Chapter 41 Oregon Laws 2001

AN ACT

HB 2029

Relating to tax collection; creating new provisions; amending ORS 311.470, 311.473, 311.475, 311.640 and 311.656; and prescribing an effective date.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 311.470 is amended to read:

311.470. If at any time the tax collector has reason to believe that personal property, including property classified as real property machinery and equipment, is being removed or is about to be removed from the state, is being dissipated or is about to be dissipated, the tax collector immediately shall distrain sufficient of the property or cause sufficient property to be distrained to pay the taxes, together with interest, penalties and costs, on all the property being removed or about to be removed, being dissipated or about to be dissipated. The tax collector shall cause such property to be sold or sell such property in the manner provided in ORS 311.640.

SECTION 2. ORS 311.473 is amended to read:

311.473. (1) Any financial institution, as defined in ORS 317.010, or agent or representative of a financial institution, that, in the process of foreclosing any security interest or other lien on taxable personal property, including property classified as real property machinery and equipment, or after the lien is foreclosed, causes the property to be removed, or is knowledgeable that the property will be removed by another after the foreclosure sale, from the county in which the property is assessed or seized, shall notify the tax collector of that county prior to the removal. The notice shall be mailed to the tax collector, return receipt requested, and shall contain a description of the property that is the subject of the foreclosure, together with the name and address of the owner or owners of the property.

(2) Failure to give the notice required under subsection (1) of this section shall not affect the foreclosure, but the tax collector shall have recourse against the financial institution on behalf of the taxing units for any damages sustained on account of failure to mail the notice.

SECTION 3. ORS 311.475 is amended to read:

311.475. If personal property, including property classified as real property machinery and equipment, on which taxes are due and unpaid has been removed from one county to another county of this state, the tax collector of the county from which the property was removed shall certify a statement of the taxes, with interest and penalties, to the tax collector of the county to which the property was removed. The statement shall contain a transcript of so much of the tax roll as relates to the property and the owner thereof. The tax collector receiving the certified statement shall have the same power to collect the taxes, with interest, penalties and costs thereon, as the tax collector has to collect taxes levied on personal property assessed in the tax collector's own county. The tax collector making the collection immediately shall remit the amount collected, less the costs, to the tax collector from whom the statement and certified transcript was received, together with a statement showing in detail the respective amounts of taxes, interest, penalties and costs collected.

SECTION 4. ORS 311.640 is amended to read:

311.640. (1) As used in this section, “property” is limited to personal property and machinery and equipment that is characterized by the county assessor as real property machinery and equipment and that is described in ORS 308.115 (3).

[(1)(a)] (2)(a) Each year, the tax collector shall collect taxes on [personal] property that are delinquent by seizure and sale of any of the following [personal] property:

(A) The [personal] property assessed.

(B) The taxable [personal] property belonging to or in the possession or control of the person assessed.

(b) No [personal] property that is subject to taxation shall be exempt from seizure and sale for the payment of [personal] property taxes imposed on personal property or real property machinery and equipment.

[(2)(a)] (3)(a) Immediately upon taking the [personal] property into possession, the tax collector shall:

(A) Notify, by mail, the owner, or person in possession or control of the [personal] property at the time of the seizure. If the name and address of the owner or the person in control or possession of the property is unknown to the tax collector, the tax collector shall notify the person to whom the [personal] property was assessed at the address noted upon the tax roll. If the [personal] property was not assessed, and the owner or person in possession or control of the [personal] property at the time of the seizure is unknown to the tax collector, no notice need be given under this subparagraph.

(B) Notify, by mail, all security interest holders and other encumbrancers of record, at their addresses as shown in the records of encumbrance. If no addresses appear in the records of encumbrance, no mailing is required under this subparagraph.

(C) Advertise the seized property for sale by posting written or printed notices of the time and place of sale in three public places in the county not less than 10 days prior to the sale. Failure to give or post the notices required by this paragraph shall not invalidate the sale. However, the owner, encumbrancer or other injured person shall have recourse against the tax collector for damages.

