Assessment upon expiration or termination of exemption; additional taxes

(1) Upon the earlier of the date on which the five-year period of exemption granted under an exemption law expires, or new property or new improvements as defined in ORS 308.149 are added to the tax account that includes exempt eligible property, the eligible property shall: (a) Have for the immediately succeeding property tax year a maximum assessed value as determined under ORS 308.156 (5); and (b) Be assessed and taxed as other property similarly situated is assessed and taxed. (2) Subsection (3) of this section applies if, as of January 1 of any assessment year within the five-year period of the exemption, the eligible property: (a) Is no longer occupied as the primary residence of any individual; or (b) Has been rented out for consideration as transient lodging for any duration. (3)(a) Upon discovery by the adopting jurisdiction, or notice from the taxpayer to the adopting jurisdiction, that a circumstance listed in subsection (2) of this section has occurred, the adopting jurisdiction shall notify the county assessor of the circumstance. (b) Upon receipt of the notice, the county assessor shall: (A) Immediately terminate the property’s exemption; (B) For the immediately succeeding property tax year, determine the maximum assessed value of the property under ORS 308.156 (5); (C) Assess and tax the property as other property similarly situated is assessed and taxed; and (D) Notwithstanding ORS 311.235, add to the general property tax roll for the property tax year next following the date of termination, to be collected and distributed in the same manner as other ad valorem property taxes, an amount equal to the difference between the taxes assessed against the eligible property during the period of the exemption and the taxes that would have been assessed against the property if it had never been granted the exemption, for each of the years for which the eligible property was granted the exemption. (4) Additional taxes collected under this section shall be deemed to have been imposed in the year to which the additional taxes relate.