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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2910
Sponsored by Representative EVANS (Presession filed.)
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 would change some laws related to energy and property taxes. (Flesch Read-
ability Score: 60.7).
Authorizes local governments to adopt additional criteria to encourage energy efficiency and
energy generation on property granted certain exemptions from ad valorem property taxation.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to energy-related improvements; creating new provisions; amending ORS 307.517, 307.518,
307.541 and 307.606; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 307.517 is amended to read:
307.517. (1) Property or a portion of the property is exempt from taxation as provided under ORS
307.515 to 307.523 if:
(a) The property is:
(A) Offered for rent; or
(B) Held for the purpose of developing low income rental housing, for a period not exceeding a
reasonable maximum period, if any, adopted by the governing body;
(b) The property, if occupied, is occupied solely by low income persons;
(c) The required rent payment reflects the full value of the property tax exemption;
(d) The exemption has been approved as provided in ORS 307.523, pursuant to an application
filed before July 1, 2030;
(e) The housing units on the property were constructed after the local governing body adopted
the provisions of ORS 307.515 to 307.523; and
(f) The information disclosed on the application filed pursuant to ORS 307.521 meets any other
criteria adopted by the governing body.
(2) A governing body that adopts the provisions of ORS 307.515 to 307.523 may adopt additional
criteria for exemption that encourage energy efficiency and energy generation on the property
provided the criteria do not conflict with the criteria described in subsection (1)(a) to (e) of this
section.
(3) For the purposes of subsection (1) of this section, a person that has only a leasehold interest
in property is deemed to be a purchaser of that property if:
(a) The person is obligated under the terms of the lease to pay the ad valorem taxes on the real
and personal property used in this activity on that property; or
(b) The rent payable has been established to reflect the savings resulting from the exemption
fromtaxation.
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 1631 HB2910
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SECTION 2. ORS 307.518 is amended to read:
307.518. (1) Property or a portion of property is exempt from taxation as provided under ORS
307.515 to 307.523 if:
(a) The property, if unoccupied, is:
(A) Offered for rental solely as a residence for low income persons; or
(B) Held for the purpose of developing low income rental housing, for a period not exceeding a
reasonable maximum period, if any, adopted by the governing body;
(b) The property, if occupied, is occupied solely as a residence for low income persons;
(c) An exemption for the property has been approved as provided under ORS 307.523, pursuant
to an application filed before July 1, 2030;
(d) The property is owned or being purchased by a nonprofit corporation organized in a manner
that meets the criteria for a public benefit corporation or a religious corporation, both terms as
defined in ORS 65.001;
(e) The property is owned or being purchased by a nonprofit corporation that expends no more
than 10 percent of the nonprofit corporation’s annual income from residential rentals for purposes
other than the acquisition, maintenance or repair of residential rental property for low income per-
sons or for the provision of on-site child care services for the residents of the rental property; and
(f) The information disclosed on the application filed pursuant to ORS 307.521 meets any other
criteria adopted by the governing body.
(2) A governing body that adopts the provisions of ORS 307.515 to 307.523 may adopt additional
criteria for exemption that encourage energy efficiency and energy generation on the property
provided the criteria do not conflict with the criteria described in subsection (1)(a) to (e) of this
section.
(3) For the purposes of this section, a nonprofit corporation that has only a leasehold interest
in property is considered to be a purchaser of that property if:
(a) The nonprofit corporation is obligated under the terms of the lease to pay the ad valorem
taxes on the real and personal property used in the rental activity on that property; or
(b) The rent payable has been established to reflect the savings resulting from the exemption
fromtaxation.
(4) A partnership shall be considered a nonprofit corporation for purposes of this section if:
(a) A nonprofit corporation is a general partner of the partnership; and
(b) The nonprofit corporation is responsible for the day-to-day operation of the property that is
the subject of the exemption under ORS 307.515 to 307.523.
