72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 931
House Bill 2424
Sponsored by COMMITTEE ON REVENUE
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.
Makes technical changes in Oregon tax statutes. Adjusts grammar
and syntax. Repeals and deletes obsolete statutes and provisions.
Conforms language and structure to existing statutes.
A BILL FOR AN ACT
Relating to Oregon tax law; creating new provisions; amending ORS
294.381, 305.155, 305.190, 305.230, 305.420, 305.765, 305.865,
305.890, 306.150, 307.010, 307.242, 308.010, 308.057, 308.146,
308.236, 308.408, 308.510, 308.525, 308.559, 308.590, 308A.071,
308A.077, 310.140, 310.202, 310.635, 311.216, 312.060, 314.210,
315.113, 315.262, 316.007, 316.018, 316.024, 316.037, 316.095,
316.144, 316.146, 316.577, 316.579, 317.147, 321.185, 323.365,
323.505, 323.510, 358.190, 469.685, 469.687 and 469.720; and
repealing ORS 316.729, 318.090 and 478.760.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 294.381 is amended to read:
294.381. (1) Each municipal corporation that has the power to
levy an ad valorem property tax shall estimate, in the manner
provided in this section, the amount of revenues that will be
received in the ensuing year or ensuing budget period through the
imposition of taxes upon the taxable property within the
municipal corporation.
(2) Subject to the additional adjustments required under
subsection (3) of this section, the estimated ad valorem taxes
that will be received in the ensuing year or ensuing budget
period is the sum of the following:
(a) The amount derived by multiplying the estimated assessed
value for the ensuing year or each fiscal year of the ensuing
budget period of the taxable property within the municipal
corporation, after boundary changes have been filed in final
approved form with the county assessor and the Department of
Revenue as provided in ORS 308.225, by whichever of the following
is applicable to the municipal corporation:
(A) The municipal corporation's permanent rate limit on
operating taxes, as defined in ORS 310.202 { - (8) - } { +
(7) + }, or such lesser rate as the municipal corporation may
determine to use for purposes of levying such ad valorem taxes;
or
(B) The municipal corporation's statutory rate limit on
operating taxes, as defined in ORS 310.202 (10), or such lesser
rate as the municipal corporation may determine to use for
purposes of levying such ad valorem taxes.
(b) If the municipal corporation is authorized to levy a local
option tax that was authorized by the electors as a dollar
amount, the dollar amount of such local option tax that is
authorized to be levied in the ensuing year or ensuing budget
period.
(c) If the municipal corporation is authorized to levy a local
option tax that was authorized by the electors as a tax rate, the
amount derived by multiplying the authorized rate of such local
option tax for the ensuing year or ensuing budget period by the
estimated assessed value for the ensuing year or each fiscal year
of the ensuing budget period of the taxable property within the
municipal corporation.
(d) An amount equal to the principal and interest on all bonded
indebtedness of the municipal corporation that is due and payable
in the ensuing year or ensuing budget period, divided by the
annual average percentage of taxes collected in the county in
which the taxable property of the municipal corporation is
located.
(3) The sum of the amounts determined under subsection (2)(a),
(b) and (c) of this section shall be reduced by an amount equal
to the estimated amount of such taxes that will not be collected
as a result of:
(a) The discounts allowed under ORS 311.505;
(b) The limits imposed under ORS 310.150 (3); and
(c) The failure of taxpayers to pay such taxes in the year for
which they are levied.
(4) The estimated ad valorem taxes determined in accordance
with subsections (2) and (3) of this section shall be used by the
municipal corporation for purposes of complying with the
requirements of ORS 310.060 (1).
{ + NOTE: + } Corrects subsection reference. (See section 25
of this 2003 Act.)
SECTION 2. ORS 305.155 is amended to read:
305.155. (1) { - If - } The Department of Revenue { + shall
cancel an unpaid tax imposed by laws of the State of Oregon that
is collected by the department, including any penalty or interest
applicable to the tax, if the department + }determines that:
(a) { - Any - } { + The + } tax { - imposed by Oregon
laws which is collected by the department - } has been
delinquent for seven or more years;
{ - and - }
(b) All reasonable efforts have been made to effect collection;
{ - and - }
(c) The taxpayer cannot be located or is dead; and
(d) The tax is wholly uncollectible { + . + } { - ; - }
{ - it shall cancel such tax, including the penalties and
interest applicable thereto. - }
(2) The department may cancel any tax imposed by laws of the
State of Oregon { - which - } { + that + } is collected by
{ - it - } { + the department + } or any portion
{ - thereof - } { + of the tax + } assessed against a person,
including any penalty and interest { - which - } { + that + }
has not been collected, if the department determines that the
administration and collection costs involved would exceed the
amount that can reasonably be expected to be recovered.
(3) When taxes are canceled under subsection (1) or (2) of this
section, the department shall make an order canceling the tax,
penalties and interest. The order shall be filed in the records
of the department. Upon making the order, the department also
shall cause to be canceled or released any lien of record in the
counties { - which - } { + that + } may have been filed and
entered therein.
{ + NOTE: + } Conforms structure to legislative form and
style; corrects grammar.
SECTION 3. ORS 305.190 is amended to read:
305.190. (1) Subject to ORS 305.390 and 305.392, the Director
of the Department of Revenue, in conformity to the resolutions or
rules of the Department of Revenue, may subpoena and examine
witnesses, administer oaths and order the production of any books
or papers in the hands of any person, company or corporation,
whenever necessary in the prosecution of any inquiries deemed
necessary or proper { - in their official capacity - } .
(2) If any person disobeys any subpoena of the director, or
refuses to testify when required by the director, the department
may apply to the Oregon Tax Court for an order to the person to
produce the books and papers or attend and testify, or otherwise
comply with the demand of the department. The application to the
court shall be by ex parte motion upon which the court shall make
an order requiring the person against whom it is directed to
appear before the court in the county in which the person resides
or has a place of business on such date as the court shall
designate in its order and show cause why the person should not
comply with the demand of the department. The order shall be
served upon the person to whom it is directed in the manner
required by this state for service of process, which service
shall be required to confer jurisdiction upon the court. Upon
failure of such person to show cause for noncompliance, the court
shall make an order requiring the person to comply with the
demand of the department within such time as the court shall
direct. Failure to obey any order issued by the court under this
section is contempt of court. The remedy provided by this section
shall be in addition to other remedies, civil or criminal,
existing under the tax laws or other laws of this state.
(3) ORS 305.420 (5) { - shall apply - } { + applies + } to
the issuance of a subpoena under this section.
{ + NOTE: + } Deletes superfluous phrase; corrects grammar.
