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 712
Senate Bill 192
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor Theodore R.
Kulongoski for State Parks and Recreation Department)
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 as
introduced.
Creates historic property partial tax exemption. Requires
property owners applying for historic property partial tax
exemptions to submit and implement historic preservation plan for
participating property. Establishes initial 15-year period of
partial tax exemption after which property owners continue to
receive partial tax exemption at lower percentage. Authorizes
recertification for second period of partial tax exemption.
Permits application for participation in historic property
partial tax exemption until July 1, 2025.
Restricts second 15-year term of historic property special
assessment to commercial historic properties and to residential
historic properties located in areas where governing body has
authorized second term for residential property. Reduces
application fee for participation in historic property special
assessment program.
Creates indeterminate period partial tax exemption for historic
properties that have completed at least one 15-year period
partial tax exemption.
Extends existing historic property special assessment program
to July 1, 2025.
A BILL FOR AN ACT
Relating to historic property tax incentives; creating new
provisions; amending ORS 93.040, 358.480, 358.482, 358.487,
358.499, 358.515, 358.525, 358.540, 358.541 and 358.545; and
prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + As used in sections 1 to 9 of this 2009 Act:
(1) 'Certified historic property' means historic property that
has been approved by the State Historic Preservation Officer for
participation in the historic property partial tax exemption
program.
(2) 'Commercial historic property' means real property used in
a trade or business or real property held for the production of
income, including multifamily residential rental property.
(3) 'Contributing resource' means a building, site or structure
that adds to the historic significance of a historic property or
historic district.
(4) 'Decertification' means disqualification, for ad valorem
property tax purposes.
(5) 'Governing body' means the city or county legislative body
having jurisdiction over the property that is subject of an
application for historic property tax reduction under sections 1
to 9 of this 2009 Act.
(6) 'Historic property' means real property that:
(a) Is currently listed, either individually or as a
contributing resource, in the National Register of Historic
Places established and maintained under the National Historic
Preservation Act of 1966 (P.L. 89-665) or, if the National
Register of Historic Places ceases accepting nominations, that is
approved for listing on an Oregon register of historic places;
(b) Is currently a noncontributing resource in a listed
National Register of Historic Places district or property that
the State Historic Preservation Officer has determined will be
eligible to become a contributing resource; or
(c) Has been determined to be eligible for listing in the
National Register of Historic Places by the State Historic
Preservation Officer.
(7) 'Historic treatment standards' means the United States
Secretary of the Interior's Standards for the Treatment of
Historic Properties as in effect on the effective date of this
2009 Act.
(8) 'Maintenance' means action taken to mitigate wear and
deterioration of a historic property without altering the
historic character of the property, including action taken to
protect and repair the condition of the property with the least
possible impact on the historic character of the property.
(9) 'Noncontributing resource' means a building, site or
structure that does not add to the historic significance of a
historic property or historic district.
(10) 'Owner' means a purchaser of real property under a
recorded instrument of sale. In the case of multiple purchasers,
' owner' may be the designee of the multiple purchasers.
(11) 'Preservation':
(a) Means the act or process of applying measures necessary to
sustain the existing form, integrity and materials of a historic
property, including but not limited to the ongoing maintenance
and repair of historic materials.
(b) Does not include the extensive replacement of historic
materials.
(12) 'Preservation plan' means a written document that outlines
the maintenance, preservation and rehabilitation work to be
undertaken while the property is receiving historic property
partial tax exemption.
(13) 'Rehabilitation' means the process of repairing or
altering a historic property in order to return the property to a
state of utility in which an efficient contemporary use is
possible, while preserving those portions and features of the
property that are significant to the historic, architectural and
cultural values of the property.
(14) 'Seismic improvement' means construction or other measures
that improve the seismic performance or structural stability of
property, or that reduce the potential for heavy structural
damage to property in the event of an earthquake. + }
SECTION 2. { + (1) An owner of historic property desiring
historic property partial tax exemption under sections 1 to 9 of
this 2009 Act shall apply for certification of the property to
the State Historic Preservation Officer on forms approved by the
State Historic Preservation Officer. The application must
include:
(a) A preservation plan;
(b) Payment of a nonrefundable application fee equal to
one-tenth of one percent of the assessed value of the historic
property at the time of application;
(c) A copy of the current tax assessment statement for the
historic property;
(d) Written consent of the owner to the inspection of the
property by the State Historic Preservation Officer or designee
of the State Historic Preservation Officer; and
(e) The signature of the owner.
(2) A preservation plan included in an application made under
this section:
(a) Shall focus on exterior features of the historic property,
especially those visible from the public way, and structural
members;
(b) May include treatment of interior features that the State
Historic Preservation Officer has determined are historically
significant;
(c) May include photographs and drawings; and
(d) Need not include planned work in bathrooms, kitchens,
basements and attics, unless specifically required by the State
Historic Preservation Officer.
