempt and showing the purpose for which
such property is used.  However:
  (a) If the ownership of all property included in the
 
 
  { - statement - }   { + claim + } filed with the county
assessor for a prior year remains unchanged, a new
 { - statement shall not be - }   { + claim is not + } required.
  (b) When the property designated in the claim for exemption is
acquired after March 1 and before July 1, the claim for that year
 { - shall - }   { + must + } be filed within 30 days from the
date of acquisition of the property.
    { - (c) As used in this subsection, 'ownership' means legal
and equitable title. - }
  (2) { + (a) + } Notwithstanding subsection (1) of this section,
a
  { - statement - }   { + claim + } may be filed under this
section   { - on or before December 31 of the assessment year for
which exemption is first desired. However, any statement filed
after the time for filing the statement specified in subsection
(1) of this section must be - }  { + :
  (A) On or before December 31 of the tax year for which the
exemption is claimed, if the claim is  + }accompanied by a late
filing fee of the greater of $200, or one-tenth of one percent of
the real market value { +  as of the most recent assessment
date + } of the property to which the   { - statement pertains,
as determined for the assessment year by the assessor for this
purpose - }  { +  claim pertains + }.
   { +  (B) On or before April 1 of the tax year for which the
exemption is claimed, if the claim is accompanied by a late
filing fee of $200 and the claimant demonstrates good and
sufficient cause for failing to file a timely claim, is a
first-time filer or is a public entity described in ORS 307.090.
  (b) + } If the   { - statement - }   { + claim + } is not
accompanied by the late filing fee or if the late filing fee is
not otherwise paid,   { - no exemption shall - }  { +  an
exemption may not  + }be allowed for the tax year
  { - based upon a statement - }   { + sought by the claim + }
filed pursuant to this subsection. A   { - statement - }
 { + claim + } may be filed under this
  { - section - }   { + subsection + } notwithstanding that there
are no grounds for hardship as required for late filing under ORS
307.475.
   { +  (c) + } The value of the property used to determine the
late filing fee under this   { - section is - }  { +  subsection
and the determination of the county assessor relative to a claim
of good and sufficient cause are + } appealable in the same
manner as other acts of the county assessor.
   { +  (d) + }   { - Any - }   { + A + } filing fee collected
under this   { - section shall - }  { + subsection must + } be
deposited   { - to - }   { + in + } the county general fund.
   { +  (3) As used in this section:
  (a) 'First-time filer' means a claimant that:
  (A) Has never filed a claim for the property that is the
subject of the current claim; and
  (B) Did not receive notice from the county assessor on or
before December 1 of the tax year for which exemption is claimed
regarding the potential property tax liability of the property.
  (b)(A) 'Good and sufficient cause' means an extraordinary
circumstance beyond the control of the taxpayer or the taxpayer's
agent or representative that causes the failure to file a timely
claim.
  (B) 'Good and sufficient cause' does not include hardship,
reliance on misleading information unless the information is
provided by an authorized tax official in the course of the
official's duties, lack of knowledge, oversight or inadvertence.
  (c) 'Ownership' means legal and equitable title. + }
    { - (3)(a) - }   { + (4)(a) + } Notwithstanding subsection
(1) of this section, if an institution or organization owns
property that is exempt from taxation under a provision of law
 
listed in subsection (1) of this section and fails to
 { - make - }   { + file + } a timely
  { - application - }   { + claim + } for exemption under
subsection (1) of this section for additions or improvements to
the exempt property, the additions or improvements may
nevertheless qualify for exemption.
  (b) The organization must file   { - an application - }   { + a
claim for exemption + } with the county assessor to have the
additions or improvements to the exempt property be exempt from
taxation. The
  { - application shall - }  { +  claim must + }:
  (A) Describe the additions or improvements to the exempt
property;
  (B) Describe the current use of the property that is the
subject of the application;
  (C) Identify the tax year and any preceding tax years for which
the exemption is sought;
  (D) Contain any other information required by the Department of
Revenue; and
  (E) Be accompanied by a late filing fee equal to the product of
the number of tax years for which exemption is sought multiplied
by the greater of $200 or one-tenth of one percent of the real
market value  { - , - }  as of the most recent assessment date
 { - , - } of the property that is the subject of the
 { - application - }  { +  claim + }.
