Oregon Revised Statutes

Or. Rev. Stat. § 307.166 (2026)

Property leased by exempt institution, organization or public body to another exempt institution, organization or public body

✓ current as of May 2026

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307.166 Property leased by exempt institution, organization or public body to another exempt institution, organization or public body. (1) If property is owned or being purchased by an institution, organization or public body that is granted exemption or the right to claim exemption for any of its property under a provision of law contained in this chapter, and the institution, organization or public body leases or otherwise grants the use and possession of the property to another institution, organization or public body that is likewise granted exemption or the right to claim exemption for property under a provision of law contained in this chapter, the property is exempt from taxation if used by the lessee or possessor in the manner, if any, required by law for the exemption of property owned or being purchased by the lessee or possessor and any tax savings resulting from the exemption from taxation granted under this section will inure solely to the benefit of the lessee or possessor. Likewise, if the property is sublet or otherwise the use and possession of the property is granted to another institution, organization or public body of the kind described in this subsection, the property is exempt if used by the sublessee or possessor in the manner, if any, required by law for the exemption of property owned or being purchased by the sublessee or possessor and any tax savings resulting from the exemption from taxation granted under this section will inure solely to the benefit of the sublessee or possessor.

(2) Except as provided in subsection (4) of this section, to obtain the exemption under this section, the lessee, sublessee or entity in possession must file a claim for exemption with the county assessor, verified by the oath or affirmation of the president or other proper officer of the institution or organization, or head official of the public body or the legally authorized delegate of the head official, showing:

(a) A complete description of the property for which exemption is claimed.

(b) All facts relating to the ownership or purchase of the property.

(d) A true copy of the lease, sublease or other grant of use and possession covering the property for which exemption is claimed.

(e) Any other information required by the claim form.

(3)(a) The claim required under subsection (2) of this section must be filed on or before April 1 preceding the tax year for which the exemption is claimed, except:

(A) If the lease, sublease or other grant of use and possession is entered into after March 1 but not later than June 30, the claim must be filed within 30 days after the date the lease, sublease or other grant of use and possession is entered into if the exemption is claimed for the assessment year beginning on the preceding January 1; or

(B) If a late filing fee is paid in the manner provided in ORS 307.162 (2), the claim may be filed within the time specified in ORS 307.162 (2).

(b) The exemption first applies for the tax year beginning July 1 of the year for which the claim is filed. The exemption continues as long as the ownership and use of the property remain unchanged and during the period of the lease, sublease or other grant of use and possession. If either the ownership or use changes, a new claim must be filed as provided in this section. If the lease, sublease or other grant of use and possession expires before July 1 of any year, the exemption terminates as of January 1 of the same calendar year.

(4)(a) In lieu of filing a claim under subsection (2) of this section, the lessor, sublessor or person granting the use and possession of property that is exempt from taxation under ORS 307.040 or 307.090 to a lessee, sublessee or entity the property of which is eligible for exemption under ORS 307.040 or 307.090 must provide the assessor of the county in which the property is located with the following information as soon as practicable after execution of a lease, sublease or other grant of use and possession of the property:

(A) The name and address of the lessee, sublessee or possessor;

(B) Upon request of the assessor, a copy of the lease, sublease or other grant of use and possession of the property; and

(b) Upon compliance with paragraph (a) of this subsection, the property is exempt from taxation under this section during the term of the lease, sublease or other grant of use and possession. [1977 c.884 §26 (enacted in lieu of 307.164); 1991 c.459 §45; 1993 c.104 §1; 1997 c.154 §1; 1997 c.541 §107; 1999 c.579 §19; 2009 c.626 §3; 2011 c.655 §3; 2013 c.193 §15; 2017 c.554 §2]

Notes of Decisions

Cited in 33 cases (2 in the last 5 years), 1982–2025 · leading case: Erickson v. Dep't of Revenue, 17 Or. Tax 324 (Or. T.C. 2004).

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Erickson v. Dep't of Revenue, 17 Or. Tax 324 (Or. T.C. 2004). · cites it 23× “The magistrate assigned to the case held that the exemption was lost for failure to comply with ORS 307.166, a statute that addresses property owned by an entity whose property is exempt and leased to another such entity.”

Mercy Health Promotion, Inc. v. Dep't of Revenue, 795 P.2d 1082 (Or. 1990). · cites it 25× “DOR contends that this exemption does not apply when both the property owner and the lessee are tax exempt organizations because another, more specific provision, ORS 307.166, 3 applies to such situations.”

Serenity Lane, Inc. v. Lane Cnty. Assessor, 21 Or. Tax 229 (Or. T.C. 2013). · cites it 6× “The result is that, because of Serenity’s internal organization, each of the two components of Serenity must individually qualify as charitable institutions to satisfy the terms of ORS 307.”

Dept. of Rev. v. New Friends of the Beaverton City Library, 23 Or. Tax 512 (Or. T.C. 2019). · cites it 3× “4 ORS 307.166 imposes additional requirements for properties leased from one organization whose property is eligible for exemption to another.”

Woman's Convalescent Home Ass'n Found. v. Dep't of Revenue, 9 Or. Tax 190 (Or. T.C. 1982). · cites it 5× “ORS 307.166 preserves the exempt status of property leased in such a manner.”

