§ 307.561 — Home start lands; rules

Oregon § 307.561

• Jurisdiction: Oregon
• Vol.: 8
• Title 29: Revenue and Taxation
• Ch. 307: Property Subject to Taxation; Exemptions

Text

(1)(a) Notwithstanding ORS 307.100 and 307.110, land is exempt from ad valorem property taxation for any property tax year if the land:
(A) Constitutes home start lands as defined in ORS 458.461;
(B) Has been sold, transferred or leased under ORS 458.467; and
(C) Is used or held for use consistently with applicable provisions of ORS 197A.447 and 458.461 to 458.478.
(b)(A) Except as provided in subparagraph (B) of this paragraph, an exemption may be granted under this section for a period not to exceed two consecutive property tax years.
(B) The exemption may be granted for each of not more than three succeeding property tax years if construction of affordable housing meeting the requirements of ORS 197A.447 and 458.461 to 458.478 is started on the land no later than the end of the second property tax year of the exemption and continues or is completed in each succeeding property tax year.
(2)(a) A person seeking an exemption for land under this section must apply to the Oregon Department of Administrative Services for certification that the land is eligible for exemption on the terms set forth in subsection (1) of this section.
(b) Application shall be made, on a form provided by the department, on or before March 1 of each assessment year for which the certification for exemption is sought, except that when the land is acquired after March 1 and before July 1, the application for that year must be filed within 30 days following the date of acquisition.
(c) The application must include:
(A) A description of the land for which the certification is sought;
(B) Any information and documentation the department requires for the purpose of determining the eligibility of the land for the certification; and
(C) A written declaration made by the applicant, subject to penalties for false swearing, that all information and statements included in the application are true.
(3)(a) On or before April 1 of the assessment year, or for applications for land acquired after March 1 and before July 1, within 30 days following the date the application was filed, the department shall approve or deny each application for certification and:
(A) Notify each applicant of the approval or denial of the application;
(B) For each approved application, certify to the assessor of each county in which the land to which the application relates is located that the land is eligible for the exemption; and
(C) For each denied application for land that had previously been granted exemption under this section for a previous tax year, notify the county assessor of any information that relates to the previous grants of exemption.
(b) The denial of an application for certification may not be appealed.
(4) Upon receipt of certification under subsection (3)(a)(B) of this section, the county assessor shall exempt the land from ad valorem property taxation in accordance with the certification.
(5) For each property tax year that land is exempt from taxation under this section, the county assessor shall enter on the assessment roll:
(a) The assessed value of the land as if it were not exempt under this section.
(b) The amount of taxes that would be due if the land were not exempt.
(c) That the land is exempt and is subject to potential additional taxes as provided in this section, by adding the notation “home start lands (potential additional tax).”
(6)(a) Land may be granted exemption under this section until the earlier of:
(A) The end of the fifth consecutive property tax year of exemption; or
(B) The first property tax year for which the land is denied certification for the exemption under subsection (3) of this section.
(b) Land that is no longer exempt by operation of this subsection shall be assessed and taxed as other property similarly situated is assessed and taxed.
(7)(a) Upon discovery by the county or receipt of notice by the department that land received an exemption under this section for a property tax year for which the land was not eligible, the land shall be disqualified for the exemption and there shall be added to the assessment and tax roll for the next following property tax year, to be collected and distributed in the same manner as the other ad valorem property taxes imposed on the land, an amount equal to the taxes that would have been imposed on the land for each of the tax years for which the land received the exemption.
(b) In addition to the additional taxes imposed under this subsection and any other applicable penalties imposed under law, the county assessor shall impose a penalty, not to exceed five percent of the amount of the additional taxes, in accordance with rules adopted by the department.
(c) Notwithstanding paragraphs (a) and (b) of this subsection, if the exemption was granted to ineligible land due to a statement or omission on the part of an applicant for certification that was not intentionally misleading:
(A) Additional taxes may be imposed only for the years for which the land was ineligible; and
(B) Any penalty shall be waived.
(d) Additional taxes and any penalty imposed under this subsection shall be deemed assessed and imposed in the year to which the additional taxes relate.
(8) The department may adopt any rules the department considers necessary or convenient for the administration of this section.

Legislative History

2025 c.481 §12