71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
House Bill 3057
Sponsored by Representative BECK; Representative LEONARD,
Senators L BEYER, BURDICK (at the request of City of Portland)
CHAPTER ................
AN ACT
Relating to taxation; creating new provisions; amending ORS
308.146, 308.296, 308A.359, 308A.362 and 316.037 and sections 4
and 7, chapter ___, Oregon Laws 2001 (Enrolled Senate Bill 67);
and repealing sections 1 and 5, chapter ___, Oregon Laws 2001
(Enrolled Senate Bill 67).
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + If both House Bill 2272 and Senate Bill 67
become law, section 1, chapter ___, Oregon Laws 2001 (Enrolled
Senate Bill 67) (amending ORS 316.037), is repealed and ORS
316.037, as amended by section 11, chapter 660, Oregon Laws 2001
(Enrolled House Bill 2272), is amended to read: + }
316.037. (1)(a) A tax is imposed for each taxable year on the
entire taxable income of every resident of this state. The amount
of the tax shall be determined in accordance with the following
table:
_________________________________________________________________
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
If taxable income The tax is:
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Not over $2,000.. 5% of
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
taxable
income
Over $2,000 but not
Enrolled House Bill 3057 (HB 3057-ACCA) Page 1
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
over $5,000.... $100 plus 7%
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $2,000
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Over $5,000...... $310 plus 9%
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $5,000
_________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
(b) For tax years beginning in each calendar year, the
Department of Revenue shall adopt a table which shall apply in
lieu of the table contained in paragraph (a) of this subsection,
as follows:
(A) The minimum and maximum dollar amounts for each rate
bracket for which a tax is imposed shall be increased by the
cost-of-living adjustment for the calendar year.
(B) The rate applicable to any rate bracket as adjusted under
subparagraph (A) of this paragraph shall not be changed.
(C) The amounts setting forth the tax, to the extent necessary
to reflect the adjustments in the rate brackets, shall be
adjusted.
(c) For purposes of paragraph (b) of this subsection, the
cost-of-living adjustment for any calendar year is the percentage
(if any) by which the monthly averaged U.S. City Average Consumer
Price Index for the 12 consecutive months ending August 31 of the
prior calendar year exceeds the monthly averaged index for the
second quarter of the calendar year 1992.
(d) As used in this subsection, 'U.S. City Average Consumer
Price Index' means the U.S. City Average Consumer Price Index for
All Urban Consumers (All Items) as published by the Bureau of
Labor Statistics of the United States Department of Labor.
Enrolled House Bill 3057 (HB 3057-ACCA) Page 2
(e) If any increase determined under paragraph (b) of this
subsection is not a multiple of $50, the increase shall be
rounded to the next lowest multiple of $50.
{ + (2) Notwithstanding subsection (1) of this section, any
gain that is treated as net capital gain for federal tax purposes
and that is included in taxable income in this state shall be
taxed at the lesser of the rate applicable under subsection (1)
of this section or six percent. + }
{ - (2) - } { + (3) + } A tax is imposed for each taxable
year upon the entire taxable income of every part-year resident
of this state. The amount of the tax shall be computed under
{ - subsection (1) - } { + subsections (1) and (2) + } of this
section as if the part-year resident were a full-year resident
and shall be multiplied by the ratio provided under ORS 316.117
to determine the tax on income derived from sources within this
state.
{ - (3) - } { + (4) + } A tax is imposed for each taxable
year on the taxable income of every full-year nonresident that is
derived from sources within this state. The amount of the tax
shall be determined in accordance with { - the table set forth
in subsection (1) - } { + subsections (1) and (2) + } of this
section.
SECTION 2. If both House Bill 2272 and Senate Bill 67 become
law, section 4, chapter ___, Oregon Laws 2001 (Enrolled Senate
Bill 67), is amended to read:
{ + Sec. 4. + } The amendments to ORS 316.037, 316.122 and
317.061 by
{ - sections 1, 2 and 3 of this 2001 Act - } { + sections 2
and 3, chapter ___ , Oregon Laws 2001 (Enrolled Senate Bill 67),
and section 1 of this 2001 Act + } apply to tax years beginning
on or after January 1, 2003.
