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 527
Minority Report
B-Engrossed
Senate Bill 67
Ordered by the House June 30
Including Senate Amendments dated June 12 and House Minority
Report Amendments dated June 30
Sponsored by nonconcurring members of the House Committee on
Rules, Redistricting, and Public Affairs: Representatives
MARCH, GARDNER
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.
{ - Reduces rate of tax on capital gains of personal income
and corporate income and excise taxpayers. Phases in
reduction. - }
{ + Allows senior citizen with specified income who owns and
occupies principal residence to obtain senior residence
assessment under specified conditions. + }
Applies to tax years beginning on or after { - January 1,
2003 - } { + July 1, 2002 + }.
A BILL FOR AN ACT
Relating to taxation; creating new provisions; and amending ORS
314.840.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 8 of this 2001 Act are added to
and made a part of ORS chapter 307. + }
SECTION 2. { + As used in sections 2 to 8 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':
(a) 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. 'Dwelling unit' may be further
defined by the Department of Revenue by rule.
(b) Includes, if the unit is located in a multiunit building,
the portion of the building actually used as the principal place
of abode and a percentage of the assessed value of the common
elements and of the assessed value of the tax lot of the
multiunit building, as determined by the county assessor. The
percentage of the assessed value of the common elements and tax
lot that is added to the assessed value of the unit shall be
computed by dividing the assessed value of the unit by the total
assessed value of the building exclusive of the common elements,
if any.
(c) Includes, if the unit is a part of a group of associated
single family units on one tax lot, the single unit and the
portion of the common tax lot allocated to it on the basis of the
relative assessed value of each unit.
(d) Does not include, if the unit is an unassociated single
family unit, land in excess of one acre.
(e) Does not include, if the unit is located in a multiunit
building or is part of a group of associated single family units
on one tax lot, land in excess of one acre multiplied by the
number of residential units.
(3) 'Frozen value' means the assessed value of the principal
residence of the senior citizen for whichever is the later of:
(a) The tax year beginning July 1, 2002;
(b) The first tax year in which the senior citizen is 65 years
of age or older as of the assessment date and applies for senior
residence assessment; or
(c) The first tax year in which the senior citizen occupies the
principal residence as of the assessment date and applies for
senior residence assessment.
(4) 'Household income' has the meaning given that term in ORS
310.630.
(5) 'Occupy':
(a) Means to live or dwell in or on the property.
(b) Includes temporary absences. 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 may not
be considered an occupant of the long term care facility.
'Temporary absence' and 'long term care' may be defined by the
department by rule.
(6) '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 with another or
others.
(7) 'Principal residence' or 'residence':
(a) Means real or personal property, subject to property
taxation and located in this state, 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.
(8) 'Senior citizen' means any person who is at least 65 years
of age on or before April 15 preceding the tax year for which
application for a senior residence assessment under sections 2 to
8 of this 2001 Act is made.
(9) 'Senior residence assessment' means the determination of
assessed value and computation of property tax under sections 2
to 8 of this 2001 Act. + }
SECTION 3. { + (1) A property owner may apply for senior
residence assessment by filing an application with the county
assessor of the county in which the property is located after
January 1 and on or before April 15 preceding the first tax year
to which the application relates.
(2) The application shall be on a form prescribed by the
Department of Revenue and shall contain:
(a) The name and Social Security number of the applicant.
(b) The date of birth of the applicant.
(c) The household income of the applicant for the last calendar
year preceding the date the application is filed.
(d) The federal adjusted gross income of the applicant for the
last calendar year preceding the date the application is filed
and a statement indicating whether the income was reported on a
separate return or a joint return.
(e) One of the following:
(A) The tax lot number or numbers or other identification for
the applicant's principal residence; or
(B) The name and address for a cooperative housing corporation
and a statement from the appropriate officer of the corporation
or from the applicant that contains the tax information needed to
determine whether the applicant's dwelling unit qualifies for
senior residence assessment.
(3) If the applicant occupies a dwelling unit owned or leased
by a cooperative housing corporation and the statement required
under subsection (2)(e)(B) of this section cannot be obtained,
upon request of the applicant, the county assessor shall
determine the real market value of the applicant's dwelling unit.