(3) An application made under this section must be made during
the calendar year preceding the first property tax year for which
historic property partial tax exemption is desired.
(4)(a) The State Historic Preservation Officer shall conduct an
initial review of an application made under this section to
determine whether the application meets the application
requirements of this section.
(b) Upon initial review of the application, if the State
Historic Preservation Officer determines that an application:
(A) Meets the application requirements of this section, the
State Historic Preservation Officer shall mail or deliver notice
of the application to the county assessor and the governing body.
The notice must include a copy of the application. The county
assessor and governing body may submit comments on the validity
and appropriateness of the application to the State Historic
Preservation Officer at any time within 30 days from the date the
notice is mailed or delivered. The State Historic Preservation
Officer shall consider comments of the county assessor and
governing body in making a determination under paragraph (c) of
this subsection.
(B) Fails to meet the application requirements of this section,
the State Historic Preservation Officer shall notify the owner
that the application has been rejected.
(c) On or after the 31st day after the notice is mailed or
delivered to the assessor and the governing body under paragraph
(b)(A) of this subsection, the State Historic Preservation
Officer shall approve, approve with conditions or deny the
application for certification.
(5) A property may be approved for certification if the State
Historic Preservation Officer determines that:
(a) All work proposed in the preservation plan meets historic
treatment standards; and
(b) The property is a historic property. The State Historic
Preservation Officer may approve a noncontributing resource as a
historic property if the State Historic Preservation Officer
determines that:
(A) The property will be eligible to become a contributing
resource as a result of the work outlined in the preservation
plan; or
(B) The property is eligible for listing in the National
Register of Historic Places.
(6) State Historic Preservation Officer approval of the
application under subsection (4)(c) of this section constitutes
certification for the historic property partial tax exemption.
(7) The State Historic Preservation Officer may not deny the
application under subsection (4)(c) of this section solely
because of the loss of revenue that may result from approval of
the application.
(8) If the State Historic Preservation Officer denies an
application under subsection (4)(c) of this section, the State
Historic Preservation Officer shall give written notice of the
denial to the owner. The notice shall state the reasons for
denial.
(9) A historic property is not eligible for certification under
this section if the property has completed a 15-year period of
historic property partial tax exemption described in section 5 of
this 2009 Act. + }
SECTION 3. { + (1) Immediately upon certification of a
property under section 2 of this 2009 Act, the State Historic
Preservation Officer shall:
(a) Record a notice with the county clerk in the county in
which the certified historic property is located stating that the
property is certified to receive historic property partial tax
exemption.
(b) Notify the Department of Revenue, the county assessor, the
governing body and the owner that the property is certified.
Notice shall be given under this paragraph no later than
September 15 of the tax year for which the property is first
certified for historic property partial tax exemption.
(c) Provide the owner of the certified historic property with a
plaque that includes the historic name of the property, the date
of construction and language that identifies the property as a
certified historic property.
(d) Deposit the application fee into the Oregon Property
Management Account established in ORS 358.690. Application fee
revenue deposited under this section into the Oregon Property
Management Account shall be used to:
(A) Support programs and projects that benefit historic
preservation efforts throughout the state; and
(B) Pay costs of the State Historic Preservation Officer
associated with the administration of sections 1 to 9 of this
2009 Act, including, but not limited to, the purchase of plaques
and the payment of fees for recording notices of participation.
(2) The owner of certified historic property shall install the
plaque furnished under this section on the property in a location
that is visible from a public right of way. + }
SECTION 4. { + (1) Before commencing work on any activities
described in the preservation plan submitted under section 2 of
this 2009 Act, or before commencing work that may affect historic
features of the property, owners of certified historic property
shall apply for and must receive written approval for the work.
(2) Application under this section shall be made to the State
Historic Preservation Officer or to the governing body if all of
the following conditions are met:
(a) The governing body has adopted a historic preservation
ordinance and review process under which the certified historic
property is already regulated;
(b) The proposed work requires historic review by the governing
body's historic preservation ordinance and review process; and
(c) The governing body has not requested that the State
Historic Preservation Officer approve work on historic
properties.
(3) If approval is required from the governing body, the
governing body shall notify the State Historic Preservation
Officer of the proposed work. The governing body shall allow at
least 14 days for the State Historic Preservation Officer to
comment on the proposed work.
(4) An owner shall submit written reports to the State Historic
Preservation Officer in a form prescribed by the State Historic
Preservation Officer on or before December 31 of the 5th, 10th
and 14th years of a 15-year historic property partial tax
exemption period described in section 5 of this 2009 Act.
(5) The State Historic Preservation Officer may conduct an
on-site inspection of a certified historic property, with or
without cause, upon 30-day notice. + }
SECTION 5. { + (1) Historic property certified under sections
1 to 9 of this 2009 Act is partially exempt from ad valorem
property taxation according to the following schedule:
(a) For the first tax year in which the property is certified
under section 2 of this 2009 Act or recertified under section 7
of this 2009 Act and for the next 14 consecutive tax years:
(A) If the property is a residential historic property, the
assessed value of the property shall equal 60 percent of the
maximum assessed value of the property.
