All Roll Calls
Yes: 92 • No: 2
OregonHB 31902025 Regular SessionHouseWALLET
Relating to historic property special assessment; and prescribing an effective date.
Sponsored By: Rob Nosse (Democratic), Tom Andersen (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
11 provisions identified: 3 benefits, 2 costs, 6 mixed.
Historic tax breaks can trigger repayment
Special assessment ends at term expiration or a listed disqualification, including loss of commercial use, demolition, or noncompliant changes. Other grounds include exempt-entity transfers, qualifying damage, owner discontinuance or failures, and failure to meet National Register listing requirements. Owners must notify the assessor and state preservation officer before the next assessment date when any portion becomes ineligible. The state officer makes the final disqualification decision. Covered disqualifications require repayment of tax savings for years actually specially assessed, up to the prior 10 years. Interest runs from December 15 of the first affected tax year through July 1 of the disqualification year. A 15% penalty applies to the added taxes. Repayment exceptions cover expiration, exempt-entity transfers, qualifying destruction, and written discontinuance with proof of required preservation spending. For specified owner-failure cases, the assessor must send return-receipt notice before adding charges to the next tax roll.
Historic rentals qualify, but ownership limits apply
Historic commercial property can qualify for special property tax assessment, including single-family and multifamily rentals, but not owner-occupied private homes. Commercial property includes improved property used for business or held to earn income. Eligible owners include title holders listed in county tax records and buyers under active, recorded land sale contracts. They also include people who created revocable trusts owning the property and trustees of irrevocable trusts. Leaseholders, life tenants, and holders of easements or lesser interests do not qualify as owners.
Existing historic tax terms keep earlier rules
The law takes effect on the 91st day after the 2025 regular session adjourns. Changed assessment rules cover applications filed on or after that date for tax years beginning July 1, 2026, or later. Properties classified before the effective date can finish their current special assessment term under the earlier law. A separate transition protects assessments granted for tax years beginning before July 1, 2025. Those properties retain the rules from the start of their current initial or second 10-year term until that term ends.
Historic farm homes get replacement eligibility route
A replacement home on land zoned for exclusive farm use can qualify through the existing home's historic-property classification. This replaces the requirement for the existing home to appear in a county historic-property inventory. The replacement home must be used in conjunction with farm use.
Historic owners must report and get approvals
Owners must file progress reports by December 31 for the third, sixth, and ninth tax years ending June 30. Every report must show compliance with rehabilitation standards; the sixth-year report must document the preservation plan's spending commitment. That commitment requires spending at least 10% of the property's application-date tax-roll market value within the first five years. Written approval is required before planned work or changes affecting historic features begin. Local approval applies through an approved preservation review process, unless the locality asks the state officer to handle approval. Local approval is invalid unless the state officer receives notice and at least 14 calendar days to comment. Assessors, landmark commissions, or governing bodies must request a state review when they have reason to doubt continued eligibility. If the state officer starts a review, an inspection is required; the requester must receive a determination within 60 days.
Historic owners face revised repair planning rules
Written preservation plans must include photographs and drawings and cover work during the special assessment period. The law removes the allowance for work completed up to 24 months before applying. Maintenance includes preventing wear without changing historic character, plus protection or repairs with the least possible impact on that character. Extensive replacement of historic materials and new construction do not count as preservation. Covered work follows federal rehabilitation standards in effect when this law takes effect, replacing the September 28, 2009 reference.
Historic owners gain application timing protections
The application deadline moves from April 1 to March 1 of the assessment year. An application not denied on or before July 1 is approved, granting historic classification and special assessment. Owners or their legal representatives have 30 calendar days to withdraw an application to switch to another special assessment program. Withdrawal requires written notice; otherwise, the application proceeds under the usual rules.
Historic property values receive ten-year tax treatment
For 10 consecutive tax years, the special value uses market value from the last certified tax roll when owners apply. Each year's assessed value is the lowest of the special value, maximum assessed value, or current market value. The first-year maximum uses a ratio tied to the maximum without special assessment. Later maximums equal the greater of 103% of the prior assessed value or 100% of the prior maximum. Planned additions receive the same treatment if they meet rehabilitation standards and officials do not find them independent by use or ownership. Work outside the preservation plan on the same tax account is taxed like similar property.