(4) The department may require any other information that the
department determines to be necessary to process applications
under this section. If the applicant has qualified for senior
residence assessment applicable to the residence of the applicant
in a prior tax year, the department may by rule waive the
requirement to provide the information described in subsection
(2)(b), (c) or (e) of this section. + }
SECTION 4. { + (1) An application for a senior residence
assessment shall be approved or denied by the county assessor on
or before August 1 of the tax year to which the application
relates.
(2) For the first tax year for which senior residence
assessment is sought, the application shall be approved if:
(a) The applicant is a senior citizen who owns and occupies the
principal residence; and
(b) The household income of the applicant does not exceed
$32,000.
(3) For tax years following the first tax year for which senior
residence assessment was granted, an application shall be
approved if the federal adjusted gross income of the applicant
does not exceed $32,000.
(4)(a) For tax years beginning on or after July 1, 2003, the
household income and the federal adjusted gross income limits
described in subsections (2)(b) and (3) of this section shall be
adjusted for cost-of-living changes. The cost-of-living
adjustment for any tax year is the percentage (if any) by which
the U.S. City Average Consumer Price Index for the average of the
monthly indexes for the calendar quarter immediately preceding
the tax year exceeds the average of the monthly indexes of the
second quarter of the assessment year beginning January 1, 2002.
(b) 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.
(c) If any increase determined under paragraph (a) of this
subsection is not a multiple of $50, the increase shall be
rounded to the next lower multiple of $50. + }
SECTION 5. { + (1) An application for a senior residence
assessment shall be denied by the county assessor if the assessor
determines that the applicant or the principal residence of the
applicant does not meet the requirements for a senior residence
assessment under sections 2 to 8 of this 2001 Act. Denial may be
appealed to the Oregon Tax Court in the manner provided under ORS
305.275.
(2) If the sole reason for denial of the application is the
failure to timely file the application as described in section 3
of this 2001 Act, the applicant's exclusive remedy is to request
hardship relief under ORS 307.475. No further appeal may be taken
from a denial of hardship relief. + }
SECTION 6. { + (1) Following approval of an application for
senior residence assessment under section 4 of this 2001 Act:
(a) The specially assessed value of the principal residence
shall equal the frozen value of the residence.
(b) For the first tax year in which the principal residence is
assessed under this section, the maximum assessed value shall
equal the specially assessed value under paragraph (a) of this
subsection multiplied by the ratio, not greater than 1.00, of the
maximum assessed value the principal residence would have if not
specially assessed over the real market value of the principal
residence.
(c) For each consecutive tax year that the principal residence
is assessed under this section after the first tax year, the
maximum assessed value shall equal 103 percent of the specially
assessed value of the principal residence from the prior year or
100 percent of the maximum assessed value of the principal
residence from the prior year, whichever is greater.
(d) The assessed value of the principal residence shall equal
the lesser of:
(A) The specially assessed value of the residence; or
(B) The maximum assessed value of the residence.
(2) Only operating taxes, as defined in ORS 310.055, may be
imposed on a principal residence assessed under this section.
(3) For the first tax year in which a principal residence that
was previously assessed under this section does not meet the
qualifications to be assessed under this section, the principal
residence shall be disqualified from such assessment and the
maximum assessed value of the principal residence shall be
determined as prescribed in ORS 308.156. + }
SECTION 7. { + (1) A cooperative housing corporation is
entitled to the senior residence assessment granted under
sections 2 to 8 of this 2001 Act for those dwelling units owned,
being purchased or leased by the corporation and occupied by one
or more eligible senior citizens if applications for the
assessment are filed.
(2)(a) A cooperative housing corporation shall annually aid
each resident who could qualify for the senior residence
assessment if the dwelling unit occupied by the resident were
owned by the resident as a principal residence by preparing the
application on behalf of the resident.
(b) The corporation shall determine the amount of the
property's total real market value that is attributable to each
dwelling unit occupied by a resident of a multiunit building who
could qualify for the senior residence assessment under sections
2 to 8 of this 2001 Act if the dwelling unit occupied by the
resident were owned by the resident as a principal residence.
