Bill Text: OR HB2543 | 2011 | Regular Session | Enrolled
Bill Title: Relating to tax deferral programs; and prescribing an effective date.
Spectrum: Unknown
Status: (Passed) 2011-08-05 - Chapter 723, (2011 Laws): Effective date September 29, 2011. [HB2543 Detail]
Download: Oregon-2011-HB2543-Enrolled.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
Enrolled
House Bill 2543
Introduced and printed pursuant to House Rule 12.00. Presession
filed (at the request of House Interim Committee on Revenue)
CHAPTER ................
AN ACT
Relating to tax deferral programs; creating new provisions;
amending ORS 305.612, 305.895, 311.356, 311.666, 311.668,
311.670, 311.672, 311.674, 311.676, 311.679, 311.681, 311.684,
311.686, 311.688, 311.689, 311.691, 311.693, 311.695, 311.700,
311.701, 311.704, 314.430 and 410.422 and section 28, chapter
7, Oregon Laws 2011 (Enrolled Senate Bill 301); repealing
section 20, chapter 7, Oregon Laws 2011 (Enrolled Senate Bill
301), and section 2, chapter ___, Oregon Laws 2011 (Enrolled
House Bill 2693); and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 311.666 is amended to read:
311.666. As used in ORS 311.666 to 311.701:
{ - (1) 'Department' means the Department of Revenue. - }
{ + (1) 'County median RMV' means the median real market
value entered on the last certified assessment and tax roll for
all residential improved properties in the county in which a
homestead is located. + }
(2) 'Homestead' means the owner occupied principal dwelling,
either real or personal property, owned by the taxpayer and the
tax lot upon which it is located. If the homestead is located in
a multiunit building, the homestead is the portion of the
building actually used as the principal dwelling and its
percentage of the value of the common elements and of the value
of the tax lot upon which it is built. The percentage is the
value of the unit consisting of the homestead compared to the
total value of the building exclusive of the common elements, if
any.
{ + (3) 'Household income' has the meaning given that term in
ORS 310.630.
(4)(a) 'Net worth' means the sum of the current market value of
all assets, including real property, cash, savings accounts,
bonds and other investments, after deducting outstanding
liabilities.
(b) 'Net worth' does not include the value of a homestead for
which deferral is claimed under ORS 311.666 to 311.701, the cash
value of life insurance policies on the life of a taxpayer or
tangible personal property owned by a taxpayer. + }
{ - (3) - } { + (5) + } 'Person with a disability' means
{ - a person - } { + an individual + } who has been determined
to be eligible to receive or who is receiving federal Social
Security benefits due to disability or blindness, including
Enrolled House Bill 2543 (HB 2543-B) Page 1
{ - a person - } { + an individual + } who is receiving Social
Security survivor benefits in lieu of Social Security benefits
due to disability or blindness.
{ - (4) 'Taxpayer' means an individual who has filed a claim
for deferral under ORS 311.668 or individuals who have jointly
filed a claim for deferral under ORS 311.668. - }
{ - (5) - } { + (6) + } 'Tax-deferred property' means the
property upon which taxes are deferred under ORS 311.666 to
311.701.
{ - (6) - } { + (7) + } 'Taxes' or 'property taxes' means
ad valorem taxes, assessments, fees and charges entered on the
assessment and tax roll.
{ + (8) 'Taxpayer' means an individual who has filed, as an
individual or jointly, a claim for deferral under ORS 311.666 to
311.701.
(9)(a) 'Transferee' means, without limitation, an heir,
legatee, devisee, distributee of an estate of a deceased
individual, the assignee or donee of an insolvent individual or a
person acting in a fiduciary capacity on behalf of a transferee.
(b) 'Transferee' does not mean a bona fide purchaser for value.
(10) 'U.S. City Average Consumer Price Index' means the U.S.
City Average Consumer Price Index for All Urban Consumers (All
Items) as published by the Bureau of Labor Statistics of the
United States Department of Labor. + }
SECTION 2. ORS 311.668 is amended to read:
311.668. (1)(a) { - Subject to ORS 311.670, an individual, or
two or more individuals jointly, may elect - } { + A claim + }
to defer the property taxes on { - their - } { + a + }
homestead { - by filing a claim for deferral - } { + that is
eligible for deferral under ORS 311.670 may be filed + } with the
county assessor { - after January 1 and on or before April 15
of the first year in which deferral is claimed if - } { + in
the manner prescribed under ORS 311.672 by + }:
(A) { - The - } { + An + } individual { + who is + }, or
{ - , in the case of - } two or more individuals filing a claim
jointly { - , - } each { - individual, - } { + of whom + }
is { + , + } 62 years of age or older on { + or before + } April
15 of the year { - in which the claim is filed - } { + for
which deferral is claimed + }; or
(B) { - The - } { + An + } individual { + who + } is a
person with a disability
{ - on - } { + as of + } April 15 of the year { - in which
the claim is filed - } { + for which deferral is claimed,
regardless of the age or disability of other individuals
occupying the homestead + }. { - In the case of individuals
filing a claim jointly, only one individual need be a person with
a disability in order to make the election. - }
{ - (b) In order to make the election described in paragraph
(a) of this subsection, the individual must have, or in the case
of two or more individuals filing a claim jointly, all of the
individuals together must have household income, as defined in
ORS 310.630, for the calendar year immediately preceding the
calendar year in which the claim is filed of less than
$32,000. - }
{ - (c) The county assessor shall forward each claim filed
under this subsection to the Department of Revenue which shall
determine if the property is eligible for deferral. - }
{ - (2) When the taxpayer elects to defer property taxes for
any year by filing a claim for deferral under subsection (1) of
this section, it shall have the effect of: - }
Enrolled House Bill 2543 (HB 2543-B) Page 2
{ - (a) Deferring the payment of the property taxes levied on
the homestead for the fiscal year beginning on July 1 of such
year. - }
{ - (b) Continuing the deferral of the payment by the
taxpayer of any property taxes deferred under ORS 311.666 to
311.701 for previous years which have not become delinquent under
ORS 311.686. - }
{ - (c) Continuing the deferral of the payment by the
taxpayer of any future property taxes for as long as the
provisions of ORS 311.670 are met. - }
{ - (3) - } { + (b) + } If a guardian or conservator has
been appointed for an individual otherwise { - qualified to
obtain - } { + eligible to claim + } deferral of taxes under
{ - ORS 311.666 to 311.701 - } { + this section + }, the
guardian or conservator may act for { - such - } { + the + }
individual in complying with the provisions of ORS 311.666 to
311.701.
{ - (4) - } { + (c) + } If a trustee of an inter vivos
trust { - which - } { + that + } was created by and is
revocable by an individual, who is both the trustor and a
beneficiary of the trust and who is otherwise
{ - qualified to obtain a - } { + eligible to claim + }
deferral of taxes under
{ - ORS 311.666 to 311.701 - } { + this section + }, owns the
fee simple estate under a recorded instrument of sale, the
trustee may act for the individual in complying with the
provisions of ORS 311.666 to 311.701.
{ - (5) - } { + (d) + } { - Nothing in - } This section
{ - shall - } { + may not + } be construed to require
{ - a - } { + the + } spouse of an individual to file a claim
jointly with the individual even though the spouse may be
eligible to claim the deferral jointly with the individual.
{ - (6) Any person aggrieved by the denial of a claim for
deferral of homestead property taxes or disqualification from
deferral of homestead property taxes may appeal in the manner
provided by ORS 305.404 to 305.560. - }
{ + (2)(a) Notwithstanding subsection (1) of this section,
deferral may not be granted under ORS 311.666 to 311.701 with
respect to a claim filed by individuals who together have, for
the calendar year immediately preceding the calendar year in
which the claim for deferral is filed:
(A) Household income of $32,000 or more; or
(B) Net worth of $500,000 or more. + }
{ - (7)(a) - } { + (b) + } For each tax year beginning on
or after July 1, 2002, the Department of Revenue shall recompute
the maximum household income { - that may be incurred under an
allowable claim for deferral under subsection (1)(b) of this
section. The computation shall be - } { + under this
subsection + } as follows:
(A) Divide the average U.S. City Average Consumer Price Index
for the first six months of the current calendar year by the
average U.S. City Average Consumer Price Index for the first six
months of 2001.
(B) Recompute the maximum household income by multiplying
$32,000 by the appropriate indexing factor determined { - as
provided in - } { + under + } subparagraph (A) of this
paragraph.
{ - (b) As used in this subsection, 'U.S. City Average
Consumer Price Index' means the U.S. City Average Consumer Price
Index for All Urban Consumers (All Items) as published by the
Enrolled House Bill 2543 (HB 2543-B) Page 3
Bureau of Labor Statistics of the United States Department of
Labor. - }
(c) { - If - } Any change in the maximum household income
determined under paragraph { - (a) - } { + (b) + } of this
subsection { - is not a multiple of $500, the increase - }
shall be rounded to the nearest multiple of $500.