SECTION 3. { + If both House Bill 2272 and Senate Bill 67
become law, section 5, chapter ___, Oregon Laws 2001 (Enrolled
Senate Bill 67) (amending ORS 316.037), is repealed and ORS
316.037, as amended by section 11, chapter 660, Oregon Laws 2001
(Enrolled House Bill 2272), and section 1 of this 2001 Act, is
amended to read: + }
316.037. (1)(a) A tax is imposed for each taxable year on the
entire taxable income of every resident of this state. The amount
of the tax shall be determined in accordance with the following
table:
_________________________________________________________________
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
If taxable income The tax is:
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Not over $2,000.. 5% of
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
Enrolled House Bill 3057 (HB 3057-ACCA) Page 3
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
taxable
income
Over $2,000 but not
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
over $5,000.... $100 plus 7%
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $2,000
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Over $5,000...... $310 plus 9%
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $5,000
_________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
(b) For tax years beginning in each calendar year, the
Department of Revenue shall adopt a table which shall apply in
lieu of the table contained in paragraph (a) of this subsection,
as follows:
(A) The minimum and maximum dollar amounts for each rate
bracket for which a tax is imposed shall be increased by the
cost-of-living adjustment for the calendar year.
(B) The rate applicable to any rate bracket as adjusted under
subparagraph (A) of this paragraph shall not be changed.
(C) The amounts setting forth the tax, to the extent necessary
to reflect the adjustments in the rate brackets, shall be
adjusted.
(c) For purposes of paragraph (b) of this subsection, the
cost-of-living adjustment for any calendar year is the percentage
(if any) by which the monthly averaged U.S. City Average Consumer
Price Index for the 12 consecutive months ending August 31 of the
Enrolled House Bill 3057 (HB 3057-ACCA) Page 4
prior calendar year exceeds the monthly averaged index for the
second quarter of the calendar year 1992.
(d) As used in this subsection, 'U.S. City Average Consumer
Price Index' means the U.S. City Average Consumer Price Index for
All Urban Consumers (All Items) as published by the Bureau of
Labor Statistics of the United States Department of Labor.
(e) If any increase determined under paragraph (b) of this
subsection is not a multiple of $50, the increase shall be
rounded to the next lowest multiple of $50.
(2) Notwithstanding subsection (1) of this section, any gain
that is treated as net capital gain for federal tax purposes and
that is included in taxable income in this state shall be taxed
at
{ - the lesser of the rate applicable under subsection (1) of
this section or six - } { + four + } percent.
(3) A tax is imposed for each taxable year upon the entire
taxable income of every part-year resident of this state. The
amount of the tax shall be computed under subsections (1) and (2)
of this section as if the part-year resident were a full-year
resident and shall be multiplied by the ratio provided under ORS
316.117 to determine the tax on income derived from sources
within this state.
(4) A tax is imposed for each taxable year on the taxable
income of every full-year nonresident that is derived from
sources within this state. The amount of the tax shall be
determined in accordance with subsections (1) and (2) of this
section.
SECTION 4. If both House Bill 2272 and Senate Bill 67 become
law, section 7, chapter ___, Oregon Laws 2001 (Enrolled Senate
Bill 67), is amended to read:
{ + Sec. 7. + } The amendments to ORS 316.037 and 317.061 by
{ - sections 5 and 6 of this 2001 Act - } { + section 6,
chapter ___, Oregon Laws 2001 (Enrolled Senate Bill 67), and
section 3 of this 2001 Act + } apply to tax years beginning on or
after January 1, 2005.
SECTION 5. { + Section 6 of this 2001 Act is added to and made
a part of ORS 308A.350 to 308A.383. + }
SECTION 6. { + (1) Land located within the boundaries of a
city and an urban growth boundary is exempt from the ad valorem
property taxes of the city and county in which the land is
located if:
(a) The governing bodies of the city and the county in which
the land is located have both adopted ordinances or resolutions:
(A) Permitting the designation of land as riparian land; and
(B) If possible, describing how the city or county will provide
technical assistance to landowners preparing riparian management
plans pursuant to ORS 308A.359 and will monitor landowner
compliance with approved plans; and
(b) The land qualifies for designation and exemption as
riparian land under ORS 308A.350 to 308A.383.
