Chapter 303 Oregon Laws 2001

AN ACT

HB 2207

Relating to taxation; creating new provisions; amending ORS 294.184, 306.126, 308.295, 308.296, 311.206, 311.208, 311.223, 311.229, 311.370 and 311.507; and prescribing an effective date.

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

SECTION 1. ORS 311.223 is amended to read:

311.223. (1) If the person or party notified as provided in ORS 311.219 does not appear or if the person or party appears and fails to show any good and sufficient cause why the assessment shall not be made, the assessor shall proceed to correct the assessment or tax roll or rolls from which the property was omitted. The assessor shall add the property thereto, with the proper valuation, and extend thereon taxes at the consolidated rate under ORS 310.147 that is applicable in the code area in which the property was located for each year as to which it was omitted. To carry out the correction of a tax roll or rolls the assessor shall send a written statement to the tax collector instructing the tax collector to make the necessary changes on the tax roll. The statement shall contain all of the information needed by the tax collector to make the changes in the roll and it shall be dated and signed by the assessor or the deputy of the assessor. The tax collector shall then correct the tax roll.

(2) Immediately after the assessor corrects the assessment or tax roll the assessor shall file in the office of the assessor a statement of the facts or evidence on which the assessor based the correction and notify the taxpayer by written notice, sent by certified mail to the taxpayer’s last-known address, of:

(a) The date and amount of the correction;

(b) If a penalty for failing to timely file a real, combined or personal property return as required by ORS 308.290 is being imposed under ORS 308.295 or 308.296, the amount of the penalty;

(c) An explanation of the collection procedures applicable to the corrected amount, or applicable to the penalty; and

(d) An explanation of the taxpayer’s right to appeal under subsection (4) of this section and the procedures for making the appeal.

(3) To enable the assessor to comply with this [subsection] section, the assessor is invested with all the powers of the county clerk under the law in force during the years for which correction may be made under ORS 311.216 to 311.232 and thereafter.

(4) Any person aggrieved by an assessment made under ORS 311.216 to 311.232 may appeal to the tax court within 90 days after the correction of the roll by giving notice to the assessor or the Department of Revenue, whichever is applicable, and otherwise proceeding in the manner provided for appeals from the board of property tax appeals. If a penalty under ORS 308.295 or 308.296 is imposed for failing to timely file a real, combined or personal property return with respect to the assessment under ORS 311.216 to 311.232, the imposition of the penalty may be appealed to the tax court. The appeal of the penalty must be brought within the same period of time as an assessment under ORS 311.216 to 311.232 may be appealed to the tax court. An [No] appeal of the value assigned under this section, or of any penalty described in subsection (2)(b) of this section, may not be made to the board of property tax appeals under ORS 309.100.

SECTION 2. ORS 308.295 is amended to read:

308.295. (1) Each person, firm, corporation or association required by ORS 308.290 to file a return, other than a return reporting only taxable personal property, who or which has not filed a return within the time fixed in ORS 308.290 or as extended, is delinquent.

(2) A delinquent taxpayer is subject to a penalty of $1 for each $1,000 (or fraction thereof) of assessed value of the property as determined under ORS 308.146, but such penalty shall not be less than $10 or more than $250.

(3) If a delinquency penalty provided in this section is imposed, the tax statement for the year in which the penalty is imposed shall reflect the amount of the penalty and shall constitute notice to the taxpayer.

(4) Unless the penalty is the subject of an appeal under ORS 311.223, the county board of property tax appeals may, upon application of the taxpayer, waive the liability for all or a portion of the penalty upon a proper showing of good and sufficient cause. However, an application made under this subsection shall not be considered by the board unless filed timely and in the same manner as an appeal under ORS 309.100. There shall be no appeal from the determination of the board under this subsection.

(5) If the board waives all or a portion of a penalty already imposed and entered on the roll, the person in charge of the roll shall cancel the waived penalty and enter the cancellation on the roll as an error correction under ORS 311.205 and, if the waived penalty has been paid, it shall be refunded without interest under ORS 311.806.

SECTION 3. ORS 308.296 is amended to read:

308.296. (1) Each person, firm, corporation or association required by ORS 308.290 to file a return reporting only taxable personal property, who or which has not filed a return within the time fixed in ORS 308.290 or as extended, shall be subject to a penalty as provided in this section.

(2) A taxpayer who files a return to which this section applies after March 1, or after April 15, if the taxpayer received an extension, but on or before June 1, is subject to a penalty equal to five percent of the tax attributable to the taxable personal property of the taxpayer.