{ + (3) Notwithstanding subsection (1) of this section,
deferral may not be granted under ORS 311.666 to 311.701 with
respect to a claim if, at the time the claim is filed, property
taxes imposed on the homestead of any individual filing the claim
have been deferred and are delinquent or have been canceled. + }
SECTION 3. ORS 311.670 is amended to read:
311.670. { + (1) + } { - In order to qualify - }
{ + Property is not eligible + } for tax deferral under ORS
311.666 to 311.701 { - , the property must meet all of the
following requirements when the - } { + unless, at the time
a + } claim is filed and { - thereafter so long as the payment
of taxes by the taxpayer is deferred - } { + during the period
for which deferral is claimed + }:
{ - (1) - } { + (a) + } The property { - must be - }
{ + has been + }the homestead of the individual or individuals
who file the claim for deferral { + for at least five years
preceding April 15 of the year in which the claim is filed + },
except for an individual required to be absent from the homestead
by reason of health.
{ - (2) - } { + (b) + } The { - person - }
{ + individual + } claiming the deferral
{ - must, by himself or herself or together with his or her
spouse, own - } { + , individually or jointly, owns + } the fee
simple estate { - or be purchasing the fee simple estate - }
under a recorded instrument of sale, or two or more { - persons
must - } { + individuals + } together own { - or be
purchasing - } the fee simple estate with rights of survivorship
under a recorded instrument of sale if all owners live in the
{ - homestead - } { + property + } and if all owners apply
for the deferral jointly.
{ + (c) The homestead is insured for fire and other
casualty. + }
{ - (3) - } { + (d) + } There { - must be - }
{ + is + } no prohibition to the deferral of property taxes
contained in any provision of federal law, rule or regulation
applicable to a mortgage, trust deed, land sale contract or
conditional sale contract for which the homestead is security.
{ + (2) Notwithstanding subsection (1) of this section, a
homestead is not eligible for deferral under ORS 311.666 to
311.701 if the real market value of the homestead entered on the
last certified assessment and tax roll is equal to or greater
than:
(a) 100 percent of county median RMV if, as of April 15 of the
year in which a claim is filed, the taxpayers have continuously
owned and lived in the homestead at least five years but less
than seven years.
(b) 110 percent of county median RMV if, as of April 15 of the
year in which a claim is filed, the taxpayers have continuously
owned and lived in the homestead at least seven years but less
than nine years.
(c) 120 percent of county median RMV if, as of April 15 of the
year in which a claim is filed, the taxpayers have continuously
owned and lived in the homestead at least nine years but less
than 11 years.
Enrolled House Bill 2543 (HB 2543-B) Page 4
(d) 130 percent of county median RMV if, as of April 15 of the
year in which a claim is filed, the taxpayers have continuously
owned and lived in the homestead at least 11 years but less than
13 years.
(e) 140 percent of county median RMV if, as of April 15 of the
year in which a claim is filed, the taxpayers have continuously
owned and lived in the homestead at least 13 years but less than
15 years.
(f) 150 percent of county median RMV if, as of April 15 of the
year in which a claim is filed, the taxpayers have continuously
owned and lived in the homestead at least 15 years but less than
17 years.
(g) 160 percent of county median RMV if, as of April 15 of the
year in which a claim is filed, the taxpayers have continuously
owned and lived in the homestead at least 17 years but less than
19 years.
(h) 170 percent of county median RMV if, as of April 15 of the
year in which a claim is filed, the taxpayers have continuously
owned and lived in the homestead at least 19 years but less than
21 years.
(i) 180 percent of county median RMV if, as of April 15 of the
year in which a claim is filed, the taxpayers have continuously
owned and lived in the homestead at least 21 years but less than
23 years.
(j) 190 percent of county median RMV if, as of April 15 of the
year in which a claim is filed, the taxpayers have continuously
owned and lived in the homestead at least 23 years but less than
25 years.
(k) 200 percent of county median RMV if, as of April 15 of the
year in which a claim is filed, the taxpayers have continuously
owned and lived in the homestead for 25 years or more. + }
SECTION 4. ORS 311.672 is amended to read:
311.672. (1) { + (a) + } A taxpayer's claim for deferral under
ORS
{ - 311.668 shall - } { + 311.666 to 311.701 must:
(A) + }Be in writing on a form supplied by the Department of
Revenue { - and shall: - } { + ; + }
{ - (a) - } { + (B) + } Describe the homestead { - . - }
{ + ; + }
{ - (b) - } { + (C) + } Recite { + all + } facts
establishing the eligibility { + of the homestead + } for { + ,
and of the taxpayers to claim, + } the deferral
{ - under the provisions of ORS 311.666 to 311.701, including
facts that establish that the household income as defined in ORS
310.630 of the individual, or in the case of two or more
individuals claiming the deferral jointly, of all of the
individuals together was, for the calendar year immediately
preceding the calendar year in which the claim is filed, less
than or equal to the maximum household income that may be
incurred under an allowable claim for deferral, as provided in
ORS 311.668. - } { + ; and + }
{ - (c) - } { + (D) + } Have attached { + :
(i) + } Any documentary proof required by the department
{ - to show that the requirements of ORS 311.666 to 311.701 have
been met. - } { + ; and + }
{ - (2) - } { + (ii) + } { - There shall be annexed to
the claim - } A statement verified by a written declaration of
{ - the applicant making the claim - } { + all taxpayers
claiming deferral + } to the effect that the statements contained
in the claim are true.
Enrolled House Bill 2543 (HB 2543-B) Page 5
{ + (b) The claim for deferral must be filed with the
assessor of the county in which the homestead is located, after
January 1 and on or before April 15 of the year for which
deferral is claimed.
(2) The county assessor shall forward each claim filed under
this section to the department, and the department shall
determine whether the property is eligible for the deferral.
(3) If the taxpayers and the homestead are determined to be
eligible under ORS 311.668 and 311.670, respectively, a timely
claim for deferral has the effect of:
(a) Deferring the payment of the property taxes levied on the
homestead for the property tax year beginning on July 1 of the
year in which the claim is filed.
(b) Continuing the deferral of the payment by the taxpayers of
any property taxes deferred under ORS 311.666 to 311.701 for
previous years that have not become delinquent under ORS 311.686.
(c) Continuing the deferral of the payment by the taxpayers of
any future property taxes for as long as the homestead remains
eligible for, and the taxpayers remain eligible to claim, the
deferral.
(4)(a) Notwithstanding subsection (3) of this section:
(A) For the property tax year beginning on July 1, 2012, the
maximum number of claims for deferral under ORS 311.666 to
311.701 that may be granted to taxpayers who have not previously
been granted deferral is the number of such claims granted for
the property tax year beginning on July 1, 2011, multiplied by
105 percent.
(B) For each property tax year beginning after July 1, 2012,
the maximum number of claims for deferral that may be granted to
taxpayers who have not previously been granted deferral is the
maximum number determined under this subsection for the property
tax year immediately preceding multiplied by 105 percent.
(b) For purposes of paragraph (a) of this subsection, spouses
who continue deferral under ORS 311.688 are not considered
taxpayers who have not previously been granted deferral.
(c) If the number of eligible claims described in paragraph (a)
of this subsection exceeds the maximum number determined under
paragraph (a) of this subsection, claims shall be granted in
ascending order based on the ratio that is equal to the real
market value of the homestead entered on the last certified
assessment and tax roll divided by the applicable percentage of
county median RMV of the homestead determined under ORS 311.670
(2), until the maximum number determined under paragraph (a) of
this subsection is reached.
(5) Any taxpayer aggrieved by the denial of a claim for, or
discontinuation of, deferral under ORS 311.666 to 311.701 may
appeal in the manner provided by ORS 305.404 to 305.560. + }
SECTION 5. ORS 311.674 is amended to read:
311.674. (1) If eligibility for deferral of homestead property
is established as provided in ORS 311.666 to 311.701, the
Department of Revenue shall notify the county assessor and the
county assessor shall show on the current ad valorem assessment
and tax roll { - which - } { + that the + } property is
tax-deferred property by an entry clearly designating
{ - such - } { + the + } property as tax-deferred property.
(2) When requested by the department, the tax collector shall
send to the department { - as soon as the taxes are extended
upon the roll - } the tax statement for each tax-deferred
property { + as soon as the taxes are extended upon the
roll + }.
Enrolled House Bill 2543 (HB 2543-B) Page 6
(3) Interest shall accrue on the actual amount of taxes
advanced to the county for the tax-deferred property at the rate
of six percent { - per annum - } { + compounded annually + }.
(4) { + (a) + } For property taxes deferred after October 3,
1979, the state liens provided by ORS 311.673 and 311.679 and
recorded under ORS 311.675 shall be for the actual amount of
taxes advanced to the counties and not for the gross amount of
taxes for which the property would be liable as shown on the tax
statement for each tax-deferred property. { +
(b) + } For taxes deferred prior to October 3, 1979, the lien
under ORS 311.673 is for the gross amount of taxes extended upon
the tax roll against each tax-deferred property and interest
shall continue to accrue on the gross amount of taxes rather than
on the actual amount of taxes paid to the county.
SECTION 6. ORS 311.676 is amended to read:
311.676. (1) Upon determining the amount of deferred taxes on
tax-deferred property for the tax year, { + subject to available
funds, + } the Department of Revenue shall pay to the respective
county tax collectors an amount equivalent to the deferred
taxes { + , + } less three percent { + , + } { - thereof.