(B) If the property is a commercial historic property, the
assessed value of the property shall equal 50 percent of the
maximum assessed value of the property.
(b) For the first tax year succeeding a 15-year period
described in paragraph (a) of this subsection, the property shall
be disqualified from partial exemption under paragraph (a) of
this subsection. Notwithstanding any other provision of law,
additional taxes may not be imposed for a disqualification
occurring under this paragraph.
(2) Upon completion of the 15-year period after initial
certification, if the property is not recertified under section 7
of this 2009 Act, or upon completion of a 15-year period after
recertification, the State Historic Preservation Officer shall
notify the owner, the governing body and the county assessor that
the historic property is disqualified. The notice shall explain
the options of the owner to:
(a) Seek recertification under section 7 of this 2009 Act for a
single 15-year period after initial certification; or
(b) Seek indeterminate partial tax exemption under section 7a
of this 2009 Act. + }
SECTION 6. { + (1) Properties may be decertified and removed
from the historic property partial tax exemption program during a
15-year period described in section 5 or 7 of this 2009 Act if:
(a) The owner submits a written request to the State Historic
Preservation Officer for removal from the program;
(b) The State Historic Preservation Officer determines that the
owner has failed to maintain, preserve or rehabilitate the
property in accordance with historic treatment standards;
(c) The owner fails to submit the reports required under
section 4 (4) of this 2009 Act;
(d) The property is classified and specially assessed under ORS
358.480 to 358.545;
(e) The owner demolishes or substantially alters the property
in a manner that does not meet historic treatment standards;
(f) The owner fails to obtain written approval required under
section 4 of this 2009 Act; or
(g) The property is destroyed or substantially altered by acts
of nature or other events for which the owner is not responsible.
(2) Sale or transfer to a new owner does not decertify or
remove the property from the program as long as the property is
not otherwise eligible for decertification and removal under this
section.
(3)(a) For the first tax year following the date of
decertification and each succeeding tax year, the property shall
be assessed and taxed as other property similarly situated is
assessed and taxed; and
(b) Notwithstanding ORS 311.235, there shall be added to the
general property tax roll for the tax year next following the
decertification, to be collected and distributed in the same
manner as other real property tax, an amount equal to the amount
of tax that would have been due on the property had the property
not been partially exempt under section 5 or 7 of this 2009 Act
for each of the years during which the property was partially
exempt under section 5 or 7 of this 2009 Act.
(4) The assessment and tax rolls shall show 'potential
additional tax liability' for each property granted partial
exemption under section 5 or 7 of this 2009 Act.
(5) No additional taxes shall be imposed under subsection (3)
of this section if the property becomes disqualified for partial
exemption because the property is destroyed by acts of nature or
other events for which the owner is not responsible.
(6) Additional taxes collected under this section shall be
deemed to have been imposed in the year to which the additional
taxes relate. + }
SECTION 7. { + (1)(a) An owner of a certified historic
property may apply for recertification for historic property
partial tax exemption by submitting an application for
recertification that meets all application requirements for
initial certification under section 2 of this 2009 Act, together
with a preservation plan that outlines substantial work to the
property that:
(A) Promotes compliance with the Americans with Disabilities
Act of 1990 (P.L. 101-336);
(B) Results in seismic improvements; or
(C) Results in improvements in energy conservation or
sustainability.
(b) Notwithstanding paragraph (a) of this subsection, the owner
of residential certified historic property may not apply for
recertification under this section if the governing body has
adopted a resolution or ordinance prohibiting residential
historic properties from recertification.
(2) Upon receipt of a completed application for
recertification, the State Historic Preservation Officer may
approve the application if the State Historic Preservation
Officer determines that all work outlined in the preservation
plan submitted for recertification meets historic treatment
standards and that the property is a historic property or is
eligible to become a contributing resource as a result of the
work outlined in the preservation plan.
(3) State Historic Preservation Officer approval of the
application for recertification constitutes recertification for
the historic property partial tax exemption. Application fees for
recertification are nonrefundable.
(4) If the State Historic Preservation Officer approves an
application for recertification under this section, the State
Historic Preservation Officer shall:
(a) Notify the Department of Revenue, the county assessor, the
governing body and the owner that the property is recertified.
Notice shall be given under this paragraph no later than
September 15 of the tax year to which the recertification
applies.
(b) Deposit the application fee into the Oregon Property
Management Account established in ORS 358.690. Application fee
revenue deposited under this section into the Oregon Property
Management Account shall be used for the purposes described in
section 3 (1)(d) of this 2009 Act.
(5)(a) A certified historic property recertified under this
section shall receive a second 15-year period of partial tax
exemption according to the schedule set forth in section 5 (1) of
this 2009 Act.
