Chapter 808 Oregon Laws 1999
Session Law
AN ACT
HB 3211
Relating to taxation;
creating new provisions; and amending ORS 307.600, 307.605, 307.610, 307.620,
307.630, 307.650, 307.675 and 307.691.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
ORS 307.600 is amended to read:
307.600. (1) The [legislature] Legislative Assembly finds that it is
in the public interest to stimulate the construction of transit supportive
multiple-unit housing in the core areas of Oregon's urban centers to improve
the balance between the residential and commercial nature of those areas, and
to ensure full-time use of the areas as places where citizens of the community
have an opportunity to live as well as work.
(2) The [legislature also] Legislative Assembly further finds
that it is in the public interest to promote private investment in transit
supportive multiple-unit housing in light rail station areas and transit
oriented areas in order to maximize Oregon's transit investment to the fullest
extent possible and that the cities and counties of this state should be
enabled to establish and design programs to attract new development of
multiple-unit housing, and commercial and retail property, in areas located
within a light rail station area or transit oriented area.
(3) The [legislature] Legislative Assembly further finds
that the cities and counties of this state should be enabled to establish and
design programs to attract new development of multiple-unit housing in light
rail station areas, in transit oriented areas or in city core areas by means of
the local property tax exemption authorized under ORS 307.600 to 307.691. The
programs shall emphasize the following:
(a) The development of vacant or underutilized sites in light
rail station areas, transit oriented areas or core areas, rather than sites
where sound or rehabilitable multiple-unit housing exists.
(b) The development of multiple-unit housing, with or without
parking, in structures that may include ground level commercial space.
(c) The development of multiple-unit housing, with or without
parking, on sites with existing single-story commercial structures.
(d) The development of multiple-unit housing, with or without
parking, on existing surface parking lots.
(4) The Legislative
Assembly further finds that it is in the public interest to preserve existing
publicly assisted housing that is affordable to low income persons by providing
the incentives authorized in ORS 307.600 to 307.691 to existing multiple-unit
housing subject to a low income housing assistance contract with an agency or
subdivision of this state or the United States.
[(4)] (5) The programs shall result in the preservation, construction, addition or
conversion of units at rental rates or sale prices accessible to a broad range
of the general public.
SECTION 2.
ORS 307.605 is amended to read:
307.605. As used in ORS 307.600 to 307.691:
(1) "Lender" means any person who makes a loan,
secured by a recorded mortgage or trust deed, to finance the acquisition,
construction, addition or conversion of multiple-unit housing.
(2) "Light rail station area" means an area defined
in regional or local transportation plans to be within a one-half mile radius
of an existing or planned light rail station.
(3) "Low income
housing assistance contract" means an agreement between a public agency
and a property owner that results in the production, rehabilitation or
preservation of housing affordable to those with a defined level of household
income.
[(3)] (4) "Multiple-unit housing"
means:
(a) Housing subject to a low
income housing assistance contract with an agency or subdivision of this state
or the United States; or
(b) Newly constructed
structures, stories or other additions to existing structures and structures
converted in whole or in part from other use to dwelling units that meet the
following criteria:
[(a)] (A) The structure must have a minimum
number of dwelling units as specified by the city or county pursuant to ORS
307.610 (4).
[(b)] (B) The structure must not be designed
or used as transient accommodations, including but not limited to hotels and
motels.
[(c)] (C) The structure must have those
design elements benefiting the general public as specified by the city or
county pursuant to ORS 307.650.
[(d)] (D) If in a light rail station area or
transit oriented area, the structure must:
[(A)] (i) Be physically or functionally
related to a light rail line or mass transportation system; and
[(B)] (ii) Enhance the effectiveness of a
light rail line or mass transportation system.
[(4)] (5) "Transit oriented area"
means an area defined in regional or local transportation plans to be within
one-quarter mile of a fixed route transit service.
SECTION 3.
ORS 307.610 is amended to read:
307.610. (1) ORS 307.600 to 307.691 apply to multiple-unit
housing preserved, constructed,
added to or converted in cities or counties that adopt, after a public hearing
and determination pursuant to subsection (3) of this section, by resolution or
ordinance, the provisions of ORS 307.600 to 307.691. The tax exemption provided
by ORS 307.600 to 307.691 only applies to the tax levy of a city or county that
adopts the provisions of ORS 307.600 to 307.691, except that the tax exemption
shall apply to the ad valorem [tax levy] property taxes of all taxing districts
when upon request of the city or county that has adopted the provisions of ORS
307.600 to 307.691, the rates of ad valorem taxation of taxing districts whose
governing boards agree by resolution to the policy of providing tax exemptions
for multiple-unit housing as provided in ORS 307.600 to 307.691, when combined
with the rate of taxation of the city or county that adopts the provisions of
ORS 307.600 to 307.691, equal 51 percent or more of the total combined rate of
taxation levied on the property which is tax exempt under ORS 307.600 to
307.691.
