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 427
 
                         House Bill 2439
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Legislative Counsel
  Committee for Speaker's Action Network)
 
 
                             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.
 
  Establishes property tax rebate of five percent for senior
citizens who meet specified requirements. Applies to income tax
years beginning on or after January 1, 2002.
  Establishes retroactive property tax rebate for property tax
years beginning on or after July 1, 1990, and before July 1,
2002, for senior citizens who meet specified requirements.
  Allows rebates as refundable income tax credits. Appropriates
moneys to refund amounts in excess of tax liability.
 
                        A BILL FOR AN ACT
Relating to senior citizen property tax rebates; creating new
  provisions; amending ORS 310.692; and appropriating money.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 to 6 of this 2001 Act are added to
and made a part of ORS chapter 315. + }
  SECTION 2.  { + Sections 2 to 6 of this 2001 Act shall be known
and may be cited as the Senior Property Tax Rebate Act. + }
  SECTION 3.  { + As used in sections 2 to 6 of this 2001 Act:
  (1) 'Cooperative housing corporation' has the meaning given
that term under section 216 of the Internal Revenue Code
(cooperative housing corporation deduction).
  (2) 'Dwelling unit' means a structure or part of a structure
providing complete, independent living facilities for one or more
persons, including permanent provisions for sleeping, eating,
cooking and sanitation and the land supporting the structure or
otherwise associated with the structure, and may be further
defined by rule by the Department of Revenue.
  (3) 'Occupy':
  (a) Means to live or dwell in or on the property.
  (b) Includes temporary absences of limited duration. If a
senior citizen is temporarily absent from the principal
residence, or if the senior citizen is absent from the principal
residence due to illness, the senior citizen shall nevertheless
be considered an occupant of the property. A senior citizen who
has entered a long term care facility for the purpose of
receiving long term care shall not be considered an occupant of
the long term care facility. 'Temporary absence' and 'long term
care ' may be further defined by the department by rule.
  (4) 'Own' means:
  (a) To hold of record, either alone or with another or others,
a fee simple estate, a life estate or the right to possession
under a trust instrument or a contract of sale.
  (b) If the property is a manufactured dwelling or floating
home, to be the registered owner, either alone or together with
another or others.
  (c) If the property is a dwelling unit owned by a cooperative
housing corporation, to be a tenant-stockholder of that
corporation.
  (5) 'Principal residence':
  (a) Means real or personal property, subject to property
taxation and located in Oregon, that is owned and occupied by a
senior citizen as a dwelling unit.
  (b) Does not include that portion of a dwelling unit that is
rented to another person.
  (c) Does not include more than one dwelling unit in this state,
even if the senior citizen owns and occupies more than one
dwelling unit that would otherwise be considered a principal
residence.
  (6) 'Senior citizen' means any person who is at least 60 years
of age on December 31 of the year for which a senior property tax
rebate is claimed.
  (7) 'Taxpayer' means the senior citizen or, if a joint return
is filed, the senior citizen and the spouse of the senior
citizen.
  (8) 'Tenant-stockholder' has the meaning given that term in
section 216 of the Internal Revenue Code. + }
  SECTION 4.  { + (1) The Department of Revenue shall allow a
senior property tax rebate to a taxpayer if:
  (a) The taxpayer is a senior citizen or, in the case of a joint
return, at least one spouse is a senior citizen;
  (b) The senior citizen owns and occupies, or jointly owns and
occupies with the spouse of the senior citizen, a principal
residence;
  (c) The senior citizen and the spouse of the senior citizen (if
residing at the principal residence of the senior citizen) have
federal adjusted gross income for the income tax year that does
not exceed $30,000; and
  (d) The assessed value of the principal residence for the
property tax year beginning in the income tax year for which a
return is being filed does not exceed $100,000.
  (2) The amount of the senior property tax rebate shall equal
five percent of the property taxes imposed on the senior
citizen's principal residence and actually paid by the taxpayer
during the income tax year for which a return is being filed.
  (3) The rebate shall be allowed as an income tax credit against
the tax otherwise due under ORS chapter 316.
  (4) If the income tax credit exceeds the tax liability of the
taxpayer, the excess amount of the credit shall be paid by the
department in the time and manner in which an income tax refund
is paid. The excess credit amount shall be paid out of the
suspense account referred to in ORS 310.692.
  (5) For purposes of this section, the senior citizen shall be
considered to have paid property taxes during the income tax year
if the principal residence of the senior citizen consists of a
dwelling unit in multiunit housing owned by a cooperative housing
corporation, and the cooperative housing corporation paid
property taxes on the multiunit housing during the tax year of
the senior citizen. + }
  SECTION 5.  { + (1) If property taxes attributable to property
tax years beginning on or after July 1, 2002, are deferred under
ORS 311.666 to 311.701 for any period after July 1, 2002, the
taxpayer may not claim a senior property tax rebate under
sections 2 to 6 of this 2001 Act.
  (2) A taxpayer with deferred property taxes on a principal
residence that are attributable to tax years before July 1, 2002,
may claim a senior property tax rebate under sections 2 to 6 of
this 2001 Act. Property taxes attributable to periods beginning
before July 1, 2002, may continue to be deferred under ORS
311.666 to 311.701. + }
  SECTION 6.  { + (1) A senior citizen with a principal residence
that consists of a dwelling unit owned by a cooperative housing
corporation is entitled to the senior property tax rebate under
section 4 of this 2001 Act for the property tax paid by the
