Salem Home Rule Petition for ADU Property Tax Exemptions

On May 17, 2022, a Home Rule Petition to provide Salem residents property tax exemptions for affordable accessory dwellings units was placed on the agenda for the next House Steering, Policy, and Scheduling Committee meeting.

The associated Bill H.4300, petitioned by Representative Paul Tucker and Senator Joan Lovely, was originally referred to the Committee on Revenue on December 20, 2021. The committee reported the Bill favorably and then referred it to the House Steering, Policy and Scheduling Committee.

For an ADU to qualify for a property tax exemption, the maximum rent cannot exceed 70 percent of the established fair market rent limit set by HUD for Salem. Households who have received a loan administered by the City of Salem to build an ADU do not qualify for tax exemptions.

The property tax exemption for ADUs has already been approved by Salem City Council and thus will go into effect upon the passage of Bill H.4300.