SECTION 4. ORS 305.230 is amended to read:
305.230. { + (1) + } Notwithstanding ORS 9.320:
{ - (1) - } { + (a) + } Any person who is duly qualified to
practice law or public accountancy in this state or { + who
is + } the authorized employee of a taxpayer { - who - }
{ + and + } is regularly employed by the taxpayer in tax matters
may represent the taxpayer before a tax court magistrate or the
Department of Revenue in any conference or proceeding with
respect to the administration of any tax.
{ - (2) - } { + (b) + } Any person who is duly licensed by
the State Board of Tax Practitioners or who is exempt from such
licensing requirement as provided for and limited by ORS 673.610
may represent a taxpayer before a tax court magistrate or the
department in any conference or proceeding with respect to the
administration of any tax on or measured by net income.
{ - (3) - } { + (c) + } Any shareholder of an S
corporation, as defined in section 1361 of the Internal Revenue
Code, as amended and in effect on December 31, 2000, may
represent the corporation in any proceeding before a tax court
magistrate or the department in the same manner as if the
shareholder were a partner and the S corporation were a
partnership. The S corporation must designate in writing a tax
matters shareholder authorized to represent the S corporation.
{ - (4) - } { + (d) + } Any person who is licensed as a
real estate broker or principal real estate broker under ORS
696.022 or is a state certified appraiser or state licensed
appraiser under ORS 674.310 or is a registered appraiser under
ORS 308.010 may represent a taxpayer before a tax court
magistrate or the department in any conference or proceeding with
respect to the administration of any ad valorem property tax.
{ - (5) - } { + (e) + } A general partner who has been
designated by members of a partnership as their tax matters
partner under ORS 305.242 may represent those partners in any
conference or proceeding with respect to the administration of
any tax on or measured by net income.
{ - (6) - } { + (f) + } In a small claims procedure, a
taxpayer may be represented by any of the persons described in
{ - subsections (1) to (5) of this section - } { + paragraphs
(a) to (e) of this subsection + } or by any other person
permitted by the tax court.
{ - (7) - } { + (2) + } No person shall be recognized as
representing a taxpayer pursuant to this section unless there is
first filed with the magistrate or department a written
authorization, or unless it appears to the satisfaction of the
magistrate or department that the representative does in fact
have authority to represent the taxpayer. A person recognized as
an authorized representative under rules or procedures adopted by
the tax court shall be considered an authorized representative by
the department.
{ - (8) - } { + (3) + } A taxpayer represented by someone
other than an attorney is bound by all things done by the
authorized representative, and may not thereafter claim any
proceeding was legally defective because the taxpayer was not
represented by an attorney.
{ - (9) - } { + (4) + } Prior to the holding of a
conference or proceeding before the tax court magistrate or
department, written notice shall be given by the magistrate or
department to the taxpayer of the provisions of subsections
{ - (6) and (8) - } { + (1)(f) and (3) + } of this section.
{ + NOTE: + } Conforms structure to legislative form and
style; clarifies meaning.
SECTION 5. ORS 305.420 is amended to read:
305.420. (1) The judge, a magistrate or the clerk of the tax
court, on the request of any party to the proceeding, or the
attorney of the party, shall issue subpoenas requiring the
attendance of and the giving of testimony by witnesses, and
subpoenas duces tecum requiring the production of any returns,
books, papers, documents, correspondence and other evidence
pertaining to the matter under inquiry at any designated place of
hearing in the manner prescribed by law in civil actions in
courts of this state.
(2) Any employee of the court designated in writing for the
purpose by the judge may administer oaths.
(3) Any party to the proceeding may cause the depositions of
witnesses residing within or without the state to be taken in the
manner prescribed by law for like depositions in civil actions in
courts of this state. To that end, the party may compel the
attendance of witnesses and { + the + } production of returns,
books, papers, documents, correspondence and other evidence
pertaining to the matter under inquiry.
(4) Subpoenas in a small claims procedure shall be issued only
at the discretion of the court { - ; and any such subpoena shall
not require - } { + . The court may not issue a subpoena that
requires + }the witness to attend for examination at a place
outside the county in which the witness resides or is served,
unless the residence or place of service of the witness is within
100 miles of the place of examination.
(5) Subject to ORS 305.390 and 305.392, subpoenas in a
proceeding involving the determination of the value of an
industrial plant, as defined in ORS 308.408, for purposes of ad
valorem property taxation, may be issued as provided in
subsection (1) of this section. However, upon petition of the
person subpoenaed, the court shall make an order determining if
the evidence sought by the subpoena is relevant to the pending
proceeding { - , - } and { + , + } if requested by the person
subpoenaed, an order as required in the interests of justice to
protect the confidentiality of the information subpoenaed.
{ + NOTE: + } Corrects grammar, syntax and punctuation.
SECTION 6. ORS 305.765 is amended to read:
305.765. { - Whenever, - } In a proceeding involving the
validity of any law whereby taxes assessed or imposed have been
collected and received by the state, acting through any
department or agency thereof, and paid into the State Treasury,
if the court of last resort holds the law or any part thereof
invalid, and the time
{ - limited - } { + limit + } for any further proceeding to
sustain the validity of the law, or the part thereof affected,
has expired, and if there is no other statute authorizing refund
thereof, all taxes collected and paid under the law or part
thereof invalidated, in or after the year in which the action
attacking the validity of the same was instituted, shall be
refunded and repaid in the manner provided in ORS 305.770 to
305.785.
{ + NOTE: + } Corrects grammar and word choice.
SECTION 7. ORS 305.865 is amended to read:
305.865. { - Oregon taxpayers shall have the following
rights - } Under any law administered by the Department of
Revenue, { - as provided - } { + an Oregon taxpayer shall
have the rights set forth + } under ORS 305.880 to 305.895.
{ + NOTE: + } Clarifies intent.
SECTION 8. ORS 305.890 is amended to read:
305.890. (1) { + A taxpayer shall have + } the right to enter
into a written agreement with the Department of Revenue to
satisfy liability for payment of any tax in installment payments
if the Director of the Department of Revenue determines that the
agreement will facilitate collection of such liability.
(2) Except as otherwise provided in this { - subsection - }
{ + section + }, any agreement entered into by the director
under this
{ - subsection - } { + section + } shall remain in effect for
the term of the agreement.
(3) The director may terminate any agreement entered into by
the director under this { - subsection - } { + section + }
if:
(a) Any information { - which - } { + that + } the taxpayer
provided to the director prior to the date the agreement was
entered into was inaccurate or incomplete; or
(b) The director believes that collection of any tax to which
an agreement under this section relates is in jeopardy.
