ORS tit. 29, ch. 307, EXEMPTIONS, ALTERNATIVE ENERGY SYSTEMS, TEMPORARY PROVISIONS RELATING to EXEMPTION OF SOLAR PROJECT PROPERTY AND PAYMENT OF FEE IN LIEU OF PROPERTY TAXES ARE COMPILED AS NOTES FOLLOWING ORS 307.175
ORS tit. 29, ch. 307, EXEMPTIONS, ALTERNATIVE ENERGY SYSTEMS, TEMPORARY PROVISIONS RELATING to EXEMPTION OF SOLAR PROJECT PROPERTY AND PAYMENT OF FEE IN LIEU OF PROPERTY TAXES ARE COMPILED AS NOTES FOLLOWING ORS 307.175
Sections 1, 2 and 3, chapter 571, Oregon Laws 2015, provide:
Sec. 1. (1)(a) The governing body of a county and the owner or person in possession or control of a solar project located within the county and outside the boundaries of any incorporated city may enter into an agreement that exempts from property taxes the property constituting the solar project and allows the payment of a fee in lieu of property taxes imposed on the property.
(b) An agreement entered into under this section:
(A) May not be for a term longer than 20 consecutive years;
(B) Must indicate how the land on which the solar project is located will be treated with respect to the exemption and fee in lieu of property taxes; and
(C) Must set the rate of the fee in lieu of property taxes in accordance with subsection (2) of this section.
(c) If any portion of a solar project is located within the boundaries of an incorporated city, the governing body of the county shall consult with the governing body of the city before entering into an agreement under paragraph (a) of this subsection. An agreement entered into under paragraph (a) of this subsection with respect to a solar project located within the boundaries of the incorporated city is not effective unless the governing body of the city is a party to the agreement.
(2) The fee in lieu of property taxes shall be computed at a rate not less than $5,500, and not more than $7,000, per megawatt of nameplate capacity of the solar project for each property tax year. Megawatt of nameplate capacity shall be carried to the third decimal place.
(3)(a) On or before December 31 preceding the first property tax year to which an agreement entered into under this section relates, the owner or person in possession or control of the solar project shall file with the assessor of the county in which the solar project is located and the Department of Revenue a copy of the agreement and the nameplate capacity of the solar project.
(b) For each subsequent property tax year to which the agreement relates, the owner or person in possession or control of the solar project shall include with the statement required under ORS 308.524 the nameplate capacity of the solar project.
(c) A filing made under paragraph (a) of this subsection after December 31 must be accompanied by a late fee of $200. A filing may not be made after March 1 preceding the property tax year to which the filing relates.
(4)(a) For each property tax year to which an agreement relates, the department, when certifying and transmitting the assessment roll to the county assessors under ORS 308.505 to 308.674, shall provide the nameplate capacity of each solar project paying the fee in lieu of property taxes to each assessor of a county in which a solar project is located.
(b) As required under ORS 311.255, the county assessors shall extend upon the tax roll against all property constituting a solar project located in the respective counties all fees in lieu of property taxes for the property tax year. The fees shall be apportioned and distributed among the taxing districts having jurisdiction over the property in the proportion that each taxing district's total tax rate for the property tax year bears to all the taxing districts' total tax rates for the property tax year.
(5)(a) If the owner or person in possession or control of a solar project that has entered into an agreement under this section fails to pay the fee as required under this section, the property constituting the solar project is not exempt for the following property tax year and shall be assessed and taxed as other similar property is assessed and taxed.
(b) Notwithstanding paragraph (a) of this subsection, the property shall be exempt for the following property tax year upon payment, within one year after the date of delinquency, of the delinquent fee plus interest at the rate prescribed in ORS 311.505 (2). Delinquent fees and interest shall be collected in the manner provided for collection of delinquent property taxes on personal property.
(6)(a) If the owner or person in possession or control of the solar project fails to pay the fee in lieu of property taxes for more than one year during the term of an agreement entered into under this section, notwithstanding the agreement, the property constituting the solar project shall be disqualified for the exemption and payment of the fee in lieu of property taxes.
(b) Property that is disqualified under this subsection shall:
(A) Be assessed and taxed as other similar property is assessed and taxed.
(B) In addition, be assessed a penalty in an amount equal to one year of the fee in lieu of property taxes for the property. The penalty assessed under this subparagraph shall be distributed in the manner described in subsection (4)(b) of this section.
(7)(a) Property constituting a solar project that has received an exemption under ORS 285C. 350 to 285C. 370 or 307.123 for any property tax year is not eligible to pay a fee in lieu of property taxes under this section.
(b) Paragraph (a) of this subsection does not apply to property constituting a solar project that was the subject of an application filed pursuant to ORS 285C. 350 to 285C. 370 if the property did not receive the exemption for any property tax year. The election to pay the fee in lieu of property taxes for property described in this paragraph is not a disqualifying event. [2015 c. 571, § 1; 2019 c. 628, § 1; 2021 c. 571, § 1]
Sec. 2. Section 1 of this 2015 Act applies to property tax years beginning on or after July 1, 2016. [2015 c. 571, § 2]
Sec. 3. (1) Section 1, chapter 571, Oregon Laws 2015, is repealed on January 2, 2028.
(2) Notwithstanding subsection (1) of this section, property constituting a solar project that is exempt from property taxes under section 1, chapter 571, Oregon Laws 2015, on the date specified in subsection (1) of this section shall continue to be exempt and to pay the fee in lieu of property taxes for the term specified in the agreement entered into under section 1, chapter 571, Oregon Laws 2015. [2015 c. 571, § 3; 2021 c. 571, § 2]