(c) The application prepared under paragraph (a) of this
subsection shall be signed by the resident, or the resident's
authorized representative, and filed with the county assessor in
the same manner as other applications are filed under section 3
of this 2001 Act.
(d) The assessor shall process each application filed under
this subsection in the same manner as other applications for a
senior residence assessment under section 3 of this 2001 Act are
processed, except for the requirement of owning a principal
residence.
(3)(a) Not later than January 15 of each year, a cooperative
housing corporation that has received a senior residence
assessment for a dwelling unit shall credit to the account of the
resident of that dwelling unit an amount equal to the excess of
the resident's share of property taxes that would have been
assessed against the corporation for the tax year if the senior
residence assessment for the dwelling unit had not been granted
over the resident's share of property taxes actually paid by the
corporation.
(b) Prior to March 1 of each year, the corporation shall
satisfy the county assessor that the crediting has taken place.
If the crediting has not taken place, an assessment under
sections 2 to 8 of this 2001 Act may not be granted for property
of the corporation for the next tax year, beginning July 1. + }
SECTION 7a. { + (1) Sections 2 to 8 of this 2001 Act apply
only to the principal residence of a senior citizen that is
located in a code area in which each taxing district has adopted
an ordinance or resolution authorizing the senior residence
assessment described in sections 2 to 8 of this 2001 Act.
(2) All ordinances or resolutions described in this section
must be adopted on or before December 31 of the year preceding
the first tax year in which a senior residence assessment is
allowable in a code area. + }
SECTION 8. { + (1) On or before December 15 of each year, the
county assessor shall send a notice to each senior citizen who
has been granted a senior residence assessment for the current
tax year. The notice shall:
(a) Inform the senior citizen that the property qualified for
the assessment for the current tax year.
(b) Inform the senior citizen that the senior citizen must file
an application for the assessment under section 3 of this 2001
Act after January 1 and on or before April 15 of the next tax
year in order for the property to receive the assessment for the
next tax year.
(c) Contain any other information that the Department of
Revenue considers necessary to facilitate administration of the
assessment.
(2) The county assessor shall give the notice required under
subsection (1) of this section by an unsealed postcard or other
form of mail sent to the principal residence of the senior
citizen. + }
SECTION 9. { + Sections 2 to 8 of this 2001 Act apply to tax
years beginning on or after July 1, 2002. + }
SECTION 10. ORS 314.840 is amended to read:
314.840. (1) The Department of Revenue may:
(a) Furnish any taxpayer or representative authorized to
represent the taxpayer under ORS 305.230, upon request of the
taxpayer or representative, with a copy of the taxpayer's income
tax return filed with the department for any year, or with a copy
of any report filed by the taxpayer in connection with the
return, or with any other information the department considers
necessary.
(b) Publish lists of taxpayers who are entitled to unclaimed
tax refunds.
(c) Publish statistics so classified as to prevent the
identification of income or any particulars contained in any
report or return.
(d) Disclose a taxpayer's name, address, telephone number,
refund amount, amount due, social security number, employer
identification number or other taxpayer identification number to
the extent necessary in connection with collection activities or
the processing and mailing of correspondence or of forms for any
report, return or claim required in the administration of ORS
310.630 to 310.706, any local tax under ORS 305.620, or any law
imposing a tax upon or measured by net income.
(2) The department also may disclose and give access to
information described in ORS 314.835 to:
(a) The Governor of the State of Oregon or the authorized
representative of the Governor:
(A) With respect to an individual who is designated as being
under consideration for appointment or reappointment to an office
or for employment in the office of the Governor. The information
disclosed shall be confined to whether the individual:
(i) Has filed returns with respect to the taxes imposed by ORS
chapter 316 for those of not more than the three immediately
preceding years for which the individual was required to file an
Oregon individual income tax return.
(ii) Has failed to pay any tax within 30 days from the date of
mailing of a deficiency notice or otherwise respond to a
deficiency notice within 30 days of its mailing.
(iii) Has been assessed any penalty under the Oregon personal
income tax laws and the nature of the penalty.
