Relating to taxation; creating new provisions; and amending ORS 307.050, 307.060, 308.153, 308.156, 309.203, 311.205, 321.312 and 321.487 and section 4, chapter 405, Oregon Laws 1981.

 
 
 
     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 1230
 
                         House Bill 2206
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Governor John A. Kitzhaber,
  M.D., for Department of Revenue)
 
 
                             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.
 
  Conforms certain valuation references in property tax laws to
constitutional assessed value limitations. Conforms provision
governing de minimis corrections of value on assessment roll to
constitutional tax limitations. Restates timber privilege tax
offset rules. Conforms exemption for recreational facilities on
federal land to legislative form and style. Limits changed
property ratio used for certain adjustments to maximum assessed
value to factor of 1.00.
 
                        A BILL FOR AN ACT
Relating to taxation; creating new provisions; and amending ORS
  307.050, 307.060, 308.153, 308.156, 309.203, 311.205, 321.312
  and 321.487 and section 4, chapter 405, Oregon Laws 1981.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 309.203 is amended to read:
  309.203. (1) On or before June 15 of each year, the Department
of Revenue shall give specific written recommendations or orders
to the county assessor as to the actions which, in the
department's judgment, should be taken by the assessor in order
to achieve compliance with the real market value standard
required under ORS 308.232 in the forthcoming assessment roll.
Copies shall be sent to the county governing body for their
information. On or before July 15 following, the county assessor
shall act upon the recommendations or orders of the department,
or notify the department in writing, of any objections to the
department's recommendations or orders.
  (2) After May 1, but prior to September 1, the department shall
examine the certified ratio study prepared by each county
assessor under ORS 309.200 and studies prepared by the
department, to determine if the value of all locally assessed
taxable properties complies with the real market value
requirements of ORS 308.232. The assessor and the department
shall cooperate with each other to keep the department informed
as to the assessor's needs and as to the status of the current
assessment work. If, in the judgment of the department, the
attainment of the real market value standard required under ORS
308.232 is in jeopardy, the department shall notify the assessor
in writing of the determination and the factors giving rise to
it, with the statement that if unfulfilled statutory duties
specified by the department are not met, the department shall
take action pursuant to this section. A copy of such notice shall
be sent to the county governing body, for its information. On or
before September 1,   { - if necessary to meet the requirements
of ORS 308.232, - }  the department shall issue a written order
to the assessor to adjust the classes of property on the
assessment roll:
  (a) If the department finds that the ratio of all taxable
properties deviates more than five percent  { - , - }  from the
real market value level required by ORS 308.232, the department
shall order an adjustment to the real market values that will
result in
  { - assessment levels in - }  compliance with ORS 308.232. The
assessor shall apply the adjustment to   { - property values
shown as - }  real market   { - value - }  { +  values + } on the
assessment roll and compute corrected assessed values { +  if
necessary + }. A tolerance of five percent from 100 percent may
be presumed by the department to meet the requirements of ORS
308.232. Notwithstanding satisfactory compliance with the
provisions of paragraph (b) of this subsection, the department
shall take any action necessary to achieve the real market value
level required by ORS 308.232.
  (b) If the department finds that the real market value for any
class of property provided for under ORS 308.215   { - and used
in the current assessment roll as the basis for determining
assessed value - }  deviates more than 10 percent from 100
percent of real market value for the class, the department shall
order a change of values to bring the class to 100 percent of
real market value. The order may be made applicable to the class
throughout the county or to the class in specific areas of the
county and may take into account variations caused by appraisals
being made in different years.
  (c) If the department's order results in a valuation increase,
the increase may be appealed in the manner provided by ORS
309.100.
  (3) If the department orders an adjustment to the real market
values of property under subsection (2) of this section, the
department shall immediately give notice to the assessor, showing
why the adjustment is ordered.
  SECTION 2. ORS 311.205 is amended to read:
  311.205. (1) After the assessor certifies the assessment and
tax roll to the tax collector, the officer in charge of the roll
may correct errors or omissions in the roll to conform to the
facts, as follows:
  (a) The officer may correct a clerical error. A clerical error
is an error on the roll which either arises from an error in the
ad valorem tax records of the assessor, or the records of the
Department of Revenue for property assessed under ORS 306.126, or
which is a failure to correctly reflect the ad valorem tax
records of the assessor, or the records of the Department of
Revenue for property assessed under ORS 306.126, and which, had
it been discovered by the assessor or the department prior to the
certification of the assessment and tax roll of the year of
assessment would have been corrected as a matter of course, and
the information necessary to make the correction is contained in
such records. Such errors include, but are not limited to,
arithmetic and copying errors, and the omission or misstatement
of a land, improvement or other property value on the roll.
  (b) The officer may not correct an error in valuation judgment,
except as provided in ORS 308.242 (2) and (3). Such errors are
those where the assessor would arrive at a different opinion of
value. The officer may correct any other error or omission of any
kind. Corrections that are not corrections of valuation judgment
errors include, but are not limited to, the elimination of an
assessment to one taxpayer of property belonging to another on
the assessment date, the correction of a tax limit calculation,
the correction of a value changed on appeal, or the correction of
an error in the assessed value of property resulting from an
error in the identification of a unit of property, but not an
error in a notice filed under ORS 310.060.
  (c) The officer shall make any change requested by the
Department of Revenue which relates to an assessment of property
made by the department under ORS 308.505 to 308.665.
  (d) The officer shall make any change ordered by the tax court