(4) If the director makes a determination that the financial
condition of the taxpayer with whom the director has entered into
an agreement under this { - subsection - } { + section
+ }has significantly changed, the director may alter, modify or
terminate the agreement. Action may be taken by the director
under this subsection only if:
(a) Notice of such determination is provided to the taxpayer
within 30 days prior to the date of such action; and
(b) Such notice includes the reasons why the director believes
a significant change in the financial condition of the taxpayer
has occurred.
(5) The director may alter, modify or terminate an agreement
entered into by the director under this { - subsection - }
{ + section + } in the case of the failure of the taxpayer to:
(a) Pay any installment at the time such installment payment is
due under such agreement;
(b) Pay any other tax liability at the time such liability is
due; or
(c) Provide a financial condition update as requested by the
director.
{ + NOTE: + } Corrects sentence structure; corrects section
references.
SECTION 9. ORS 306.150 is amended to read:
306.150. (1) The Department of Revenue shall carry on at its
own expense a program of inservice training for the assessors and
tax collectors of the various counties { + :
(a) + } By periodically distributing to them bulletins prepared
and published by the department pertaining to the principles and
practices of assessment, apportionment, levy and collection of
public taxes; { +
(b) + } By periodically distributing to them lists of selected
readings in the fields of assessment and taxation; and { +
(c) + } By establishing and conducting such classes of
instruction for county assessors and tax collectors in the
principles and practices of assessment and collection of public
taxes as in the opinion of the Director of the Department of
Revenue may be expedient and beneficial to the needs of the state
and the advancement of the tax assessing and tax collecting
professions.
(2) The director may call one meeting each year of the several
county assessors and may provide for the payment of the necessary
traveling expenses of the assessors in attending the meeting.
{ + NOTE: + } Conforms structure to legislative form and
style.
SECTION 10. ORS 307.010 is amended to read:
307.010. { + (1) As used in the property tax laws of this
state:
(a) 'Land' means land in its natural state. For purposes of
assessment of property subject to assessment at assessed value
under ORS 308.146, land includes any site development made to the
land. As used in this paragraph, 'site development' includes
fill, grading, leveling, underground utilities, underground
utility connections and any other elements identified by rule of
the Department of Revenue. + }
{ - (1) - } { + (b) + } 'Real property' includes { + :
(A) + } The land itself, above or under water;
{ + (B) + } All buildings, structures, improvements,
machinery, equipment or fixtures erected upon, above or affixed
to the { - same - } { + land + };
{ + (C) + } All mines, minerals, quarries and trees in, under
or upon the land;
{ + (D) + } All water rights and water powers and all other
rights and privileges in any { - wise - } { + way + }
appertaining to the land; { - and - } { + or
(E) + } Any estate, right, title or interest whatever in the
land or real property, less than the fee simple.
(2) Where the grantor of land has, in the instrument of
conveyance, reserved or conveyed:
(a) Any of the timber standing upon the land, with the right to
enter upon the ground and remove the timber, the ownership of the
standing timber so reserved or conveyed is an interest in real
property.
(b) The right to enter upon and use any of the surface ground
necessary for the purpose of exploring, prospecting for,
developing or otherwise extracting any gold, silver, iron,
copper, lead, coal, petroleum, gases, oils or any other metals,
minerals or mineral deposits in or upon the land, such right is
an interest in real property.
{ - (3) 'Land' means land in its natural state. For purposes
of assessment of property subject to assessment at assessed value
under ORS 308.146, land includes any site development made to the
land. 'Site development' includes fill, grading, leveling,
underground utilities, underground utility connections and any
other elements identified by rule of the Department of
Revenue. - }
{ + NOTE: + } Conforms structure to legislative form and
style; clarifies meaning.
SECTION 11. { + ORS 307.111 is added to and made a part of ORS
chapter 307. + }
{ + NOTE: + } Adds statute to appropriate series.
SECTION 12. ORS 307.242 is amended to read:
307.242. (1) Upon compliance with this section, whenever a
corporation, as { - defined - } { + described + } in ORS
307.375, is receiving or has received any federal or state
financial assistance, such as a loan, mortgage insurance, aid to
construction, rent supplement or otherwise, under the following
federal or state laws, the property owned or being purchased by
that corporation in actual use for corporate purposes or in the
process of construction for use for corporate purposes on January
1 of the assessment year is exempt from ad valorem taxation:
(a) Section 202 of Title II of the National Housing Act (12
U.S.C. 1701q).
(b) Section 236 of the National Housing Act (12
U.S.C. 1715z-1).
(c) Section 231 of Title II of the National Housing Act (12
U.S.C. 1715v).
(d) Section 101 of Title I of the National Housing Act (12
U.S.C. 1701s) or section 8 of Title II of the National Housing
Act (42 U.S.C. 1437f), providing rent supplement or housing
assistance payments.
(e) ORS 456.515 to 456.725 and 458.505 to 458.515.
(2) A corporation claiming the exemption under subsection (1)
of this section shall file with the county assessor, on forms
prescribed by the Department of Revenue and supplied by the
assessor, a written claim therefor in duplicate on or before
April 1 of each assessment year for which the exemption is
claimed. If the claim for any year is not filed within the time
specified, the exemption may not be allowed on the assessment
roll for that year. In addition to any other matters prescribed
by the Department of Revenue to be contained in or accompany the
claim, the claim shall:
(a) Declare or be accompanied by a declaration that the
corporation meets the requirements of ORS 307.375 and that the
property meets the requirements of ORS 307.243 (1);
(b) Describe or be accompanied by a description of the federal
financial assistance the corporation is receiving or has
received;
(c) Contain or be accompanied by a statement showing in detail
the sources and amounts of all income received by the corporation
and the basis for rental amounts charged for occupancy of the
facilities; and
(d) Be signed by the taxpayer subject to the penalties for
false swearing.
(3) Notwithstanding subsection (2) of this section:
(a) If the property qualifies for exemption on or after March 1
and before July 1, the claim may be filed within 30 days after
the date of qualification.
(b) A statement may be filed under this section at any time
prior to September 15 of the assessment year for which exemption
is first desired. However, any statement filed after the time for
filing the statement specified in subsection (2) of this section,
unless filed under paragraph (a) of this subsection, must be
accompanied by a late filing fee of the greater of $200 or
one-tenth of one percent of the real market value of the property
to which the statement pertains, as determined as of January 1 of
the assessment year by the assessor for this purpose. If the
statement is not accompanied by the late filing fee or if the
late filing fee is not otherwise paid, no exemption shall be
allowed for the year based upon a statement filed pursuant to
this subsection. A statement may be filed under this section
notwithstanding that there are no grounds for hardship as
required for late filing under ORS 307.475. The value of the
property used to determine the late filing fee under this section
is appealable in the same manner as other acts of the county
assessor. Any filing fee collected under this section shall be
deposited to the county general fund to be made available for
county general governmental expenses.
