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

 
 
 
     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 1231
 
                         House Bill 2207
 
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.
 
  Permits taxpayers to appeal certain failure to file penalties
to tax court. Permits taxpayer to pay additional taxes arising
from roll correction or assessment of omitted property in advance
of date on which additional taxes are billed. Establishes date on
which additional taxes arising from current roll corrections are
due and payable without interest.
  Takes effect on 91st day following adjournment sine die of
regular session.
 
                        A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
  308.295, 308.296, 311.206, 311.208, 311.223, 311.229 and
  311.370; 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
  (c) The correction increases the value of the property.
   { +  (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;
  (c) If additional tax is imposed, specify the date by which the
additional tax may be paid without interest; and
  (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.  { + The amendments to ORS 311.208 by section 10 of
this 2001 Act apply to tax roll corrections made on or after the
effective date of this 2001 Act. + }
  SECTION 12.  { + 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. + }
                         ----------