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 142
Senate Bill 469
Sponsored by Senator FERRIOLI
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.
Changes application process for claiming senior or disabled
homestead property tax deferral. Specifies contents of forms for
initial claims for deferral and for claims for continuing
deferral in years subsequent to first year of deferral. Directs
Department of Revenue to approve claim or conduct telephone
interview with applicant if department is unable to determine
whether property qualifies for deferral.
Takes effect on 91st day following adjournment sine die of
regular session of Legislative Assembly.
A BILL FOR AN ACT
Relating to homestead deferral; creating new provisions; amending
ORS 311.668, 311.672, 311.678, 311.681 and 311.688; and
prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 311.668, as amended by section 2, chapter 1097,
Oregon Laws 1999, is amended to read:
311.668. (1)(a) Subject to ORS 311.670, an individual, or two
or more individuals jointly, may elect to defer the property
taxes on their homestead by { + completing and + } filing
{ - a - } { + an initial + } claim for deferral { + as
described in ORS 311.672. The claim shall be filed + } with the
county assessor after January 1 and on or before April 15 of the
first year in which deferral is claimed if:
(A) The individual, or, in the case of two or more individuals
filing a claim jointly, each individual, is 62 years of age or
older on April 15 of the year in which the claim is filed; or
(B) The individual is a disabled person on April 15 of the year
in which the claim is filed. In the case of individuals filing a
claim jointly, only one individual need be a disabled person in
order to make the election.
(b) In order to make the election described in paragraph (a) of
this subsection, the individual must have, or in the case of two
or more individuals filing a claim jointly, all of the
individuals together must have household income, as defined in
ORS 310.630, for the calendar year immediately preceding the
calendar year in which the claim is filed of less than $27,500.
(c) The county assessor shall forward each claim filed under
this subsection to the Department of Revenue { + , + } which
shall determine { - if - } { + whether + } the property is
eligible for deferral { + in the manner prescribed in ORS
311.672 + }.
(2) When the taxpayer elects to defer property taxes for any
year { + following the year of initial deferral + } by filing a
claim for deferral { - under subsection (1) of this section - }
{ + continuation under ORS 311.678 + }, it shall have the
effect of:
(a) Deferring the payment of the property taxes levied on the
homestead for the fiscal year beginning on July 1 of such year.
(b) Continuing the deferral of the payment by the taxpayer of
any property taxes deferred under ORS 311.666 to 311.701 for
previous years which have not become delinquent under ORS
311.686.
(c) Continuing the deferral of the payment by the taxpayer of
any future property taxes for as long as the provisions of ORS
311.670 are met.
(3) If a guardian or conservator has been appointed for an
individual otherwise qualified to obtain deferral of taxes under
ORS 311.666 to 311.701, the guardian or conservator may act for
such individual in complying with the provisions of ORS 311.666
to 311.701.
(4) If a trustee of an inter vivos trust which was created by
and is revocable by an individual, who is both the trustor and a
beneficiary of the trust and who is otherwise qualified to obtain
a deferral of taxes under ORS 311.666 to 311.701, owns the fee
simple estate under a recorded instrument of sale, the trustee
may act for the individual in complying with the provisions of
ORS 311.666 to 311.701.
(5) Nothing in this section shall be construed to require a
spouse of an individual to file a claim jointly with the
individual even though the spouse may be eligible to claim the
deferral jointly with the individual.
(6) Any person aggrieved by the denial of a claim for deferral
of homestead property taxes or disqualification from deferral of
homestead property taxes may appeal in the manner provided by ORS
305.404 to 305.560.
(7)(a) For each tax year beginning on or after July 1, 2002,
the Department of Revenue shall recompute the maximum household
income that may be incurred under an allowable claim for deferral
under subsection (1)(b) of this section. The computation shall be
as follows:
(A) Divide the average U.S. City Average Consumer Price Index
for the first six months of the current calendar year by the
average U.S. City Average Consumer Price Index for the first six
months of 2001.
(B) Recompute the maximum household income by multiplying
$27,500 by the appropriate indexing factor determined as provided
in subparagraph (A) of this paragraph.
(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 change in the maximum household income determined
under paragraph (a) of this subsection is not a multiple of $500,
the increase shall be rounded to the nearest multiple of $500.
