71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1608
 
                         House Bill 2026
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of House Interim Revenue
  Committee for Oregon Association of County Assessors)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Modifies definition of real market value for property tax
purposes to provide that only involuntarily imposed governmental
restrictions are taken into account in computing real market
value of property.
  Establishes special assessment for multiunit housing subject to
voluntarily imposed governmental restrictions.
  Applies to property tax years beginning on or after July 1,
2002.
 
                        A BILL FOR AN ACT
Relating to taxation; creating new provisions; and amending ORS
  308.205.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 308.205 is amended to read:
  308.205. (1) Real market value of all property, real and
personal, means the amount in cash that could reasonably be
expected to be paid by an informed buyer to an informed seller,
each acting without compulsion in an arm's length transaction
occurring as of the assessment date for the tax year.
  (2) Real market value in all cases shall be determined by
methods and procedures in accordance with rules adopted by the
Department of Revenue and in accordance with the following:
  (a) The amount a typical seller would accept or the amount a
typical buyer would offer that could reasonably be expected by a
seller of property.
  (b) An amount in cash shall be considered the equivalent of a
financing method that is typical for a property.
  (c) If the property has no immediate market value, its real
market value is the amount of money that would justly compensate
the owner for loss of the property.
  (d) { + (A) + } If the property is subject to  { + an
involuntarily imposed + } governmental restriction as to use on
the assessment date under applicable law or regulation, real
market value   { - shall - }  { +  may + } not be based upon
sales that reflect for the property a value that the property
would have if the use of the property were not subject to the
restriction unless adjustments in value are made reflecting the
effect of the   { - restrictions - }  { +  restriction + }.
 
   { +  (B) As used in this paragraph, 'involuntarily imposed
governmental restriction':
  (i) Includes a zoning or land use restriction on the use of the
property.
  (ii) Does not include a restriction that must be met in order
to receive an income tax credit, a low interest loan related to a
government program, a government guaranteed loan or other
government incentive. + }
  SECTION 2.  { + Sections 3 to 6 of this 2001 Act are added to
and made a part of ORS chapter 308. + }
  SECTION 3.  { + As used in sections 3 to 6 of this 2001 Act:
  (1) 'Multiunit housing' means residential property consisting
of more than four dwelling units and the common areas and land
associated with the dwelling units.
  (2) 'Voluntarily imposed governmental restriction':
  (a) Includes a restriction on the use of multiunit housing that
must be met in order to receive an income tax credit, a low
interest loan related to a government program, a government
guaranteed loan or other government incentive.
  (b) Does not include a zoning or land use restriction on the
use of the property. + }
  SECTION 4.  { + (1) The assessed value of multiunit housing
shall be determined under this section if:
  (a) The property is subject to a voluntarily imposed
governmental restriction; and
  (b) The owner of the property has filed an application for the
special assessment under section 5 of this 2001 Act and that
application has been approved.
  (2) The specially assessed value of property assessed under
this section shall equal ___ percent of the real market value of
the property.
  (3)(a) For the first tax year for which property is specially
assessed under this section, notwithstanding ORS 308.149 (2), the
maximum assessed value of property subject to special assessment
under this section shall equal the product of the specially
assessed value of the property under subsection (2) of this
section multiplied by the ratio, not greater than 1.00, of the
maximum assessed value of the property if it were not subject to
special assessment over the real market value of the property.
  (b) For each tax year after the first tax year in which the
property is assessed under this section and prior to the
property's disqualification from special assessment, the maximum
assessed value of property assessed under this section shall
equal 103 percent of the property's assessed value from the prior
year or 100 percent of the property's maximum assessed value from
the prior year, whichever is greater.
  (c) Notwithstanding paragraph (a) or (b) of this subsection,
for a tax year in which a change described in ORS 308.146 (3) is
first taken into account with respect to property assessed under
this section, the maximum assessed value subject to special
assessment shall be determined as provided in ORS 308.149 to
308.166, substituting the ratio described in paragraph (a) of
this subsection for the ratio described in ORS 308.153 (1)(b) or
308.156 (5)(b).
  (4) The assessed value of property subject to assessment under
this section shall equal the lesser of:
  (a) The specially assessed value of the property determined
under subsection (2) of this section; or
  (b) The maximum assessed value of the property determined under
subsection (3) of this section.
  (5) Property that, as of the assessment date, is no longer
multiunit housing or is no longer subject to a voluntarily
imposed governmental restriction shall be disqualified from
special assessment under this section. + }
 
 
  SECTION 5.  { + (1) An owner of multiunit housing seeking to
have the property assessed under section 4 of this 2001 Act must
file a written application under this section.
  (2) The application must be filed with the county assessor on
or before April 1 preceding the first tax year for which
assessment under section 4 of this 2001 Act is sought.
  (3) The application must be in the form and contain the
information prescribed by the Department of Revenue, including:
  (a) The name and address of the property owner;
  (b) The address and tax lot or account number of the multiunit
housing;
  (c) A description and documentation of the voluntarily imposed
governmental restriction to which the multiunit housing is
subject; and
  (d) The anticipated duration of the voluntarily imposed
governmental restriction.
  (4) The county assessor shall review the application. If the
assessor determines that the property consists of multiunit
housing that is subject to a voluntarily imposed governmental
restriction, the assessor shall approve the application.
  (5) The county assessor shall notify the applicant in writing
of the assessor's determination within 120 days following the
date the application was filed with the assessor.
  (6) An applicant may appeal the determination of the county
assessor as provided in ORS 305.275.
  (7) For each year that multiunit housing is assessed under
section 4 of this 2001 Act, the county assessor shall indicate on
the assessment and tax roll that the property is being assessed
under section 4 of this 2001 Act by adding the notation '
voluntarily restricted multiunit housing (potential additional
tax).' + }
  SECTION 6.  { + (1) An owner of property assessed under section
4 of this 2001 Act must notify the county assessor when the
property is no longer multiunit housing or is no longer subject
to a voluntarily imposed governmental restriction. The
notification must be made within 60 days following the date on
which the property ceased being multiunit housing or ceased being
subject to a voluntarily imposed governmental restriction.
  (2) The notification must be made in writing and must indicate
the date on which the change described in subsection (1) of this
section occurred.
  (3) If the notification is not made as required by subsection
(1) of this section, upon disqualification of the property from
assessment under section 4 of this 2001 Act, the assessor shall
add an additional tax to the tax extended against the property on
the next assessment and tax roll. The additional tax shall equal
the difference between the taxes imposed on the property as
assessed under section 4 of this 2001 Act and the taxes that
would have been imposed on the property had the property not been
assessed under section 4 of this 2001 Act, for the lesser of the
five previous tax years or the number of years for which the
property was assessed under section 4 of this 2001 Act.
  (4) The additional tax described in subsection (3) of this
section shall be deemed assessed and imposed in the year to which
the additional tax relates. + }
  SECTION 7.  { + Sections 3 to 6 of this 2001 Act and the
amendments to ORS 308.205 by section 1 of this 2001 Act apply to
property tax years beginning on or after July 1, 2002. + }
                         ----------