(2) Copies of the authorizing ordinances or resolutions must be
given to the county assessor and to the State Department of Fish
and Wildlife. + }
SECTION 7. ORS 308A.359 is amended to read:
308A.359. (1) The State Department of Fish and Wildlife shall
develop standards and criteria for the designation of land as
riparian. Upon the receipt of an application referred to it by
the county assessor, the department shall determine if the land
described in the application is qualified for designation as
riparian.
Enrolled House Bill 3057 (HB 3057-ACCA) Page 5
(2) The department shall review riparian management plans
submitted by applicants to assure compliance with the intent of
ORS 308A.353. Standards and criteria to be used to determine
consistency with the intent of ORS 308A.350 to 308A.383 shall be
developed by the department and shall be reviewed by the
department annually. These criteria shall be in addition to the
following provisions limiting participation under ORS 308A.350 to
308A.383:
(a)(A) Subject to subparagraph (B) of this paragraph { + , and
except as provided in subparagraph (C) of this paragraph + },
only lands planned and zoned as forest or agricultural lands,
including rangeland, in compliance with the statewide planning
goals adopted under ORS 197.240 and outside adopted urban growth
boundaries shall qualify.
(B) Lands that, as of July 1, 1997, are outside adopted urban
growth boundaries and also as of that date are planned and zoned
as forest or agricultural lands, including rangeland, in
compliance with the statewide planning goals adopted under ORS
197.240 qualify, for tax years beginning on or after July 1,
1998, for riparian designation if they are managed in the manner
provided for designated riparian lands and are otherwise eligible
for riparian designation under ORS 308A.350 to 308A.383 even
though the lands are no longer outside adopted urban growth
boundaries or planned or zoned as forest or agriculture.
{ + (C) Lands within the boundaries of a city and an urban
growth boundary, if the city and county governing bodies have
authorized the exemption under section 6 of this 2001 Act, may
qualify if the lands are managed in the manner provided for
riparian designation under ORS 308A.350 to 308A.383. + }
(b) Land management activities permitted within designated
riparian lands shall be consistent with the intent of ORS
308A.350 to 308A.383.
(3) Land that the State Department of Fish and Wildlife
determines may qualify for designation as riparian shall be
approved by the department for designation and exemption under
ORS 308A.350 to 308A.383 only if the owner of the land has
developed and implemented, in accordance with the standards
adopted under subsections (1) and (2) of this section, adequate
measures for:
(a) The continued protection of the land; or
(b) Techniques for rehabilitation of the riparian land and
those measures or techniques are approved by the department.
(4) The department may approve the application for designation
of land as riparian with respect to only part of the land that is
the subject of the application, but if any part of the
application is denied, the applicant may withdraw the entire
application.
SECTION 8. ORS 308A.362 is amended to read:
308A.362. (1) The State Department of Fish and Wildlife shall
immediately notify the county assessor and the applicant of its
approval or disapproval of an application which shall in no event
be later than April 1 of the year following the year of receipt
of the application. Subject to subsection (2) of this section and
the mileage limitation of ORS 308A.380, an application not denied
by April 1 shall be deemed approved, and the land that is the
subject of the application shall be considered to be land that
qualifies under ORS 308A.359.
(2) An application for land described in ORS 308A.359 (2)(a)(B)
shall be approved only if filed on or before five years after the
Enrolled House Bill 3057 (HB 3057-ACCA) Page 6
date the land became land no longer outside adopted urban growth
boundaries or planned or zoned as forest or agricultural land.
{ + (3) An application for land described in section 6 (1) of
this 2001 Act may be approved only if ordinances or resolutions
authorizing the exemption have been adopted by the city and
county in which the land is located and these ordinances or
resolutions are in effect on the date of application.
(4) The department may not approve more than 50 applications
for land described in section 6 (1) of this 2001 Act for any tax
year. An application that is not approved because of the
limitation imposed by this subsection shall be held for
consideration for the next tax year. + }
{ - (3) - } { + (5)(a) + }When the department approves
land for designation as riparian under ORS 308A.359, it shall
enter an order of approval and file a copy of the order with the
county assessor within 10 days. Upon receipt of the order, the
county assessor shall enter a notation on the assessment roll
that the land described in the order is exempt from ad valorem
taxation.
