For the education segment of Portland Business Journal’s How Oregon Works series, Stoel Rives’ partner Saskia de Boer, co-leader of the firm’s Health Care & Education Industry Group, and tax attorney Melissa Roberts contributed an article titled “Three Points for Schools and Charities to Consider When Owning or Leasing Property in Oregon,” published November 19, 2021. The authors look at three factors for schools and charities to consider regarding obtaining and maintaining a property tax exemption in Oregon.
The specific requirements for exemption from Oregon property tax differ based on the type of entity that owns or leases property, but these considerations apply widely:
- Property owned or leased by a charity may not be entitled to tax exemption, in whole or in part, if a portion of the property is used for a non-exempt purpose.
- If a charitable organization leases property, the financial savings from property tax exemption must benefit the charity only and not a taxable property owner or landlord.
- In general, a charity that leases property for a tax-exempt use must submit a new claim for exemption if the lease is amended, a new lease is signed, or use of the property changes.