(2) The city or county shall designate an area within which it
proposes to allow exemptions provided for under the provisions of ORS 307.600
to 307.691. Core areas, light rail station areas or transit oriented areas may
be designated by a city. A city may
designate the entire city as the area in which the city proposes to allow
exemptions under ORS 307.600 to 307.691 for housing subject to a low income
housing assistance contract with an agency or subdivision of this state or the
United States. A county may designate areas as light rail station areas or
transit oriented areas but may not designate areas as core areas. A county may designate the entire county as
the area in which the county proposes to allow exemptions under ORS 307.600 to
307.691 for housing subject to a low income housing assistance contract with an
agency or subdivision of this state or the United States. A city or county
from time to time may, by amending its resolution or ordinance, add or withdraw
territory from the area originally designated as a light rail station area or a
transit oriented area, but any area added must be within the boundaries of the
area as limited by ORS 307.605 (2) or [(4)] (5).
(3) The city or county shall, prior to passage of a resolution
or ordinance electing to utilize the provisions of ORS 307.600 to 307.691, hold
a public hearing in order to determine whether multiple-unit housing meeting
the qualifications of subsection (4) of this section would not otherwise be
built in the designated area or
preserved without the benefits provided by ORS 307.600 to 307.691.
(4) Prior to accepting project applications under ORS 307.600
to 307.691, cities or counties shall promulgate standards and guidelines to be
utilized in considering applications and making the determinations required by
ORS 307.650. The standards and guidelines shall establish policy governing
basic requirements for an application, including but not limited to:
(a) Existing utilization of proposed project site, including
justification of the elimination of any existing sound or rehabilitable
housing.
(b) Design elements.
(c) Rental rates or sales prices.
(d) Extensions of public benefits from the project beyond the
period of the exemption.
(e) Minimum number of units.
(f) For housing subject
to a low income housing assistance contract with an agency or subdivision of
this state or the United States, a demonstration that the exemption is
necessary for the preservation of the low income units.
SECTION 4.
ORS 307.620 is amended to read:
307.620. In any city, or in any county with a population of
over 300,000, the exemption shall apply only to multiple-unit housing preserved, constructed, added to or
converted on land within an area designated under ORS 307.610 (2) or within a
designated urban renewal or redevelopment area formed pursuant to ORS chapter
457.
SECTION 5.
ORS 307.630 is amended to read:
307.630. (1) Except as provided under subsection (2) of this
section, multiple-unit housing that qualifies for exemption under ORS 307.600
to 307.691 shall be exempt from ad valorem taxation for no more than 10
successive years. The first year of exemption shall be the assessment year
beginning January 1 immediately following the calendar year in which construction,
addition or conversion is completed, determined by that stage in the
construction process when, pursuant to ORS 307.330, the improvement would have
gone on the tax rolls in the absence of the exemption provided for in ORS
307.600 to 307.691. However:
(a) The exemption shall not include the land or any
improvements not a part of the multiple-unit housing, but may include parking
constructed as part of the multiple-unit housing construction, addition or
conversion.
(b) In the case of a structure to which stories or other
improvements are added or a structure that is converted in whole or in part
from other use to dwelling units, only the increase in value attributable to
the addition or conversion shall be exempt from taxation.
(2) If the multiple-unit housing is subject to a low income [rental] housing assistance contract with an agency or subdivision of this state or [of] the United States, the city or county may extend the exemption
provided by ORS 307.600 to 307.691 through June 30 of the tax year during which
the termination date of the contract falls.
(3)(a) The exemption provided by ORS 307.600 to 307.691 shall
be in addition to any other exemption provided by law. However, nothing in ORS
307.600 to 307.691 shall be construed to exempt any property beyond 100 percent
of its real market value.
