Councilors discuss legislative fix for nonprofit property tax exemption, propose city abatement review

Council members and city staff discussed ongoing, unsettled conversations about the nonprofit property tax exemption and whether the legislature should act to clarify eligibility rules.

Councilor Ben Grant outlined the problem as an interpretive change by the city assessor that some nonprofits and stakeholders view as outside established practice. He described a legislative workaround to give the city a role similar to the individual tax‑abatement process so the city could conduct an abatement review for nonprofits in hardship rather than leaving them only the board of assessment review and superior court. "Let's create a similar parallel process for nonprofits that are undergoing hardship," Grant said.

Other speakers noted the legal complexity: assessors in different municipalities apply the tax code differently, and some parties plan to challenge the assessor’s interpretation in administrative and court venues. Participants advised obtaining a legal opinion to clarify whether the problem must be addressed by the city or the legislature. The mayor said the city had provided information to State Senator Talbot Ross and that he had discussed the matter with the speaker in a one‑on‑one.

No draft bill had been filed through legislative counsel at the time of the meeting, and participants emphasized that the issue remains in flux. Councilors said protecting nonprofit interests and balancing Portland’s tax base are both considerations and that more outreach to state leadership would be needed before a legislative solution could be finalized.

Next steps: lobbying staff will continue conversations with legislators and stakeholders; council members requested continued updates and recommended securing a legal opinion to clarify authority and options.