SECTION 3. ORS 307.541 is amended to read:
307.541. (1) Property is exempt from taxation as provided under ORS 307.540 to 307.548 if:
(a) The property is owned or being purchased by a corporation described in section 501(c)(3) or
(4) of the Internal Revenue Code that is exempt from income taxation under section 501(a) of the
Internal Revenue Code;
(b) Upon liquidation, the assets of the corporation are required to be applied first in payment
of all outstanding obligations, and the balance remaining, in cash and in kind, to be distributed to
corporations exempt from taxation and operated exclusively for religious, charitable, scientific, lit-
erary or educational purposes or to the State of Oregon;
(c) The property is:
(A) Occupied by low income persons; or
(B) Held for the purpose of developing low income housing, for a period not exceeding a rea-
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sonable maximum period, if any, adopted by the governing body;
(d) The property or portion of the property receiving the exemption, if occupied, is actually and
exclusively used for the purposes described in section 501(c)(3) or (4) of the Internal Revenue Code;
(e) The exemption has been approved as provided in ORS 307.547; and
(f) The information disclosed on the application filed pursuant to ORS 307.545 meets any other
criteria adopted by the governing body.
(2) A governing body that adopts the provisions of ORS 307.540 to 307.548 may adopt additional
criteria for exemption that encourage energy efficiency and energy generation on the property
provided the criteria do not conflict with the criteria described in subsection (1)(a) to (e) of this
section.
(3) For the purposes of subsection (1) of this section, a corporation that has only a leasehold
interest in property is deemed to be a purchaser of that property if:
(a) The corporation is obligated under the terms of the lease to pay the ad valorem taxes on the
real and personal property used in this activity on that property; or
(b) The rent payable by the corporation has been established to reflect the savings resulting
from the exemption from taxation.
(4) A partnership shall be treated the same as a corporation to which this section applies if the
corporation is:
(a) A general partner of the partnership; and
(b) Responsible for the day-to-day operation of the property that is the subject of the exemption.
SECTION 4. ORS 307.606 is amended to read:
307.606. (1) ORS 307.600 to 307.637 apply to multiple-unit housing preserved, constructed, estab-
lished, added to or converted in cities or counties that adopt, after a public hearing and determi-
nation pursuant to subsection (3) of this section, by resolution or ordinance, the provisions of ORS
307.600 to 307.637.The tax exemption provided by ORS 307.600 to 307.637 only applies to the tax
levy of a city or county that adopts the provisions of ORS 307.600 to 307.637, except that the tax
exemption shall apply to the ad valorem property taxes of all taxing districts when upon request of
the city or county that has adopted the provisions of ORS 307.600 to 307.637, 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 307.637, when combined with
the rate of taxation of the city or county that adopts the provisions of ORS 307.600 to 307.637, 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 307.637.
(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 307.637. 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 307.637 for housing that is or
becomes 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 ori-
ented 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 307.637 for
housing that is or becomes 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
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area as limited by ORS 307.603 (3) or (6).
(3) The city or county shall, prior to passage of a resolution or ordinance electing to utilize the
provisions of ORS 307.600 to 307.637, 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 307.637.
(4) Prior to accepting project applications under ORS 307.600 to 307.637, cities or counties shall
promulgate standards and guidelines to be utilized in considering applications and making the de-
terminations required by ORS 307.618. 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, including elements that encourage energy efficiency and energy gen-
eration.
(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 that is or becomes 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 to preserve or establish the low income units.
(g) For housing that is to become subject to a low income housing assistance contract with an
agency or subdivision of this state or the United States, the date on which the housing must be es-
tablished in order to be exempt under ORS 307.600 to 307.637.
SECTION 5. The amendments to ORS 307.517, 307.518, 307.541 and 307.606 by sections 1
to 4 of this 2025 Act apply to exemptions granted pursuant to applications filed:
(1) On or after the date on which additional criteria adopted pursuant to this 2025 Act
become effective; and
(2) On or after the effective date of this 2025 Act.
SECTION 6. 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.
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