HB 3190 revises Oregon’s historic property special assessment program, which provides a property tax benefit for qualifying historic properties in exchange for preservation commitments. The bill narrows and modernizes the program by limiting new applications to commercial property, updating definitions and timelines, and revising the application, review, reporting, and disqualification process. It also updates the preservation-plan requirements so applicants must commit to spend at least 10 percent of the property’s real market value within the first five years, focus on exterior and structural features, and meet historic rehabilitation standards, while allowing plans to address ADA compliance, seismic upgrades, and energy and water conservation.
The bill changes how properties are classified, reviewed, and taxed under the special assessment program. It replaces the prior certification framework with a classification-and-special-assessment process, sets a March 1 application deadline, authorizes a rule-based application fee, and requires insurance at least equal to the property’s real market value. It also revises the assessor’s valuation method, requires periodic progress reports and possible inspections, and updates the rules for disqualification and back taxes if an owner fails to maintain, preserve, report on, or insure the property. The bill repeals several older provisions, including ORS 358.511, 358.540, and 358.541, and makes the new rules generally applicable to applications filed on or after the effective date for tax years beginning on or after July 1, 2026, while preserving existing special assessment terms for properties already enrolled.
HB 3190 also makes conforming changes outside the historic property tax chapter. It updates deed and sale-contract disclosure language in ORS 93.040 to note when property is subject to historic property special assessment, and it revises land-use statutes in ORS 215.213 and 215.283 so replacement dwellings on farm land can reference property classified as historic property rather than property merely listed in a county inventory. In addition, it updates a water-fixture exemption in ORS 447.145 so historic properties can use nonconforming fixtures when needed to preserve historic character.
The overall sentiment around the bill appears strongly favorable. It passed the House 55-0, cleared the House committee unanimously, and passed the Senate 25-2 after a unanimous Senate committee vote, indicating broad bipartisan support. The lack of recorded committee testimony in the provided materials suggests the bill was not highly controversial in committee, and the floor votes show only limited opposition in the Senate.
The main policy tension in the bill is between preserving historic resources and tightening the tax incentive program. The bill restricts eligibility to commercial property, imposes a clearer spending commitment, requires stronger insurance and reporting, and ends new applications after July 1, 2032, which may concern preservation advocates or property owners seeking broader access to the program. At the same time, the bill preserves the incentive for existing participants and explicitly bars denial solely because of lost revenue, reflecting an effort to balance local fiscal concerns with historic preservation goals.
HB 3190 substantially revises ORS chapter 358’s historic property special assessment program by narrowing eligibility, changing application and review procedures, updating valuation and reporting rules, and adding new disqualification triggers and tax recapture provisions. It also amends related statutes governing property transfer disclosures, farm-use dwellings, and plumbing fixture exemptions for historic structures. Existing properties already receiving special assessment may continue under prior rules for the remainder of their current term, but new applications will be governed by the revised framework for tax years beginning on or after July 1, 2026.
The bill appears to have received broad support throughout the legislative process. It was reported out of House committee unanimously, passed the House 55-0, cleared Senate committee unanimously, and passed the Senate 25-2. That voting pattern suggests general agreement on updating and tightening the historic property tax incentive program, with only limited opposition at final Senate passage.
The principal point of contention is the bill’s narrowing of the historic property special assessment program. By limiting new applications to commercial property, requiring a 10 percent expenditure commitment, mandating insurance and periodic reporting, and setting a sunset on new applications after 2032, the bill reduces access and increases compliance obligations. Preservation advocates may view these changes as necessary to protect historic resources and ensure accountability, while property owners and some local stakeholders may see them as more burdensome or restrictive. The bill’s supporters appear to favor modernization and program integrity, while any dissent likely centers on reduced eligibility and the eventual closure of the program to new applicants.