  (c) Upon the county assessor's receipt of a completed
  { - application - }   { + claim + } and late filing fee, the
assessor shall determine   { - if the property that is the
subject of the application, - }  for each tax year for which
exemption is sought  { - , - }  { +  whether the additions or
improvements that are the subject of the claim + } would have
qualified for exemption had a timely   { - statement - }
 { + claim + } been filed under subsection (1) of this section.
Any property that would have qualified for exemption had a timely
  { - statement - }   { + claim been filed + } under subsection
(1) of this section
  { - been filed shall be - }   { + is + } exempt from taxation
for each tax year for which the property would have   { - so - }
qualified.
  (d)   { - An application - }   { + A claim + } for exemption
under this subsection may be filed only for tax years for which
the time for filing a   { - statement - }   { + claim + } under
subsections (1) and (2) of this section has expired.   { - An
application - }   { + A claim + } filed under this subsection,
however, may serve as the   { - statement - }   { + claim + }
required under subsection (1) of this section for the current
 { - assessment - }  { +  tax + } year.
  (e) For each tax year for which an exemption granted pursuant
to this subsection applies:
  (A) Any tax, or interest attributable thereto, that was paid
with respect to the property that is declared exempt from
taxation  { - , shall - }   { + must + } be refunded. Refunds
 { - shall - }   { + must + } be made from the unsegregated tax
collections account established under ORS 311.385.
  (B) Any tax, or interest attributable thereto, that remains
unpaid as of the date the exemption is granted  { - , shall - }
 { + must + } be abated.
  (f) A late filing fee collected under this subsection
 { - shall - }  { +  must + } be deposited in the county general
fund.
    { - (4) - }  { +  (5) + } If an institution or organization
owns property that is exempt from taxation under a provision of
law listed in subsection (1) of this section and changes the use
of the property to a use that would not entitle the property to
exemption from taxation, the institution or organization
 { - shall - }   { + must + } notify the county assessor of the
change to a taxable use within 30 days   { - of the change in
use - } .
  SECTION 2a.  { + If Senate Bill 594 becomes law, section 2 of
this 2009 Act (amending ORS 307.162) is repealed and ORS 307.162,
as amended by section 3, chapter ___, Oregon Laws 2009 (Enrolled
Senate Bill 594), is amended to read: + }
  307.162. (1)(a) Before any real or personal property may be
exempted from taxation under ORS 307.115, 307.118, 307.130 to
307.140, 307.145, 307.147, 307.150, 307.160 or 307.580 for any
tax year, the institution or organization   { - claiming - }
 { + entitled to claim + } the exemption   { - shall - }
 { + must + } file  { + a claim + } with the county assessor, on
or before April 1   { - of the assessment year, a statement - }
 { +  preceding the tax year for which the exemption is claimed.
The claim must contain statements + }, verified by the oath or
affirmation of the president or other proper officer of the
institution or organization, that:
  (A)   { - Lists - }   { + List + } all real property claimed to
be exempt and
  { - shows - }   { + show + } the purpose for which the real
property is used; and
  (B)   { - Cites - }   { + Cite + } the statutes under which
exemption for personal property is claimed.
  (b) If the ownership of all property included in the
  { - statement - }   { + claim + } filed with the county
assessor for a prior year remains unchanged, a new
 { - statement shall not be - }   { + claim is not + } required.
  (c) When the property designated in the claim for exemption is
acquired after March 1 and before July 1, the claim for that year
 { - shall - }   { + must + } be filed within 30 days from the
date of acquisition of the property.
    { - (d) For purposes of this subsection, 'ownership' means
legal and equitable title. - }
  (2) { + (a) + } Notwithstanding subsection (1) of this section,
a
  { - statement - }   { + claim + } may be filed under this
section   { - on or before December 31 of the assessment year for
which exemption is first desired. However, any statement filed
after the time for filing the statement specified in subsection
(1) of this section must be - }  { + :
  (A) On or before December 31 of the tax year for which the
exemption is claimed, if the claim is  + }accompanied by a late
filing fee of the greater of $200, or one-tenth of one percent of
the real market value { +  as of the most recent assessment
date + } of the property to which the   { - statement pertains,
as determined for the assessment year by the assessor for this
purpose - }  { +  claim pertains + }.
   { +  (B) On or before April 1 of the tax year for which the
exemption is claimed, if the claim is accompanied by a late
filing fee of $200 and the claimant demonstrates good and
sufficient cause for failing to file a timely claim, is a
first-time filer or is a public entity described in ORS 307.090.
