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 2429
B-Engrossed
House Bill 2612
Ordered by the Senate March 30
Including House Amendments dated February 12 and Senate
Amendments
dated March 30
Sponsored by COMMITTEE ON JUDICIARY (at the request of Oregon
Association of County Clerks)
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.
Permits board of property tax appeals to hear appeals of
assessed value of property that is determined as of July 1
assessment date due to damage or destruction of property. { +
Excludes property damaged or destroyed as result of intentional
act by owner. + } Eliminates duplicative statutory provisions.
{ + Permits land that ceases to be used as cemetery to
continue to be exempt from real property tax if owned or being
purchased by incorporated eleemosynary or charitable institution
for educational purposes. + }
A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
307.155, 308.146, 308.153, 308.166, 308.428 and 309.026; and
prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 309.026 is amended to read:
309.026. (1) The board of property tax appeals may convene on
or after the first Monday in February of each year, but not later
than the date necessary for the board to complete the functions
of the board by April 15. The board shall meet at the courthouse
or courthouse annex. If the meeting place is other than the
courthouse or annex, notice of the meeting place shall be posted
daily in the courthouse. The board shall continue its sessions
from day to day, exclusive of legal holidays, until the functions
provided in subsections (2) and (3) of this section are
completed.
(2) The board shall hear petitions for the reduction of:
(a) The assessed value or specially assessed value of property
as of January 1 { + or as determined under ORS 308.428 + };
(b) The real market value of property as of January 1 { + or
as determined under ORS 308.428 + };
(c) The maximum assessed value of property as of January 1 { +
or as determined under ORS 308.146 (5)(a) and 308.428 + }; and
(d) Corrections to value made under ORS 311.208.
(3) The board shall hear petitions for the reduction of value
as provided in subsection (2) of this section, but only if the
value that is the subject of the petition was added to the roll
prior to December 1 of the tax year.
(4) The board shall consider applications to waive liability
for all or a portion of the penalty imposed under ORS 308.295 or
308.296.
(5) The board shall adjourn no later than April 15.
SECTION 2. { + The amendments to ORS 309.026 by section 1 of
this 2001 Act apply to appeals made to a board of property tax
appeals on or after the effective date of this 2001 Act. + }
SECTION 3. ORS 308.146 is amended to read:
308.146. (1) The maximum assessed value of property shall equal
103 percent of the property's assessed value from the prior year
or 100 percent of the property's maximum assessed value from the
prior year, whichever is greater.
(2) Except as provided in subsections (3) and (4) of this
section, the assessed value of property to which this section
applies shall equal the lesser of:
(a) The property's maximum assessed value; or
(b) The property's real market value.
(3) Notwithstanding subsections (1) and (2) of this section,
the maximum assessed value and assessed value of property shall
be determined as provided in ORS 308.149 to 308.166 if:
(a) The property is new property or new improvements to
property;
(b) The property is partitioned or subdivided;
(c) The property is rezoned and used consistently with the
rezoning;
(d) The property is first taken into account as omitted
property;
(e) The property becomes disqualified from exemption, partial
exemption or special assessment; or
(f) A lot line adjustment is made with respect to the property,
except that the total assessed value of all property affected by
a lot line adjustment shall not exceed the total maximum assessed
value of the affected property under paragraph (a) or (b) of this
subsection.
(4) Notwithstanding subsections (1) and (2) of this section, if
property is subject to partial exemption or special assessment,
the property's maximum assessed value and assessed value shall be
determined as provided under the provisions of law granting the
partial exemption or special assessment.
(5)(a) Notwithstanding subsection (1) of this section, when a
portion of property is destroyed or damaged { - due to fire or
act of God - } , for the year in which the destruction or damage
is reflected by a reduction in real market value, the maximum
assessed value of the property shall be reduced to reflect the
loss { - from fire or act of God - } .
(b) This subsection does not apply:
(A) To any property that is assessed under ORS 308.505 to
308.665.
(B) If the damaged or destroyed property is property that, when
added to the assessment and tax roll, constituted minor
construction for which no adjustment to maximum assessed value
was made.
(c) As used in this subsection, 'minor construction' has the
meaning given that term in ORS 308.149.
{ - (6)(a) If, during the period beginning on January 1 and
ending on July 1 of an assessment year, any real or personal
property is destroyed or damaged, the owner or purchaser under a
recorded instrument of sale in the case of real property, or the
person assessed, person in possession or owner in the case of
personal property, may apply to the county assessor to have the
real market and assessed value of the property determined as of
July 1 of the current assessment year. - }
{ - (b) The person described in paragraph (a) of this
subsection shall file an application for assessment under this
section with the county assessor on or before August 1 of the
current year. - }
{ - (c) If the conditions described in this subsection are
applicable to the property, then notwithstanding ORS 308.210, the
property shall be assessed as of July 1, at 1:00 a.m. of the
assessment year, in the manner otherwise provided by law. - }
SECTION 4. ORS 308.428 is amended to read:
308.428. (1) If, during the period beginning on January 1 and
ending on July 1 of an assessment year, any real or personal
property is destroyed or damaged { - by fire or act of God - }
, the owner or purchaser under a recorded instrument of sale in
the case of real property, or the person assessed, person in
possession or owner in the case of personal property, may apply
to the county assessor to have the real market and assessed value
of the property determined as of July 1 of the current assessment
year.