(3) A taxpayer who files a return to which this section applies after June 1, but on or before August 1, is subject to a penalty equal to 25 percent of the tax attributable to the taxable personal property of the taxpayer.

(4) After August 1, a taxpayer who files a return to which this section applies or who fails to file a return shall be subject to a penalty equal to 100 percent of the tax attributable to the taxable personal property of the taxpayer.

(5) If a delinquency penalty provided in this section is imposed, the tax statement for the year in which the penalty is imposed shall reflect the amount of the penalty and shall constitute notice to the taxpayer.

(6) Unless the penalty is the subject of an appeal under ORS 311.223, the county board of property tax appeals, upon application of the taxpayer, may waive the liability for all or a portion of the penalty upon a proper showing of good and sufficient cause. However, an application made under this subsection shall not be considered by the board unless filed timely and in the same manner as an appeal under ORS 309.100. There shall be no appeal from the determination of the board under this subsection.

(7) If the board waives all or a portion of a penalty already imposed and entered on the roll, the person in charge of the roll shall cancel the waived penalty and enter the cancellation on the roll as an error correction under ORS 311.205 and, if the waived penalty has been paid, it shall be refunded without interest under ORS 311.806.

SECTION 4. Section 5 of this 2001 Act is added to and made a part of ORS 305.404 to 305.560.

SECTION 5. If a penalty under ORS 308.295 or 308.296 for the failure to timely file a real, combined or personal property return as required by ORS 308.290 is the subject of an appeal to the tax court, the court may waive the liability for all or a portion of the penalty upon a proper showing of good and sufficient cause.

SECTION 6. Section 5 of this 2001 Act and the amendments to ORS 308.295, 308.296 and 311.223 by sections 1 to 3 of this 2001 Act apply to penalties under ORS 308.295 or 308.296 that are first imposed on or after the effective date of this 2001 Act.

SECTION 7. ORS 311.206 is amended to read:

311.206. (1) When the roll is corrected under ORS 311.205, and taxes are added to the roll, the additional taxes shall be added to the tax extended against the property on the general property tax roll for the tax year following the current tax year, to be collected and distributed in the same manner as other ad valorem property taxes imposed on the property. Notwithstanding ORS 311.205 (2)(b), for purposes of collection and enforcement, the additional taxes added to the roll under this subsection shall be considered delinquent as of the date the other taxes for the year in which the additional taxes are added to the roll become delinquent.

(2) Notwithstanding subsection (1) of this section or other provision of law establishing the delinquency date for additional taxes, additional taxes may not be assessed and imposed if the correction is a result of:

(a) The disqualification of property from a tax exemption granted erroneously by a tax official; or

(b) The failure by a tax official to timely disqualify property from a tax exemption.

(3) Subsection (2) of this section does not apply to a failure by a tax official to timely disqualify property from a tax exemption if the property owner fails to timely notify the assessor of a change in use of the property to a nonexempt use.

(4) Additional taxes arising from a correction under ORS 311.205 may be paid to the tax collector prior to the completion of the next general property tax roll, pursuant to ORS 311.370.

[(4)] (5) For purposes of this section, “additional taxes” includes increases in taxes that have already been extended on the roll.

SECTION 8. ORS 311.229 is amended to read:

311.229. (1) When the taxes are added to an assessment or tax roll under ORS 311.216 to 311.232, the additional taxes shall be added to the tax extended against the property on the general property tax roll for the tax year following the current tax year, to be collected and distributed in the same manner as other ad valorem property taxes imposed on the property. Notwithstanding ORS 311.226, for purposes of collection and enforcement, the additional taxes added to the roll under this subsection shall be considered delinquent as of the date the other taxes for the year in which the additional taxes are added to the roll become delinquent.

(2) When it appears to the satisfaction of the assessor that the omission of the property was due to a willful attempt to evade the payment of taxes on the property, then the assessor shall so advise the tax collector and interest at the rate provided in ORS 311.505 (2) shall be added to the amounts so charged, which interest shall be computed from the date or dates that payment of the charges were properly due, and which interest shall continue to run until payment of the charges.

(3) Additional taxes arising from the assessment of omitted property under ORS 311.216 to 311.232 may be paid to the tax collector prior to the completion of the next general property tax roll, pursuant to ORS 311.370.

[(3)] (4) For purposes of this section, “additional taxes” includes increases in taxes that have already been extended on the roll.

