Oregon Statutes 307.541 – Nonprofit corporation low income housing; criteria for exemption
(1) Property is exempt from taxation as provided under ORS § 307.540 to 307.548 if:
Terms Used In Oregon Statutes 307.541
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Personal property: All property that is not real property.
(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, literary 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 reasonable 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 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. [1985 c.660 § 2; 1995 c.702 § 2; 1997 c.752 § 11; 2005 c.94 § 40; 2015 c.310 § 7]
See first note under 307.540.