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 1611
A-Engrossed
House Bill 2029
Ordered by the House February 12
Including House Amendments dated February 12
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 Tax Collectors)
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.
Applies personal property tax collection and enforcement
mechanisms to real property machinery and equipment { + when
real property machinery and equipment is owned separately from
related real property + }.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
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. + }
----------