(b) If property is located within a core area and within a
light rail station area or a transit oriented area, or both, and application
for exemption under more than one program is made, only the exemption for which
application is first made and approved shall be granted. If property is granted
exemption under ORS 307.600 to 307.691 pursuant to an ordinance or resolution
adopted by a city, the property shall not be granted exemption pursuant to an
ordinance or resolution adopted by a county. If property is granted exemption
under ORS 307.600 to 307.691 pursuant to an ordinance or resolution adopted by
a county, the property shall not be granted exemption pursuant to an ordinance
or resolution adopted by a city. Property shall be granted exemption under ORS
307.600 to 307.691 only once.
SECTION 6.
ORS 307.650 is amended to read:
307.650. The city or county may approve the application if it
finds that:
(1) In the case of the
construction, addition or conversion of multiple-unit housing:
[(1)] (a) The owner has agreed to include in
the construction, addition or conversion as a part of the multiple-unit housing
one or more design elements benefiting the general public as specified by the
city or the county, including but not limited to open spaces, parks and
recreational facilities, common meeting rooms, child care facilities, transit
amenities and transit or pedestrian design elements.
[(2)] (b) The proposed construction,
addition or conversion project is or will be, at the time of completion, in
conformance with all local plans and planning regulations, including special or
district-wide plans developed and adopted pursuant to ORS chapters 195, 196,
197, 215 and 227, that are applicable at the time the application is approved.
(2) In the case of
housing subject to a low income housing assistance contract with an agency or
subdivision of this state or the United States, it is important to the
community to preserve the housing as low income housing and it is probable that
the housing would not be produced as or remain low income housing without the
exemption being granted.
(3) The owner has complied with all standards and guidelines
adopted by cities or counties pursuant to ORS 307.610 (4).
SECTION 7.
ORS 307.675 is amended to read:
307.675. (1) If, after application has been approved under ORS
307.600 to 307.691, a declaration defined in ORS 100.005 with respect to the
property is presented to the county assessor or tax collector for approval
under ORS 100.110, or if the county
assessor discovers that the multiple-unit housing or a portion of the
multiple-unit housing is changed to a use that is other than residential or
housing, or if the exemption was granted
for housing subject to a low income housing assistance contract with an agency
or subdivision of this state or the United States and the housing is no longer
housing subject to a low income housing assistance contract:
(a) The exemption granted the multiple-unit housing or portion
under ORS 307.600 to 307.691 shall terminate immediately, without right of
notice or appeal;
(b) The property or portion shall be assessed and taxed as
other property similarly situated is assessed and taxed; and
(c)(A)
Notwithstanding ORS 311.235, there shall be added to the general property tax
roll for the tax year next following the presentation or discovery, to be
collected and distributed in the same manner as other real property tax, an
amount equal to the difference between the amount of tax that would have been
due on the property or portion had it not been exempt under ORS 307.600 to
307.691 for each of the years, not to exceed the last 10 years, during which
the property was exempt from taxation under ORS 307.600 to 307.691.
(B) In the case of
multiple-unit housing described in ORS 307.605 (4)(a), this paragraph applies
only if the low income housing assistance contract to which the housing was
subject was breached or terminated prematurely.
(2) If, at the time of presentation or discovery, the property
is no longer exempt, additional taxes shall be imposed as provided in this
section, but the number of years that would otherwise be used to compute the
additional taxes shall be reduced one year for each year that has elapsed since
the year the property was last granted exemption beginning with the oldest year
for which additional taxes are due.
(3) The assessment and tax rolls shall show "potential
additional tax liability" for each property granted exemption under ORS
307.600 to 307.691.
(4) Additional taxes collected under this section shall be
deemed to have been imposed in the year to which the additional taxes relate.
SECTION 8.
ORS 307.691 is amended to read:
307.691. An exemption for multiple-unit housing shall not be
granted under ORS 307.600 to 307.691 unless:
(1) In the case of
multiple-unit housing described in ORS 307.605 (4)(a), the application for
exemption is made to the city or county on or before January 1, 2006.
(2) In the case of
multiple-unit housing described in ORS 307.605 (4)(b), the construction, addition
or conversion is completed on or before January 1, 2006.
SECTION 9. The amendments to ORS 307.600, 307.605,
307.610, 307.620, 307.630, 307.650, 307.675 and 307.691 by sections 1 to 8 of
this 1999 Act apply to applications for exemption filed for tax years beginning
on or after July 1, 2000.
Approved by the Governor
July 20, 1999
Filed in the office of
Secretary of State July 20, 1999
Effective date October 23,
1999
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