or the Department of Revenue under ORS 305.288 or 306.115.
  (e) The officer shall make any change required under ORS
308A.089.
  (2)(a) The officer in charge of the roll shall make corrections
with the assent and concurrence of the assessor or the
department. The direction for the correction shall be made in
writing and state the type of error and the statutory authority
for the correction. Corrections may be made to the roll for any
year or years not exceeding five years prior to the last roll so
certified.
  (b) Any additional taxes resulting from corrections for years
prior to the current year shall be deemed assessed and imposed in
the particular year or years as to which the corrections apply.
Addition of tax to a prior year's tax roll, due to corrections
under this section, shall not be considered in calculating the
effect of the tax limitation under section 11b, Article XI of the
Oregon Constitution for the current year.
  (3) A correction made pursuant to this section shall be made in
whatever manner necessary to make the assessment, tax or other
proceeding regular and valid. The correction shall be
distinguishable upon the roll, shall include the date of the
correction and shall identify the officer making the correction.
Whenever a correction is to be made after the assessor has
delivered the roll to the tax collector, the effect of which is
to increase the assessment to which it relates, except where made
by order of the department, the procedure prescribed in ORS
311.216 to 311.232 shall be followed; and the provisions therein
with respect to appeals shall likewise apply.
  (4) Corrections which would result in less than a $1,000 change
in   { - valuation - }  { +  assessed value or real market
value + } shall not change the value for purposes of computing
the taxes levied against the property, but shall be made only for
purposes of correcting the office records.
  (5) The remedies under this section are in addition to other
remedies provided by law.
  SECTION 3.  { + The amendments to ORS 311.205 by section 2 of
this 2001 Act apply to corrections in the assessment and tax roll
that are made on or after the effective date of this 2001
Act. + }
  SECTION 4. ORS 321.312 is amended to read:
  321.312. Each year { + , + } when extending the operating
 { - levy - }  { +  taxes, as defined in ORS 310.055, + } of the
county upon the assessment roll { + , + } the county assessor
shall   { - offset against the levy - }  { +  reduce the
operating tax rate + } submitted by the county  { + so as to
offset + } the amount of revenue distributed to the county
pursuant to ORS 321.307 (3)(b)  { + against the operating taxes
of the county + }
  { - and correspondingly reduce the amount of the levy to be
collected through extension on the tax roll - }  for the current
fiscal year.
  SECTION 5. ORS 321.487 is amended to read:
  321.487. Each year { + , + } when extending the operating
 { - levies - }  { +  taxes, as defined in ORS 310.055, + } of
the county upon the assessment   { - rolls - }  { +  roll + },
the county assessor shall   { - offset against the levy - }  { +
reduce the operating tax rate + } submitted by the county  { + so
as to offset  + }the amount of revenue distributed to the county
pursuant to ORS 321.485 (3)(b)  { + against the operating taxes
of the county + }   { - and correspondingly reduce the amount of
the levy to be collected through extension on the tax roll - }
for the current fiscal year.
  SECTION 6. ORS 307.050 is amended to read:
  307.050. Whenever real and personal property of the United
States or any department or agency   { - thereof - }  { +  of the
United States + } is the subject of a contract of sale or other
agreement whereby on certain payments being made the legal title
is or may be acquired by any person and   { - such - }  { +
that + } person uses and possesses   { - such - }  { +  the + }
property or has the right of present use and possession, then
  { - such - }  { +  a real market value for the + } property
shall   { - be assessed and taxed as for the full true value
thereof - }  { +  be determined, as required under ORS
308.232, + } without deduction on account of any part of the
purchase price or other sum due on such property remaining
unpaid.  { + The property shall have an assessed value determined
under ORS 308.146 and shall be subject to tax on the assessed
value so determined. + } The lien for   { - such - }  { +
the + } tax shall neither attach to, impair, nor be enforced
against any interest of the United States in   { - such - }  { +
the + } real or personal property. This section   { - shall - }
 { +  does + } not apply to real or personal property held and in
immediate use and occupation by this state or any county,
municipal corporation or political subdivision   { - therein - }
 { +  of this state, + } or to standing timber, prior to
severance   { - thereof - } , of the United States or any
department or agency   { - thereof which - }  { +  of the United
States that + } is the subject of a contract of sale or other
agreement.
  SECTION 7. ORS 307.060 is amended to read:
  307.060. Real and personal property of the United States or any
department or agency   { - thereof - }  { +  of the United
States + } held by any person under a lease or other interest or
estate less than a fee simple, other than under a contract of
sale, shall   { - be assessed and taxed as for the full assessed
value thereof - }   { + have a real market value determined under
ORS 308.232, + } subject only to deduction for restricted use.
 { + The property shall have an assessed value determined under
ORS 308.146 and shall be subject to tax on the assessed value so
determined. + } The lien for the tax shall attach to and be
enforced against only the leasehold, interest or estate in
 { - such - }  { +  the + } real or personal property. This
section
  { - shall - }  { +  does + } not apply to real property held or
occupied primarily for agricultural purposes under the authority
of a federal wildlife conservation agency or held or occupied
primarily for purposes of grazing livestock. This section
 { - shall - }   { + does  + }not apply to real or personal
property held by this state or any county, municipal corporation
or political subdivision   { - therein which - }   { + of this
state that + } is:
  (1) In immediate use and occupation by   { - such - }  { +
the + } political body; or
  (2) Required, by the terms of the lease or agreement, to be
maintained and made available to the federal government as a
military installation and facility.
  SECTION 8. Section 4, chapter 405, Oregon Laws 1981, as amended
by section 1, chapter 169, Oregon Laws 1985, and section 4,
chapter 748, Oregon Laws 1995, is amended to read:
   { +  Sec. 4. + } ORS 307.182  { - , the amendments to ORS
307.060 by section 2, chapter 405, Oregon Laws 1981, and the
repeal of section 2, chapter 656, Oregon Laws 1975, by section 3,
chapter 405, Oregon Laws 1981, apply for - }  { +  applies to + }
 