Payment shall be made - } from the revolving account established
under ORS 311.701.
(2) The department shall maintain accounts for each deferred
property and shall accrue interest only on the actual amount of
taxes advanced to the county.
{ - (3)(a) If only a portion of taxes are deferred under ORS
311.689, the department shall pay the portion that is eligible
for deferral to the tax collector and shall provide a separate
notice to the county assessor stating the amount of property
taxes that the department is paying. - }
{ - (b) The notice stating the amount of property taxes paid
by the department and any other county records indicating those
amounts are not subject to the prohibitions against disclosure
set forth in ORS 314.835. - }
SECTION 7. ORS 311.679 is amended to read:
311.679. (1) { + (a) + } At the time that { - the taxpayer
elects to defer - } property taxes { + are deferred + } under
ORS 311.666 to 311.701 { + , + } or if { - the taxpayer has
elected to defer - } property taxes { + were deferred + } prior
to July 1, 1990, the Department of Revenue shall estimate the
amount of property taxes { - that will be - } deferred for tax
years beginning on or after July 1, 1990, interest on the
deferred taxes and any fees paid by the department in connection
with lien filing, recording, release or satisfaction.
{ + (b) + } { - Thereafter, - } The department shall have
a lien in the amount of the estimate.
(2) { - The lien created under subsection (1) of this section
shall attach to the property to which the election to defer
relates on July 1 of the tax year of initial deferral or on July
1, 1990, whichever is applicable. - } { + If during the period
of deferral the amount of taxes, interest and fees exceeds the
estimate under subsection (1) of this section, the department
shall have a lien for the amount of the excess.
(3)(a) A lien created under subsection (1) of this section
attaches to the homestead to which the deferral relates on July 1
of the first tax year of deferral or on July 1, 1990, as
applicable.
(b) A lien for the excess created under subsection (2) of this
section attaches to the homestead on July 1 of the tax year in
which the excess occurs. + }
Enrolled House Bill 2543 (HB 2543-B) Page 7
{ - (3) - } { + (4) + } { - The - } { + A + } lien
created under subsection (1) { + or (2) + } of this section
{ - in the amount of the estimate shall have - } { + has + }
the same priority as other real property tax liens except that
{ - the lien - } { + liens + } of mortgages, trust deeds or
security interests that
{ - is - } { + are + } filed, recorded or noted on a
certificate of title or in any record maintained by the
Department of Consumer and Business Services pursuant to ORS
446.566 to 446.646 prior in time to the attachment of
{ - the - } { + a + } lien for deferred taxes { - shall
be - } { + are + } prior to the { - liens - } { + lien + }
for deferred taxes.
{ - (4) If during the period of tax deferment, the amount of
taxes, interest and fees exceeds the estimate, the Department of
Revenue shall have a lien for the amount of the excess. The liens
for the excess shall attach to the property on July 1 of the tax
year in which the excess occurs. The lien for the excess shall
have the same priority as other real property tax liens, except
that the lien of mortgages, trust deeds or security interests
that is filed, recorded or noted on any certificate of title or
in any record maintained by the Department of Consumer and
Business Services pursuant to ORS 446.566 to 446.646 prior in
time to the date that the Department of Revenue records an
amendment to its estimate to reflect its lien for the excess
shall be prior to the lien for the excess. - }
(5)(a) The notice of lien for deferred taxes recorded as
provided in ORS 311.675 (1) and (2) arising on or after October
3, 1989, shall list the amount of the estimate of deferred taxes,
interest and fees made by the department under subsection (1) of
this section. Any amendment to the notice of lien to reflect a
lien for excess, as described under subsection { - (4) - }
{ + (2) + } of this section, shall list the amount of the excess
that the department claims as { + a + } lien.
(b) If notice of lien with respect to any homestead has been
filed or recorded as provided under ORS 311.675 (1) to (3) prior
to January 1, 1990, and the lien has not been released or
satisfied, the department shall cause a further notice of lien to
be recorded in the mortgage records of the county. The further
notice of lien shall list the amount of the estimate of deferred
taxes and interest made by the department under subsection (1) of
this section and any amendment to the notice to reflect a lien
for excess, described under subsection { - (4) - }
{ + (2) + } of this section, and shall list the amount of the
excess that the department claims as lien.
(6) { + (a) + } A lien created under this section may be
foreclosed by the department as if it were a purchase money
mortgage under ORS chapter 88.
{ + (b) + } { - The - } { + In a foreclosure action under
this section, a + } court may award { + :
(A) + } Reasonable attorney fees to the prevailing party
{ - in a foreclosure action under this section - } .
{ + (B) All costs associated with foreclosure of the lien to
the department if the department prevails. + }
(7) Receipts from foreclosure proceedings shall be credited in
the same manner as other repayments of deferred property taxes
under ORS 311.701.
(8) { + (a) + } By means of voluntary payment made as provided
under ORS 311.690, the taxpayer may limit the amount of the lien
for deferred taxes created under this section.
Enrolled House Bill 2543 (HB 2543-B) Page 8
{ + (b) + } If the taxpayer desires that the limit be
reflected in the records of the county, the taxpayer must
request, subject to any rules adopted by the department, that the
department cause a partial satisfaction of the lien to be
recorded in the county.
{ + (c) + } Upon receipt of such a request, the department
shall cause a partial satisfaction, in the amount of the
voluntary payment, to be recorded.
{ + (d) + } Nothing in this subsection { - shall affect - }
{ + affects + } the priority of the liens of the department, as
originally created under subsections (1) and { - (4) - }
{ + (2) + } of this section.
(9) { + (a) + } Nothing in this section { - shall affect - }
{ + affects + } any lien arising under ORS 311.666 to 311.701
for taxes assessed before January 1, 1990.
{ + (b) + } { - However, except as provided under this
section, no - } { + A + } lien for taxes { - shall - }
{ + does not + } arise under ORS 311.666 to 311.701 for taxes
assessed after December 31, 1989 { + , except as provided under
this section + }.
{ - (10)(a) Notwithstanding any other provision of this
section, a lien arising under this section as the result of a
deferral of property taxes on the homestead of a person with a
disability who is younger than 62 years of age during the tax
year may not exceed 90 percent of the real market value of the
homestead. - }
{ - (b) Property may continue to qualify for property tax
deferral under ORS 311.666 to 311.701 even though the amount of
property taxes being paid by the department may not increase the
amount of the lien arising under this section. - }
{ - (11) - } { + (10) + } This section first applies to
liens for deferred taxes arising on or after October 3, 1989.
SECTION 8. ORS 311.684 is amended to read:
311.684. { - Subject to ORS 311.688, - } All deferred
property taxes, including accrued interest, become payable as
provided in ORS 311.686 when:
(1) The taxpayer who claimed { - deferment of collection - }
{ + deferral + } of property taxes on the homestead dies or, if
there was more than one claimant, the survivor of the
{ - taxpayers - } { + taxpayer + } who originally claimed
{ - deferment of collection - } { + deferral + } of property
taxes under ORS 311.668 dies.
(2) Except as provided in ORS 311.683, the property with
respect to which { - deferment of collection - }
{ + deferral + } of taxes is claimed is sold, or a contract to
sell is entered into, or some person other than the taxpayer who
claimed the { - deferment - } { + deferral, including a
transferee, + } becomes the owner of the property.
(3) The tax-deferred property is no longer the homestead of the
taxpayer who claimed the deferral, except in the case of a
taxpayer required to be absent from such tax-deferred property by
reason of health.
(4) The tax-deferred property, a manufactured structure or
floating home, is moved out of the state.
SECTION 9. ORS 311.686 is amended to read:
311.686. { + (1) + } Whenever any of the circumstances listed
in ORS 311.684 occurs:
{ - (1) - } { + (a) + } The deferral of taxes for the
assessment year in which the circumstance occurs { + :
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(A) + } Shall continue for { - such - } { + the + }
assessment year { - ; and - } { + if the circumstance occurs
on or after September 1.
(B) Shall be discontinued for the assessment year if the
circumstance occurs before September 1. + }
{ - (2) - } { + (b) Except as provided in subsection (2) of
this section and ORS 311.688, + } the amounts of deferred
property taxes, including accrued interest, for all years shall
be due and payable to the Department of Revenue { + on or
before + } August 15 of the year following the calendar year in
which the circumstance occurs { - , except as provided in
subsection (3) of this section, ORS 311.688 and 311.695 - } .
{ - (3) - } { + (2) + } { - Notwithstanding the
provisions of subsection (2) of this section and ORS 311.695,
when the circumstances occur - } { + If the circumstance + }
listed in ORS 311.684 (4) { + occurs + }, the amount of deferred
taxes { - shall be - } { + is + } due and payable five days
before the date of removal of the property from the state.
{ - (4) - } { + (3) + } If the amounts falling due as
provided in this section are not paid on { - the indicated - }
{ + or before the + } due date,
{ - or as extended under ORS 311.695 such - } { + the + }
amounts shall be deemed delinquent as of that date and the
property shall be subject to foreclosure as provided in ORS
311.673 or 311.679.