(b) The notice under paragraph (a) of this subsection shall:

(A) Describe the personal property or real property machinery and equipment seized.

(B) State the total amount of [personal] property taxes due and delinquent on personal property or real property machinery and equipment, the date of delinquency, the rate of interest and the date the interest begins to run.

(C) State that if the [personal] property taxes, interest, penalties and costs are not paid the property will be sold at public vendue, and the date and hour of sale.

(D) State either that the property seized is the property assessed or is property assessed as the same category, or that the property seized is distrained under ORS 311.405 (3)(a)(B).

(c) If payment of the [personal] property taxes, interest, penalties and costs is made before the time fixed for sale, the tax collector shall release the seized property.

(d) If any person disputes the statements contained in the notice described in this subsection or the [personal] property tax lien priority, the burden of proving the statements contained in the notice or the priority of the [personal] property tax lien shall be on the tax collector.

(e) If it is determined that the seized property is exempt or nontaxable or that the taxpayer has no interest in the property, or that the taxes on that property have been paid, the tax collector shall release the property. However, if it is determined that the taxpayer has an interest in the property and that the property is taxable and is not exempt from seizure and sale, the tax collector shall proceed to sell the property at public vendue unless the taxes are paid as provided in paragraph (c) of this subsection.

[(3)] (4) At the sale the person offering to pay the amount of taxes, interest and penalties due on the [personal] property for the least quantity of the [personal] property shall be the purchaser of that quantity, and the remainder of the property shall be discharged from the lien. If no bidder at the sale offers to pay the amount due against the property at the time set for the sale or at any adjournment of the sale, title to the [personal] property shall immediately vest in the county free and clear of all liens and encumbrances. Thereafter, the county governing body may sell the [personal] property, or any part of the [personal] property, at private sale, without further notice, for a price and on such terms as the governing body considers reasonable. Any sale shall be absolute and without right of redemption.

[(4)] (5) If the amount realized on the sale is in excess of the amount of taxes, interest, penalties and costs due on the [personal] property, the excess shall be repaid to the person charged with the taxes, interest, penalties and costs. However, if the property is subject to a judgment, mortgage, security interest or other lien or encumbrance of record, the excess shall be paid over to the holder or holders of the judgment, mortgage, security interest or other lien or encumbrance as the interest of the holder or holders may appear.

SECTION 5. ORS 311.656 is amended to read:

311.656. (1) No security interest in, or other lien upon, taxable personal property or real property machinery and equipment shall be foreclosed by the sale of the property unless the secured party, an agent or the attorney for the secured party, at least five days before the date of the sale, has mailed or delivered to the tax collector of the county in which the sale is to be held, a copy of the notice of the foreclosure sale. The notice shall be mailed to the tax collector, return receipt requested, and shall contain a list of the personal property or real property machinery and equipment to be sold, together with the name and address of the owners of the property. Failure to mail or deliver the notice shall not invalidate the sale, but the tax collector shall have recourse against the secured party on behalf of the taxing units for any damages sustained on account of failure to mail or deliver the notice.

(2) Upon receipt of the notice under subsection (1) of this section, the tax collector shall determine if the owner of the [personal] property has paid the [personal] property taxes and if the tax collector finds that the taxes are due and owing, the tax collector, unless the taxes are paid upon demand, shall distrain the property under ORS 311.640, or so much of the property as may be necessary to pay the taxes, interest, penalties and costs. No transfer of personal property or real property machinery and equipment to the secured party or to the holder of a lien on the property in any way shall affect the lien for [personal] property taxes assessed against the property.

SECTION 6. The amendments to ORS 311.470, 311.473, 311.475, 311.640 and 311.656 by sections 1 to 5 of this 2001 Act apply to the collection of property taxes occurring on or after the effective date of this 2001 Act.

SECTION 7. This 2001 Act takes effect on the 91st day after the date on which the regular session of the Seventy-first Legislative Assembly adjourns sine die.

Approved by the Governor April 6, 2001

Filed in the office of Secretary of State April 6, 2001

Effective date October 6, 2001

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