(4) The assessor shall act upon the claim and shall approve or
reject it, noting the action of the assessor upon both the
original and the duplicate copies. The duplicate copy therefor
shall be returned to the claimant.
(5) The Department of Revenue shall furnish to a county
assessor, upon the request of the county assessor, a statement
certifying the qualification or nonqualification of a corporation
under ORS 307.375 and this section based upon the corporation's
claim under this section.
(6) Residents of a facility of a corporation exempt from
taxation under this section { - may not be - } { + are
not + } entitled to the tax benefits of ORS 307.370 to 307.385.
{ + NOTE: + } Corrects terminology; clarifies intent.
SECTION 13. ORS 308.010 is amended to read:
308.010. (1) A registered appraiser shall be one who has
successfully qualified and is employed pursuant to county civil
service or state merit system requirements, or { + who is + }
currently certified by the { - Personnel Division - }
{ + Oregon Department of Administrative Services + } as having
successfully passed an examination for Property Appraiser I or
analogous merit system classification prepared by the
{ - Personnel Division - } { + Oregon Department of
Administrative Services + } and conducted and graded by the
{ - division - } { + Oregon Department of Administrative
Services + } or the appropriate county civil service body. Said
examination shall be approved by a standing five-member committee
of the Oregon State Association of County Assessors selected by
said association for that purpose. In no event shall the
qualifications for Property Appraiser I be less than those
applicable to state appraisal personnel of similar
classification. The Department of Revenue may revoke a
registration of an appraiser for fraud or deceit in appraising or
in the securing of a certificate or for incompetence.
(2) Any person who is a registered appraiser shall upon
application be given a written certificate thereof by the
particular civil service body that designated the necessary
requirements or conducted the particular examination for the
applicant.
(3) The { - Personnel Division - } { + Oregon Department of
Administrative Services + } shall set education and experience
requirements and formulate appropriate tests for the positions of
Property Appraiser II and Property Appraiser III { + , + } which
positions shall have the basic requirement of being a Property
Appraiser I.
(4)(a) Each person who is registered as an appraiser under this
section, under rules adopted by the Department { + of
Revenue + }, shall participate in a continuing education program
that increases technical competency. The education programs shall
include any of the following:
(A) Basic mass appraisal and advanced mass appraisal.
(B) Residential, rural, special assessment, commercial or
light-industrial appraisal.
(C) Property tax exemptions.
(D) Personal property appraisal.
(E) Ratio analysis.
(F) Computer applications.
(b) The Department { + of Revenue + } shall determine the
hourly value to be assigned to each education program and shall
by rule fix the number of hours that each person must have
completed prior to the { - filing - } date indicated under
paragraph (c) of this subsection.
(c) { - Prior to January 1, 1992, and prior to January 1 of
each year thereafter, - } Each person registered as an appraiser
under this section shall submit evidence satisfactory to the
Department { + of Revenue + } that the person has completed
continuing education requirements in accordance with rules
adopted by the Department { + of Revenue + } under this
subsection. { + The evidence must be submitted on or before
December 31 of the year in which the continuing education
requirements were completed. + }
(d) If the person does not submit the evidence required under
paragraph (c) of this subsection, the Department { + of
Revenue + } shall revoke the registration.
(e) The Department { + of Revenue + } may adopt conditions
under which continuing education requirements may be waived.
However, continuing education requirements may not be waived by
the Department { + of Revenue + } for more than three
consecutive years except for military service, retirement,
disability, absence from the state or for other instances of
individual hardship as determined by the Department { + of
Revenue + }.
{ + NOTE: + } Deletes outdated language; clarifies meaning.
SECTION 14. ORS 308.057 is amended to read:
308.057. (1) A county assessor must participate in the
continuing education described under ORS 308.010 and in addition
participate in continuing education that includes management and
assessment procedures. Proof of completion { - shall - }
{ + must + } be filed with the Department of Revenue { - prior
to January 1, 1992, and January 1 of each year thereafter in
accordance with rules adopted by the department - } { + on or
before December 31 of the year in which the continuing education
requirements were completed + }.
(2) If the county assessor does not complete the continuing
education as required under rules adopted by the department and
submit evidence satisfactory to the department, the department
may recommend to the county governing body that the county
governing body appoint a special assessor as provided under ORS
308.055.
{ + NOTE: + } Deletes outdated language; corrects word
choice.
SECTION 15. 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 - } { + subsection (1) of this section + }.
(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.
(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 ORS
271.729 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 ORS 271.729, 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.
{ + NOTE: + } Corrects internal reference.
SECTION 16. ORS 308.236 is amended to read:
308.236. (1) The availability, usefulness and cost of using
roads, including all roads of the owner of land or timber
{ - , - } and all roads { - which such - } { + that the + }
owner has the right to use, shall be taken into consideration in
determining the real market value of land, the immediate harvest
value of timber in eastern Oregon as defined in ORS 321.430 (3)
and the immediate harvest value of timber in western Oregon as
defined in ORS 321.257.
(2) Farm or grazing land roads and forest roads themselves,
except principal exterior timber access roads, shall not be
appraised, valued or assessed and they shall not be classed as
improvements under ORS 308.215. The underlying land upon which
roads are constructed shall be assessed if it is otherwise
subject to assessment.
(3) { - (a) - } As used in this section { - , - } { + : + }
{ + (a) + } 'Road' includes fills, ballast, bridges,
culverts, drains, surfacing and other appurtenances of a like
kind commonly associated with roads { - , - } but excludes
railroads.
(b) 'Principal exterior timber access roads' means those
portions of high standard main-line private roads that provide
access from a conversion center or public way to the exterior
boundary of the principal forest area served by the road. A high
standard main-line private road is a permanent road of two lanes
or more { - which - } { + that + } is paved { - , - }
{ + or + } macadamized { - , - } or { - with - } { + that
has a + } fine-gravel surface { - which - } { + that + } is
permanently and continuously maintained.
{ + NOTE: + } Corrects punctuation, grammar and syntax;
conforms structure to legislative form and style; clarifies
meaning.