  (b) + } If the   { - statement - }   { + claim + } is not
accompanied by the late filing fee or if the late filing fee is
not otherwise paid,   { - no exemption shall - }  { +  an
exemption may not  + }be allowed for the tax year
  { - based upon a statement - }   { + sought by the claim + }
filed pursuant to this subsection. A   { - statement - }
 { + claim + } may be filed under this
  { - section - }   { + subsection + } notwithstanding that there
are no grounds for hardship as required for late filing under ORS
307.475.
   { +  (c) + } The value of the property used to determine the
late filing fee under this   { - section is - }  { +  subsection
and the determination of the county assessor relative to a claim
 
of good and sufficient cause are + } appealable in the same
manner as other acts of the county assessor.
   { +  (d) + }   { - Any - }   { + A + } filing fee collected
under this   { - section shall - }  { + subsection must + } be
deposited   { - to - }   { + in + } the county general fund.
   { +  (3) As used in this section:
  (a) 'First-time filer' means a claimant that:
  (A) Has never filed a claim for the property that is the
subject of the current claim; and
  (B) Did not receive notice from the county assessor on or
before December 1 of the tax year for which exemption is claimed
regarding the potential property tax liability of the property.
  (b)(A) 'Good and sufficient cause' means an extraordinary
circumstance beyond the control of the taxpayer or the taxpayer's
agent or representative that causes the failure to file a timely
claim.
  (B) 'Good and sufficient cause' does not include hardship,
reliance on misleading information unless the information is
provided by an authorized tax official in the course of the
official's duties, lack of knowledge, oversight or inadvertence.
  (c) 'Ownership' means legal and equitable title. + }
    { - (3)(a) - }   { + (4)(a) + } Notwithstanding subsection
(1) of this section, if an institution or organization owns
property that is exempt from taxation under a provision of law
listed in subsection (1) of this section and fails to
 { - make - }   { + file + } a timely
  { - application - }   { + claim + } for exemption under
subsection (1) of this section for additions or improvements to
the exempt property, the additions or improvements may
nevertheless qualify for exemption.
  (b) The organization must file   { - an application - }   { + a
claim for exemption + } with the county assessor to have the
additions or improvements to the exempt property be exempt from
taxation. The
  { - application shall - }  { +  claim must + }:
  (A) Describe the additions or improvements to the exempt
property;
  (B) Describe the current use of the property that is the
subject of the application;
  (C) Identify the tax year and any preceding tax years for which
the exemption is sought;
  (D) Contain any other information required by the Department of
Revenue; and
  (E) Be accompanied by a late filing fee equal to the product of
the number of tax years for which exemption is sought multiplied
by the greater of $200 or one-tenth of one percent of the real
market value  { - , - }  as of the most recent assessment date
 { - , - } of the property that is the subject of the
 { - application - }  { +  claim + }.
  (c) Upon the county assessor's receipt of a completed
  { - application - }   { + claim + } and late filing fee, the
assessor shall determine   { - if the property that is the
subject of the application, - }  for each tax year for which
exemption is sought  { - , - }  { +  whether the additions or
improvements that are the subject of the claim + } would have
qualified for exemption had a timely   { - statement - }
 { + claim + } been filed under subsection (1) of this section.
Any property that would have qualified for exemption had a timely
  { - statement - }   { + claim been filed + } under subsection
(1) of this section
  { - been filed shall be - }   { + is + } exempt from taxation
for each tax year for which the property would have   { - so - }
qualified.
  (d)   { - An application - }   { + A claim + } for exemption
under this subsection may be filed only for tax years for which
the time for filing a   { - statement - }   { + claim + } under
subsections (1) and (2) of this section has expired.   { - An
application - }   { + A claim + } filed under this subsection,
however, may serve as the   { - statement - }   { + claim + }
required under subsection (1) of this section for the current
 { - assessment - }  { +  tax + } year.
  (e) For each tax year for which an exemption granted pursuant
to this subsection applies:
  (A) Any tax, or interest attributable thereto, that was paid
with respect to the property that is declared exempt from
taxation  { - , shall - }   { + must + } be refunded. Refunds
 { - shall - }   { + must + } be made from the unsegregated tax
collections account established under ORS 311.385.
  (B) Any tax, or interest attributable thereto, that remains
unpaid as of the date the exemption is granted  { - , shall - }
 { + must + } be abated.
