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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 3712
Sponsored by Representative RESCHKE
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 the metrics for real market value and income so that more people
will be able to defer property taxes on their homes. (Flesch Readability Score: 63.3).
Changes the metrics for a homestead’s real market value and the household income of a claim-
ant in order to expand eligibility for the homestead property tax deferral program.
A BILL FOR AN ACT
Relating to the homestead property tax deferral program; creating new provisions; and amending
ORS 311.668 and 311.670.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 311.668 is amended to read:
311.668. (1)(a) A claim to defer the property taxes on a homestead that is eligible for deferral
under ORS 311.670 may be filed with the county assessor in the manner prescribed under ORS
311.672by:
(A) An individual who is, or two or more individuals filing a claim jointly each of whom is, 62
years of age or older on or before April 15 of the calendar year in which the claim is filed; or
(B) An individual who is a person with a disability as of April 15 of the calendar year in which
the claim is filed, regardless of the age of the individual or the age or disability of other individuals
occupying the homestead.
(b) If a guardian or conservator has been appointed for an individual otherwise eligible to claim
deferral of taxes under this section, the guardian or conservator may act for the individual in com-
plying with the provisions of ORS 311.666 to 311.701.
(c) If a trustee of an inter vivos trust that was created by and is revocable by an individual,
who is both the trustor and a beneficiary of the trust and who is otherwise eligible to claim deferral
of taxes under this section, owns the fee simple estate under a recorded instrument of sale, the
trustee may act for the individual in complying with the provisions of ORS 311.666 to 311.701.
(d) This section may not be construed to require the spouse of an individual to file a claim
jointly with the individual even though the spouse may be eligible to claim the deferral jointly with
the individual.
(2)(a) Notwithstanding subsection (1) of this section, deferral may not be granted under ORS
311.666 to 311.701 with respect to a claim filed by individuals who together have, for the calendar
year immediately preceding the calendar year in which the claim for deferral is filed:
(A) Household income of [$32,000] $80,000 or more; or
(B) Net worth of $500,000 or more.
(b) For each tax year beginning on or after July 1, [2002] 2027, the Department of Revenue shall
recompute the maximum household income under this subsection as follows:
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 4648 HB3712
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(A) Divide the average Consumer Price Index for All Urban Consumers, West Region, for the
first six months of the calendar year immediately preceding the calendar year in which the tax year
begins by the average U.S. City Average Consumer Price Index for the first six months of [2001]
2026.
(B) Recompute the maximum household income by multiplying [ $32,000] $80,000 by the appro-
priate indexing factor determined under subparagraph (A) of this paragraph.
(c) Any change in the maximum household income determined under paragraph (b) of this sub-
section shall be rounded to the nearest multiple of $500.
(3)(a) Notwithstanding subsection (1) of this section, deferral may not be granted under ORS
311.666 to 311.701 with respect to a claim if, at the time the claim is filed, property taxes imposed
on the homestead of any individual filing the claim have been deferred and are delinquent or have
been canceled.
(b) This subsection does not apply to the claim by a surviving spouse or disabled heir to con-
tinue deferral under ORS 311.688.
SECTION 2. 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
isfiled;
(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
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
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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] 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 seven years but
less than [nine] 14 years.
(c) [120] 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 [nine] 14 years
but less than [11] 20 years.
(d) [130] 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 [11] 20 years but
less than [13] 25 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)] (e) 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)
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
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(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 3. The amendments to ORS 311.668 and 311.670 by sections 1 and 2 of this 2025
Act apply to property tax years beginning on or after July 1, 2026.
[4]