Oregon Revised Statutes Chapter 307 § 307.867 — Termination of zone; effect of termination

Termination of zone; effect of termination. (1) A city or county that designates a vertical housing development zone under ORS 307.844 may terminate the zone at any time. (2) The termination of a zone under this section does not affect the partial exemption from tax under ORS 307.864 of any property of a vertical housing development project that was certified under ORS 307.857 prior to the termination of the zone and that continues to qualify for the partial exemption at the time of the termination of the zone. [Formerly 285C.480; 2017 c.326 §10; 2021 c.476 §8] (Temporary provisions relating to exemption for newly rehabilitated or constructed multiunit rental housing) Note: Sections 1 to 4, chapter 624, Oregon Laws 2017, provide: Sec. 1. (1) As used in sections 1 to 3, chapter 624, Oregon Laws 2017, “eligible rental property” means newly rehabilitated or constructed multiunit rental housing. (2)(a) The governing body of a city or county may adopt an ordinance or resolution granting a property tax exemption for eligible rental property located within the boundaries of the city or county, respectively. (b) The terms of the exemption must conform to the provisions of sections 1 to 3, chapter 624, Oregon Laws 2017. (3)(a) The exemption may be granted to eligible rental property only if: (A) The rehabilitation or construction is completed after the ordinance or resolution has been adopted; and (B) The first assessment year to which the application filed under section 2, chapter 624, Oregon Laws 2017, relates is the first assessment year that begins after the eligible rental property is first offered for rent for residential occupancy upon completion of the rehabilitation or construction. (b) Otherwise eligible rental property may not receive an exemption on the basis of rehabilitation more than once. (4) An ordinance or resolution adopted pursuant to this section must: (a) Establish one of the two following schedules: (A) A schedule in which the number of consecutive property tax years for which the exemption is granted, up to a maximum of 10 years, increases directly with the percentage of units constituting the eligible rental property that are rented to households with an annual income at or below 120 percent of the area median income at monthly rates that are affordable to such households. (B) A schedule in which, for a period of 10 years, the percentage of the exemption granted increases directly with the percentage of units constituting the eligible rental property that are rented to households with an annual income at or below 120 percent of the area median income at monthly rates that are affordable to such households. The percentage of exemption granted to any eligible rental property shall remain in effect for the entire 10-year period. (b) Include definitions of “area median income,” adjusted for the size of a household, and “affordable,” for purposes of sections 1 to 3, chapter 624, Oregon Laws 2017. The governing body of the city or county that adopted the ordinance or resolution shall notify the county assessor of the definitions. (5)(a) An ordinance or resolution adopted pursuant to this section may not take effect unless, upon request of the city or county that adopted the ordinance or resolution, the rates of taxation of the taxing districts whose governing bodies agree to grant the exemption, when combined with the rate of taxation of the city or county, equal 51 percent or more of the total combined rate of taxation on the eligible rental property. (b) If the ordinance or resolution takes effect, the exemption shall apply to all property tax levies of all taxing districts in which eligible rental property is located. (c) The decisions of the taxing districts under paragraph (a) of this subsection may not be changed but are not binding with respect to an ordinance or resolution adopted pursuant to subsection (6) of this section or a new ordinance or resolution adopted pursuant to subsection (2) of this section. (6)(a) A city or county may adopt at any time an ordinance or resolution amending the terms of an exemption granted pursuant to this section, subject to approval of the taxing districts under subsection (5)(a) of this section, or terminating the exemption. (b) Notwithstanding an ordinance or resolution adopted under paragraph (a) of this subsection, eligible rental property that has been granted an exemption pursuant to this section shall continue to receive the exemption under the terms in effect at the time the exemption was first granted. (7) As soon as practicable after January 1 of each year, the governing body of a city or county that has adopted an ordinance or resolution under this section shall: (a) Determine the area median income as defined by the city or county; (b) Notify each owner or lessee of eligible rental property granted exemption pursuant to the ordinance or resolution for the immediately preceding p