Johnson v. Dep't of Revenue, 639 P.2d 128 (Or. 1982). · cites it 2× “ORS 307.166. Several exceptions are provided to these exemptions, among them ORS 307.”

Mercy Health Promotion, Inc. v. Dep't of Revenue, 11 Or. Tax 207 (Or. T.C. 1989). · cites it 12× “” Plaintiff seeks property tax exemption for the leased property under either ORS 307.166 or 307.112. ORS 307.166(1) provides as follows: “(1) If property is owned or being purchased by an institution, organization or public body, and if the institution, organization or public…”

United Streetcar, LLC v. Dept. of Rev., 23 Or. Tax 418 (Or. T.C. 2019). “, ORS 307.166(3)(a)(A) (governing application process for prop- erty leased from one organization to another; referring to “exemption[ ] claimed for the assessment year”), ORS 307.”

Dept. of Rev. v. Oregon City BPOE 1189, 21 Or. Tax 500 (Or. T.C. 2014). · cites it 3× “136(1) would conflict with those found in ORS 307.166, a statute specifically deal- ing with rental of property from one exempt organization to another exempt organization.”

First Immanuel Evangelical Lutheran Church v. Multnomah Cnty. Assessor (Or. T.C. 2024). · cites it 13× “Religious organizations may lease property to another entity that qualifies for a property tax exemption, subject to certain conditions under ORS 307.166. In such cases, the lessee is responsible for completing the exemption application under ORS 307.”

Springwater Env. v. Clackamas Cnty., Tc-Md 100196d (or.tax 2-17-2011) (Or. T.C. 2011). · cites it 11× “The reason(s) for this denial is as follows: "Your application for exemption, filed pursuant to ORS 307.166, was received on July 2, 2008.”

New Friends of the Beaverton City Library v. Washington Cnty. Assessor (Or. T.C. 2017). · cites it 6× “Bartos, Treasurer for Plaintiff, appeared and testified behalf of Plaintiff. Eric Olson, Appraisal Supervisor, appeared on behalf of Defendant.”

Show all 33 citing cases →

— Or. Rev. Stat. § 307.166(1) — 11 cases

Serenity Lane, Inc. v. Lane Cnty. Assessor, 21 Or. Tax 229 (Or. T.C. 2013). “The result is that, because of Serenity’s internal organization, each of the two components of Serenity must individually qualify as charitable institutions to satisfy the terms of ORS 307.”

Mercy Health Promotion, Inc. v. Dep't of Revenue, 795 P.2d 1082 (Or. 1990). “DOR contends that this exemption does not apply when both the property owner and the lessee are tax exempt organizations because another, more specific provision, ORS 307.166, 3 applies to such situations.”

Dept. of Rev. v. New Friends of the Beaverton City Library, 23 Or. Tax 512 (Or. T.C. 2019). “4 ORS 307.166 imposes additional requirements for properties leased from one organization whose property is eligible for exemption to another.”

Mercy Health Promotion, Inc. v. Dep't of Revenue, 11 Or. Tax 207 (Or. T.C. 1989). “” Plaintiff seeks property tax exemption for the leased property under either ORS 307.166 or 307.112. ORS 307.166(1) provides as follows: “(1) If property is owned or being purchased by an institution, organization or public body, and if the institution, organization or public…”

New Friends of the Beaverton City Library v. Washington Cnty. Assessor (Or. T.C. 2017). “Bartos, Treasurer for Plaintiff, appeared and testified behalf of Plaintiff. Eric Olson, Appraisal Supervisor, appeared on behalf of Defendant.”

— Or. Rev. Stat. § 307.166(2) — 2 cases

First Immanuel Evangelical Lutheran Church v. Multnomah Cnty. Assessor (Or. T.C. 2024). “Religious organizations may lease property to another entity that qualifies for a property tax exemption, subject to certain conditions under ORS 307.166. In such cases, the lessee is responsible for completing the exemption application under ORS 307.”

Lane Cnty. v. Dep't of Revenue, 13 Or. Tax 166 (Or. T.C. 1994).

— Or. Rev. Stat. § 307.166(2)(b) — 1 case

100 Languages v. Multnomah Cnty. Assessor (Or. T.C. 2025).

— Or. Rev. Stat. § 307.166(3) — 2 cases

Woman's Convalescent Home Ass'n Found. v. Dep't of Revenue, 9 Or. Tax 190 (Or. T.C. 1982). “ORS 307.166 preserves the exempt status of property leased in such a manner.”

100 Languages v. Multnomah Cnty. Assessor (Or. T.C. 2025).

— Or. Rev. Stat. § 307.166(3)(a) — 1 case

Springwater Env. v. Clackamas Cnty., Tc-Md 100196d (or.tax 2-17-2011) (Or. T.C. 2011). “The reason(s) for this denial is as follows: "Your application for exemption, filed pursuant to ORS 307.166, was received on July 2, 2008.”

— Or. Rev. Stat. § 307.166(3)(a)(A) — 2 cases

— Or. Rev. Stat. § 307.166(3)(b) — 1 case

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