  (f) A late filing fee collected under this subsection
 { - shall - }  { +  must + } be deposited in the county general
fund.
    { - (4) - }  { +  (5) + } If an institution or organization
owns property that is exempt from taxation under a provision of
law listed in subsection (1) of this section and changes the use
of the property to a use that would not entitle the property to
exemption from taxation, the institution or organization
 { - shall - }   { + must + } notify the county assessor of the
change to a taxable use within 30 days   { - of the change in
use - } .
  SECTION 3. ORS 307.166 is amended to read:
  307.166. (1) If property is owned or being purchased by an
institution, organization or public body  { - , and if the
institution, organization or public body is one - }   { + that
is + } granted exemption or the right to claim exemption for any
of its property under a provision of law contained in this
chapter, and   { - such - }  { +  the + } institution,
organization or public body leases or otherwise grants the use
and possession of   { - such - }   { + the + } property to
another institution, organization or public body  { + that is + }
likewise granted exemption or the right to claim exemption for
 { - any of its - } property under a provision of law contained
in this chapter,
  { - such - }  { +  the + } property is exempt from taxation if
used by the lessee or possessor in the manner, if any, required
by law for the exemption of property owned or being purchased by
the lessee or possessor and the rent payable under the lease or
other grant of use and possession of the property has been
established to reflect the savings below market rent resulting
from the exemption from taxation. Likewise, if the property is
sublet or otherwise the use and possession of the property is
granted to another institution, organization or public body of
the kind described in this subsection,   { - such - }
 { + the + } property is exempt if   { - the property is - } used
by the sublessee or possessor in the manner, if any, required by
law for the exemption of property owned or being purchased by the
sublessee or possessor and the rent payable under the sublease or
other grant of use and possession of the property has been
established to reflect the savings below market rent resulting
from the exemption from taxation.
  (2)  { + To obtain the exemption under this section, + } the
lessee or entity in possession   { - shall - }   { + must + }
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 the legally authorized delegate of the head
official, showing:
  (a) A complete description of the property for which exemption
is claimed.
 
  (b) All facts relating to the ownership or purchase of the
property.
  (c) All facts relating to the use of the property by the lessee
or entity in possession.
  (d) A true copy of the lease { + , sublease + } or other
 { - agreement - }  { +  grant of use and possession + } covering
the property for which exemption is claimed.
  (e) Any other information required by the claim form.
  (3)(a) The claim   { - shall - }  { +  must + } be filed on or
before April 1  { +  preceding the tax year for which the
exemption is claimed + }, except
  { - as follows - } :
  (A) If the lease { + , sublease + } or other
 { - agreement - }  { +  grant of use and possession + } is
entered into after March 1 but not later than June 30, the claim
 { - shall - }   { + must + } be filed within 30 days after the
date the lease { + , sublease + } or  { + other + }
 { - agreement - }  { +  grant of use and possession + } is
entered into if  { + the + } exemption is claimed for the
assessment year beginning on   { - that - }   { + the
preceding + } January 1; or
  (B)   { - Notwithstanding that no hardship grounds exist, - }
If a late filing fee is   { - determined, paid and
distributed - }   { + paid + } in the manner provided in ORS
307.162 (2),  { + as applicable and notwithstanding the
limitation of scope in ORS 307.162 (1),  + }the claim
 { - shall - }   { + may + } be filed on or before December 31 of
the assessment year for which exemption is first claimed.
  (b) The exemption first   { - shall apply - }   { + applies + }
for the tax year beginning July 1 of the year for which the claim
is filed.  The exemption   { - shall continue so - }
 { + continues as + } long as the ownership and use of the
property remain unchanged and during the period of the lease
 { - or agreement - }  { + , sublease or other grant of use and
possession + }. If either the ownership or use changes, a new
claim   { - shall - }   { + must + } be filed as provided in this
section. If the lease   { - or agreement - }  { + , sublease or
other grant of use and possession + } expires before July 1 of
any year, the exemption   { - shall terminate - }
 { + terminates + } as of January 1 of the same  { + calendar + }
year.
  SECTION 4.  { + The amendments to ORS 307.112, 307.162 and
307.166 by sections 1 to 3 of this 2009 Act apply to tax years
beginning on or after July 1, 2009. + }
  SECTION 5.  { + This 2009 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-fifth
Legislative Assembly adjourns sine die. + }
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