{ + (b) If the land is as described in section 6 (1) of this
2001 Act, the exemption shall apply only to the ad valorem
property taxes of the city and county that have authorized the
exemption. + }
{ - (4) - } { + (6) + } On approval of an application filed
under ORS 308A.356, for each year of designation the assessor
shall indicate on the { + assessment and + } tax roll that the
property is exempt from taxation as riparian land { + or, in the
case of land described in section 6 (1) of this 2001 Act,
partially exempt from taxation. The assessor shall also indicate
on the tax roll that the land + }
{ - and - } is subject to potential additional taxes as
provided by ORS 308A.368, by adding the notation 'designated
riparian land (potential add'l tax). '
{ - (5) - } { + (7) + } Any owner whose application for
designation has been denied may appeal to the department under
the provisions of ORS 183.310 to 183.550 governing contested
cases.
SECTION 9. { + Section 6 of this 2001 Act and the amendments
to ORS 308A.359 and 308A.362 by sections 7 and 8 of this 2001 Act
apply to tax years beginning on or after July 1, 2002. + }
SECTION 10. { + Section 11 of this 2001 Act is added to and
made a part of ORS 271.715 to 271.795. + }
SECTION 11. { + (1) An owner of real property considering
whether to convey a conservation easement or a highway scenic
preservation easement to a holder may apply to the county
assessor for a report on the effect of the conveyance of the
easement on the assessed value of the property upon which the
easement is to be granted.
(2) The request for the report shall be made in writing to the
assessor and shall be accompanied by:
(a) An appraisal of the property prepared by an appraiser
certified or licensed under ORS chapter 674. The appraisal shall
have been prepared within three months preceding the date that
application is made to the assessor and shall state the
appraiser's opinion of the real market value of the property both
before and after the easement is conveyed;
(b) A copy of the instrument creating the easement; and
(c) A fee in an amount determined by the assessor, as
reimbursement for the costs of preparing the report.
Enrolled House Bill 3057 (HB 3057-ACCA) Page 7
(3) Upon receipt of a completed application, the assessor shall
determine what the assessed value for the property would have
been had the easement been accepted and recorded by the proposed
holder for the last tax year in which a property tax statement
described in ORS 311.250 was sent to the property owner. The
assessor shall prepare a written report stating the assessor's
findings and shall send the report to the property owner. + }
SECTION 12. 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
Enrolled House Bill 3057 (HB 3057-ACCA) Page 8
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.
{ + (7)(a) Paragraph (b) of this subsection applies if:
(A) A conservation easement or highway scenic preservation
easement is in effect on the assessment date;
(B) The tax year is the first tax year in which the
conservation easement or highway scenic preservation easement is
taken into account in determining the property's assessed value;
and
(C) A report has been issued by the county assessor under
section 11 of this 2001 Act within 12 months preceding or
following the date the easement was recorded.
(b) The assessed value of the property shall be as determined
in the report issued under section 11 of this 2001 Act, but may
be further adjusted by changes in value as a result of any of the
factors described in ORS 309.115 (2), to the extent adjustments
do not cause the assessed value of the property to exceed the
property's maximum assessed value. + }
SECTION 13. { + The amendments to ORS 308.146 by section 12 of
this 2001 Act apply to tax years beginning on or after July 1,
2002. + }
SECTION 14. 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 - } { + 50 + } 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) 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
Enrolled House Bill 3057 (HB 3057-ACCA) Page 9
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 15. { + The amendments to ORS 308.296 by section 14 of
this 2001 Act apply to penalties imposed for the failure to file
a return reporting taxable personal property that is due on or
after the effective date of this 2001 Act. + }
----------
Passed by House May 22, 2001
Repassed by House July 5, 2001
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate June 27, 2001
Repassed by Senate July 5, 2001
...........................................................
President of Senate
Enrolled House Bill 3057 (HB 3057-ACCA) Page 10
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled House Bill 3057 (HB 3057-ACCA) Page 11