Exemptions and Deferrals
Exemptions are defined as property or a portion of the property value that has been removed from the assessment roll, thus excluded from taxation. In the State, there are approximately many different exemptions and/or special assessments that qualifying property owners and lessees can apply for
There are two types of exemption: full exemption and partial exemption. Exemption is granted based on the portion of the property used for a qualifying purpose. If the entire property is used for a qualifying purpose, it is 100% exempt. If only a portion is used for a qualifying purpose, only that portion is exempted.
The bulk of exemptions fall into the specific organization category. The most common qualifying entities are religious, fraternal, literary, benevolent, or charitable. Property for which this type exemption is requested must be actively occupied and used by the organization in a way that furthers its stated purpose. The property must also be reasonably necessary to carry out that purpose. Any portion of a property that does not meet these criteria is subject to assessment and taxation the same as all other taxable property.
Additionally, individual taxpayers may apply for Disable War Veterans, Surviving Spouse of a War Veteran, or an Active Duty Military Service Member Exemption. These exemptions apply to the applicant’s property taxes.
Specially assessed properties are valued using an assessment technique that results in a lower taxable value than would be the case if the usual assessment practice were used.
Types of special assessments include but are not limited to farmland, forestland, historic, enterprise zone, and open space.
Deferral Programs were established by the Oregon Legislature to allow qualifying citizens to delay paying property taxes on their residences, manufactured homes, houseboats, multi-family, and income-producing properties (example: home business). This could also include deferring the assessment on your property for items such as street, sewer, or sidewalk improvements.
If you qualify for one of the deferral programs, the state will pay your property taxes to your county. The state will place a lien or hold on your property. You will be charged lien fees, which are also deferred. Interest on the deferred taxes, at 6 percent per year, is also deferred. Deferral means that the taxes, interest, and fees will need to be paid at a later date. The most popular programs include:
- Property Tax Deferral for Disabled Citizens
- Property Tax Deferral for Senior Citizens
- Special Assessment Program