tax years beginning on or after July 1, 1981, and prior to July
1, 2002.
  SECTION 9. ORS 308.153 is amended to read:
  308.153. (1) If new property is added to the assessment roll or
improvements are made to property as of January 1 of the
assessment year, the maximum assessed value of the property shall
be the sum of:
  (a) The maximum assessed value determined under ORS 308.146;
and
  (b) The product of the value of the new property or new
improvements determined under subsection (2)(a) of this section
multiplied by the ratio { + , not greater than 1.00, + } of the
average maximum assessed value over the average real market value
for the assessment year.
  (2)(a) The value of new property or new improvements shall
equal the real market value of the new property or new
improvements reduced (but not below zero) by the real market
value of retirements from the property tax account.
  (b) If the maximum assessed value of property is adjusted for
fire or act of God, the reduction in real market value due to
fire or act of God may not be considered to be a retirement under
this subsection.
  (3) The property's assessed value for the year shall equal the
lesser of:
  (a) The property's maximum assessed value; or
  (b) The property's real market value.
  SECTION 10. ORS 308.156 is amended to read:
  308.156. (1) If property is subdivided or partitioned after
January 1 of the preceding assessment year and on or before
January 1 of the current assessment year, then the property's
maximum assessed value shall be established as provided under
this section.
  (2) If property is rezoned and, after January 1 of the
preceding assessment year and on or before January 1 of the
current assessment year, the property is used consistently with
the rezoning, the property's maximum assessed value shall be
established under this section.
  (3)(a) For the first tax year for which property is added to
the property tax account as omitted property, the property's
maximum assessed value shall be established under this section.
  (b) For tax years subsequent to the first tax year for which
property is added to the property tax account as omitted
property, the property's maximum assessed value shall be
determined as otherwise provided by law, taking into account the
maximum assessed value of the property as determined under this
section.
  (4)(a) If property was subject to exemption, partial exemption
or special assessment as of the January 1 assessment date of the
preceding assessment year and is disqualified from exemption,
partial exemption or special assessment as of the January 1 of
the current assessment year, the property's maximum assessed
value shall be established under this section.
  (b) If property described in this subsection is eligible for a
different type of exemption, partial exemption or special
assessment as of January 1 of the current assessment year, the
property's maximum assessed value shall be established under the
provision granting the partial exemption or special assessment.
  (5) The property's maximum assessed value shall be the sum of:
  (a) The maximum assessed value determined under ORS 308.146
that is allocable to that portion of the property not affected by
an event described in subsections (1), (2), (3) or (4)(a) of this
section; and
  (b) The product of the value of that portion of the property
that is affected by an event described in subsections (1), (2),
(3) or (4)(a) of this section multiplied by the ratio { + , not
greater than 1.00, + } of the average maximum assessed value over
the average real market value for the assessment year in the same
area and property class.
  (6) The property's assessed value for the year shall equal the
lesser of:
  (a) The property's maximum assessed value; or
  (b) The property's real market value.
  (7) The Department of Revenue shall provide by rule the method
by which the allocations described in subsection (5) of this
section are to be made.
  SECTION 11.  { + The amendments to ORS 308.153 and 308.156 by
sections 9 and 10 of this 2001 Act apply to property tax years
beginning on or after July 1, 2001. + }
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