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 1638
 
                         House Bill 2030
 
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 as
introduced.
 
  Changes direction to property tax collectors to seize and sell
personal property for delinquent personal property taxes from
mandatory to discretionary.
 
                        A BILL FOR AN ACT
Relating to tax collection; amending ORS 311.640.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 311.640 is amended to read:
  311.640. (1)(a) Each year, the tax collector   { - shall - }
 { +  may + } 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.
  (2)(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 seized.
  (B) State the total amount of personal property taxes due and
delinquent, 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) 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) 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.
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