In Oregon, just because a nonprofit organization may have tax-exempt status, this does not necessarily mean that the organization will qualify for a property tax exemption. In fact, all real property and personal property in Oregon is subject to property tax unless a specific exemption applies. While Oregon law provides an exemption for property used to further charitable purposes, the organization must take certain steps to prove that its property qualifies for this exemption, and in some cases the tax assessor may disagree. As a result of this economic recession, some tax assessors have taken a more critical look at certain organizations and revoked their property tax exemptions, in effect forcing these organizations into tax-court litigation. Nonprofit organizations should perform periodic analyses to avoid running afoul of exemption requirements.