SECTION 10. ORS 311.688 is amended to read:
311.688. (1) Notwithstanding ORS 311.684, when one of the
circumstances listed in ORS 311.684 (1) to (3) occurs, the spouse
who was not eligible to or did not file a claim jointly with the
taxpayer may continue the property in its deferred tax status by
filing a claim { - within the time and - } in the manner
{ - provided under ORS 311.668 - } { + prescribed under ORS
311.672 + } if:
(a) The spouse of the taxpayer is or will be 60 years of age or
older not later than six months from the day the circumstance
listed in ORS 311.684 (1) to (3) occurs; and
(b) The property is the homestead of the spouse of the taxpayer
and meets the requirements of ORS 311.670 { - (2) - } { +
(1) + }.
(2) { + (a) + } A spouse who does not meet the age requirements
of subsection (1)(a) of this section but is otherwise qualified
to continue the property in its tax-deferred status under
subsection (1) of this section may continue the deferral of
property taxes deferred for previous years by filing a claim
{ - within the time and - } in the manner { - provided under
ORS 311.668 - } { + prescribed under ORS 311.672 + }.
{ + (b) + } If a spouse eligible for and continuing the
deferral of taxes previously deferred under this subsection
becomes 62 years of age prior to April 15 of any year, the spouse
may { - elect to - } continue the deferral of previous years'
taxes deferred under this subsection and may elect to defer the
current assessment year's taxes on the homestead by filing a
claim { - within the time and - } in the manner { - provided
under ORS 311.668 - } { + prescribed under ORS 311.672 + }.
{ + (c) + } { - Thereafter - } { + After a claim is filed
under paragraph (b) of this subsection + }, payment of the taxes
levied on the homestead and deferred under this subsection and
payment of taxes levied on the homestead in the current
assessment year and in future years may be deferred { - in the
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manner provided in and subject to - } { + under + } ORS 311.666
to 311.701.
(3) Notwithstanding { - that ORS 311.668 requires that a
claim be filed no later than April 15 - } { + ORS 311.672 + },
if the Department of Revenue determines that good and sufficient
cause exists for the failure of a spouse to file a claim under
this section on or before April 15, the claim may be filed within
180 days after notice of taxes due and payable under ORS 311.686
is mailed or delivered by the department to the taxpayer or
spouse.
SECTION 11. ORS 311.689, as amended by section 20, chapter 82,
Oregon Laws 2010, is amended to read:
311.689. (1) { - Notwithstanding ORS 311.668 or any other
provision of ORS 311.666 to 311.701, if the individual or, in the
case of two or more individuals electing to defer property taxes
jointly, all of the individuals together, or the spouse who has
filed a claim under ORS 311.688, has federal adjusted gross
income that exceeds $32,000 for the tax year that began in the
previous calendar year, then for the tax year next beginning, the
amount of taxes for which deferral is allowed shall be reduced by
$0.50 for each dollar of federal adjusted gross income in excess
of $32,000. - } { + On or before April 15 of the third year for
which deferral under ORS 311.666 to 311.701 is claimed and every
two years thereafter, all taxpayers claiming the deferral must
certify to the county assessor that the homestead remains
eligible for, and the taxpayers remain eligible to claim, the
deferral. + }
(2) { + (a) + } { - Prior to June 1 of each year, and
notwithstanding ORS 314.835, the Department of Revenue shall
review returns filed under ORS chapter 314 and 316 to determine
if subsection (1) of this section is applicable for a homestead
for the tax year next beginning. If subsection (1) of this
section is applicable, the department shall notify by mail the
taxpayer or spouse electing deferral, and the taxes otherwise to
be deferred for the tax year next beginning shall be reduced as
provided in subsection (1) of this section or, if federal
adjusted gross income in excess of $32,000 exceeds the amount of
property taxes by a factor of two, the property taxes shall not
be deferred. - } { + For any year in which the household income
of the taxpayers exceeds the amounts allowable under ORS 311.668,
the property taxes deferred under ORS 311.666 to 311.701 for that
year, including accrued interest, become payable by the
applicable due date prescribed in ORS 311.686 (1)(b) or (2).
(b) The provisions of ORS chapters 305 and 314 apply to this
subsection in the same manner as those provisions are applicable
to an income tax deficiency.
(c) The amount of deferred taxes payable under this subsection
shall bear interest from the date paid by the Department of
Revenue until paid at the rate established under ORS 305.220 for
deficiencies.
(d) A deficiency may not be assessed under this subsection if
notice is not given to the taxpayer or spouse within three years
after the date that the department has paid the deferred taxes to
the county.
(e) Upon payment of the amount assessed as a deficiency under
this subsection and any interest, the department shall execute a
release in the amount of the payment. The release shall be
conclusive evidence of the removal and extinguishment of the lien
under ORS 311.666 to 311.701 to the extent of the payment. + }
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{ - (3) If the taxpayer or spouse does not file a return for
purposes of ORS chapters 314 and 316 and the department has
reason to believe that the federal adjusted gross income of the
taxpayer or spouse exceeds $32,000 for the tax year that began in
the previous calendar year, the department shall notify by mail
the taxpayer or spouse electing deferral. If, within 30 days
after the notice is mailed, the taxpayer or spouse does not file
a return under ORS chapter 314 or 316 or otherwise satisfy the
department that federal adjusted gross income does not exceed
$32,000, the department shall again notify the taxpayer or
spouse, and the taxes otherwise to be deferred for the tax year
next beginning shall not be deferred. - }
{ - (4) For tax years beginning on or after July 1, 2002, the
federal adjusted gross income limit set forth in subsections (1)
to (3) of this section shall be recomputed by multiplying $32,000
by the indexing factor described in ORS 311.668 (7)(a)(A), and
rounding the amount so computed to the nearest multiple of
$500. - }
{ - (5) - } { + (3) + } { - Nothing in this section
shall - } { + Subsection (2) of this section does not + }
affect the continued deferral of taxes that have been deferred
for tax years beginning { - prior to the tax year next
beginning or the right to deferral of taxes for a tax year
beginning after the tax year next beginning if subsection (1) is
not applicable for that tax year for the homestead - } { +
before a tax year to which subsection (2) of this section applies
or the deferral of taxes for tax years beginning after a tax year
to which subsection (2) of this section applies, provided
subsection (2) of this section does not apply to those tax
years + }.
{ - (6) As used in this section, 'federal adjusted gross
income' means federal adjusted gross income of the individual or,
in the case of two or more individuals electing to defer property
tax jointly, the combined federal adjusted gross income of the
individuals, or the federal adjusted gross income of the spouse
who has filed a claim under ORS 311.688, all as determined for
the tax year beginning in the calendar year prior to which a
determination is required under subsection (2) of this section.
' Federal adjusted gross income' shall be determined under the
Internal Revenue Code, as amended and in effect on December 31,
2009, without any of the additions, subtractions or other
modifications or adjustments required under ORS chapter 314 or
316. - }
{ - (7)(a) If, after an initial determination under this
section has been made by the department, upon audit or
examination or otherwise, it is discovered that the taxpayer or
spouse had federal adjusted gross income in excess of the
limitation provided under subsection (1) of this section, the
department shall determine the amount of taxes deferred that
should not have been deferred and give notice to the taxpayer or
spouse of the amount of taxes that should not have been deferred.
The provisions of ORS chapters 305 and 314 shall apply to a
determination of the department under this section in the same
manner as those provisions are applicable to an income tax
deficiency. The amount of deferred taxes that should not have
been deferred shall bear interest from the date paid by the
department until paid at the rate established under ORS 305.220
for deficiencies. A deficiency shall not be assessed under this
section if notice required under this section is not given to the
taxpayer or spouse within three years after the date that the
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department has paid the deferred taxes to the county. Upon
payment of the amount assessed as deficiency, and interest, the
department shall execute a release in the amount of the payment
and the release shall be conclusive evidence of the removal and
extinguishment of the lien under ORS 311.666 to 311.701 to the
extent of the payment. - }
{ - (b) If, after an initial determination under this section
has been made by the department, upon claim for refund, audit or
examination or otherwise, it is discovered that the taxpayer or
spouse had federal adjusted gross income in the amount of or less
than the limitation provided under subsection (1) of this
section, the department shall determine the amount of taxes
deferred that should have been deferred and give notice to the
taxpayer or spouse of the amount of taxes that should have been
deferred. The provisions of ORS chapters 305 and 314 shall apply
to a determination of the department under this section in the
same manner as those provisions are applicable to an income tax
refund. The amount of the taxes that should have been deferred
shall bear interest from the date paid by the taxpayer to the
county at the rate established under ORS 305.220 for refunds
until paid. Claim for refund under this paragraph must be filed
within three years after the earliest date that the taxpayer or
spouse is notified by the department that the taxes are not
deferred. - }
{ - (8) - } { + (4) + } This section applies to all
tax-deferred property,
{ - notwithstanding that election to defer taxes is made - }
{ + whether the deferral + }under ORS 311.666 to 311.701
{ + is claimed + } before or after October 3, 1989.
