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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 119
Printed pursuant to Senate Interim Rule 213.28 by order of the President of the Senate in conformance with pre-
session filing rules, indicating neither advocacy nor opposition on the part of the President (at the request
of Senate Interim Committee on Finance and 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 would create a property tax credit for the home of a person who is on active
military duty. The Act would phase out the current partial exemption for such homes. (Flesch
Readability Score: 61.6).
Provides for a property tax credit against the ad valorem taxes imposed on the homestead of a
resident serving on active military duty. Phases out the current partial exemption for such home-
steads.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to a property tax credit for the homestead of residents on active military duty; and pre-
scribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. As used in sections 1 to 3 of this 2025 Act:
(1)(a) “Credit-eligible taxes” means ad valorem property taxes that are:
(A) Operating taxes as defined in ORS 310.055; or
(B) Local option taxes as defined in ORS 310.202.
(b) “Credit-eligible taxes” does not mean ad valorem property taxes that are levied to
repay bonded indebtedness.
(2) “Eligible homestead” means residential property that:
(a) Is owned by a resident of this state described in section 2 (1) of this 2025 Act; and
(b) Would be occupied by the resident as a primary residence, but for military service
described in section 2 (1) of this 2025 Act.
SECTION 2. (1) A property tax credit is allowable for the homestead of any resident of
this state who is:
(a) Serving in the Oregon National Guard, military reserve forces or organized militia
of any other state or territory of the United States; and
(b) Performing service:
(A) Under Title 10 of the United States Code or pursuant to a deployment made under
the authority of the Emergency Management Assistance Compact; and
(B) For more than 178 consecutive days, if at least one of the days falls within the
property tax year for which the tax credit is claimed.
(2)(a) Upon compliance with section 3 of this 2025 Act, and regardless of any value as-
sessed on the eligible homestead, a credit against the credit-eligible taxes otherwise due on
an eligible homestead shall be allowed for any property tax year in an amount equal to the
lesser of:
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 2258 SB119
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(A) The credit-eligible taxes due on the property; or
(B) $1,750.
(b) The maximum amount of the credit allowable under paragraph (a) of this subsection
shall be adjusted annually by the percentage, if any, by which the monthly averaged Con-
sumer Price Index for All Urban Consumers, West Region (All Items), as published by the
Bureau of Labor Statistics of the United States Department of Labor, for the 12 consecutive
months ending August 31 of the property tax year for which the credit is allowable exceeds
the monthly averaged index for the 12 consecutive months ending August 31, 2025.
(3)(a) The amount of the tax credit used against the property taxes imposed on an eligible
homestead shall be withheld from the taxing districts of the code area in which the eligible
homestead is located according to the percentage schedule prepared and filed under ORS
311.390.
(b) The total amount of the credit shall be allocated proportionately among the credit-
eligible taxes to which it relates.
(c) For any partial payments of credit-eligible taxes, the amount of the credit allowed
against the payment shall be proportional to the percentage of the total taxes due that are
paid.
(d) If the amount of the credit exceeds the credit-eligible taxes due on the eligible
homestead for the property tax year, the excess may not be used in any succeeding property
tax year.
(4)(a) A resident currently receiving the partial exemption against a homestead’s as-
sessed value granted under ORS 307.286 may, for the succeeding property tax year, file a
claim for and receive instead the tax credit allowed under this section against the credit-
eligible taxes imposed on the homestead.
(b) A homestead may not receive both the partial exemption and the tax credit for any
property tax year.
(5) It is the intent of the Legislative Assembly that a tax credit allowed under this sec-
tion does not subject the eligible homestead to revaluation under Article XI, section 11
(1)(c)(E) or (2), of the Oregon Constitution.
SECTION 3. (1) Each resident seeking the property tax credit allowable under section 2
of this 2025 Act shall file with the county assessor, on forms supplied by the assessor, a claim
in writing on or before August 1 following the end of the property tax year for which the tax
credit is claimed.
(2) A claim for the tax credit under section 2 of this 2025 Act shall:
(a) Designate the eligible homestead to which the tax credit will apply;
(b) Set forth the basis for eligibility of the claimant and the homestead for the tax credit;
and
(c) Include a statement by the claimant, subject to the penalties for false swearing under
ORS 162.075, that all information contained in the claim is true.
(3) Notwithstanding subsection (1) of this section and section 2 (1) of this 2025 Act, the
eligible homestead of a resident described in section 2 (1) of this 2025 Act who files a claim
prior to the date on which the resident’s service begins shall be allowed the tax credit if the
claimant has written orders that require the performance of service for at least one day
during the property tax year for which the tax credit is being claimed and the claimant and
the homestead are otherwise eligible for the tax credit.
[2] SB119
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(4)(a) Notwithstanding subsection (1) of this section and section 2 (1) of this 2025 Act, an
individual, other than the eligible resident, who is lawfully occupying an eligible homestead
may file a claim for the tax credit allowable under section 2 of this 2025 Act by the time
prescribed in subsection (1) of this section if the eligible resident died while performing the
service described in section 2 (1)(b)(A) of this 2025 Act during the current or preceding tax
year.
(b) The claim shall be allowed by the county assessor if the eligible resident met all of
the requirements for a tax credit under section 2 of this 2025 Act prior to death, other than
the number of consecutive days of service specified in section 2 (1)(b)(B) of this 2025 Act.
(5) The tax credit shall be allowed for the property tax year in which the claim is required
to be filed.
(6) If the credit-eligible taxes for the property tax year for which the tax credit is allowed
have not been paid, the amount of the tax credit and any interest on the amount shall be
abated.
(7)(a) If the credit-eligible taxes for the property tax year for which the tax credit is al-
lowed have been paid without allowance of the tax credit, notwithstanding section 2 (3)(d)
of this 2025 Act, the amount of the credit allowed shall be refunded in the manner prescribed
in this subsection.
(b) The tax collector shall notify the governing body of the county of any refund required
under this subsection and the governing body shall cause a refund of the credit-eligible taxes
and any interest paid on the taxes to be made from the unsegregated tax collections account
described in ORS 311.385.
(c) The refund shall be made without interest.
(d) Refund amounts shall be withheld from the taxing districts of the code area in which
the eligible homestead is located according to the percentage schedule prepared and filed
under ORS 311.390.
(e) The county assessor and tax collector shall make the necessary corrections in the
records of their offices.
SECTION 4. Property tax credits under sections 1 to 3 of this 2025 Act may be allowed
against credit-eligible taxes due for property tax years beginning on or after July 1, 2026.
SECTION 5.(1) Except as provided in ORS 307.289 (4), an initial year of partial exemption
under ORS 307.286 may not be granted for property tax years beginning on or after July 1,
2026.
(2) Notwithstanding the sunset date provided in subsection (1) of this section, a home-
stead that is granted a partial exemption for the property tax year beginning on July 1, 2025,
shall continue to receive the partial exemption for as long as the resident and the homestead
qualify for it under ORS 307.286.
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.
[3]