Historic owners gain plumbing fixture flexibility
A fixture can be exempt from water-saving requirements when a noncompliant fixture is needed to maintain a structure's historic character. The structure must be classified as historic property under Oregon's historic-property assessment law. This gives qualifying owners flexibility to preserve historic fixtures rather than replace them with compliant models.
Historic condos lose separate assessment rules
The law repeals special assessment rules written specifically for historic condominium buildings. These rules covered whole-building applications and assessments, limits on unit-owner opt-outs, and sale-related disqualification and requalification. Related deed-notice and fee rules are also repealed. Condo owners' eligibility and tax treatment depend on the remaining historic-property assessment rules, subject to protections for existing terms.
Farm events get permits with land limits
Counties can issue two-calendar-year limited-use permits for covered agri-tourism and commercial events on exclusive farm-use land. Renewals require county checks for compliance with applicable laws, local standards, and permit conditions. Under this permit provision, counties cannot approve land alterations tied to an authorized event or activity. Covered events are excluded from the referenced outdoor mass gathering and other gathering definitions.
Sponsors & Cosponsors
Sponsors
Rob Nosse
Democratic • House
Tom Andersen
Democratic • House
Cosponsors
Bobby Levy
Republican • House
Boomer Wright
Republican • House
Dacia Grayber
Democratic • House
Deb Patterson
Democratic • Senate
Dick Anderson
Republican • Senate
E. Werner Reschke
Republican • House
Emerson Levy
Democratic • House
Gregory Smith
Republican • House
James Manning Jr.
Democratic • Senate
Jules Walters
Democratic • House
Lew Frederick
Democratic • Senate
Lisa Reynolds
Democratic • Senate
Mari Watanabe
Democratic • House
Mark Meek
Democratic • Senate
Nancy Nathanson
Democratic • House
Pam Marsh
Democratic • House
Travis Nelson
Democratic • House
Roll Call Votes
Senate vote • 5/21/2025
Third reading. Carried by Meek. Passed.
Yes: 25 • No: 2
Senate vote • 5/12/2025
Finance and Revenue: Heard and Reported Out
Yes: 5 • No: 0
House vote • 4/8/2025
Third reading. Carried by Nosse. Passed.
Yes: 55 • No: 0
House vote • 3/27/2025
Revenue: Heard and Reported Out
Yes: 7 • No: 0
Actions Timeline
Chapter 209, (2025 Laws): effective on the 91st day following adjournment sine die.
6/11/2025HouseGovernor signed.
5/28/2025HousePresident signed.
5/22/2025SenateSpeaker signed.
5/22/2025HouseThird reading. Carried by Meek. Passed.
5/21/2025SenateCarried over to 05-21 by unanimous consent.
5/20/2025SenateCarried over to 05-20 by unanimous consent.
5/19/2025SenateSecond reading.
5/15/2025SenateRecommendation: Do pass the A-Eng. bill.
5/15/2025SenateWork Session held.
5/12/2025SenatePublic Hearing held.
5/5/2025SenateReferred to Finance and Revenue.
4/9/2025SenateFirst reading. Referred to President's desk.
4/9/2025SenateThird reading. Carried by Nosse. Passed.
4/8/2025HouseRules suspended. Carried over to April 8, 2025 Calendar.
4/7/2025HouseRules suspended. Carried over to April 7, 2025 Calendar.
4/3/2025HouseSecond reading.
4/2/2025HouseRecommendation: Do pass with amendments and be printed A-Engrossed.
4/1/2025HouseWork Session held.
3/27/2025HousePublic Hearing held.
1/28/2025HouseReferred to Revenue.
1/17/2025HouseFirst reading. Referred to Speaker's desk.
1/13/2025House
Bill Text
HREV Amendment -1 (Proposed)
3/27/2025
HREV Amendment -2 (Adopted)
3/27/2025
A-Engrossed
Enrolled
House Amendments to Introduced
Introduced
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