SECTION 2. ORS 311.672, as amended by section 3, chapter 1097,
Oregon Laws 1999, is amended to read:
311.672. (1) A taxpayer's { + initial + } claim for deferral
under ORS 311.668 shall be in writing on a form supplied by the
Department of Revenue and shall { + state + }:
{ - (a) Describe the homestead. - }
{ - (b) Recite facts establishing the eligibility for the
deferral under the provisions of ORS 311.666 to 311.701,
including facts that establish that the household income as
defined in ORS 310.630 of the individual, or in the case of two
or more individuals claiming the deferral jointly, of all of the
individuals together was, for the calendar year immediately
preceding the calendar year in which the claim is filed, less
than or equal to the maximum household income that may be
incurred under an allowable claim for deferral, as provided in
ORS 311.668. - }
{ - (c) Have attached any documentary proof required by the
department to show that the requirements of ORS 311.666 to
311.701 have been met. - }
{ + (a) The name or names of the taxpayer;
(b) The telephone number of the taxpayer;
(c) The address of the homestead;
(d) The age and birthdate of the taxpayer; and
(e) The household income of the taxpayer.
(2) The claim form supplied by the department shall include the
following questions and provide boxes labeled 'Yes' and ' No'
which may be marked by the taxpayer to respond to these
questions:
(a) 'Do you own the homestead? '
(b) 'Are other people living with you at the homestead? '
(c) 'Are you receiving federal Social Security disability
benefits?' + }
{ - (2) - } { + (3) + } { - There shall be annexed to the
claim a statement verified by - } { + The claim shall also
include + } a written declaration of the applicant { - making
the claim to the effect - } { + affirming + } that the
statements contained in the claim are true.
{ + (4) Upon receipt of a claim for deferral, the department
shall review the claim and:
(a) Determine that the property is eligible for deferral; or
(b) If the responses of the taxpayer or other information
indicates that the property may not be eligible for deferral,
conduct a telephone interview of the taxpayer to ascertain
whether the property is eligible for deferral.
(5) If the department is unable to conduct a telephone
interview of the taxpayer, the department shall send a written
notice to the taxpayer stating that the department is unable to
determine whether the property is eligible for deferral,
requesting that the taxpayer contact the department and providing
a toll-free telephone number for the taxpayer to use.
(6) If, after 30 days from the date the notice in subsection
(5) of this section was sent to the taxpayer, a telephone
interview with the taxpayer has not been conducted, the
department shall determine whether the property is eligible for
deferral based upon the department's best information and
belief. + }
SECTION 3. ORS 311.678 is amended to read:
311.678. (1) On or before December 15 of each year, the
Department of Revenue shall send a notice to each taxpayer who
has
{ - claimed - } { + been granted a + } deferral of property
taxes for the current tax year { + or a prior tax year + }. The
notice shall:
(a) Inform the taxpayer that the property taxes have or have
not been deferred in the current year.
(b) Show the total amount of deferred taxes remaining unpaid
since initial application for deferral and the interest accruing
therein to November 15 of the current year.
(c) Inform the taxpayer that voluntary payment of the deferred
taxes may be made at any time to the Department of Revenue.
{ + (d) Summarize the criteria that must be met for a
property to continue to qualify for homestead deferral. + }
{ - (d) - } { + (e) + } Contain any other information that
the department considers necessary to facilitate administration
of the homestead deferral program, including but not limited to
the right of the taxpayer to submit any elderly rental assistance
amount received under ORS 310.630 to 310.706 to reduce the total
amount of the deferred taxes and interest.
(2) { - The department shall give the notice required under
subsection (1) of this section by an unsealed postcard or other
form of mail sent to the residence address of the taxpayer as
shown in the claim for deferral or as otherwise determined by the
department to be the correct address of the taxpayer. - } { +
The notice shall include a homestead deferral continuation claim
form on which the department has entered the taxpayer's name and
other information needed by the department to identify the
homestead. The deferral continuation claim form shall also
include:
(a) Space for the taxpayer to provide a current telephone
number; and
(b) Boxes labeled 'Yes' and 'No' which may be marked by the
taxpayer to respond to the following questions:
(A) 'Do you qualify for the continued deferral of previous
years' homestead property taxes? '
(B) 'Do you qualify for the deferral of current year's
homestead property taxes? '
(3) The claim shall also include a written declaration of the
applicant affirming that the statements contained in the claim
are true.
