Grants higher property tax exemptions for the property of veterans with disabilities.

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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 387
Sponsored by Senator THATCHER; Senator WEBER, Representatives LEVY B, RESCHKE (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced. The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act would grant higher property tax breaks for disabled veterans and their spouses
if they survive them. (Flesch Readability Score: 61.6).
Grants higher property tax exemptions for the property of veterans with disabilities. Grants
exemptions for a veteran’s surviving spouse who remains unmarried.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to property tax exemption for disabled veterans; creating new provisions; amending ORS
307.250, 307.260 and 307.270; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
ORS 307.250 is amended to read:
307.250. (1) As used in [ this section and ORS 307.260, 307.262 and 307.270, ] ORS 307.250 to
307.280:
(a) “Surviving spouse of a veteran” means a veteran’s surviving spouse who has not re-
married.
(b) “Veteran” has the meaning given that term in ORS 408.225.
(2) Upon compliance with ORS 307.260, and subject to subsection (7) of this section, there
shall be exempt from taxation not to exceed [ $15,000] $60,000 of the assessed value of the homestead
or personal property of any of the following residents of this state other than those described in
subsection (3) or (4) of this section:
(a) Any veteran who is officially certified by the United States Department of Veterans Affairs
or any branch of the Armed Forces of the United States as having disabilities of 40 percent or more.
(b) Any veteran having served with the United States Armed Forces who, as certified by one
duly licensed physician or naturopathic physician, is rated as having disabilities of 40 percent or
more. [ However, a veteran shall be entitled to the exemption granted under this paragraph only if the
veteran during the calendar year immediately preceding the assessment year for which the exemption
is claimed had total gross income, including pensions, disability compensation or retirement pay, or any
combination of such payments from the United States Government on account of such service, of not
more than 185 percent of federal poverty guidelines. ]
[(c) The surviving spouse remaining unmarried of a veteran, but the exemption shall apply only to
the period preceding the date of the first remarriage of the surviving spouse. ]
(c) The surviving spouse of a veteran.
(3) Upon compliance with ORS 307.260, and subject to subsection (7) of this section, there
shall be exempt from taxation not to exceed [ $18,000] $65,000 of the assessed value of the homestead
or personal property of any of the following residents of this state:
NOTE:Matter in boldfaced type in an amended section is new; matter [ italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 861
SB 387
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(a) Any veteran who is officially certified by the United States Department of Veterans Affairs
or any branch of the Armed Forces of the United States as having service-connected disabilities of
at least 40 percent [ or more ] but less than 100 percent .
(b) The surviving spouse [ remaining unmarried] of a veteran described in paragraph (a) of this
subsection, if the veteran died as a result of service-connected injury or illness or if the veteran
received at least one year of the maximum exemption from taxation [ allowed] granted under [ para-
graph (a) of ] this subsection after 1981 for a veteran certified as having service-connected disabilities
of at least 40 percent [ or more ] but less than 100 percent .
(4) Upon compliance with ORS 307.260, and subject to subsection (7) of this section, there
shall be exempt from taxation not to exceed $150,000 of the assessed value of the homestead
or personal property of any of the following residents of this state:
(a) Any veteran who is officially certified by the United States Department of Veterans
Affairs or any branch of the Armed Forces of the United States as having:
(A) A service-connected disability of 100 percent; or
(B) More than one service-connected disability, the ratings of which, if added together,
would equal 100 percent or more.
(b) The surviving spouse of a veteran described in paragraph (a) of this subsection, if the
veteran died as a result of service-connected injury or illness or if the veteran received at
least one year of the maximum exemption from taxation granted under this subsection after
2024 for a veteran certified as having service-connected disabilities described in this sub-
section.
[(4)] (5) The amount of the exemption [ allowed] granted under subsection (2) , [ or] (3) or (4) of
this section shall equal 103 percent of the amount of the exemption for the prior tax year.
(6)(a) Subject to subsection (7) of this section, the homestead or personal property of any
residents of this state described in paragraph (b) of this subsection shall be exempt from
taxation under paragraph (c) of this subsection.
(b) The residents referred to in paragraph (a) of this subsection are:
(A) Any veteran who:
(i) Is officially certified by the United States Department of Veterans Affairs or any
branch of the Armed Forces of the United States as having a service-connected disability of
100 percent or as having more than one service-connected disability, the ratings of which, if
added together, would equal 100 percent or more; and
(ii) Meets the criteria of the United States Department of Veterans Affairs for
unemployability.