(b) Upon recertification, a certified historic property is
disqualified from initial historic property partial tax exemption
and requalified for a second historic property partial tax
exemption under section 5 (1) of this 2009 Act.
(6) Historic properties are not eligible for recertification
under this section if the property:
(a) Has completed two terms of historic property special
assessment under ORS 358.480 to 358.545;
(b) Has completed two 15-year periods of historic property
partial tax exemption described in section 5 of this 2009 Act; or
(c) Has completed one term of historic property special
assessment and one 15-year period of historic property partial
tax exemption.
(7) The State Historic Preservation Officer may not deny an
application for recertification solely because of the loss of
revenue that may result from approval of the application.
(8)(a) If the State Historic Preservation Officer denies an
application for recertification under this section, the State
Historic Preservation Officer shall give written notice of denial
of recertification to the owner. The notice shall state the
reasons for the denial.
(b) If a certified historic property is denied recertification
and is not otherwise disqualified from historic property partial
tax exemption under section 6 of this 2009 Act, the owner may
apply for indeterminate historic property classification under
section 7a of this 2009 Act.
(9) Upon completion of a second 15-year term of partial
exemption under this section, the property shall be disqualified
from partial exemption under this section. Notwithstanding any
other provision of law, additional taxes may not be imposed for a
disqualification that occurs under this subsection. Following
disqualification under this subsection, the owner may apply for
an indeterminate period partial exemption under section 7a of
this 2009 Act. + }
SECTION 7a. { + (1) An owner who has completed one or more
terms of historic property partial tax exemption under section 5
or 7 of this 2009 Act may apply to the State Historic
Preservation Officer for indeterminate historic property partial
tax exemption under this section. The application shall be on
such form as is prescribed by the State Historic Preservation
Officer and shall contain such information as is required by the
State Historic Preservation Officer.
(2) The State Historic Preservation Officer shall grant the
partial exemption if the property was not disqualified from
historic property partial tax exemption under section 5 or 7 of
this 2009 Act during the entire 15-year term of partial exemption
and was only disqualified by reason of section 5 (2) or 7 (8)(b)
of this 2009 Act.
(3) The percentage of the property that is the subject of the
application that is exempt from property tax for each year shall
equal the difference between the assessed value of the property
as determined without regard to any partial tax exemption or
special assessment law other than sections 1 to 9 of this 2009
Act and the assessed value of the property as determined without
regard to any exemption or special assessment law.
(4) Property may be decertified and removed from the
indeterminate partial exemption if:
(a) The owner submits a written request to the State Historic
Preservation Officer for removal from the program;
(b) The State Historic Preservation Officer determines that the
owner has failed to maintain, preserve or rehabilitate the
property in accordance with historic treatment standards;
(c) The property is classified as historic property for special
assessment under ORS 358.480 to 358.545;
(d) The owner demolishes or substantially alters the property
in a manner that does not meet historic property treatment
standards; or
(e) The property is destroyed or substantially altered by acts
of nature or other events for which the owner is not responsible.
(5) Additional taxes may not be imposed if property is
disqualified from the partial exemption under this section. + }
SECTION 8. { + (1) Any owner, governing body or county
assessor affected by a determination of the State Historic
Preservation Officer made under sections 1 to 9 of this 2009 Act
may appeal the determination to the Historic Assessment Review
Committee established in ORS 358.511.
(2) Any owner, governing body or county assessor affected by a
determination of the Historic Assessment Review Committee under
subsection (1) of this section may request a contested case
hearing according to the provisions of ORS chapter 183. After a
contested case hearing has been held, the administrative law
judge shall determine the final order in the case.
(3) Any owner or county assessor affected by a determination of
a governing body may appeal through the governing body's appeal
process. + }
SECTION 9. { + (1) The Department of Revenue, in consultation
with the State Historic Preservation Officer, shall adopt rules
within the department's area of expertise that are necessary for
the implementation of the historic property partial tax exemption
program under sections 1 to 9 of this 2009 Act.
(2) The State Historic Preservation Officer shall adopt rules
as necessary to carry out the purposes of sections 1 to 9 of this
2009 Act. + }
SECTION 10. ORS 358.487 is amended to read:
358.487. (1)(a) An owner of historic property desiring
classification and special assessment under ORS 358.480 to
358.545 for the property may make application for the
classification and special assessment to the State Historic
Preservation Officer on forms approved by the State Historic
Preservation Officer. The forms shall include or be accompanied
by the written consent of the owner to the viewing of the
property by the State Historic Preservation Officer. Any
application made under this subsection shall include a
preservation plan and be sent by the State Historic Preservation
Officer to the appropriate county assessor, local landmark
commission and governing body. An application must be made during
the calendar year preceding the first property tax year for which
classification and special assessment as historic property is
desired.
(b) Classification and special assessment pursuant to an
application made under this subsection shall be granted only for
15 consecutive property tax years, commencing in the tax year
beginning on the July 1 following the calendar year in which the
application was made.