SECTION 12. ORS 311.691 is amended to read:
311.691. (1) Notwithstanding any provision of ORS chapter 312
to the contrary and ORS 311.696 (1), upon compliance with ORS
311.693, taxes assessed against a tax-deferred homestead for any
tax year that were unpaid as of July 1 of the tax year for which
homestead property tax deferral was initially granted under ORS
311.666 to 311.701, and that remain unpaid, shall remain a lien
and shall become delinquent as otherwise provided by law, but
{ - shall not be - } { + are not + } subject to foreclosure
under ORS chapter 312 { - until - } { + before + } August 15
of the calendar year following the calendar year in which one of
the circumstances listed in ORS 311.684 occurs.
(2) This section does not apply if:
(a) The tax-deferred homestead property is a manufactured
structure or floating home and is moved out of state;
(b) { - Except in the case of a manufactured structure or
floating home, - } The tax-deferred homestead property is
personal property { + , other than a manufactured structure or
floating home + }; or
(c) The owner of the tax-deferred homestead property has
household income, for the calendar year immediately preceding the
calendar year in which application is filed under ORS 311.693,
{ - of more than the maximum household income that may be
incurred under an - } { + that exceeds the amounts + }
allowable { - claim for deferral, as provided in - }
{ + under + } ORS 311.668.
(3) If the property to which subsection (1) of this section
applies has been included on a foreclosure list, or a judgment of
foreclosure entered, the property shall be removed from the
foreclosure list, or judgment vacated, unless the proceeding
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against the property involves delinquent taxes other than those
described in subsection (1) of this section.
(4) { + (a) + } Upon removal from the foreclosure list, or upon
vacation of the judgment, { - no penalty shall - } { + a
penalty may not + } be imposed under ORS 312.110 or 312.120.
{ + (b) + } { - In lieu thereof - } { + If the penalty
has been imposed + }, the penalty is abated, or if the penalty
has been paid, upon application made to the county assessor on or
before July 1 of the year immediately following the year of
vacation or removal, the penalty shall be refunded out of the
unsegregated tax collections account in the manner provided in
ORS 311.806.
(5) Within 60 days after approval of an application under ORS
311.693, with respect to any property to which this section
applies, the tax collector shall make the proper entries on the
tax roll and shall remove the property from the foreclosure list
and proceeding.
(6) If a judgment has been entered foreclosing liens for
delinquent taxes against any property which is the subject of an
application filed under ORS 311.693, and the delinquent taxes
include only those taxes described in subsection (1) of this
section, or taxes in excess of those described in subsection (1)
of this section are paid, the judgment shall be null and void and
of no effect and the tax collector shall make the proper entries
on the assessment and tax rolls to reflect the vacation of the
judgment and to acknowledge the subsisting liens.
(7) Nothing in this section shall remove or release property to
which this section applies from the lien of any unpaid tax
thereon, but the unpaid taxes shall remain valid and subsisting
liens as though the foreclosure proceeding had not been
instituted or as though the foreclosure proceeding had not been
instituted and a judgment entered.
(8) Nothing in this section shall affect a foreclosure
proceeding instituted, or a judgment entered, to foreclose liens
for delinquent taxes against properties subject to foreclosure if
the delinquent taxes include taxes other than those described
under subsection (1) of this section. Such foreclosure
proceedings shall be instituted or continued without regard to
this section and such judgment shall be of full force and effect
as if this section did not exist.
(9) Interest on taxes to which this section applies shall be
determined from the same dates, in the same manner and until paid
as for other property taxes remaining unpaid upon the due dates,
upon preparation of the foreclosure list in accordance with ORS
chapter 312 and subsection (1) of this section and upon entry and
following a judgment of foreclosure.
SECTION 13. ORS 311.693 is amended to read:
311.693. (1) { + (a) + } { - The owner of tax-deferred
homestead property desiring - } Delay in foreclosure on account
of delinquent taxes as provided in ORS 311.691 { - shall
make - } { + may not be granted unless the owner of the
tax-deferred homestead files an + } application for the delay
{ - to - } { + with + } the county assessor prior to the date
the period of redemption expires under ORS 312.120.
{ + (b) + } { - The - } { + An + } application
{ - shall - } { + filed under this subsection must + }contain
or be accompanied by a verified statement of total household
income { - , as defined in ORS 310.630, - } of the owner for
the calendar year immediately preceding the calendar year in
which the application is { - made - } { + filed + }.
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(2) { + (a) + } Upon receipt of an application under subsection
(1) of this section, the county assessor shall approve or deny
the application.
{ + (b) + } If the application is denied, the owner may
appeal to the circuit court in the county where the tax-deferred
homestead property is located within 90 days after notice in
writing of the denial is mailed to the owner by the county
assessor.
{ + (c) + } Orders of the circuit court in an appeal taken
under this subsection may be appealed to the Court of Appeals
within the time and in the manner provided under ORS 312.210.
SECTION 14. ORS 311.695 is amended to read:
311.695. { - (1) If the taxpayer who claimed homestead
property tax deferral dies, or if a spouse who continued the
deferral under ORS 311.688 dies, the Department of Revenue may
extend the time for payment of the deferred taxes and interest
accruing with respect to the taxes becoming due and payable under
ORS 311.686 (2) if: - }
{ - (a) The homestead property becomes property of an
individual or individuals: - }
{ - (A) By inheritance or devise; or - }
{ - (B) If the individual or individuals are heirs or
devisees, as defined under ORS 111.005, in the course of
settlement of the estate; - }
{ - (b) The individual or individuals commence occupancy of
the property as a principal residence on or before August 15 of
the calendar year following the calendar year of death; and - }
{ - (c) The individual or individuals make application to the
department for an extension of time for payment of the deferred
taxes and interest prior to August 15 of the calendar year
following the calendar year of death. - }
{ - (2)(a) Subject to paragraph (b) of this subsection, an
extension granted under this section shall be for a period not to
exceed five years after August 15 of the calendar year following
the calendar year of death. The terms and conditions under which
the extension is granted shall be in accordance with a written
agreement entered into by the department and the individual or
individuals. - }
{ - (b) An extension granted under this section shall
terminate immediately if: - }
{ - (A) The homestead property is sold or otherwise
transferred by any party to the extension agreement; - }
{ - (B) All of the heirs or devisees who are parties to the
extension agreement cease to occupy the property as a principal
residence; or - }
{ - (C) The homestead property, a manufactured structure or
floating home, is moved out of the state. - }
{ - (3) If the department has reason to believe that the
homestead property is not sufficient security for the deferred
taxes and interest, the department may require the individual or
individuals to furnish a bond conditioned upon payment of the
amount extended in accordance with the terms of the extension.
The bond shall not exceed in amount double the taxes with respect
to which tax extension is granted. - }
{ - (4) During the period of extension, and until paid, the
deferred taxes shall continue to accrue interest in the same
manner and at the same rate as provided under ORS 311.674 (3). No
interest shall accrue upon interest. - } { + A transferee of a
homestead who is ineligible to claim, or does not claim, deferral
under ORS 311.666 to 311.701, or that is not an individual, is
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jointly and severally liable for amounts payable under ORS
311.686 to the extent of the real market value of the homestead
entered on the last certified assessment and tax roll prior to
the date of the transfer. + }
SECTION 15. ORS 305.612 is amended to read:
305.612. (1) The Director of the Department of Revenue may
enter into an intergovernmental agreement with the United States
Financial Management Service and the Internal Revenue Service for
the purpose of engaging in the reciprocal offset of federal tax
refunds in payment of liquidated state tax obligations { + or of
amounts payable by a transferee under ORS 311.695 + } and the
offset of state tax refunds in payment of liquidated federal tax
obligations.
(2) The director may pay a fee charged by the federal
government for the processing of an offset request. The fee may
be deducted from amounts remitted to the state by the federal
government pursuant to an intergovernmental agreement. The amount
of the fee charged by the federal government shall be added to
the taxes, interest and penalties { + or to the amounts payable
under ORS 311.695, as applicable, + } owed by the taxpayer to the
state.
(3) The Department of Revenue may by rule establish a fee to be
charged to the federal government for the provision of state
offset services.
(4) All moneys received by the department in payment of charges
made pursuant to subsection (3) of this section shall be
deposited in a department miscellaneous receipts account
established under ORS 279A.290.
SECTION 16. ORS 311.700 is amended to read:
311.700. { + (1) + } { - After September 9, 1971, it shall
be unlawful for any mortgage trust deed or land sale contract to
contain - } A clause or statement { - which - } { + in a
mortgage trust deed or land sale contract executed after
September 9, 1971, that + } prohibits the owner from applying for
{ - the benefits of the - } deferral of homestead property
taxes provided in ORS 311.666 to 311.701 { - . Any such clause
or statement in a mortgage trust deed or land sale contract
executed after September 9, 1971, shall be - } { + is + } void.
{ + (2) A homestead on which amounts deferred under ORS
311.666 to 311.701 remain outstanding may not be pledged as
security for a reverse mortgage by any person. + }
SECTION 17. ORS 311.701 is amended to read:
311.701. (1) There is established in the State Treasury the
Senior Property Tax Deferral Revolving Account to be used by the
Department of Revenue for the purpose of making the payments to:
(a) County tax collectors of property taxes deferred for tax
years beginning on or after January 1, 1983, as required by ORS
311.676.