(iv) Has been or is under investigation for possible criminal
offenses under the Oregon personal income tax laws. Information
disclosed pursuant to this paragraph shall be used only for the
purpose of making the appointment, reappointment or decision to
employ or not to employ the individual in the office of the
Governor.
(B) For use by an officer or employee of the Oregon Department
of Administrative Services duly authorized or employed to prepare
revenue estimates, or a person contracting with the Oregon
Department of Administrative Services to prepare revenue
estimates, in the preparation of revenue estimates required for
the Governor's budget under ORS 291.201 to 291.226, or required
for submission to the Emergency Board, or if the Legislative
Assembly is in session, to the Joint Committee on Ways and Means,
and to the Legislative Revenue Officer under ORS 291.342, 291.348
and 291.445. The information disclosed or to which access is
given under this subparagraph shall be confined to the identity
of a corporate taxpayer, the amount of the corporate tax
liability of the corporate taxpayer and the amount of the
payments made by the corporation to the Department of Revenue
under the corporate excise and income tax laws of this state. Any
officer, employee or person furnished or granted access to
information under this subparagraph shall not remove the
information from the premises of the Department of Revenue.
(b) The Commissioner of Internal Revenue or authorized
representative, for tax purposes only.
(c) The proper officer of any state or the District of
Columbia, or their authorized representatives, for tax purposes
only, if such state or district has a provision of law which
meets the requirements of any applicable provision of the
Internal Revenue Code as to confidentiality.
(d) The Multistate Tax Commission or its authorized
representatives, for tax purposes only. However, the Multistate
Tax Commission may make such information available to the
Commissioner of Internal Revenue or the proper officer of any
state or the District of Columbia, or their authorized
representatives, for tax purposes only, if the state or district
has a provision of law which meets the requirements of any
applicable provision of the Internal Revenue Code as to
confidentiality.
(e) The Attorney General, assistants and employees in the
Department of Justice, or other legal representative of the State
of Oregon, to the extent the department deems disclosure or
access necessary for the performance of the duties of advising or
representing the department pursuant to ORS 180.010 to 180.240
and the tax laws of this state.
(f) Employees of the State of Oregon, other than of the
Department of Revenue or Department of Justice, to the extent the
department deems disclosure or access necessary for such
employees to perform their duties under contracts or agreements
between the department and any other department, agency or
subdivision of the State of Oregon, in the department's
administration of the tax laws.
(g) Other persons, partnerships, corporations and other legal
entities, and their employees, to the extent the department deems
disclosure or access necessary for the performance of such
others' duties under contracts or agreements between the
department and such legal entities, in the department's
administration of the tax laws.
(h) The Legislative Revenue Officer or authorized
representatives upon compliance with ORS 173.850. Such officer or
representative shall not remove from the premises of the
department any materials that would reveal the identity of any
taxpayer or any other person.
(i) The Department of Consumer and Business Services, to the
extent the department requires such information to determine
whether it is appropriate to adjust those workers' compensation
benefits the amount of which is based pursuant to ORS chapter 656
on the amount of wages or earned income received by an
individual.
(j) Any agency of the State of Oregon, or any person, or any
officer or employee of such agency or person to whom disclosure
or access is given by state law and not otherwise referred to in
this section, including but not limited to the Secretary of State
as Auditor of Public Accounts under section 2, Article VI of the
Oregon Constitution; the Adult and Family Services Division of
the Department of Human Services pursuant to ORS 314.860 and
418.135; the Division of Child Support of the Department of
Justice and district attorney regarding cases for which they are
providing support enforcement services under ORS 25.080; the
State Board of Tax Service Examiners, pursuant to ORS 673.710;
and the Oregon Board of Accountancy, pursuant to ORS 673.415.
(k) The Director of the Department of Consumer and Business
Services to determine that a person complies with ORS chapter 656
and the Director of the Employment Department to determine that a
person complies with ORS chapter 657, the following employer
information:
(A) Identification numbers.
(B) Names and addresses.
(C) Inception date as employer.
(D) Nature of business.
(E) Entity changes.
(F) Date of last payroll.