(2)(a) An owner may make preliminary application for
classification of property as historic upon approval by the State
Advisory Committee on Historic Preservation of the nomination of
the property for listing on the National Register of Historic
Places or, if the National Register of Historic Places ceases
accepting nominations, the nomination of the property for listing
on an Oregon register of historic places.
(b) The preliminary application shall be considered an
application made or received for purposes of subsection (1) of
this section if, by September 15 of the year for which
classification and special assessment are first sought, the
property is:
(A) Listed in the National Register of Historic Places; or
(B) If the National Register of Historic Places ceases
accepting nominations, approved for listing on an Oregon register
of historic places.
(c) If the requirements of paragraph (b) of this subsection are
not satisfied, the preliminary application may not be considered
an application made for purposes of subsection (1) of this
section until the calendar year in which, as of September 15, the
property is listed as described in paragraph (b) of this
subsection.
(3) Immediately upon receipt of a copy of the application under
subsection (1) of this section, the county assessor shall review
the application for accuracy and completeness of description and
other matters within the expertise of the county assessor and
shall make recommendations regarding the classification to the
State Historic Preservation Officer.
(4) { - (a) - } Immediately upon receipt of a copy of the
application under subsection (1) of this section, the governing
body shall review the application for matters relating to public
benefit and shall make recommendations regarding the
classification to the State Historic Preservation Officer.
{ - (b) A governing body may exclude certain districts or
properties from participation in the special assessment program
under criteria established by the governing body. In adopting
criteria, the governing body shall consider whether a district is
in economic distress and the value of the property in the
district. - }
(5) By making application for classification and assessment
under this section, the owner consents that the State Historic
Preservation Officer has access to the property for inspection at
reasonable times to ensure that the terms of the national
register or other federal or state laws or requirements are being
met.
(6) The application for classification and assessment under ORS
358.480 to 358.545 may not be processed unless accompanied by a
nonrefundable fee of { - one-third - } { + one-tenth + } of
one percent of the
{ - real market value - } { + assessed value + } of the
property, as of the assessment date, for the year in which
application is made. The fee shall be deposited in the State
Parks and Recreation Department Fund for use by the State Parks
and Recreation Director or for transfer to the Oregon Property
Management Account established under ORS 358.680 to 358.690, upon
the advice of the State Advisory Committee on Historic
Preservation.
SECTION 11. ORS 358.480 is amended to read:
358.480. As used in ORS 358.480 to 358.545, unless the context
requires otherwise:
(1) 'Governing body' means the city or county legislative body
having jurisdiction over the property for which a limited
assessment may be applied for under ORS 358.480 to 358.545.
(2) 'Historic property' means real property that:
(a) Is currently listed in the National Register of Historic
Places established and maintained under the National Historic
Preservation Act of 1966 (P.L. 89-665) or, if the National
Register of Historic Places ceases accepting nominations, that is
approved for listing on an Oregon register of historic places;
{ + and + }
{ - (b) Is open to the public for sight-seeing at least one
day in each calendar year in accordance with rules adopted by the
State Historic Preservation Officer; and - }
{ - (c) - } { + (b) + } Meets the minimum standards of
maintenance established by rule of the State Historic
Preservation Officer.
(3) 'Maintenance' means action taken to mitigate wear and
deterioration of a historic property without altering the
historic character of the property, including action taken to
protect and repair the condition of the property with the least
possible impact on the historic character of the property.
(4) 'Owner' includes a purchaser under a recorded instrument of
sale.
(5) 'Preservation':
(a) Means the act or process of applying measures necessary to
sustain the existing form, integrity and materials of a historic
property, including but not limited to the ongoing maintenance
and repair of historic materials.
(b) Does not include the extensive replacement of historic
materials or new construction.
(6) 'Rehabilitation' means the process of repairing or altering
a historic property in order to return the property to a state of
utility in which an efficient contemporary use is possible, while
preserving those portions and features of the property that are
significant to the historic, architectural and cultural values of
the property.
SECTION 12. ORS 358.499 is amended to read:
358.499. (1) Property first classified and specially assessed
as historic property for a tax year beginning on or before July
1, 1994, shall continue to be so classified, specially assessed
and removed from special assessment as provided under ORS 358.480
to 358.545 as those sections were in existence and in effect on
December 31, 1992.
(2) Property may be classified and specially assessed under ORS
358.480 to 358.545 pursuant to application filed under ORS
358.487 on or after September 9, 1995, and first applicable for
the tax year 1996-1997 or any tax year thereafter.
(3) Property may not be classified and specially assessed
pursuant to application filed under ORS 358.487 if the
application is filed on or after { - July 1, 2010. - } { +
July 1, 2025. + }
SECTION 13. ORS 358.515 is amended to read:
358.515. (1) When property has once been classified and
assessed as historic property pursuant to application filed under
ORS 358.480 to 358.545, it shall remain so classified and be
granted the special assessment provided by ORS 358.505 until the
property becomes disqualified for such classification and
assessment by:
(a) Written notice by the taxpayer to the assessor to remove
the special assessment.