(b) The appropriate local officer of special assessment
improvement amounts deferred on or after October 15, 1983, as
required by ORS 311.730.
(c) The department for its expenses in administering the
property tax and special assessment senior deferral programs.
(2) The Senior Property Tax Deferral Revolving Account may
include a reserve for payment of department administrative
expenses.
(3) All sums of money received by the Department of Revenue
under ORS 311.666 to 311.701 as repayments of deferred property
taxes or under ORS 311.702 to 311.735 as repayments of deferred
special assessment improvement amounts, including the interest
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accrued under ORS 311.674 (3) or 311.711 (3) shall, upon receipt,
be credited to the revolving account and are continuously
appropriated to the department for the purposes of subsection (1)
of this section.
(4) { + (a) + } If there are not sufficient moneys in the
revolving account to make the payments required by subsection (1)
of this section, and the amount appropriated from the General
Fund is not sufficient when added together with the moneys in the
revolving account to provide an amount sufficient to make the
required payments, the State Treasurer, in the capacity of
investment officer for the Oregon Investment Council, may lend to
the Department of Revenue such amounts as may be necessary to
make the payments.
{ + (b) + } The State Treasurer may lend moneys that may be
invested as provided in ORS 293.701 to 293.820.
{ + (c) + } Any moneys lent under this subsection shall be
repaid within five years together with interest at a rate
determined by the State Treasurer and consistent with the
investment standards of ORS 293.721 and 293.726.
{ - (5)(a) On November 30 of each year, if the amount in the
revolving account exceeds the greater of 35 percent of the total
amount needed to make the payments described in subsection (1) of
this section for the previous property tax year or $5 million,
the department shall calculate the difference between the amount
in the revolving account and the greater of an amount that equals
35 percent of the total amount needed to make the payments
described in subsection (1) of this section for the previous
property tax year or $5 million. - }
{ - (b) No later than February 1 of each year, the department
shall transfer an amount equal to the difference described in
paragraph (a) of this subsection into the Oregon Project
Independence Fund established in ORS 410.422. - }
SECTION 18. ORS 410.422 is amended to read:
410.422. (1) The Oregon Project Independence Fund is
established in the State Treasury, separate and distinct from the
General Fund. Interest earned by the Oregon Project Independence
Fund shall be credited to the Oregon Project Independence Fund.
Moneys in the Oregon Project Independence Fund at the end of a
biennium are retained in the Oregon Project Independence Fund and
do not revert to the General Fund.
(2) The Oregon Project Independence Fund consists of moneys
appropriated to the fund by the Legislative Assembly, interest
earned by the fund { - , - } { + and + } moneys contributed to
the fund by donors
{ - and moneys transferred to the fund under ORS 311.701 - } .
(3) Moneys in the Oregon Project Independence Fund are
continuously appropriated to the Department of Human Services for
the purpose of funding Oregon Project Independence as provided in
ORS 410.410 to 410.480.
SECTION 19. ORS 311.704 is amended to read:
311.704. (1) { - Subject to ORS 311.706, - } { + On or
before the effective date of this 2011 Act, + } a taxpayer may
{ - elect - } { + file a claim + } to defer payment of the
amount of special assessment for local improvement assessed or
reassessed to the taxpayer's homestead { - . The election shall
be made by filing a claim for deferral - } with the officer in
charge of the bond lien docket or assessment lien record. The
effect of filing the claim shall be to defer payment of the
amount of special assessment for local improvement determined
under ORS 311.702. The claim for deferral shall be effective for
Enrolled House Bill 2543 (HB 2543-B) Page 17
the calendar year for which it is filed and for each subsequent
year until the occurrence of one or more of the events described
in ORS 311.716.
(2) If a guardian or conservator has been appointed for a
taxpayer otherwise qualified to obtain the deferral of payment of
special assessment for local improvement amounts accorded under
ORS 311.702 to 311.735, the guardian or conservator may act for
the taxpayer in complying with ORS 311.702 to 311.735.
(3) A taxpayer who { - has elected to claim - }
{ + claims + } the deferral under ORS 311.702 to 311.735
{ - shall not be entitled to - } { + may not + } claim a
deferral or other similar assistance available under local law.
SECTION 20. ORS 311.356 is amended to read:
311.356. (1) After receipt of the tax roll each year the tax
collector shall receive and receipt for all moneys received for
taxes and other amounts charged on such roll, and for each
payment, shall note on the tax roll at the appropriate property
assessment the following:
(a) The date payment was received.
(b) The amount of the payment.
(c) The discount allowed, if any.
(d) The interest charged, if any.
(e) The number of the receipt issued for such payment.
(2) Except as provided under subsection (3)(a) and (c) of this
section, the tax collector shall credit all payments of property
taxes as follows:
(a) First, to the payment of any taxes assessed against and due
on the property for which the payment was made, paying first the
earliest such taxes due on that property; and
(b) Second, to the payment of taxes assessed on any other
property which have by any means become a lien against the
property for which the payment was made.
(3)(a) Payments of property taxes made by the state on behalf
of tax-deferred homestead property under ORS 311.666 to 311.701
shall be credited to the current tax year.
(b) At the election of the taxpayer, payments of property taxes
made by the taxpayer on behalf of tax-deferred homestead property
under ORS 311.666 to 311.701 shall be credited as provided in
subsection (2) of this section, except that the payments shall be
credited first to the payment of taxes that are not qualified to
be deferred under ORS 311.688 (1) { - or 311.689 (1) - } ,
paying first the earliest of such taxes due on that property.
(c) Notwithstanding any contrary direction from the taxpayer,
the tax collector shall credit payments of property taxes to the
latest year for which taxes are due on the property for which
payment is made if:
(A) The payment is made by a payer who is a mortgagee,
beneficiary under a deed of trust or vendor under a land sales
contract and who pays taxes on behalf of any taxpayer; and
(B) The mortgagee, beneficiary or vendor directs that the
payment be credited to the latest year for which taxes are due on
the property; and
(C) The mortgagee, beneficiary or vendor includes in the
payment submitted with the direction given under subparagraph (B)
of this paragraph only the amounts for the payment of taxes on
one or more properties for which delinquent taxes are owed and
does not include in that payment taxes on property for which no
delinquent taxes are owed.
(d) If the mortgagee, beneficiary or vendor does not direct the
tax collector as to the application of taxes being paid, then the
Enrolled House Bill 2543 (HB 2543-B) Page 18
tax collector shall apply all payments as provided under
subsection (2) of this section.
(4) The tax collector may, for convenience, divide the tax
roll, as payments are made, into two portions, and file each
separately, one portion containing the paid accounts and another
portion containing the unpaid accounts. From time to time, and no
later than the receipt of the next year's tax roll, the tax
collector shall compute and indicate on the tax roll the unpaid
balance of taxes for each property assessment.
SECTION 21. ORS 311.681 is amended to read:
311.681. (1) Notwithstanding ORS { - 311.668 - } { +
311.672 + }, if an individual (or two or more individuals
jointly) who has elected to defer homestead property taxes in a
prior tax year has not filed a timely claim for deferral for one
or more tax years succeeding the year in which property taxes
were initially deferred under ORS 311.666 to 311.701, then the
individual may request that the Director of the Department of
Revenue grant a retroactive deferral of property taxes on the
property. A spouse who is eligible to make the election under ORS
311.688 may also request a grant of retroactive deferral under
this section.
(2) The director may, in the discretion of the director, grant
or deny the retroactive deferral of property taxes. No appeal
from a decision of the director under this section may be made.
(3) The director shall not grant a retroactive deferral of
property taxes if, in any intervening year between the year in
which deferral was last granted to the property and the last year
for which retroactive deferral is being requested, the property
would not have been eligible for deferral had the claim for
deferral been timely filed.
(4) If the director grants a retroactive deferral of property
taxes under this section, the department shall pay to the county
tax collector an amount equal to the deferred taxes for each
year, less three percent. Interest shall accrue on the actual
amount of taxes advanced to the county.
(5) The department shall have a lien against the tax-deferred
property for amounts deferred under this section as provided in
ORS 311.673. The lien shall attach as of July 1 of the tax year
for which the payment relates. In the case of a payment
representing more than one year's property taxes, the department
shall have a lien in the amount of that portion of a payment
related to a particular tax year, which shall attach as of July 1
of that tax year.
SECTION 22. ORS 314.430 is amended to read:
314.430. (1) If any tax imposed under ORS chapter 118, 316, 317
or 318 or any portion of the tax is not paid within 30 days after
the date that the written notice and demand for payment required
under ORS 305.895 is mailed (or within five days after the tax
becomes due, in the case of the termination of the tax year by
the Department of Revenue under the provisions of ORS
314.440) { + , or any amount payable by a transferee under ORS
311.695 is not paid as required under ORS 311.686, + } and no
provision is made to secure the payment thereof by bond, deposit
or otherwise, pursuant to regulations promulgated by the
department, the department may issue a warrant directed to the
sheriff of any county of the state commanding the sheriff to levy
upon and sell the real and personal property of the taxpayer
found within that county, for the payment of the amount of the
tax { + or amount payable under ORS 311.695 + }, with the added
penalties, interest, collection charge and the sheriff's cost of
Enrolled House Bill 2543 (HB 2543-B) Page 19
executing the warrant, and to return such warrant to the
department and pay to it the money collected by virtue thereof by
a time to be therein specified, not less than 60 days from the
date of the warrant. A copy of the warrant shall be mailed or
delivered to the taxpayer { + or transferee + } by the
department at the taxpayer's { + or transferee's + } last-known
address.