SECTION 9. ORS 311.370 is amended to read:

311.370. (1)(a) For all taxes, penalties and other charges collected by the tax collector under, including, but not limited to, ORS 92.095, 100.110, 308.260, 308.865, 308A.119, 308A.324, 308A.700 to 308A.733, 311.165, 311.206, 311.229, 311.415, 311.465, 354.690, 358.525 and 454.225, the tax collector shall issue receipts similar in form to the receipts issued on payment of taxes regularly charged on the tax roll.

(b) The assessor shall enter all assessments of property to which paragraph (a) of this subsection applies in the assessment roll and shall make proper entries showing the extension of the taxes in the usual manner and as though no payment to the tax collector had been made.

(2) Upon receipt thereof, the tax collector shall deposit with the county treasurer all money collected by the tax collector under subsection (1) of this section. The county treasurer shall issue to the tax collector duplicate receipts for the money and shall hold it in a special account in the name of the tax collector.

(3) Upon delivery of the assessment roll pursuant to ORS 311.115, the tax collector shall post the payments evidenced by the receipts, and the amount of any underpayment or overpayment. The tax collector shall then make a statement to the county treasurer which shall specify the amount to be retained in the special account to make the refunds required under subsection (4)(b) of this section. The tax collector shall dispose of the balance in the special account in the same manner as other tax payments.

(4) Any sum collected by the tax collector which is in excess of the amount extended on the tax roll as provided in subsection (1)(b) of this section shall be disposed of by the tax collector as follows:

(a) Any excess under $5 shall be paid to the districts in which the taxed property is located in the same manner as interest on taxes is paid to such districts.

(b) Any excess of $5 or over shall be refunded to the taxpayer by the county treasurer upon receiving instructions for doing so from the tax collector. If an amount remains that cannot be refunded by June 30 of the next calendar year, the tax collector shall instruct the treasurer to distribute the moneys to the taxing districts in the same manner as the excesses are distributed under paragraph (a) of this subsection.

(5) If a sum less than the tax charged on the tax roll has been collected, the deficiency shall be canceled by the tax collector if such sum is $5 or less, and the tax collector shall note upon the tax roll opposite the appropriate account, “Tax deficiency canceled pursuant to ORS 311.370.” Otherwise, the deficiency shall be collected as provided by law.

(6) If an appeal which is perfected under ORS 311.467 for taxes collected under ORS 311.465 results in a refund under ORS 311.806, the reimbursement for the refund to the unsegregated tax collections account shall be made from the account provided for in subsection (2) of this section.

SECTION 10. ORS 311.208 is amended to read:

311.208. (1) The assessor shall notify the property owner of record or other person claiming to own the property or occupying the property or in possession of the property, if:

(a) A correction is made that applies only to the current roll;

(b) The correction is made after roll certification under ORS 311.105 and prior to December 1 of the current tax year; and

(2) If a correction described in subsection (1) of this section results in additional taxes being added to the current roll, the additional taxes shall be due and payable without interest if paid prior to the 16th of the month next following the date the notice was sent under this section.

(3) If the additional taxes described in subsection (2) of this section are not paid prior to the 16th of the month next following the date the notice was sent under this section, the additional taxes shall be considered for all purposes of collection and enforcement of payment as having become delinquent on the date the taxes would normally have become delinquent if the taxes had been timely extended on the roll.

[(2)] (4) The notice described in subsection (1) of this section shall:

(a) Be mailed prior to December 1 to the last-known address of the person described in subsection (1) of this section;

(b) Specify the date and the amount of the correction;

(d) Include the owner’s right to file a petition with the county board of property tax appeals not later than December 31 of the current tax year.

[(3)] (5) The correction shall be made by the officer in charge of the roll in the manner described in ORS 311.205 (3).

[(4)] (6) A correction made under this section may be appealed to the board of property tax appeals in the manner provided in ORS 309.100.