(2) The person described in subsection (1) of this section
shall file an application for assessment under this section with
the county assessor on or before August 1 of the current year.
(3) { + Except as provided in subsection (4) of this
section, + } if the conditions described in subsection (1) of
this section are applicable to the property, then notwithstanding
ORS 308.210, the property shall be assessed as of July 1, at 1:00
a.m. of the assessment year, in the manner otherwise provided by
law.
{ + (4) If the property described in subsection (1) of this
section is destroyed or damaged as the result of an intentional
act by the property owner, the assessment date may not be changed
from January 1 of the assessment year. + }
SECTION 5. 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 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 - } { + under ORS 308.146
(5)(a) + }, the { + corresponding + } 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 6. ORS 308.166 is amended to read:
308.166. (1) If the maximum assessed value of property is
subject to adjustment under both ORS 308.153 and 308.156, the
maximum assessed value determined under ORS 308.156 shall be the
property's maximum assessed value.
(2) If the maximum assessed value of property is subject to
adjustment under both ORS 308.153 and 308.159, the maximum
assessed value shall first be determined under ORS 308.153 and
then further adjusted under ORS 308.159.
(3) If the maximum assessed value of property is subject to
adjustment under both ORS 308.156 and 308.159, the maximum
assessed value shall first be determined under ORS 308.156 and
then further adjusted under ORS 308.159.
(4) If the maximum assessed value of property is subject to
adjustment under all of ORS 308.153, 308.156 and 308.159, the
maximum assessed value shall first be determined under subsection
(1) of this section and then further adjusted under ORS 308.159.
(5) If the maximum assessed value of property is subject to
adjustment { - for fire or act of God - } { + pursuant to ORS
308.146 (5)(a) + }, the maximum assessed value shall first be
determined under ORS 308.146 (5)(a) and then may be adjusted as
provided in subsections (1) to (4) of this section.
SECTION 7. ORS 307.155 is amended to read:
307.155. (1) { + Subject to subsection (7) of this
section, + } land that is exempt from ad valorem property tax
under ORS 65.855, 307.140 (3) or 307.150 that ceases to be used
or held exclusively for cemetery or crematory purposes shall be
subject to assessment and taxation uniformly with real property
of nonexempt ownerships.
(2) { + Subject to subsection (7) of this section, + } there
shall be added to the next general property tax roll, to be
collected and distributed in the same manner as other real
property taxes, additional taxes equal to the total amount of
taxes that otherwise would have been assessed against the land
had the land not been used or held for cemetery or crematory
purposes for the last 10 years { + , or + } { - (or - } such
lesser number of years { - , corresponding to the years after
1981 of exemption for the land) preceding the year after 1981 in
which - } { + as + } the land was exempt from taxation.
(3) The lien for the additional taxes imposed by this section,
and the interest thereon, shall attach as of the date preceding
the date of sale or other transfer of the land.
(4) For each year that land is exempt from taxation under ORS
65.855, 307.140 (3) or 307.150, or both, the assessor shall enter
on the assessment and tax roll, with respect to the land, the
notation '(cemetery land-potential additional tax). '
(5) The amount of additional taxes determined to be due under
this section may be paid to the tax collector prior to the
completion of the next general property tax roll, pursuant to ORS
311.370.
(6) Additional taxes collected under this section shall be
deemed to have been imposed in the year to which the additional
taxes relate.
{ + (7)(a) Notwithstanding that land may have ceased to be
used or held exclusively for cemetery or crematory purposes, the
land shall remain exempt, and the additional tax described in
this section shall remain a potential tax liability that is not
imposed, if:
(A) As of the date the land ceases to be used or held
exclusively for cemetery or crematory purposes, the land is owned
or being purchased by an incorporated eleemosynary or charitable
institution described in ORS 307.130 or 307.145 for use in
connection with educational purposes; and
(B) The incorporated eleemosynary or charitable institution
complies with ORS 307.162.
(b) The deferred additional tax described in paragraph (a) of
this subsection shall be collected as described in this paragraph
to the extent that land described in paragraph (a) of this
subsection ceases to be used by an incorporated eleemosynary or
charitable institution in connection with educational purposes.
The amount of additional tax to be collected shall be reduced by
10 percent for each 12-month period in which the land was owned
or being purchased by an incorporated eleemosynary or charitable
institution in connection with educational purposes.
(c) For each tax year in which the additional tax continues to
be deferred, but may subsequently be imposed pursuant to this
subsection, the county assessor shall continue to enter the
notation 'potential additional tax liability' on the assessment
and tax roll. + }
SECTION 8. { + The amendments to ORS 307.155 by section 7 of
this 2001 Act apply to property owned or being purchased by an
incorporated eleemosynary or charitable institution on or after
January 1, 2001, and to property tax years beginning on or after
July 1, 2001. + }
SECTION 9. { + 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. + }
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