(2) The sheriff shall, within five days after the receipt of
the warrant, record with the clerk of the county a copy thereof,
and thereupon the clerk shall enter in the County Clerk Lien
Record the name of the taxpayer { + or transferee + } mentioned
in the warrant, and the amount of the tax { + or amount payable
under ORS 311.695 + } or portion thereof and penalties for which
the warrant is issued and the date when such copy is recorded.
Thereupon the amount of the warrant so recorded shall become a
lien upon the title to and interest in property of the taxpayer
{ + or transferee + } against whom it is issued in the same
manner as a judgment duly recorded. The sheriff thereupon shall
proceed upon the same in all respects, with like effect and in
the same manner prescribed by law in respect to executions issued
against property upon judgment of a court of record, and shall be
entitled to the same fees for services in executing the warrant,
to be added to and collected as a part of the warrant liability.
(3) In the discretion of the department a warrant of like
terms, force and effect may be issued and directed to any agent
authorized to collect taxes, and in the execution thereof the
agent shall have all the powers conferred by law upon sheriffs,
but is entitled to no fee or compensation in excess of actual
expenses paid in the performance of such duty.
(4) If a warrant is returned not satisfied in full, the
department shall have the same remedies to enforce the claim for
taxes against the taxpayer { + or for amounts payable by the
transferee + } as if the people of the state had recovered
judgment against the taxpayer for the amount of the tax { + or
against the transferee for the amount payable under ORS
311.695 + }, and shall balance the assessment record of the
taxpayer { + or transferee + } by transferring the unpaid
deficiency to the taxpayer's { + or transferee's + } delinquent
record.
SECTION 23. ORS 305.895 is amended to read:
305.895. (1) Except as provided in ORS 314.440 or other
jeopardy assessment procedure, the Department of Revenue shall
take no action against a taxpayer's { + or transferee's + } real
or personal property before issuing a warrant for the collection
of
{ - the - } tax { + or an amount payable by a transferee
under ORS 311.695 + } as provided in ORS 314.430, 320.080,
321.570 and 324.190.
(2) Prior to issuing a warrant for collection of any tax
collected by the department { + or any amount payable under ORS
311.695 + }, the department shall send the taxpayer { + or
transferee + } a written notice and demand for payment. The
notice shall:
(a) Be sent by mail, addressed to the taxpayer { + or
transferee + } at the taxpayer's { + or transferee's + }
last-known address.
(b) Inform the taxpayer { + or transferee + } that if the tax
or any portion of the tax { + or the amount payable under ORS
311.695 + } is not paid within 30 days after the date of the
notice and demand for payment, a warrant may be issued and
Enrolled House Bill 2543 (HB 2543-B) Page 20
recorded as provided in ORS 314.430, 320.080, 321.570 and
324.190.
(c) Describe in clear nontechnical terms the legal authority
for the warrant.
(d) Contain the name, office mailing address and office
telephone number of the person issuing the warrant and advise the
taxpayer { + or transferee + } that questions or complaints
concerning the warrant, other than liability for the underlying
tax { + or amount payable under ORS 311.695 + }, may be directed
to that person.
(e) Include alternatives available to the taxpayer
{ - which - } { + or transferee that + }would prevent
issuance of the warrant.
SECTION 24. { + (1) The amendments to ORS 305.612, 311.356,
311.666, 311.668, 311.670, 311.672, 311.676, 311.679, 311.681,
311.684, 311.686, 311.688, 311.689, 311.691, 311.693, 311.695,
311.700, 311.701, 314.430 and 410.422 by sections 1 to 4, 6 to 18
and 20 to 22 of this 2011 Act apply to property tax years
beginning on or after July 1, 2011.
(2) The amendments to ORS 311.674 by section 5 of this 2011 Act
apply to interest that accrues on taxes advanced to counties for
tax-deferred property for property tax years beginning on or
after July 1, 2011.
(3) A claim for an initial year of deferral, or for continued
deferral, under ORS 311.666 to 311.701 may not be filed on or
after April 16, 2021, and deferral may not be granted for a
property tax year beginning after July 1, 2021. + }
SECTION 25. { + If House Bill 3261 becomes law, section 23 of
this 2011 Act (amending ORS 305.895) is repealed and ORS 305.895,
as amended by section 7, chapter 389, Oregon Laws 2011 (Enrolled
House Bill 3261), is amended to read: + }
305.895. (1) Except as provided in ORS 314.440 or other
jeopardy assessment procedure, the Department of Revenue shall
take no action against a taxpayer's { + or transferee's + } real
or personal property before issuing a warrant for the collection
of
{ - the - } tax { + or an amount payable by a transferee
under ORS 311.695 + } as provided in ORS 314.430, 320.080,
321.570, 323.390, 323.610 and 324.190.
(2) At least 30 days before issuing a warrant for collection of
any tax collected by the department { + or any amount payable
under ORS 311.695 + }, the department shall send the taxpayer
{ + or transferee + } a written notice and demand for payment.
The notice shall:
(a) Be sent by mail, addressed to the taxpayer { + or
transferee + } at the taxpayer's { + or transferee's
+ }last-known address.
(b) Inform the taxpayer { + or transferee + } that, even if
the taxpayer { + or transferee + } is compliant with an
installment agreement between the taxpayer { + or transferee + }
and the department and is in communication with the department,
if the tax or any portion of the tax { + or the amount payable
under ORS 311.695 + } is not paid within 30 days after the date
of the notice and demand for payment, a warrant may be issued and
recorded as provided in ORS 314.430, 320.080, 321.570, 323.390,
323.610 and 324.190.
(c) Describe in clear nontechnical terms the legal authority
for the warrant.
(d) Contain the name, office mailing address and office
telephone number of the person issuing the warrant and advise the
Enrolled House Bill 2543 (HB 2543-B) Page 21
taxpayer { + or transferee + } that questions or complaints
concerning the warrant, other than liability for the underlying
tax { + or amount payable under ORS 311.695 + }, may be directed
to that person.
(e) Include alternatives available to the taxpayer
{ - which - } { + or transferee that + } would prevent
issuance of the warrant.
(f) Inform the taxpayer { + or transferee + } of possible
consequences to the taxpayer { + or transferee + } of
noncompliance, and of issuance of a warrant, including
garnishment of wages or bank accounts and seizure and sale of
real or personal property.
SECTION 26. { + Section 20, chapter 7, Oregon Laws 2011
(Enrolled Senate Bill 301) (amending ORS 311.689), is
repealed. + }
SECTION 27. Section 28, chapter 7, Oregon Laws 2011 (Enrolled
Senate Bill 301), is amended to read:
{ + Sec. 28. + } (1) Except as provided in subsections (2)
and (3) of this section, the amendments to statutes by sections 1
to { + 19 and 21 to + } 27 { + , chapter 7, Oregon Laws 2011
(Enrolled Senate Bill 301), + }
{ - of this 2011 Act - } apply to transactions or activities
occurring on or after January 1, 2011, in tax years beginning on
or after January 1, 2011.
(2) The effective and applicable dates, and the exceptions,
special rules and coordination with the Internal Revenue Code, as
amended, relative to those dates, contained in the Federal
Aviation Administration Air Transportation Modernization and
Safety Improvement Act (P.L. 111-226), the Patient Protection and
Affordable Care Act (P.L. 111-148), the Preservation of Access to
Care for Medicare Beneficiaries and Pension Relief Act of 2010
(P.L. 111-192), the Health Care and Education Reconciliation Act
of 2010 (P.L. 111-152), the Homebuyer Assistance and Improvement
Act of 2010 (P.L. 111-198) and other federal law amending the
Internal Revenue Code apply for Oregon personal income and
corporate excise and income tax purposes, to the extent they can
be made applicable, in the same manner as they are applied under
the Internal Revenue Code and related federal law.
(3)(a) If a deficiency is assessed against any taxpayer for a
tax year beginning before January 1, 2011, and the deficiency or
any portion thereof is attributable to any retroactive treatment
under the amendments to ORS 305.230, 305.494, 305.690, 307.130,
307.147, 308A.450, 310.140, 310.630, 310.800, { - 311.689, - }
314.011, 315.004, 316.012, 317.010 and 317.097 by sections 11 to
{ + 19 and 21 to + } 25 { + , chapter 7, Oregon Laws 2011
(Enrolled Senate Bill 301) + } { - of this 2011 Act - } , then
any interest or penalty assessed under ORS chapter 305, 314, 315,
316, 317 or 318 with respect to the deficiency or portion thereof
shall be canceled.