SECTION 11. ORS 311.507 is amended to read:

311.507. (1) Notwithstanding the requirement in ORS 311.505 (3) that to receive a discount upon payment of taxes, the taxes must be paid on or before November 15, the discount provided by ORS 311.505 (3) shall be allowed:

(a) If the taxes are paid within 15 business days after the date the tax statement is mailed by the tax collector, or by November 15, whichever is the later;

(b) If under ORS 311.252 (2) or 311.253, the mortgagee or other person has received from the county a defective or inaccurate magnetic tape or other computer printout, and the taxes are paid within 15 business days after the corrected tape or printout is delivered to the mortgagee or person, or by November 15, whichever is later;

(c) If the reason for nonpayment by November 15 is on account of the county not providing a magnetic tape or computer printout pursuant to a mutual agreement as provided under ORS 311.253 and tax statements are substituted by the county for the magnetic tape or computer printout. To receive a discount pursuant to this paragraph, the taxes must be paid within 20 business days after the tax collector mails the tax statements, or the taxpayer has been notified in writing by the tax collector that the magnetic tape or computer printout will not be provided, whichever date is later; or

(d) Except under conditions described in ORS 311.229 (2), if property or value is added to the tax roll under ORS [311.205, 311.206 or 311.216 to 311.232] 311.208 and the taxes becoming due as a result of the addition are paid in the period prior to the 16th day of the month next following the month of their extension.

(2) Nothing in this section shall affect the due dates of the installment payments or the computation of interest upon failure to pay the installment on the date due. As used in this section, business days mean days other than Saturdays and legal holidays.

SECTION 12. The amendments to ORS 311.208 and 311.507 by sections 10 and 11 of this 2001 Act apply to tax roll corrections made on or after the effective date of this 2001 Act.

SECTION 13. ORS 294.184 is amended to read:

294.184. (1) There is created under ORS 293.445 a suspense account to be known as the County Assessment Function Funding Assistance Account. The account shall consist of:

(a) All moneys paid over by the county treasurers as provided under ORS 294.187; and

(b) All interest earned upon any moneys in the account.

(2) Of the moneys in the account as of the last day of each fiscal quarter, the moneys necessary to pay the following Department of Revenue expenses shall be transferred to a suspense account of the department created under ORS 293.445 and are continuously appropriated to the department for:

(a) Expenses incurred in carrying out the purposes of ORS 294.175 to 294.184; and

(b) Appraisal expenses incurred by the department in appraising principal and secondary industrial properties identified under ORS 306.126 and property of centrally assessed companies under ORS 308.505 to 308.665.

(3) The total amount of moneys transferred to the suspense account of the department under subsection (2) of this section may not exceed 10 percent of the moneys in the account as of the last day of the fiscal quarter for which the transfer is being made.

(4) The remainder of the moneys in the account as of the last day of the fiscal quarter shall be used for the purpose of making the grant payments to counties as required under ORS 294.178 and are continuously appropriated to the department for that purpose.

SECTION 14. The amendments to ORS 294.184 by section 13 of this 2001 Act apply to transfers made in fiscal quarters beginning on or after July 1, 2001.

SECTION 15. ORS 306.126 is amended to read:

306.126. (1)(a) As used in this section:

(A) “Principal industrial property” means any unit of industrial property having a real market value of the improvements on the assessment roll for the preceding year of more than $5 million.

(B) “Secondary industrial property” means any unit of industrial property having a real market value of the improvements on the assessment roll for the preceding year of more than $1 million but of $5 million or less.

(b) The Department of Revenue shall appraise each principal industrial property situated within each county and advise the county assessor of its real market and assessed value and the real market value of its net improvements. No part of the cost of the appraisal shall be borne by the county. The cost of the appraisal may be reimbursed from the County Assessment Function Funding Assistance Account as provided under ORS 294.184.

(c) The department shall appraise each secondary industrial property situated within each county and advise the assessor of its real market and assessed value and the real market value of its net improvements. The cost of the appraisal shall be reimbursed from the County Assessment Function Funding Assistance Account as provided under ORS 294.184.

(2) The department shall advise the assessor of the values determined under subsection (1) of this section by a date that is determined to give the assessor sufficient time to prepare the assessment roll.

(3) Notwithstanding subsection (1)(b) or (c) of this section, upon request of the county assessor, made prior to January 1 of the assessment year and accompanied by any information required by the department, including but not limited to a summary of the county’s proposed budget of expenditures for appraisals for principal or secondary industrial properties, the department may delegate its responsibility for making the appraisals, or any of them, required under subsection (1)(b) or (c) of this section, to the county assessor. Except as provided under ORS 294.175 to 294.184, if responsibility is delegated under this subsection, the entire cost of making the appraisals delegated shall be borne by the county. No appeal may be taken from any determination of the department under this subsection.

(4) The department may adopt any rules necessary to carry out the purposes of this section.

(5) The department may adopt an appraisal schedule that promotes the efficient use of its resources.

SECTION 16. 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 June 5, 2001

Filed in the office of Secretary of State June 5, 2001

Effective date October 6, 2001

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