(b) Sale or transfer to an ownership making it exempt from
property taxation.
(c) Removal of the special assessment by the assessor upon
discovery that the property no longer qualifies as historic
property because it is not in compliance with the preservation
plan applicable to the property or for other reason.
{ - (d) In the case of residential property, any other sale
or transfer of the property. - }
{ + (d) Certification for participation in the historic
property partial tax exemption program under sections 1 to 9 of
this 2009 Act. + }
{ - (2)(a) Notwithstanding subsection (1)(d) of this section,
the sale or transfer to a new owner or transfer by reason of
death of a former owner to a new owner does not operate to
disqualify the property from the special assessment provided by
ORS 358.505 so long as the property continues to qualify as
historic property and the new owner expressly assents to the
preservation plan in effect for the property and continues to
implement the preservation plan. - }
{ - (b) The new owner shall notify the State Historic
Preservation Officer of the sale or transfer of ownership within
60 days after the date that the documents described in ORS 93.040
are recorded. - }
{ - (3) - } { + (2) + } When, for any reason, the property
or any portion thereof ceases to qualify as historic property,
the owner at the time of change shall notify the assessor and the
State Historic Preservation Officer of the change prior to the
next January 1 assessment date.
SECTION 14. ORS 358.525 is amended to read:
358.525. (1) Except as provided in subsection (4) of this
section, whenever property that has received special assessment
as historic property under ORS 358.480 to 358.545 thereafter
becomes disqualified for such assessment as provided in ORS
358.515, there shall be added to the tax extended against the
property on the next general property tax roll, to be collected
and distributed in the same manner as the remainder of real
property tax, additional taxes equal to the difference between
the taxes assessed against the property and the taxes that would
otherwise have been assessed against the property for each of the
last 15 years (or such lesser number of years, corresponding to
the years of assessment as historic property applicable to the
property) as of January 1 of the assessment year for which the
property was disqualified for special assessment plus an amount
equal to the sum of the interest on each year's additional taxes
computed under ORS 311.505 from November 15 of the tax year for
which back taxes are being added to July 1 of the tax year of
disqualification.
(2) Whenever property that has received special assessment as
historic property under ORS 358.505 becomes disqualified for such
assessment and either notice required by ORS 358.515
{ - (3) - } { + (2) + } is not given, the assessor shall
determine the date that the notice should have been given, shall
notify the owner thereof and, notwithstanding ORS 311.235, there
shall be added to the tax extended against the property on the
next general property tax roll, to be collected and distributed
in the same manner as the remainder of the real property tax, in
full payment of all taxes and penalties accruing from the
disqualification, the sum of the following:
(a) Additional taxes equal to the difference between the total
amount of taxes that would have been due on the property for each
year, not to exceed the last 15 years, in which special
assessment under ORS 358.505 was in effect for the property (even
though erroneously) and the taxes that would have been due had
special assessment not been in effect plus an amount equal to the
sum of the interest on each year's additional taxes computed
under ORS 311.505 from November 15 of the tax year for which
additional taxes are being added to July 1 of the tax year of
disqualification, plus
(b) An additional penalty of 15 percent of the amount in
paragraph (a) of this subsection.
(3) Prior to adding to the tax extended against the property on
the next general property tax roll of any additional taxes or
penalty imposed by subsection (1) or (2) of this section, in the
case of disqualification pursuant to ORS 358.515 (1)(c), the
assessor shall notify the owner of the property by mail, return
receipt requested, of the disqualification.
(4) Additional tax or penalty may not be imposed under
subsection (1) or (2) of this section upon the sale or transfer
to an ownership making it exempt from property taxation.
Additional tax or penalty may not be imposed under subsection (1)
or (2) of this section if the historic property is destroyed by
fire or act of God.
(5) The amount determined to be due under subsection (1) or (2)
of this section may be paid to the tax collector prior to the
completion of the next general property tax roll, pursuant to ORS
311.370.
(6) Additional taxes collected under this section shall be
deemed to have been imposed in the year to which the additional
taxes relate.
SECTION 15. ORS 358.540 is amended to read:
358.540. (1) Property classified as historic property under ORS
358.480 to 358.545 is entitled to any other exemption or special
assessment provided by law { + , but may not qualify for partial
exemption under sections 1 to 9 of this 2009 Act + }.
(2) Property that has received special assessment under ORS
358.480 to 358.545 for 15 years, at the completion of the 15-year
term, is disqualified from historic property special assessment.
(3)(a) Notwithstanding subsection (2) of this section { + and
subject to ORS 358.541 + }, following completion of the initial
15-year period of historic property classification and
disqualification under subsection (2) of this section, the owner
of property classified as historic property may reapply under ORS
358.487 for one additional 15-year period of special assessment
under ORS 358.480 to 358.545. Following completion of the second
15-year term of special assessment, the historic property shall
be disqualified from historic property special assessment and is
not again eligible for special assessment under ORS 358.480 to
358.545.