(b) If a refund is due any taxpayer for a tax year beginning
before January 1, 2011, and the refund or any portion thereof is
due the taxpayer on account of any retroactive treatment under
the amendments to ORS 305.230, 305.494, 305.690, 307.130,
307.147, 308A.450, 310.140, 310.630, 310.800, { - 311.689, - }
314.011, 315.004, 316.012, 317.010 and 317.097 by sections 11 to
{ + 19 and 21 to + } 25 { + , chapter 7, Oregon Laws 2011
(Enrolled Senate Bill 301) + } { - of this 2011 Act - } , then
notwithstanding ORS 305.270 or 314.415 or other law, the refund
or portion thereof shall be paid without interest.
Enrolled House Bill 2543 (HB 2543-B) Page 22
(c) Any changes required because of the amendments to ORS
305.230, 305.494, 305.690, 307.130, 307.147, 308A.450, 310.140,
310.630, 310.800, { - 311.689, - } 314.011, 315.004, 316.012,
317.010 and 317.097 by sections 11 to { + 19 and 21 to + }
25 { + , chapter 7, Oregon Laws 2011 (Enrolled Senate Bill
301), + } { - of this 2011 Act - } for a tax year beginning
before January 1, 2011, shall be made by filing an amended return
within the time prescribed by law.
(d) If a taxpayer fails to file an amended return under
paragraph (c) of this subsection, the Department of Revenue shall
make any changes under paragraph (c) of this subsection on the
return to which the changes relate within the period specified
for issuing a notice of deficiency or claiming a refund as
otherwise provided by law with respect to that return, or within
one year after a return for a tax year beginning on or after
January 1, 2011, and before January 1, 2012, is filed, whichever
period expires later.
SECTION 28. { + If House Bill 2693 becomes law and House Bill
3261 does not become law, section 22 of this 2011 Act (amending
ORS 314.430) is repealed and ORS 314.430, as amended by section
2, chapter ___, Oregon Laws 2011 (Enrolled House Bill 2693), is
amended to read: + }
314.430. (1) If any tax imposed under ORS chapter 118, 316, 317
or 318 or any portion of the tax is not paid within 30 days after
the date that the written notice and demand for payment required
under ORS 305.895 is mailed (or within five days after the tax
becomes due, in the case of the termination of the tax year by
the Department of Revenue under the provisions of ORS
314.440) { + , or any amount payable by a transferee under ORS
311.695 is not paid as required under ORS 311.686, + } and no
provision is made to secure the payment thereof by bond, deposit
or otherwise, pursuant to regulations promulgated by the
department, the department may issue a warrant for the payment of
the amount of the tax { + or amount payable under ORS
311.695 + }, with the added penalties, interest and any
collection charge incurred. A copy of the warrant shall be mailed
or delivered to the taxpayer { + or transferee + } by the
department at the taxpayer's { + or transferee's + } last-known
address.
(2) At any time after issuing a warrant under this section, the
department may record the warrant in the County Clerk Lien Record
of any county of this state. Recording of the warrant has the
effect described in ORS 205.125. After recording a warrant, the
department may direct the sheriff for the county in which the
warrant is recorded to levy upon and sell the real and personal
property of the taxpayer { + or transferee + } found within that
county, and to levy upon any currency of the taxpayer { + or
transferee + } found within that county, for the application of
the proceeds or currency against the amount reflected in the
warrant and the sheriff's cost of executing the warrant. The
sheriff shall proceed on the warrant in the same manner
prescribed by law for executions issued against property pursuant
to a judgment, and is entitled to the same fees as provided for
executions issued against property pursuant to a judgment. The
fees of the sheriff shall be added to and collected as a part of
the warrant liability.
(3) In the discretion of the department a warrant under this
section may be directed to any agent authorized by the department
to collect taxes, and in the execution of the warrant the agent
has all of the powers conferred by law upon sheriffs, but is
Enrolled House Bill 2543 (HB 2543-B) Page 23
entitled to no fee or compensation in excess of actual expenses
paid in the performance of such duty.
(4) Until a warrant issued under this section is satisfied in
full, the department has the same remedies to enforce the claim
for taxes against the taxpayer { + or for amounts payable by the
transferee + } as if the state had recovered judgment against the
taxpayer for the amount of the tax { + or against the transferee
for the amount payable under ORS 311.695 + }.
SECTION 29. { + If House Bill 3261 becomes law, section 2,
chapter ___, Oregon Laws 2011 (Enrolled House Bill 2693), and
section 22 of this 2011 Act (both amending ORS 314.430) are
repealed and ORS 314.430, as amended by section 1, chapter 389,
Oregon Laws 2011 (Enrolled House Bill 3261), is amended to
read: + }
314.430. (1) If any tax imposed under ORS chapter 118, 316, 317
or 318 or any portion of the tax is not paid within 30 days after
the date that the written notice and demand for payment required
under ORS 305.895 is mailed (or within five days after the tax
becomes due, in the case of the termination of the tax year by
the Department of Revenue under the provisions of ORS
314.440) { + , or any amount payable by a transferee under ORS
311.695 is not paid as required under ORS 311.686, + } and no
provision is made to secure the payment thereof by bond, deposit
or otherwise, pursuant to regulations promulgated by the
department, the department may issue a warrant for the payment of
the amount of the tax { + or amount payable under ORS
311.695 + }, with the added penalties, interest and any
collection charge incurred. A copy of the warrant shall be mailed
or delivered to the taxpayer { + or transferee + } by the
department at the taxpayer's { + or transferee's + } last-known
address.
(2) At any time after issuing a warrant under this section, the
department may record the warrant in the County Clerk Lien Record
of any county of this state. Recording of the warrant has the
effect described in ORS 205.125. After recording a warrant, the
department may direct the sheriff for the county in which the
warrant is recorded to levy upon and sell the real and personal
property of the taxpayer { + or transferee + } found within that
county, and to levy upon any currency of the taxpayer { + or
transferee + } found within that county, for the application of
the proceeds or currency against the amount reflected in the
warrant and the sheriff's cost of executing the warrant. The
sheriff shall proceed on the warrant in the same manner
prescribed by law for executions issued against property pursuant
to a judgment, and is entitled to the same fees as provided for
executions issued against property pursuant to a judgment. The
fees of the sheriff shall be added to and collected as a part of
the warrant liability.
(3) In the discretion of the department a warrant under this
section may be directed to any agent authorized by the department
to collect taxes, and in the execution of the warrant the agent
has all of the powers conferred by law upon sheriffs, but is
entitled to no fee or compensation in excess of actual expenses
paid in the performance of such duty.
(4) Until a warrant issued under this section is satisfied in
full, the department has the same remedies to enforce the claim
for taxes against the taxpayer { + or for amounts payable by the
transferee + } as if the state had recovered judgment against the
taxpayer for the amount of the tax { + or against the transferee
for the amount payable under ORS 311.695 + }.
Enrolled House Bill 2543 (HB 2543-B) Page 24
SECTION 30. If House Bill 2693 becomes law and House Bill 3261
does not become law, section 24 of this 2011 Act is amended to
read:
{ + Sec. 24. + } (1) The amendments to ORS 305.612, 311.356,
311.666, 311.668, 311.670, 311.672, 311.676, 311.679, 311.681,
311.684, 311.686, 311.688, 311.689, 311.691, 311.693, 311.695,
311.700, 311.701, 314.430 and 410.422 by sections 1 to 4, 6 to 18
{ - and 20 to 22 - } { + , 20, 21 and 28 + } of this 2011 Act
apply to property tax years beginning on or after July 1, 2011.
(2) The amendments to ORS 311.674 by section 5 of this 2011 Act
apply to interest that accrues on taxes advanced to counties for
tax-deferred property for property tax years beginning on or
after July 1, 2011.
(3) A claim for an initial year of deferral, or for continued
deferral, under ORS 311.666 to 311.701 may not be filed on or
after April 16, 2021, and deferral may not be granted for a
property tax year beginning after July 1, 2021.
SECTION 31. If House Bill 3261 becomes law, section 24 of this
2011 Act is amended to read:
{ + Sec. 24. + } (1) The amendments to ORS 305.612, 311.356,
311.666, 311.668, 311.670, 311.672, 311.676, 311.679, 311.681,
311.684, 311.686, 311.688, 311.689, 311.691, 311.693, 311.695,
311.700, 311.701, 314.430 and 410.422 by sections 1 to 4, 6 to 18
{ - and 20 to 22 - } { + , 20, 21 and 29 + } of this 2011 Act
apply to property tax years beginning on or after July 1, 2011.
(2) The amendments to ORS 311.674 by section 5 of this 2011 Act
apply to interest that accrues on taxes advanced to counties for
tax-deferred property for property tax years beginning on or
after July 1, 2011.
(3) A claim for an initial year of deferral, or for continued
deferral, under ORS 311.666 to 311.701 may not be filed on or
after April 16, 2021, and deferral may not be granted for a
property tax year beginning after July 1, 2021.
SECTION 32. { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 regular session of the
Seventy-sixth Legislative Assembly adjourns sine die. + }
----------
Passed by House May 12, 2011
Repassed by House June 22, 2011
.............................................................
Ramona Kenady Line, Chief Clerk of House
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Passed by Senate June 21, 2011
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 2543 (HB 2543-B) Page 25
Received by Governor:
......M.,............., 2011
Approved:
......M.,............., 2011
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2011
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 2543 (HB 2543-B) Page 26