SECTION 17. ORS 308.408 is amended to read:
308.408. As used in ORS { - 192.501 to 192.505, 305.190, - }
305.420 { - , 305.430, - } { + and + } 308.408 to 308.413
{ - and 308.990 (5) - } , ' industrial plant' includes:
(1) The land, buildings, structures and improvements, and the
tangible personal property, including but not limited to
machinery, equipment and office machines and equipment that make
up the property or complex of properties used for industrial or
manufacturing purposes;
(2) Any industrial real or personal property eligible for
appraisal under ORS 306.126 and the rules of the Department of
Revenue; and
(3) Any real or personal property used for generating
electricity, if:
(a) The property consists primarily of a generating facility
primarily fueled by wood waste or other biomass fuel;
(b) The property has a maximum generating capacity of 20
megawatts; and
(c) The electricity generated by the property is consumed by
the property user or is sold exclusively to an electric utility,
as defined in ORS 758.505, for the utility's distribution to
utility customers.
{ + NOTE: + } Deletes irrelevant statutory references.
SECTION 18. ORS 308.510 is amended to read:
308.510. (1) 'Property,' as used in ORS 308.505 to 308.665,
includes all property, real and personal, tangible and
intangible, used or held by a company as owner, occupant, lessee
{ - , - } or otherwise, for or in use in the performance or
maintenance of a business or service or in a sale of any
commodity, as set forth in ORS 308.515, whether or not such
activity is pursuant to any franchise, and includes but is not
limited to the lands and buildings, rights of way, roadbed, water
powers, vehicles, cars, rolling stock, tracks, wagons, horses,
office furniture, telegraph, telephone and transmission lines,
poles, wires, conduits, switchboards, machinery, appliances,
appurtenances, docks, watercraft irrespective of the place of
registry or enrollment, merchandise, inventories, tools,
equipment, machinery, franchises and special franchises, work in
progress and all other goods or chattels { + . 'Property' + }
{ - ; but - } does not include items of intangible property
that represent claims on other property including money at
interest, bonds, notes, claims, demands and all other evidences
of indebtedness, secured or unsecured, including notes, bonds or
certificates secured by mortgages, and all shares of stock in
corporations, joint stock companies or associations.
(2) All land of any railroad, logging road, electric rail or
trackless transportation company, or railroad switching and
terminal company, including land used or held and claimed
exclusively as right of way, with all the tracks and
substructures and superstructures { - which - } { + that + }
support the same, together with all sidetracks, second tracks,
turnouts, station houses, depots, roundhouses, engine houses,
machine shops, buildings or other structures, without separating
same into lands and improvements, is real property and the
rolling stock and all other property is personal property.
(3) Without especially defining and enumerating { - it, - }
{ + the treatment, the Department of Revenue shall treat + } all
land of any company { - is - } { + as + } real property, and
except as provided in subsection (2) of this section, all docks,
hangars, landing fields, exchanges, office buildings, bridges,
power plants, dams, reservoirs, substations, relay stations,
telegraph, telephone or transmission and distribution lines
located upon property owned by
{ - it - } { + the company + }, and all other buildings,
structures, improvements or fixtures of a permanent character
thereon, { - is - } { + as + } real property, and all other
property { - is - } { + as + } personal property.
(4)(a) Except as provided in ORS 308.517 (2) and in paragraphs
(b) and (c) of this subsection, the renting, leasing, chartering
or otherwise assigning of property exclusively for the use or
benefit of another shall not constitute a use by the lessor.
(b) A lessor shall be deemed the user of property rented,
leased or otherwise furnished by it to its employee as an
incident of employment.
(c) A rail transportation company shall be deemed the user of
property situated within its station ground reservations or
rights of way notwithstanding the fact that such property may be
leased, rented or otherwise assigned by it for the use or benefit
of another.
(5) Property found by the department { - of Revenue - } to
have an integrated use for or in more than one business, service
or sale, where at least one such business, service or sale is one
enumerated in ORS 308.515, shall be classified by the department
as being within or without the definition of property under
subsection (1) of this section, according to the primary use of
such property, as determined by the department.
(6) For purposes of determining the maximum assessed value of
property under section 11, Article XI of the Oregon Constitution,
' property' means all property assessed to each company that is
subject to assessment under ORS 308.505 to 308.665.
{ + NOTE: + } Corrects grammar and syntax.
SECTION 19. ORS 308.525 is amended to read:
308.525. Each statement required by ORS 308.520 shall contain
the following facts about the company:
(1) The name of the company, the nature of the business
conducted by the company { - , and under the laws of what - }
{ + and the + } state or country { - it - } { + under whose
laws the company + } is organized { - ; - } { + .
(2) + } The location of { - its - } { + the company's + }
principal office { - , - } { + and + } the name and
post-office address of its president, secretary, auditor,
treasurer, superintendent { - , - } and general manager
{ - ; - } { + .
(3) + } The name and post-office address of the chief officer
or managing agent or attorney in fact in Oregon.
{ - (2) - } { + (4) + } The number of shares of its capital
stock authorized and issued.
{ - (3) - } { + (5) + } The par value and market value, or
actual value if there is no market value, of each issued share of
stock on January 1 at 1:00 a.m. of the year in which the report
is made.
{ - (4) - } { + (6) + } The bonds and other corporate
obligations owing by the company.
{ - (5) - } { + (7) + } The par value and market value, or
actual value if there is no market value, of the bonds or other
obligations owing by the company on January 1 at 1:00 a.m. of the
year in which the report is made.
{ - (6) - } { + (8) + } A detailed statement of the real
property owned by the company in Oregon on January 1 at 1:00 a.m.
of the year in which the report is made, where situated, and the
cost thereof.
{ - (7) - } { + (9) + } A detailed statement of the
personal property owned by the company in Oregon on January 1 at
1:00 a.m. of the year in which the report is made, where
situated, and the cost thereof.
{ - (8) - } { + (10) + } A statement showing the cost of
all of the real property owned by the company as of January 1 at
1:00 a.m. of the year in which the report is made, whether
situated within or without the state.
{ - (9) - } { + (11) + } A statement showing the cost of
all of the personal property of the company as of January 1 at
1:00 a.m. of the year in which the report is made, whether
situated within or without the state.
{ - (10) - } { + (12) + } A full and complete statement of
the cost and book value of all buildings of every description
owned by the company within the state.
{ - (11) - } { + (13) + } The total length of the company's
lines or operational routes, the length of its lines or
operational routes within the State of Oregon, and also the
length of its lines or operational routes without the State of
Oregon, including those which the company controls or uses as
owner, lessee or otherwise.
{ - (12) - } { + (14) + } A statement of the number of
wire, pipe, pole or operational miles, and miles of main and
branch railroad lines, double track, spurs, yard tracks and
sidetracks, owned or leased by the company in each county in this
state, and each municipal subdivision thereof, stated separately.
