2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 307 - Property Subject to Taxation; Exemptions › Section 307.555 - Property burdened by affordable housing covenant used for owner-occupied housing.

(1) As used in this section and ORS 307.558:
(a) "Affordable housing covenant" and "eligible covenant holder" have the meanings given those terms under ORS 456.270.
(b) "Condominium unit" or "unit" has the meaning given that term under ORS 100.005.
(c) "Permanent" means for a period of not less than 99 years.
(2) Upon compliance with ORS 307.162, land owned by an eligible covenant holder that is burdened by an affordable housing covenant requiring permanent affordability is exempt from ad valorem property taxation if, for any property tax year:
(a) The improvements on the land constitute owner-occupied housing;
(b) Owner-occupied housing is being constructed or rehabilitated on the land for a reasonable period;
(c) The land is being held for a reasonable period for the construction of owner-occupied housing;
(d) The owner-occupied housing on the land is unoccupied while offered for sale as owner-occupied housing; or
(e) The owner is required to be absent from the owner-occupied housing on the land by reason of health or active military service.
(3)(a) Upon compliance with ORS 307.162, 27 percent of the assessed value of an owner-occupied condominium unit burdened by an affordable housing covenant requiring permanent affordability is exempt from ad valorem property taxation.
(b) An owner-occupied condominium unit that otherwise remains eligible shall continue to receive the partial property tax exemption granted under this subsection if, for any property tax year:
(A) The unit is being rehabilitated for a reasonable period and will constitute owner-occupied housing after the rehabilitation is complete;
(B) The unit is unoccupied while offered for sale as owner-occupied housing; or
(C) The owner is required to be absent from the unit by reason of health or active military service.
(4)(a) Except as provided in paragraph (b) of this subsection, for purposes of subsections (2)(b) and (c) and (3)(b)(A) of this section, "reasonable period" means a period not exceeding seven years.
(b) If, before the end of the sixth consecutive property tax year for which land or an owner-occupied condominium unit is granted an exemption or partial exemption in the circumstances described in subsection (2)(b) or (c) or (3)(b)(A) of this section, the eligible covenant holder or owner believes that the construction, rehabilitation or holding period, as applicable, will continue past the end of the next following property tax year, the eligible covenant holder or owner may claim a three-year extension by filing a notice of extension with the county assessor.
(c) The extension becomes effective if the notice of extension is filed on or before April 1 preceding the first property tax year for which the extension is claimed and is accompanied by a filing fee equal to the greater of $200 or one-tenth of one percent of the real market value of the land or the owner-occupied condominium unit as of the most recent assessment date.
(5) Each year that a parcel of land or an owner-occupied condominium unit is granted exemption or partial exemption under this section, the county assessor shall enter on the assessment and tax roll that the property is exempt or partially exempt and is subject to potential additional taxes as provided under ORS 307.558 by adding the notation "potential additional taxes."
(6) ORS 315.037 does not apply to this section. [2021 c.466 §1]
Note:
307.555 and 307.558 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 307 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.