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.
(c) All facts
relating to the use of the property by the lessee, sublessee or entity in
possession.
(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
(C) The location
of the property.
(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
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.”
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, No. TC-MD 230362R (Or. T.C. Oct. 24, 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., No. TC-MD 100196D (Or. T.C. Feb. 17, 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.”
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.”
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…”
Or. Rev. Stat. § 307.166(2): 2 cases
First Immanuel Evangelical Lutheran Church v. Multnomah Cnty. Assessor, No. TC-MD 230362R (Or. T.C. Oct. 24, 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.”
Or. Rev. Stat. § 307.166(2)(b): 1 case
Or. Rev. Stat. § 307.166(3): 2 cases
Or. Rev. Stat. § 307.166(3)(a): 1 case
Springwater Env. v. Clackamas Cnty., No. TC-MD 100196D (Or. T.C. Feb. 17, 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
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.”
Springwater Env. v. Clackamas Cnty., No. TC-MD 100196D (Or. T.C. Feb. 17, 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)(b): 1 case
First Immanuel Evangelical Lutheran Church v. Multnomah Cnty. Assessor, No. TC-MD 230362R (Or. T.C. Oct. 24, 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.”
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