cooperative housing corporation and attributable to the principal
residence of the senior citizen. Except as otherwise provided in
this section, and unless the context requires otherwise, sections
2 to 6 of this 2001 Act shall govern a claim for a senior
property tax rebate that is based on a dwelling unit owned by a
cooperative housing corporation.
  (2) In order to qualify for a senior property tax rebate under
this section, the senior citizen must have resided in the
dwelling unit that is the basis of the claim from July 1 of the
property tax year to the earlier of:
  (a) The date the senior citizen files a personal income tax
return claiming the rebate; or
  (b) The end of the property tax year.
  (3) For purposes of this section and section 4 of this 2001
Act, the assessed value of the principal residence shall consist
of the assessed value of the dwelling unit occupied by the senior
citizen plus the assessed value of the dwelling unit's
proportional share of common areas of the multiunit housing
property.
  (4) If the claim for a senior property tax rebate is based on
dates of residency beginning July 1 of a property tax year and
ending on the date the senior citizen files a personal income tax
return, the taxpayer shall be entitled to a credit under this
section notwithstanding that the dwelling unit upon which the
claim for credit is based ceases to be the principal residence of
the senior citizen on a date after the date the claim for credit
is filed but before the end of the property tax year.
  (5) Each cooperative housing corporation shall aid a senior
citizen resident who could qualify for a senior property tax
rebate under sections 2 to 6 of this 2001 Act in determining the
amount of property tax allocable to the dwelling unit of the
senior citizen. If the senior citizen is unable to obtain the
assistance of the cooperative housing corporation, the county
assessor shall assist the senior citizen in determining the
amount of property tax allocable to the dwelling unit of the
senior citizen. + }
  SECTION 7. ORS 310.692 is amended to read:
  310.692. (1) Amounts necessary to make the payments authorized
by ORS 307.244 and 310.635  { + and section 4 or 6 of this 2001
Act + } may be transferred to a suspense account established
under ORS 293.445 from the appropriation made by the Legislative
Assembly to fund the elderly rental assistance   { - program - }
 { +  and senior property tax rebate programs + }.
  (2) If any portion of the tax liability for which the refund
payments described in subsection (1) of this section are
authorized are offset against the refund, the Department of
Revenue shall transfer from the suspense account referred to in
subsection (1) of this section to the General Fund an amount
equal to the income tax liability.
  (3) On or before September 15 of each fiscal year of each
biennium, the Department of Revenue shall estimate the amount of
money needed to make the payments under ORS 307.244 and 310.635
 { +  and sections 4 and 6 of this 2001 Act + }. If the sum of
the obligations is estimated to be greater than the amounts
credited to the suspense account referred to in ORS 293.445 for
the fiscal year for those obligations, the elderly rental
assistance  { + and senior property tax rebate + } payments shall
be proportionally reduced in order that the state shall not
accrue a debt in excess of the amount credited. No claim for
payment shall accrue to a taxpayer under ORS 310.635 in excess of
the amount determined under this subsection.
  SECTION 8.  { + Sections 2 to 6 of this 2001 Act and the
amendments to ORS 310.692 by section 7 of this 2001 Act apply to
income tax years beginning on or after January 1, 2002. + }
  SECTION 9.  { + (1) In addition to the senior property tax
rebate established under sections 2 to 6 of this 2001 Act, the
Department of Revenue shall allow a retroactive property tax
rebate for a portion of the property taxes paid for each property
tax year beginning on or after July 1, 1990, and before July 1,
2002, in which:
  (a) The taxpayer was a senior citizen or, in the case of a
joint return, at least one spouse was a senior citizen;
  (b) The taxpayer had federal adjusted gross income for the
income tax year that did not exceed $30,000; and
  (c) The assessed value of the principal residence for the
property tax year did not exceed $100,000.
  (2) The amount of the rebate shall equal five percent of the
property tax paid for each year in which the qualifications
listed in subsection (1) of this section are met.
  (3) The rebate shall be allowed as an income tax credit against
the tax otherwise due under ORS chapter 316.
  (4) If the income tax credit exceeds the tax liability of the
taxpayer, the excess amount of the credit shall be paid by the
department in the time and manner in which an income tax refund
is paid. The excess credit amount shall be paid from moneys
appropriated to the Department of Revenue under section 10 (2) of
this 2001 Act.
  (5) If, for any period during which a retroactive property tax
rebate may be claimed under this section, the senior citizen
resided in a dwelling unit owned by a cooperative housing
corporation, the amount of the rebate shall be determined using
the provisions of section 6 of this 2001 Act.
  (6) For purposes of subsection (1) of this section, the
taxpayer must have had federal adjusted gross income that did not
exceed $30,000 for the income tax year in which began the
property tax year for which a retroactive property tax rebate is
sought.
  (7) A claim for a retroactive property tax rebate must be filed
with the taxpayer's income tax return for the first tax year
beginning on or after January 1, 2002, and before January 1,
2003.
  (8) The definitions in section 3 of this 2001 Act apply to this
section. + }
  SECTION 10.  { + In addition to and not in lieu of any other
appropriation, there is appropriated to the Department of
Revenue, for the biennium beginning July 1, 2001, out of the
General Fund, the following amounts for the following
purposes: + }
 
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
   { +
(1Senior property tax rebate
      refunds..............$    ___
.
  (2) Retroactive senior property
      tax rebate refunds...$    ___
. + }
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
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