{ - (13) - } { + (15) + } A statement in detail of the
entire gross receipts and net earnings of the company from all
sources, stated separately, for the fiscal year next preceding
the date of the report.
{ - (14) - } { + (16) + } Any other facts or information
the Department of Revenue requires in the form of return
prescribed by it.
{ + NOTE: + } Conforms structure to legislative form and
style; corrects grammar and syntax.
SECTION 20. ORS 308.559 is amended to read:
308.559. { + (1) As used in this section:
(a) 'Facility' includes all buildings or areas designed and
used exclusively for major work at or near an airport, except
passenger or freight terminals.
(b) 'Major work' includes all remodeling, renovation,
conversion, reconversion, repairs or scheduled maintenance
performed at a facility in which the total labor expended for the
work exceeds 10 work hours.
(c) 'Period of time' means the total time during which aircraft
are awaiting or undergoing major work in a facility. + }
{ - (1)(a) - } { + (2)(a) + } Any aircraft used or held for
use by an air transportation company is exempt from ad valorem
property taxation during the period of time it is undergoing
major work at a facility located in Oregon.
{ - (b) For purposes of this section: - }
{ - (A) 'Facility' includes all buildings or areas designed
and used exclusively for major work at or near an airport, except
passenger or freight terminals. - }
{ - (B) 'Major work' includes all remodeling, renovation,
conversion, reconversion, repairs or scheduled maintenance
performed at a facility in which the total labor expended for the
work exceeds 10 work hours. - }
{ - (C) 'Period of time' means the total time during which
aircraft are awaiting or undergoing major work in a facility. - }
{ - (c) - } { + (b) + } No exemption shall be granted under
this section unless the air transportation company provides
separate traffic statistics and other documentation demonstrating
the major work to the Department of Revenue as part of a report
filed either within the time required under ORS 308.520 or as
extended under ORS 308.535. If the department determines that
insufficient records and other information have been provided by
the air transportation company to substantiate the period of time
that aircraft are claimed to be involved in major work in a
facility, the department may deny the exemption.
{ - (2)(a)(A) - } { + (3)(a)(A) + } To the extent that an
air transportation company demonstrates in a report described in
paragraph (b) of this subsection, that an increase in Oregon air
traffic or an upgrade of aircraft type serving Oregon is a
rerouting necessary to accommodate major work at a facility, the
department shall exempt that portion of the allocation that
results solely from the rerouting.
(B) The airline transportation company shall provide prior
written notice of any rerouting to the department.
(b) Any exemption under this subsection shall be reviewed
annually by the department using documentation provided by the
air transportation company as part of the annual report filed
either within the time required by ORS 308.520 or as extended
under ORS 308.535.
{ + NOTE: + } Conforms structure to legislative form and
style.
SECTION 21. ORS 308.590 is amended to read:
308.590. (1) The Director of the Department of Revenue shall:
(a) Review, examine and correct the assessment roll made
pursuant to ORS 308.515 { - on behalf of the Department of
Revenue - } .
(b) Increase or reduce the valuation of property
{ - therein - } assessed { + on the roll + }so that the
valuation is the assessed value of the property.
(c) Assess omitted taxable property { - by it assessable, - }
{ + that is assessable by the Department of Revenue + }in the
manner provided in subsection { - (3) - } { + (4) + } of this
section.
(d) Correct errors in apportionments of assessments
{ - therein - } { + on the roll + }.
(e) Correct errors in the ratio of average maximum assessed
value to average real market value calculated under ORS 308.153.
(2) If it appears to the director that there is any real or
personal property { - which - } { + that + }, by law, the
department is permitted to assess { - , which has been by it
assessed twice - } { + that has been assessed by the department
multiple times + }, or incorrectly assessed as to description,
quantity or quality, or assessed in the name of a person or
company not the owner, lessee or occupant
{ - thereof - } { + of the property + }, or assessed under or
beyond the actual assessed value { - thereof - } { + of the
property + }, { - or which is not assessable by the department
but which has been assessed by it, - } the director may make
proper corrections { - of - } { + to + } the roll.
{ + (3) If it appears to the director that there has been any
real or personal property that has been assessed by the
department but that is not assessable by the department, the
director may make proper corrections to the roll. + }
{ - (3) - } { + (4) + } If it appears to the director that
any real or personal property { - which - } { + that + } is
assessable by the department has not been assessed upon the
assessment roll, the director shall assess { - such - }
{ + the + } property at { - the - } { + its + } assessed
value { - thereof - } .
{ - (4) - } { + (5) + } The property assessable by the
department within any county shall be apportioned by the
department to { - such - } { + the + } county at its assessed
value { - or at the percentage thereof - } { + as + } finally
adopted under ORS 309.203.
{ + NOTE: + } Clarifies meaning; corrects grammar.
SECTION 22. ORS 308A.071 is amended to read:
308A.071. (1) For purposes of ORS 308A.050 to 308A.128,
farmland or a farm parcel that is not within an area zoned for
exclusive farm use is not used exclusively for farm use unless
all of the prerequisites of subsections (2) to (5) of this
section are met.
(2)(a) Except as provided in subsection (6) of this section, in
three out of the five full calendar years immediately preceding
the assessment date, the farmland or farm parcel was operated as
a part of a farm unit that has produced a gross income from farm
uses in the following amount for a calendar year:
(A) If the farm unit consists of { - six - } { + 6-1/2 + }
acres or less, the gross income from farm use shall be at least
$650.
(B) If the farm unit consists of more than { - six - }
{ + 6-1/2 + } acres but less than 30 acres, the gross income
from farm use shall be at least equal to the product of $100
times the number of acres and any fraction of an acre of land
included.
(C) If the farm unit consists of 30 acres or more, the gross
income from farm use shall be at least $3,000.
(b) For purposes of determining the number of acres to be
considered under paragraph (a) of this subsection, the land
described in ORS 308A.056 (3) and the land, not exceeding one
acre, used as a homestead shall not be included.
(c) If a farm parcel is operated as part of a farm unit and the
farmland of the farm unit is not all under the same ownership,
the gross income requirements applicable to the farm parcel shall
be as provided under paragraph (a) of this subsection. In
addition, the gross income from farm use of a farm parcel
described under this paragraph must be at least:
(A) One-half of the gross income requirements described under
paragraph (a) of this subsection that would be required if the
farm parcel were the only farmland of the farm unit; or
(B) A cash or net share crop rental of one-quarter of the gross
income requirements described under paragraph (a) of this
subsection that would be required if the farm parcel were the
only farmland of the farm unit. For purposes of this
subparagraph, ' net share crop rental' means the value of any
crop received by the owner of the farm parcel less any costs
borne by the owner of the farm parcel.