(L) The Assistant Director for Mental Health and Developmental
Disability Services to determine that a person has the ability to
pay for care that includes services provided by the state
institutions as described in ORS 179.321 or the Mental Health and
Developmental Disability Services Division or to collect any
unpaid cost of care as provided by ORS chapter 179.
(m) Employees of the Employment Department to the extent the
Department of Revenue deems disclosure or access to information
on a combined tax report filed under ORS 316.168 is necessary to
performance of their duties in administering the tax imposed by
ORS chapter 657.
(n) The State Fire Marshal to assist the State Fire Marshal in
carrying out duties, functions and powers under ORS 453.307 to
453.414, the employer or agent name, address, telephone number
and standard industrial classification, if available.
(o) Employees of the Division of State Lands for the purposes
of identifying, locating and publishing lists of taxpayers
entitled to unclaimed refunds as required by the provisions of
chapter 694, Oregon Laws 1993. The information shall be limited
to the taxpayer's name, address and the refund amount.
(p) In addition to the disclosure allowed under ORS 305.225,
state or local law enforcement agencies to assist in the
investigation or prosecution of the following criminal
activities:
(A) Mail theft of a check, in which case the information that
may be disclosed shall be limited to the stolen document, the
name, address and taxpayer identification number of the payee,
the amount of the check and the date printed on the check.
(B) The counterfeiting, forging or altering of a check
submitted by a taxpayer to the Department of Revenue or issued by
the Department of Revenue to a taxpayer, in which case the
information that may be disclosed shall be limited to the
counterfeit, forged or altered document, the name, address and
taxpayer identification number of the payee, the amount of the
check, the date printed on the check and the altered name and
address.
(q) The United States Postal Inspection Service or a federal
law enforcement agency, including but not limited to the United
States Department of Justice, to assist in the investigation of
the following criminal activities:
(A) Mail theft of a check, in which case the information that
may be disclosed shall be limited to the stolen document, the
name, address and taxpayer identification number of the payee,
the amount of the check and the date printed on the check.
(B) The counterfeiting, forging or altering of a check
submitted by a taxpayer to the Department of Revenue or issued by
the Department of Revenue to a taxpayer, in which case the
information that may be disclosed shall be limited to the
counterfeit, forged or altered document, the name, address and
taxpayer identification number of the payee, the amount of the
check, the date printed on the check and the altered name and
address.
{ + (r) A county assessor or an employee of a county
assessor, solely for purposes of verifying the federal adjusted
gross income of applicants for the senior residence assessment
established under sections 2 to 8 of this 2001 Act. + }
(3)(a) Each officer or employee of the department and each
person described or referred to in subsection (2)(a), (e) to
(k) { + , + }
{ - or - } (m) to (p) { + or (r) + } of this section to whom
disclosure or access to the tax information is given under
subsection (2) of this section or any other provision of state
law, prior to beginning employment or the performance of duties
involving such disclosure or access, shall be advised in writing
of the provisions of ORS 314.835 and 314.991, relating to
penalties for the violation of ORS 314.835, and shall as a
condition of employment or performance of duties execute a
certificate for the department, in a form prescribed by the
department, stating in substance that the person has read these
provisions of law, that the person has had them explained and
that the person is aware of the penalties for the violation of
ORS 314.835.
(b) The disclosure authorized in subsection (2)(q) of this
section shall be made only after a written agreement has been
entered into between the Department of Revenue and the person
described in subsection (2)(q) of this section to whom disclosure
or access to the tax information is given, providing that:
(A) Any information described in ORS 314.835 that is received
by the person pursuant to subsection (2)(q) of this section is
confidential information that may not be disclosed, except to the
extent necessary to investigate or prosecute the criminal
activities described in subsection (2)(q) of this section;
(B) The information shall be protected as confidential under
applicable federal and state laws; and
(C) The United States Postal Inspection Service or the federal
law enforcement agency shall give notice to the Department of
Revenue of any request received under the federal Freedom of
Information Act, 5 U.S.C. 552, or other federal law relating to
the disclosure of information.
(4) The Department of Revenue may recover the costs of
furnishing the information described in subsection (2)(k), (L)
and (n) to (p) of this section from the respective agencies.
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