Senate extends vertical housing property tax exemption to 2031

House Bill 2074 passed the Oregon Senate on third reading, extending a property tax exemption used to encourage vertical housing development.

Senator Patterson, who carried the measure on the floor, said the bill moves the program’s sunset six years — from Dec. 31, 2025, to Dec. 31, 2031 — and reiterated that the existing program provides a 10-year partial exemption of up to 80% for property improvements tied to mixed-use projects in vertical housing development zones. She noted the exemption amount is related to the residential share and the number of floors (up to five) and reminded colleagues that taxing districts may opt out of the exemption.

Sponsor remarks emphasized the exemption’s role in growing housing stock. There was no floor debate; the clerk recorded the roll call and the measure was declared passed by constitutional majority.

The bill keeps the local-option structure intact and preserves the opt-out for taxing districts. On the floor, no amendments or additional directions were entered. The measure will continue through enrollment and transmittal per legislative process.