(b) { - For commercial property, - } A reapplication filed
under this subsection, in addition to containing all of the
information required of an application filed under ORS 358.487,
shall be accompanied by a renovation plan detailing measures to
be taken for purposes of Americans with Disabilities Act
compliance, seismic improvement measures or energy conservation
measures, the costs associated with the measures and a schedule
of the dates on which work on the measures will be begun and
completed.
(c) { - For commercial property, - } A reapplication filed
under this subsection that in other respects is in compliance
with the application requirements of ORS 358.487 may be approved
only upon a finding by the State Historic Preservation Officer
that the renovation plan submitted with the reapplication will,
if implemented, result in a significant investment in the
historic property that promotes compliance with Americans with
Disabilities Act requirements or that results in seismic
improvements or energy conservation improvements to the property.
If approved, the renovation plan shall be considered an amendment
to and part of the preservation plan filed with the reapplication
and in effect for the property.
(d) For residential { - or commercial - } property, a
reapplication filed under this subsection that in other respects
is in compliance with the application requirements of ORS 358.487
may be approved only if a second term of historic property
classification and special assessment for residential { - or
commercial - } property is authorized under ORS 358.541.
(e) The State Historic Preservation Officer may adopt rules
under this subsection, including rules that provide:
(A) The minimum amount of investment that must be made in order
for the investment to be considered a significant investment.
(B) The minimum amount of seismic improvement to the property
that must be contemplated in the renovation plan in order for the
plan to be approved.
(C) The minimum level of energy conservation improvements that
must be contemplated in the renovation plan in order for the plan
to be approved.
(D) The maximum amount of time between the date of filing of
the reapplication and the date of completion of the measures
described in the renovation plan in order for the renovation plan
to be approved.
SECTION 16. ORS 358.541 is amended to read:
358.541. (1) Residential { - or commercial - } property may
not qualify for a second term of classification and special
assessment as historic property under { - this section - }
{ + ORS 358.540 + } unless:
(a) If the property is located within a city, the governing
body of the city has adopted a resolution or ordinance
authorizing a second term of historic property classification and
special assessment for residential { - or commercial - }
property; or
(b) If the property is located within unincorporated territory
of a county, the governing body of the county has adopted a
resolution or ordinance authorizing a second term of historic
property classification and special assessment for residential
{ - or commercial - } property.
(2) The city or county authorizing a second term of historic
property classification and special assessment for residential
{ - or commercial - } property shall send a copy of the
authorizing resolution or ordinance to the State Historic
Preservation Officer.
SECTION 17. ORS 93.040 is amended to read:
93.040. (1) The following statement shall be included in the
body of an instrument transferring or contracting to transfer fee
title to real property except for owner's sale agreements or
earnest money receipts, or both, as provided in subsection (2) of
this section: 'BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE
PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON'S
RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336
AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007. THIS
INSTRUMENT DOES NOT ALLOW USE OF THE PROPERTY DESCRIBED IN THIS
INSTRUMENT IN VIOLATION OF APPLICABLE LAND USE LAWS AND
REGULATIONS. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE
PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE
APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE
UNIT OF LAND BEING TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR
PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE
APPROVED USES OF THE LOT OR PARCEL, TO DETERMINE ANY LIMITS ON
LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS
30.930, AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY
OWNERS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336
AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007. '
(2) In all owner's sale agreements and earnest money receipts,
there shall be included in the body of the instrument the
following statement: 'THE PROPERTY DESCRIBED IN THIS INSTRUMENT
MAY NOT BE WITHIN A FIRE PROTECTION DISTRICT PROTECTING
STRUCTURES. THE PROPERTY IS SUBJECT TO LAND USE LAWS AND
REGULATIONS THAT, IN FARM OR FOREST ZONES, MAY NOT AUTHORIZE
CONSTRUCTION OR SITING OF A RESIDENCE AND THAT LIMIT LAWSUITS
AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, IN
ALL ZONES. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE
PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON'S
RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336
AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007. BEFORE
SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE
TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR
COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEING
TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED
IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE LOT
OR PARCEL, TO VERIFY THE EXISTENCE OF FIRE PROTECTION FOR
STRUCTURES AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING
PROPERTY OWNERS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305
TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007. '
(3) In all owners' sale agreements and earnest money receipts
subject to ORS 358.505, there shall be included in the body of
the instrument or by addendum the following statement: 'THE
PROPERTY DESCRIBED IN THIS INSTRUMENT IS SUBJECT TO SPECIAL
ASSESSMENT UNDER ORS 358.505. ORS 358.515 REQUIRES NOTIFICATION
TO THE STATE HISTORIC PRESERVATION OFFICER OF SALE OR TRANSFER OF
THIS PROPERTY. '
(4) An action may not be maintained against the county
recording officer for recording an instrument that does not
contain the statement required in subsection (1) or (2) of this
section.
