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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2340
Introduced and printed pursuant to House Rule 12.00. Presession filed (at the request of Governor Tina Kotek for
Department of Revenue)
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.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act makes a home eligible for tax deferral after three years of living in it instead
of five. (Flesch Readability Score: 67.3).
Reduces the minimum number of years that property must have been the homestead of an indi-
vidual before the property is eligible for the homestead property tax deferral program.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to eligibility criteria for the homestead property tax deferral program; creating new pro-
visions; amending ORS 311.670; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 311.670 is amended to read:
311.670. (1) Property is not eligible for tax deferral under ORS 311.666 to 311.701 unless, at the
time a claim is filed and during the period for which deferral is claimed, the property meets the
requirements of this section.
(2)(a) The property for which the claim is filed must have been the homestead of the individual
or individuals who file the claim for deferral for at least [five] three years preceding April 15 of the
year in which the claim is filed.
(b) The [five-year]three-year requirement under paragraph (a) of this subsection does not apply
to a homestead that meets all other requirements of this section, if the individual or individuals
filing the claim for deferral:
(A) Are required to be absent from the homestead by reason of health;
(B)(i) Moved to the homestead for which the claim is filed from a homestead that was granted
deferral under ORS 311.666 to 311.701 and was of greater real market value than the homestead for
which the claim is filed;
(ii) Sell the prior homestead within one year of purchasing the homestead for which the claim
is filed;
(iii) Satisfy any lien created under ORS 311.673 or 311.679 and attached to the prior homestead;
and
(iv) Provide a written attestation that the individual or individuals incurred debt for not more
than 80 percent of the purchase price of the homestead for which the claim is filed; or
(C) Are a surviving spouse or disabled heir claiming continuation of deferral under ORS 311.688.
(3) The individual claiming the deferral, individually or jointly, must own the fee simple estate
under a recorded instrument of sale, or two or more individuals together must own the fee simple
estate with rights of survivorship under a recorded instrument of sale if all owners live in the
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 304 HB2340
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property and if all owners apply for the deferral jointly.
(4)(a) The homestead must be insured for fire and other casualty.
(b) If the homestead meets all other requirements of this section and is insurable for fire and
other casualty but not insured, the Department of Revenue may purchase insurance for the home-
stead and add the cost of the insurance coverage to a lien created under ORS 311.679.
(5) There may be no prohibition to the deferral of property taxes contained in any provision of
federal law, rule or regulation applicable to a mortgage, trust deed, land sale contract or conditional
sale contract for which the homestead is security.
(6) A homestead is not eligible for deferral under ORS 311.666 to 311.701 unless the real market
value of the homestead entered on the certified assessment and tax roll for the property tax year
immediately preceding the property tax year for which the taxes will be deferred is less than the
greater of $250,000 or:
(a) 100 percent of county median RMV if, as of April 15 of the year in which a claim is filed,
the taxpayers have continuously owned and occupied the homestead less than seven years.
(b) 110 percent of county median RMV if, as of April 15 of the year in which a claim is filed,
the taxpayers have continuously owned and occupied the homestead at least seven years but less
than nine years.
(c) 120 percent of county median RMV if, as of April 15 of the year in which a claim is filed,
the taxpayers have continuously owned and occupied the homestead at least nine years but less than
11years.
(d) 130 percent of county median RMV if, as of April 15 of the year in which a claim is filed,
the taxpayers have continuously owned and occupied the homestead at least 11 years but less than
13 years.
(e) 140 percent of county median RMV if, as of April 15 of the year in which a claim is filed,
the taxpayers have continuously owned and occupied the homestead at least 13 years but less than
15 years.
(f) 150 percent of county median RMV if, as of April 15 of the year in which a claim is filed, the
taxpayers have continuously owned and occupied the homestead at least 15 years but less than 17
years.
(g) 160 percent of county median RMV if, as of April 15 of the year in which a claim is filed,
the taxpayers have continuously owned and occupied the homestead at least 17 years but less than
19 years.
(h) 170 percent of county median RMV if, as of April 15 of the year in which a claim is filed,
the taxpayers have continuously owned and occupied the homestead at least 19 years but less than
21 years.
(i) 200 percent of county median RMV if, as of April 15 of the year in which a claim is filed, the
taxpayers have continuously owned and occupied the homestead at least 21 years but less than 23
years.
(j) 225 percent of county median RMV if, as of April 15 of the year in which a claim is filed, the
taxpayers have continuously owned and occupied the homestead at least 23 years but less than 25
years.
(k) 250 percent of county median RMV if, as of April 15 of the year in which a claim is filed,
the taxpayers have continuously owned and occupied the homestead for 25 years or more.
(7)(a) For each tax year beginning on or after July 1, 2022, the Department of Revenue shall
recompute the $250,000 minimum cap on allowable real market value provided under subsection (6)
[2] HB2340
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of this section as follows:
(A) Divide the average Consumer Price Index for All Urban Consumers, West Region, for the
first six months of the current calendar year by the average Consumer Price Index for All Urban
Consumers, West Region, for the first six months of 2021.
(B) Recompute the minimum cap on allowable real market value by multiplying $250,000 by the
appropriate indexing factor determined under subparagraph (A) of this paragraph.
(b) Any change in the minimum cap on allowable real market value determined under paragraph
(a) of this subsection shall be rounded to the nearest multiple of $500.
(8) For purposes of subsection (6) of this section, a surviving spouse or disabled heir who is el-
igible to claim continuation of deferral under ORS 311.688 is considered to have owned and occupied
the homestead from the date on which the deceased individual or individuals who filed the claim for
deferral first owned and occupied the homestead.
SECTION 2. The amendments to ORS 311.670 by section 1 of this 2025 Act apply to
property tax years beginning on or after July 1, 2026.
SECTION 3.This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
[3]