(B) The surviving spouse of a veteran, if the veteran died as a result of service-connected
injury or illness or if the veteran received at least one year of the maximum exemption from
taxation under paragraph (c) this subsection after 2024 for a veteran certified as having
service-connected disabilities described in subparagraph (A) of this paragraph.
(c) If the property taxes assessed on the homestead or personal property of a resident
described in paragraph (b) of this subsection for the current property tax year exceeds 14
percent of the resident’s taxable income for the preceding tax year, upon compliance with
ORS 307.260, the property shall be 90 percent exempt for the next succeeding property tax
year.
(d) The individual claiming the exemption under this subsection must include the
individual’s income tax return for the preceding tax year.
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(7)(a) The exemptions available under this section may be granted only to the homestead
or personal property of an otherwise eligible resident who has annual taxable income of not
more than $120,000 if the resident files a separate federal return, or not more than $240,000
if the resident files a joint federal return, for the tax year of the resident immediately pre-
ceding the tax year for which the resident claims the exemption.
(b) The Department of Veterans’ Affairs shall annually adjust the maximum annual tax-
able income amounts specified in paragraph (a) of this subsection to reflect the increase, if
any, in the average Consumer Price Index for All Urban Consumers, West Region (All
Items), as published by the Bureau of Labor Statistics of the United States Department of
Labor, since July 1, 2025.
(8)(a) The county assessor shall compute and list the value and compute and list the
amount of property taxes that would have been charged on each property receiving an ex-
emption under subsection (4) or (6) of this section had the property not received an ex-
emption. On or before October 15, the county assessor shall certify the total amounts so
computed for each county to the Department of Veterans’ Affairs and to the county treas-
urer.
(b) Not later than November 15, the department shall pay to each county treasurer the
amount certified under paragraph (a) of this subsection, less any discount provided under
ORS 311.505.
(c) Payments made by the department to the county treasurers under this subsection
shall be distributed to the taxing districts of the county in accordance with the schedule of
percentages computed under ORS 311.390.
(9) An exemption granted under this section to the property of a surviving spouse of a
veteran applies solely to the period preceding the date of the first remarriage of the surviv-
ing spouse of a veteran and ends on the date of remarriage.
SECTION 2.
ORS 307.260 is amended to read:
307.260. (1)(a) Each veteran or surviving spouse of a veteran [ qualifying for ] seeking the ex-
emption under ORS 307.250 [ shall] must file with the county assessor, on forms supplied by the
assessor, a claim [ therefor] for exemption in writing on or before April 1 of the assessment year for
which the exemption is claimed, except that when the property designated is acquired after March
1 but prior to July 1 the claim [ shall] must be filed within 30 days after the date of acquisition.
(b) A claim [ need not be filed under this section in order to be allowed ] for the exemption de-
scribed in ORS 307.250 is not required if:
(A) The homestead or personal property of the veteran or surviving spouse of a veteran was
[allowed] granted the exemption under ORS 307.250 for the preceding tax year;
(B) The individual claiming the exemption is a veteran described in ORS 307.250 (2)(a) , [or] (3)(a)
or (4)(a) or a surviving spouse of a veteran who meets the requirements of ORS 307.250 (2)(c) ,
[or] (3)(b) or (4)(b) or has complied with subsection (4) of this section ; and
(C) As of the filing date for the current tax year, the ownership and use of the homestead or
personal property and all other [ qualifying] conditions of eligibility for the homestead or personal
property to be [ allowed] granted the exemption remain unchanged.
(c)(A) If the individual claiming the exemption is a veteran described in ORS 307.250 (2)(b), the
claimant [ shall] must file a claim annually that satisfies the requirements of subsection (2) of this
section on or before the date required in paragraph (a) of this subsection.
(B) If the county assessor has not received a claim filed under this paragraph on or before April
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1 of the current year, not later than April 10 of each year, the county assessor shall notify the
veteran in the county who [ secured] was granted an exemption under ORS 307.250 (2)(b) in the
preceding year but who did not [ make application therefor ] file a claim for the exemption on or
before April 1 of the current year. The county assessor may provide the notification on an unsealed
postal card. A veteran so notified may [ secure] be granted the exemption, if still [ qualified]
eligible, by [ making application therefor to ] filing a claim for the exemption with the county
assessor not later than May 1 of the current year, accompanied by a late-filing fee of $10, which
shall be deposited in the general fund of the county for general governmental expenses. If the claim
for any tax year is not filed within the time specified, the exemption may not be [ allowed] granted
on the assessment roll for that year.
