Assessor briefs budget committee on collections, 16 nonprofit tax exemptions and impact of flood; public questions exemption process

Assessor Kevin Hill briefed the Harney County Budget Committee on property tax collections and exemptions during the April 8 budget meeting. Hill said the county has collected about 88.2% of current property taxes to date and typically expects a 97% collection rate once delinquent accounts resolve and payments arrive. Hill said the county takes a conservative 2% revenue growth estimate when preparing projections.

Hill explained the exemption process for nonprofit and other exempt property: property owners apply for exemption and must submit required documentation including bylaws, IRS exemption letters and financial statements. Final action on exemption applications is taken by the governing body in the form of an ordinance or a resolution, Hill said, citing the statute process for review and written action by the governing body. Hill said 16 nonprofit properties currently hold exempt status in the county and pointed to several categories of exemptions (churches, schools, senior centers, cemeteries, nonprofit organizations). He also noted state and federal lands and farm use designations reduce the taxable base and that Harney County has a relatively high fraction of non‑taxable land.

Members of the public asked follow‑up questions about who reviews exemptions, the criteria used (including whether charitable activity “relieves a government burden”), and whether long‑standing exemptions (some dating back decades) receive periodic review. Hill said assessors do review files and that applications must comply with statutory criteria; final approval patterns historically came through governing‑body resolutions. Hill also noted that a single large exempt account and delinquent tax accounts had reduced the county’s beginning fund balance by about $75,000 for the coming fiscal year.

The assessor reviewed other revenue drivers, including the effects of the Burns Urban Renewal Agency and a stagnant building economy. He said reappraisal cycles (Burns reappraisal was underway) and flood damage assessment work will produce further adjustments to assessed values in the coming months, which will influence tax revenue estimates.

The committee accepted the assessor’s report and encouraged staff to provide additional lists and documentation so committee members and the public can review exemption statuses and trends.