[Ord. No. 2945 Added 5-7-2024]
Unless the context otherwise specifically requires, terms used
in LOC 24.10.010 to 24.10.070 shall have the meanings set forth in
this section:
Means the person holding the position of City Manager or
person designated by the City Manager.
(1) For the initial year that persons occupy property for
which an application for exemption is filed under ORS 307.545, 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; and (2)
For every subsequent consecutive year that the persons occupy the
property, income at or below 80 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.
[Ord. No. 2945 Added 5-7-2024]
1.
A property is exempt from property taxation as provided by LOC §§ 24.10.010
to 24.10.070 if:
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;
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;
2.
For purposes of Subsection (1)(a) of this section, a corporation that has only a leasehold interest in property is deemed to be a purchaser of that property if:
3.
A partnership shall be treated the same as a corporation to which
this section applies if the corporation is a general partner of the
partnership, and responsible for the day-to-day operation of the property
that is the subject of the exemption.
[Ord. No. 2945 Added 5-7-2024]
1.
Except as set forth in subsection 2 of this section, an exemption granted by the City shall only apply to the tax levy of the City for the property.
2.
Pursuant to ORS 307.543(2), to permit the exemption applied for to
apply to the combined tax levy for the property of all applicable
taxing districts, the City may submit a request to the governing bodies
of taxing districts for which the property is certified, whose rate
of taxation, when combined with the City's, equal 51 percent or more
of the total combined rate of taxation on the property granted exemption,
to agree to the policy of exemption.
[Ord. No. 2945 Added 5-7-2024]
1.
Application for Exemption. Before a request for exemption will be
considered, an applicant must file an application for exemption with
the City Manager, containing all information and material necessary
to consider the application, on or before December 1 of the year preceding
the assessment year for which the exemption is sought. The City Manager
may, in the City Manager's sole discretion, grant a variance for good
cause shown to allow a complete application to be filed after December
1. An application must contain the following:
a.
A description of the property for which the exemption is requested;
b.
A description of the charitable purpose of the project and whether
all or a portion of the property is being used for that purpose;
c.
A certification of income levels of low income occupants;
d.
A description of how the tax exemption will benefit project
residents;
e.
If, at the time the application is submitted, the property is
being held for future low income housing development, a declaration
that:
i.
The low income housing development will be completed and a certificate
of occupancy obtained, for uses consistent with the exemption within
five years of the date the exemption is granted:
ii.
A description of the anticipated low income housing development,
iii.
The minimum number of housing units to be provided, and
f.
A declaration that the corporation has been granted exemption
from income taxation under Section 501(a) of the Internal Revenue
Code as an organization described in Section 501(c)(3) or 501(c)(4)
of the Internal Revenue Code;
g.
A description of how the corporation and the property, respectively meet the criteria set forth in LOC § 24.10.030;
h.
Any other information reasonably required by the City Manager;
i.
An oath or affirmation signed by a person with authority to
bind the corporation verifying the accuracy of the information submitted
in the application; and
j.
Payment of the applicable fees as set by resolution of Council.
2.
Annual Certification; Request for Extension. After an exemption has
been granted, by December 1 of each year prior to the assessment year
for which the exemption is sought, the owner shall submit a request
to the City Manager that the exemption be extended for an additional
year. The request must be accompanied by a certification from the
owner attesting that the property continues to comply with Council's
determination granting the exemption, and all the information and
applicable fees identified in LOC § 24.010.040(1).
a.
After review of the request and inspection of the property,
if the City Manager finds that the property continues to meet the
requirements of Council's determination, the City Manager shall, in
writing, grant the extension for an additional year.
b.
If the City Manager finds that the property no longer meets the requirements of Council's determination, the City Manager shall submit a recommendation to Council that the exemption be terminated pursuant to LOC § 24.10.070.
c.
Applications for exemption and requests for extension will be
reviewed for completeness by the City Manager, and untimely or incomplete
applications or requests will be rejected, and an explanation of the
rejection provided to the applicant, which explains the basis for
the rejection and what information or materials must be submitted
to make the application complete.
[Ord. No. 2945 Added 5-7-2024]
Within 60 days of receipt of a complete application for exemption,
and any payment of fees due, the City Manager shall:
1.
For all applications, prepare a report to Council, including preliminary findings whether the application meets the criteria set forth in LOC § 24.10.030, and whether the exemption should be granted.
2.
Within 120 days of the filing of a complete application and payment of the applicable fees under LOC § 24.10.050, the Council shall adopt a resolution determining whether the property shall be granted the exemption, and specifying:
3.
If Council determines that the applicant qualifies for the exemption,
Council shall certify to the assessor of the county where the real
property is located, as set forth in ORS 307.512, that all or a portion
of the property is exempt from taxation under the levy of the City.
4.
Notwithstanding this subsection, Council may send the certification
on or before the deadline specified in ORS 307.512, or as promptly
as practicable after making its determination, whichever is later.
5.
Upon issuance of Council's resolution granting an exemption, pursuant to ORS 307.543(2) and Council approval to request approval from other taxing districts of the policy per LOC § 24.10.040(2), the applicant shall be approved to seek agreement to the policy of exemption from other taxing districts in order qualify for an exemption from the total combined rate of taxation on the property pursuant to LOC § 24.10.040.
[Ord. No. 2945 Added 5-7-2024]
If, after an exemption is granted, the property is being used
for any purpose inconsistent with the Council's determination granting
the exemption, the City Manager shall follow the procedures for termination
set forth in ORS 307.548, except that any final decision to terminate
an exemption shall be made by Council.