(5) An action may not be maintained against any person for
failure to include in the instrument the statement required in
subsection (1) or (2) of this section, or for recording an
instrument that does not contain the statement required in
subsection (1) or (2) of this section, unless the person
acquiring or agreeing to acquire fee title to the real property
would not have executed or accepted the instrument but for the
absence in the instrument of the statement required by subsection
(1) or (2) of this section. An action may not be maintained by
the person acquiring or agreeing to acquire fee title to the real
property against any person other than the person transferring or
contracting to transfer fee title to the real property.
SECTION 18. ORS 358.545 is amended to read:
358.545. The State Historic Preservation Officer shall adopt
rules, pursuant to ORS chapter 183, with regard to the
determination of entitlement of historic properties to the
special assessment accorded by ORS 358.480 to 358.545. The rules
shall:
{ - (1) Encompass requirements for allowance and
substantiation of public sight-seeing of historic property
classified under ORS 358.480 to 358.545; - }
{ - (2) - } { + (1) + } Provide minimum maintenance and
preservation standards for the property;
{ - (3) - } { + (2) + } Provide standards and guidelines
for rehabilitation based on those adopted by the United States
Secretary of the Interior;
{ - (4) - } { + (3) + } Delineate any other matters
necessary to carry out the purposes of ORS 358.480 to 358.545;
and
{ - (5) - } { + (4) + } Provide for a review procedure by
the State Historic Preservation Officer for compliance with the
preservation plan in the 5th, 10th and 14th years of special
assessment. If the State Historic Preservation Officer determines
that there is lack of compliance with the preservation plan, the
State Historic Preservation Officer shall either notify the
county assessor under ORS 358.509 or request that the
preservation plan be amended as provided under ORS 358.490. If,
after a request for amendment is made, the property remains in
noncompliance, the State Historic Preservation Officer shall
notify the county assessor as described, and with the result
described, under ORS 358.509.
SECTION 19. ORS 358.482 is amended to read:
358.482. (1) As used in ORS 358.480 to 358.545:
(a) 'Americans with Disabilities Act' means the Americans with
Disabilities Act of 1990 (P.L. 101-336), as amended.
{ - (b) 'Commercial property' means real property used in a
trade or business or held for the production of income, including
multifamily residential rental property. - }
{ - (c) - } { + (b) + } 'Preservation plan' means a written
preservation, maintenance and rehabilitation proposal submitted
by the owner with the application for classification and special
assessment as historic property that has been approved by the
State Historic Preservation Officer, or as amended and reapproved
by the State Historic Preservation Officer, and that is in
compliance with standards and guidelines for rehabilitation and
rules adopted by the State Historic Preservation Officer.
{ - (d) - } { + (c) + } 'Renovation plan' means a written
proposal submitted by an owner { - of commercial property - }
in connection with a reapplication for special assessment
pursuant to ORS 358.540 (3) that is in compliance with rules
adopted by the State Historic Preservation Officer for the
submission and content of renovation plans.
{ - (e) - } { + (d) + } 'Review committee' means the
Historic Assessment Review Committee established under ORS
358.511.
{ - (f) - } { + (e) + } 'Seismic improvement' means
construction or other measures that improve the seismic
performance or structural stability of property, or that reduce
the potential for heavy structural damage to property in the
event of an earthquake.
{ - (g) - } { + (f) + } 'Standards and guidelines for
rehabilitation ' means the standards and guidelines, based on
those developed by the United States Secretary of the Interior,
adopted by the State Historic Preservation Officer to determine
sufficiency of preservation plans, maintenance, alteration and
construction for a specific property.
(2) Except as otherwise specifically provided, the definitions
contained in this section apply to property first classified and
assessed as historic property on or after July 1, 1996.
SECTION 20. { + Property may not be certified or recertified
for historic property partial tax exemption under sections 1 to 9
of this 2009 Act if the application for partial tax exemption is
filed on or after July 1, 2025. + }
SECTION 21. { + (1) Sections 1 to 9 of this 2009 Act and the
amendments to ORS 358.480, 358.482, 358.487, 358.499, 358.515,
358.525, 358.540, 358.541 and 358.545 by sections 10 to 16, 18
and 19 of this 2009 Act apply to tax years beginning on or after
July 1, 2010.
(2) Nothing in the amendments to ORS 358.540 or 358.541 by
sections 15 and 16 of this 2009 Act affects the status of
property that is classified as historic property on the effective
date of this 2009 Act. Such property may continue to receive
special assessment under ORS 358.480 to 358.545 until the
completion of the 15-year term that is in effect on the effective
date of this 2009 Act.
(3) The amendments to ORS 93.040 by section 17 of this 2009 Act
become operative on July 1, 2010. + }
SECTION 22. { + 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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