(4) In order for the property to continue to be eligible for
the deferral of property taxes, the taxpayer must answer the
questions and file the claim for deferral continuation with the
department on or before April 15 of the year for which deferral
is sought.
(5) Upon receipt, the department shall process the claim for
deferral continuation in the same manner that an initial claim
for deferral is processed under ORS 311.672 (4) to (6). + }
SECTION 4. ORS 311.681 is amended to read:
311.681. (1) Notwithstanding ORS { - 311.668 - } { +
311.678 + }, if an individual (or two or more individuals
jointly) who has elected to defer homestead property taxes in a
prior tax year has not filed a timely claim for deferral
{ + continuation under ORS 311.678 + } for one or more tax years
succeeding the year in which property taxes were initially
deferred under ORS 311.666 to 311.701, then the individual may
request that the Director of the Department of Revenue grant a
retroactive deferral of property taxes on the property. A spouse
who is eligible to make the election under ORS 311.688 may also
request a grant of retroactive deferral under this section.
(2) The director may, in the discretion of the director, grant
or deny the retroactive deferral of property taxes. No appeal
from a decision of the director under this section may be made.
(3) The director shall not grant a retroactive deferral of
property taxes if, in any intervening year between the year in
which deferral was last granted to the property and the last year
for which retroactive deferral is being requested, the property
would not have been eligible for deferral had the claim for
deferral been timely filed.
(4) If the director grants a retroactive deferral of property
taxes under this section, the department shall pay to the county
tax collector an amount equal to the deferred taxes for each
year, less three percent. Interest shall accrue on the actual
amount of taxes advanced to the county.
(5) The department shall have a lien against the tax-deferred
property for amounts deferred under this section as provided in
ORS 311.673. The lien shall attach as of July 1 of the tax year
for which the payment relates. In the case of a payment
representing more than one year's property taxes, the department
shall have a lien in the amount of that portion of a payment
related to a particular tax year, which shall attach as of July 1
of that tax year.
SECTION 5. ORS 311.688 is amended to read:
311.688. (1) Notwithstanding ORS 311.684, when one of the
circumstances listed in ORS 311.684 (1) to (3) occurs, the spouse
who was not eligible to or did not file a claim jointly with the
taxpayer may continue the property in its deferred tax status by
filing { - a - } { + an initial + } claim within the time and
in the manner provided under ORS 311.668 { + and 311.672 + } if:
(a) The spouse of the taxpayer is or will be 60 years of age or
older not later than six months from the day the circumstance
listed in ORS 311.684 (1) to (3) occurs; and
(b) The property is the homestead of the spouse of the taxpayer
and meets the requirements of ORS 311.670 (2).
(2) A spouse who does not meet the age requirements of
subsection (1)(a) of this section but is otherwise qualified to
continue the property in its tax-deferred status under subsection
(1) of this section may continue the deferral of property taxes
deferred for previous years by filing a claim { + for deferral
continuation under ORS 311.678 and claiming deferral of previous
years' taxes. The claim must be filed + } within the time and in
the manner provided under ORS { - 311.668 - } { +
311.678 + }. If a spouse eligible for and continuing the deferral
of taxes previously deferred under this subsection becomes 62
years of age prior to April 15 of any year, the spouse may elect
to continue the deferral of previous years' taxes deferred under
this subsection and may elect to defer the current assessment
year's taxes on the homestead by filing { - a - } { + an
initial + } claim { + for deferral + } within the time and in
the manner provided under ORS 311.668 { + and 311.672 + }.
Thereafter, payment of the taxes levied on the homestead and
deferred under this subsection and payment of taxes levied on the
homestead in the current assessment year and in future years may
be deferred in the manner provided in and subject to ORS 311.666
to 311.701.
(3) Notwithstanding that ORS 311.668 { + or 311.678 + }
requires that a claim be filed no later than April 15, if the
Department of Revenue determines that good and sufficient cause
exists for the failure of a spouse to file a claim under this
section on or before April 15, the claim may be filed within 180
days after notice of taxes due and payable under ORS 311.686 is
mailed or delivered by the department to the taxpayer or spouse.
SECTION 6. { + The amendments to ORS 311.668, 311.672,
311.678, 311.681 and 311.688 by sections 1 to 5 of this 2001 Act
apply to initial claims for homestead deferral of property taxes
and claims for continued deferral of homestead property taxes
filed on or after January 1, 2002. + }
SECTION 7. { + 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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