(3) Excise or income tax returns are filed with the Department
of Revenue for purposes of ORS chapter 316, 317 or 318 by the
farmland owner or the operator of the farm unit that include a
Schedule F and, if applicable, by the owner of a farm parcel that
include a schedule or schedules showing rental income received by
the owner of the farm parcel, during the years to which the
income requirements of this section apply.
(4) Upon request, a copy of the returns or the schedules of the
returns showing the gross income received from farm use is
furnished by the taxpayer to the county assessor.
(5) The burden of proving the gross income of the farm unit for
the years described in subsection (2) of this section is upon the
person claiming special assessment for the land.
(6) The failure of a farm unit to produce the amount of gross
income required by subsection (2) of this section shall not
prevent the farm unit from meeting the qualifications of this
section if:
(a) The failure is because:
(A) The effect of flooding substantially precludes normal and
reasonable farming during the year; or
(B) Severe drought conditions are declared under ORS 536.700 to
536.780; and
(b) The farm unit produces the required amount of gross income
in three out of the last five nonflood or nondrought years.
(7) As used in this section:
(a) 'Farm parcel' means the contiguous land under the same
ownership, whether assessed as one or more than one tax lot.
{ - (b) 'Owner' or 'ownership' means any person described
under ORS 308A.077 (2)(b)(A), (B), (D) or (E) and spouse or other
person who is also an owner as tenant in common or other joint
ownership interest. - }
{ - (c) - } { + (b) + } 'Gross income' includes the value
of any crop or livestock that is used by the owner personally or
in the farming operation of the owner, but does not include:
(A) The value of any crop or livestock so used unless records
accurately reflecting both value and use of the crop or livestock
are kept by the owner in a manner consistent with generally
accepted accounting principles; and
(B) The purchase cost of livestock.
{ + (c) 'Owner' or 'ownership' means any person described
under ORS 308A.077 (2)(b)(A), (B), (D) or (E) and spouse or other
person who is also an owner as tenant in common or other joint
ownership interest. + }
{ + NOTE: + } Corrects mathematical formula; conforms
structure to legislative form and style.
SECTION 23. ORS 308A.077 is amended to read:
308A.077. (1) Any owner of nonexclusive farm use zone farmland
entitled to special assessment under ORS 308A.068 must, to secure
the assessment, make application therefor to the county assessor
on or before April 1 of the first year in which the assessment is
desired.
(2)(a) The application shall be made upon forms prepared by the
Department of Revenue and supplied by the county assessor and
shall include any information as may reasonably be required to
determine the entitlement of the applicant.
(b) The application may be signed by any one of the following:
(A) The owner of the farmland who holds an estate therein in
fee simple or for life.
(B) Any one of tenants in common or tenants by the entirety,
holding an estate in the farmland in fee simple or for life.
(C) Any person of legal age, duly authorized in writing to sign
an application on behalf of any person described in subparagraph
(A) or (B) of this paragraph.
(D) The guardian or conservator of an owner, or the executor or
administrator of an owner's estate.
(E) The purchaser of the fee simple or life estate of an owner
under a contract of sale.
(c) The assessor or the deputy of the assessor { - shall - }
{ + may + } not approve an application signed by a person whose
authority to sign is not a matter of public record unless there
is filed with the assessor a true copy of the deed, contract of
sale, power of attorney or other appropriate instrument
evidencing the signer's interest or authority. When filed with
the assessor only, such instrument shall not constitute a public
record.
(3) There shall be { - annexed - } { + attached + } to each
application the affidavit or affirmation of the applicant that
the statements contained therein are true.
{ + NOTE: + } Corrects word choice; substitutes preferred
term of prohibition.
SECTION 24. ORS 310.140 is amended to read:
310.140. The Legislative Assembly finds that section 11b,
Article XI of the Oregon Constitution, was drafted by citizens
and placed before the voters of the State of Oregon by initiative
petition. Section 11b, Article XI of the Oregon Constitution,
uses terms that do not have established legal meanings and
require definition by the Legislative Assembly. Section 11b,
Article XI of the Oregon Constitution, was amended by section 11
(11), Article XI of the Oregon Constitution. This section is
intended to interpret the terms of section 11b, Article XI of the
Oregon Constitution, as originally adopted and as amended by
section 11 (11), Article XI of the Oregon Constitution,
consistent with the intent of the people in adopting these
provisions, so that the provisions of section 11b, Article XI of
the Oregon Constitution, may be given effect uniformly throughout
the State of Oregon, with minimal confusion and misunderstanding
by citizens and affected units of government. As used in the
revenue and tax laws of this state, and for purposes of section
11b, Article XI of the Oregon Constitution:
{ - (1) 'Tax on property' means any tax, fee, charge or
assessment imposed by any government unit upon property or upon a
property owner as a direct consequence of ownership of that
property, but does not include incurred charges or assessments
for local improvements. As used in this subsection, 'property'
means real or tangible personal property, and intangible property
that is part of a unit of real or tangible personal property to
the extent that such intangible property is subject to a tax on
property. - }
{ + (1) 'Actual cost' means all direct or indirect costs
incurred by a government unit in order to deliver goods or
services or to undertake a capital construction project. The '
actual cost' of providing goods or services to a property or
property owner includes the average cost or an allocated portion
of the total amount of the actual cost of making a good or
service available to the property or property owner, whether
stated as a minimum, fixed or variable amount. 'Actual cost'
includes, but is not limited to, the costs of labor, materials,
supplies, equipment rental, property acquisition, permits,
engineering, financing, reasonable program delinquencies, return
on investment, required fees, insurance, administration,
accounting, depreciation, amortization, operation, maintenance,
repair or replacement and debt service, including debt service
payments or payments into reserve accounts for debt service and
payment of amounts necessary to meet debt service coverage
requirements.
(2) 'Assessment for local improvement' means any tax, fee,
charge or assessment that does not exceed the actual cost
incurred by a unit of government for design, construction and
financing of a local improvement.
(3) 'Bonded indebtedness' means any formally executed written
agreement representing a promise by a unit of government to pay
to another a specified sum of money, at a specified date or dates
at least one year in the future.
(4) 'Capital construction':
(a) For bonded indebtedness issued prior to December 5, 1996,
and for the proceeds of any bonded indebtedness approved by
electors prior to December 5, 1996, that were spent or
contractually obligated to be spent prior to June 20, 1997, means
the construction, modification, replacement, repair, remodeling
or renovation of a structure, or addition to a structure, that is
expected to have a useful life of more than one year, and
includes, but is not limited to:
(A) Acquisition of land, or a legal interest in land, in
conjunction with the capital construction of a structure.
