Property Subject to Taxation
Land acquired or owned by Indian tribe
(1)(a) Land acquired by an Indian tribe by purchase, gift or without consideration is exempt from taxation if:
(A)The land is located within the ancient tribal boundaries of the tribe; and
(B)Acquisition of the land by the United States in trust status has been requested or is in process.
(b)The exemption granted under this subsection ceases if the federal government enters a final administrative determination denying the request for acquisition of the land in trust status and:
(A)The deadlines for all available federal administrative appeals and federal judicial review expire with no appeal or review initiated; or
(B)All federal administrative and judicial proceedings arising from or related to the request for or process of acquisition of the land in trust status that have been initiated are completed without overturning the administrative denial of the request.
(2)(a) Regardless of ownership, permanent improvements are exempt from state and local property taxes and fees, charges and assessments related to property taxation if the improvements are located on land that is owned by the United States and held in trust pursuant to federal law for:
(A)A federally recognized Indian tribe; or
(B)An individual member of a federally recognized Indian tribe.
(b)The exemption granted under this subsection does not apply to property assessable under ORS 308.505 (Definitions for ORS 308.505 to 308.674) to 308.674 (Exemption equal to difference between real market value of company’s centrally assessable property and 130 percent of cost of company’s centrally assessable real and tangible personal property).
(3)(a) Notwithstanding subsection (1) of this section, property that is owned exclusively by an eligible Indian tribe or by an entity wholly owned by an eligible Indian tribe, or a portion of the property, is exempt from taxation if the property, or the portion of the property, respectively, is used exclusively for government services.
(b)Property described in paragraph (a) of this subsection that may be exempt from taxation as property used exclusively for low income rental housing includes, without limitation, property that:
(A)Is held under lease or a lease purchase agreement by an eligible Indian tribe;
(B)(i) Is the property of a partnership, nonprofit corporation or limited liability company of which an eligible Indian tribe is a general partner, limited partner, director, member, manager or general manager; and
(ii)Is leased or rented to low income persons for housing purposes; or
(C)Is used exclusively for an activity that qualifies as an affordable housing activity under 25 U.S.C. 4132.
(c)Property described in paragraph (a) of this subsection may not be exempt from taxation as property that is used exclusively for low income rental housing unless:
(A)All agreements necessary for the construction and operation of the property as low income rental housing are executed before July 1, 2017;
(B)For purposes of ORS 307.540 (Definitions for ORS 307.540 to 307.548) to 307.548 (Termination of exemption), the requirements of ORS 307.543 (Exemption limited to levy of governing body adopting ORS 307.540 to 307.548) have been satisfied;
(C)The property is offered for rent or is held for the purpose of developing low income rental housing;
(D)If occupied, the property is occupied solely by low income persons; and
(E)The property is located in a county in which more than 10 percent of the enrolled members of the eligible Indian tribe reside.
(4)As used in this section:
(a)“Eligible Indian tribe” means the Burns Paiute Tribe, the Confederated Tribes of Coos, Lower Umpqua and Siuslaw Indians, the Confederated Tribes of the Grand Ronde Community of Oregon, the Confederated Tribes of Siletz Indians of Oregon, the Confederated Tribes of the Umatilla Indian Reservation, the Confederated Tribes of Warm Springs Reservation of Oregon, the Coquille Indian Tribe, the Cow Creek Band of Umpqua Tribe of Indians or the Klamath Tribes.
(b)“Government services” means services provided by an eligible Indian tribe that:
(A)Are equivalent to services that a state or local government or the federal government customarily provides to its citizens;
(B)Are related to:
(ii)Tribal facilities or tribal health facilities;
(v)Fire or police;
(vi)Low income rental housing;
(C)Other than government services related to the uses of property described in subsection (3)(c) of this section, do not generate income.
(A)Means income at or below 60 percent of the area median income as determined by the Oregon Housing Stability Council based on information from the United States Department of Housing and Urban Development.
(B)For purposes of projects undertaken pursuant to the Native American Housing Assistance and Self-Determination Act of 1996 (P.L. 104-330), includes income that qualifies under 24 C.F.R. 5.609.
(d)“Permanent improvements” means “real property” as defined in ORS 307.010 (Definitions of “land” and “real property” for state property tax laws) (1)(b)(B).
(e)“Utility services” means services related to sanitation, sewer, storm drainage and water. [1993 c.266 §2; 1995 c.748 §3; 2001 c.753 §29; 2009 c.453 §1; 2012 c.42 §§1,5; 2015 c.65 §§1,2; 2015 c.180 §§42,43]
(2)The report required under subsection (1) of this section must include:
(a)For each property, or portion of property, the value of the property tax exemption granted under ORS 307.181 (Land acquired or owned by Indian tribe) (3) for the current property tax year as provided to the tribe by the assessor of the county in which the property is located; and
(b)The percentage of the current occupants of each property who are members of an eligible Indian tribe as defined in ORS 307.181 (Land acquired or owned by Indian tribe). [2012 c.42 §4]
(2)Projects for which all agreements necessary for the construction and operation of the property as low income rental housing are executed before July 1, 2017, remain eligible on and after July 1, 2017, for the property tax exemption for low income rental housing created by the amendments to ORS 307.181 (Land acquired or owned by Indian tribe) by section 1 of this 2012 Act. [2012 c.42 §7]
Atty. Gen. Opinions
Validity of ad valorem and severance taxation of logs destined for export, (1975) Vol 37, p 427; application of Article XI, section 11b of Oregon Constitution to this chapter, (1990) Vol 46, p 388
Law Review Citations
5 EL 516 (1975)