(d) Notwithstanding paragraph (b) of this subsection, an individual claiming an exemption
under this section must file annually with the county assessor the individual’s income tax
return for the preceding tax year of the individual for purposes of ORS 307.250 (7).
(2)(a) [ The claim shall ] A claim filed under this section must set out the basis of the claim
and designate the property to which the exemption may apply. Except as provided in subsection (3)
of this section, there must be affixed to claims for [ exemptions] exemption under ORS 307.250
(2)(a), [ and] (3)(a) and (4)(a) [ shall have affixed thereto ] the certificate last issued by United States
Department of Veterans Affairs or the branch of the Armed Forces of the United States, as [ the case
may be ] applicable, but dated within three years prior to the date of the claim for exemption, cer-
tifying the rate of disability of the claimant.
(b) Except as provided in subsection (3) of this section, there must be affixed to claims for
exemption under ORS 307.250 (2)(b) [ shall, except as provided in subsection (3) of this section, have
affixed thereto, in addition to ] the certificate last issued by a licensed physician or naturopathic
physician and dated within one year prior to the date of the claim for exemption, certifying the rate
of disability of the claimant[ , a statement by the claimant under oath or affirmation setting forth the
total gross income received by the claimant from all sources during the last calendar year ].
(c) There must also [ shall] be affixed to each claim the affidavit or affirmation of the claimant
that the statements contained [ therein] in the claim are true.
(3) The provisions of subsection (2) of this section that require a veteran to affix to the claim
certificates of the United States Department of Veterans Affairs, a branch of the Armed Forces of
the United States or a licensed physician or naturopathic physician do not apply to a veteran who
has filed the required certificate after attaining the age of 65 years or to a veteran who has filed,
on or after September 27, 1987, a certificate certifying a disability rating that, under federal law, is
permanent and cannot be changed.
(4)(a) Notwithstanding subsection (1) of this section, a surviving spouse of a veteran may elect,
at any time during the tax year, to continue [ the] an exemption under ORS 307.250 without filing a
new claim if:
(A) The veteran died during the previous tax year; or
(B) The property designated as the homestead was acquired after March 1 but prior to July 1
of the assessment year and the veteran died within 30 days of the date the property was acquired.
(b) The surviving spouse of a veteran must notify the county assessor of the election.
(c) Upon receipt of the notice, the county assessor shall continue the exemption if the surviving
spouse of a veteran meets all of the eligibility requirements for [ an] the exemption under ORS
307.250 other than the timely filing of a claim under subsection (1) of this section.
(d) If taxes on the exempt value have been paid, the taxes shall be refunded in the manner
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prescribed in paragraph [ (d)] (e) of this subsection. If taxes on the exempt value have not been paid,
the taxes and any interest on the taxes are abated.
(e) The tax collector shall notify the governing body of the county of any refund required under
this section and the governing body shall cause a refund of the taxes and any interest paid to be
made from the unsegregated tax collections account described in ORS 311.385. The refund under this
subsection shall be made without interest. The county assessor and tax collector shall make the
necessary corrections in the records of their offices.
SECTION 3.
ORS 307.270 is amended to read:
307.270. (1) The exemption under ORS 307.250 applies to property [ a] that an eligible veteran
or surviving spouse of a veteran owns or has in possession under a recorded contract of purchase.
(2) The exemption first applies to the homestead of the veteran or surviving spouse of a veteran
and then to the personal property of the veteran or surviving spouse of a veteran .
(3) Property of the spouse of [ the] a veteran is deemed the homestead of the veteran if the vet-
eran and the spouse of the veteran are living together and occupying the property as their home-
stead.
(4) When a veteran or surviving spouse of a veteran applies for exemption on properties in two
or more counties, the total amount of the exemption allowed in all counties may not exceed the
maximum amount of exemption under ORS 307.250.
[(2)] (5) For each [ qualified] eligible veteran or surviving spouse of a veteran, only one valid
and allowable claim for an exemption on a homestead [ shall] may be permitted in any one assess-
ment year.
SECTION 4. The amendments to ORS 307.250, 307.260 and 307.270 by sections 1 to 3 of this
2025 Act apply to property tax years beginning on or after July 1, 2026.
SECTION 5. This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
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