Public property leased or rented by taxable owner
- exceptions
Source:
Section 307.110 — Public property leased or rented by taxable owner; exceptions, https://www.oregonlegislature.gov/bills_laws/ors/ors307.html.
Notes of Decisions
Restrictions may be imposed without destroying possessory interest denoting a lease. Canteen Co. v. Dept. of Revenue, 8 OTR 450 (1980)
Legislative decision, expressed by this section, to subject state-owned land leased to private individuals to ad valorem property tax does not violate Article VIII, section 5 of the Oregon Constitution. Johnson v. Dept. of Revenue, 292 Or 373, 639 P2d 128 (1982)
Dry boat storage building built over 300 feet from water and leased to taxable individuals was not exempted from taxation under “berthing” of watercraft exemption in ORS 307.120. Port of Coos Bay v. Dept. of Rev., 298 Or 229, 691 P2d 100 (1984)
Property belonging to tax exempt, special district port was occupied by plaintiff’s employee as personal residence but was used as incident to employment pursuant to this provision and, therefore, was tax exempt. Port of Bandon v. Dept. of Rev., 12 OTR 40 (1991)
Franchise allowing nonexclusive use of public property in undescribed areas of city does not grant taxable possessory interests in public property. Jones Intercable, Inc. v. Dept. of Rev., 12 OTR 436 (1993)
Franchise to operate business does not increase assessed value of tangible business property. Jones Intercable, Inc. v. Dept. of Rev., 12 OTR 436 (1993)
Assessment describing entire property was not sufficiently specific for purpose of assessing rented or leased portion of premises. Lincoln County v. Dept. of Rev., 12 OTR 548 (1993)
Where non-tax exempt entity leases otherwise tax exempt property, lien for property taxes is enforceable only against leasehold interest of non-tax exempt lessee. Multnomah County v. Finance America Corp., 120 Or App 30, 852 P2d 262 (1993), Sup Ct review denied
Mere possession and use of property without obtaining lawful interest does not make property taxable to user. Multnomah County v. Dept. of Rev., 13 OTR 170 (1994), aff’d 321 Or 576, 902 P2d 94 (1995)
Where public property is “held under a lease,” assessment is levied on value of fee interest in property, not just value of leasehold interest. Pollin v. Dept. of Revenue, 13 OTR 478 (1996)
Upon expiration of lease, lien on lessee’s interest in otherwise exempt property also expires. Urban Renewal Agency v. Dept. of Revenue, 14 OTR 77 (1996)
Property value is reduced by government restrictions on use of property, but is not reduced by restrictions on lessee’s interest. Pollin v. Dept. of Revenue, 14 OTR 96 (1997), aff’d 326 Or 427, 952 P2d 537 (1998)
Where interference by other uses is minimal and interest held constitutes substantial part of all practical uses of property, right of exclusive control exists. Avis Rent A Car System, Inc. v. Dept. of Revenue, 14 OTR 487 (1998), aff’d 330 Or 35, 995 P2d 1163 (2000)
Property that is owned by public body and that is subject to lien for tax due and unpaid by private party lessee is not “safe” from unpaid tax liability because lien survives lease termination. Grant County Assessor v. Dayville Public Sch. Dist. 16J, 20 OTR 91 (2010)
Attorney General Opinions
Subjection of “oil and gas lease” lands to ad valorem taxation, (1976) Vol 38, p 20; requirements to maintain exempt status of leased publicly owned land, (1979) Vol 40, p 68
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