(B) Acquisition, installation of machinery or equipment,
furnishings or materials that will become an integral part of a
structure.
(C) Activities related to the capital construction, such as
planning, design, acquisition of interim or permanent financing,
research, land use and environmental impact studies, acquisition
of permits or licenses or other services connected with the
construction.
(D) Acquisition of existing structures, or legal interests in
structures, in conjunction with the capital construction.
(b) For bonded indebtedness issued on or after December 5,
1996, except for the proceeds of any bonded indebtedness approved
by electors prior to December 5, 1996, that were spent or
contractually obligated to be spent before June 20, 1997, has the
meaning given that term in paragraph (a) of this subsection,
except that 'capital construction':
(A) Includes public safety and law enforcement vehicles with a
projected useful life of five years or more; and
(B) Does not include:
(i) Maintenance and repairs, the need for which could be
reasonably anticipated;
(ii) Supplies and equipment that are not intrinsic to the
structure; or
(iii) Furnishings, unless the furnishings are acquired in
connection with the acquisition, construction, remodeling or
renovation of a structure, or the repair of a structure that is
required because of damage or destruction of the structure.
(5) 'Capital improvements':
(a) For bonded indebtedness issued prior to December 5, 1996,
and for the proceeds of any bonded indebtedness approved by
electors before December 5, 1996, that were spent or
contractually obligated to be spent before June 20, 1997, means
land, structures, facilities, as that term is defined in ORS
288.805, machinery, equipment or furnishings having a useful life
longer than one year.
(b) For bonded indebtedness issued on or after December 5,
1996, except for the proceeds of any bonded indebtedness approved
by electors prior to December 5, 1996, that were spent or
contractually obligated to be spent before June 20, 1997, has the
meaning given that term in paragraph (a) of this subsection,
except that 'capital improvements':
(A) Includes public safety and law enforcement vehicles with a
projected useful life of five years or more; and
(B) Does not include:
(i) Maintenance and repairs, the need for which could be
reasonably anticipated;
(ii) Supplies and equipment that are not intrinsic to the
structure; or
(iii) Furnishings, unless the furnishings are acquired in
connection with the acquisition, construction, remodeling or
renovation of a structure, or the repair of a structure that is
required because of damage or destruction of the structure. + }
{ - (2) - } { + (6) + } 'Direct consequence of ownership'
means that the obligation of the owner of property to pay a tax
arises solely because that person is the owner of the property,
and the obligation to pay the tax arises as an immediate and
necessary result of that ownership without respect to any other
intervening transaction, condition or event.
{ + (7)(a) 'Exempt bonded indebtedness' means:
(A) Bonded indebtedness authorized by a specific provision of
the Oregon Constitution;
(B) Bonded indebtedness incurred or to be incurred for capital
construction or capital improvements that was issued as a general
obligation of the issuing governmental unit on or before November
6, 1990;
(C) Bonded indebtedness incurred or to be incurred for capital
construction or capital improvements that was issued as a general
obligation of the issuing governmental unit after November 6,
1990, with the approval of the electors of the issuing
governmental unit; or
(D) Bonded indebtedness incurred or to be incurred for capital
construction or capital improvements, if the issuance of the
bonds is approved by voters on or after December 5, 1996, in an
election that is in compliance with the voter participation
requirements of section 11 (8), Article XI of the Oregon
Constitution.
(b) 'Exempt bonded indebtedness' includes bonded indebtedness
issued to refund or refinance any bonded indebtedness described
in paragraph (a) of this subsection. + }
{ - (3)(a) - } { + (8)(a) + } 'Incurred charge' means a
charge imposed by a unit of government on property or upon a
property owner that does not exceed the actual cost of providing
goods or services and that can be controlled or avoided by the
property owner because:
(A) The charge is based on the quantity of the goods or
services used, and the owner has direct control over the
quantity;
(B) The goods or services are provided only on the specific
request of the property owner; or
(C) The goods or services are provided by the government unit
only after the individual property owner has failed to meet
routine obligations of ownership of the affected property, and
such action is deemed necessary by an appropriate government unit
to enforce regulations pertaining to health or safety.
(b) For purposes of this subsection, an owner of property may
control or avoid an incurred charge if the owner is capable of
taking action to affect the amount of a charge that is or will be
imposed or to avoid imposition of a charge even if the owner must
incur expense in so doing.
(c) For purposes of paragraph (a)(A) of this subsection, an
owner of property has direct control over the quantity of goods
or services if the owner of property has the ability, whether or
not that ability is exercised, to determine the quantity of goods
or services provided or to be provided.
{ - (4) 'Specific request' means: - }
{ - (a) An affirmative act by a property owner to seek or
obtain delivery of goods or services; - }
{ - (b) An affirmative act by a property owner, the legal
consequence of which is to cause the delivery of goods or
services to the property owner; or - }
{ - (c) Failure of an owner of property to change a request
for goods or services made by a prior owner of the property. - }
{ - (5) 'Routine obligations of ownership' means a standard
of operation, maintenance, use or care of property established by
law, or if established by custom or common law, a standard that
is reasonable for the type of property affected. - }
{ - (6) 'Assessment for local improvement' means any tax,
fee, charge or assessment that does not exceed the actual cost
incurred by a unit of government for design, construction and
financing of a local improvement. - }
{ - (7)(a) - } { + (9)(a) + } 'Local improvement' means a
capital construction project, or part thereof, undertaken by a
governmental unit, pursuant to ORS 223.387 to 223.399, or
pursuant to a local ordinance or resolution prescribing the
procedure to be followed in making local assessments for benefits
from a local improvement upon the lots that have been benefited
by all or a part of the improvement:
(A) That provides a special benefit only to specific properties
or rectifies a problem caused by specific properties;
(B) The costs of which are assessed against those properties in
a single assessment upon the completion of the project; and
(C) For which the property owner may elect to make payment of
the assessment plus appropriate interest over a period of at
least 10 years.
(b) For purposes of paragraph (a) of this subsection, the
status of a capital construction project as a local improvement
is not affected by the accrual of a general benefit to property
other than the property receiving the special benefit.
{ + (10) 'Maintenance and repairs, the need for which could
be reasonably anticipated':
(a) Means activities, the type of which may be deducted as an
expense under the provisions of the federal Internal Revenue
Code, as amended and in effect on December 31, 2000, that keep
the property in ordinarily efficient operating condition and that
do not add materially to the value of the property nor
appreciably prolong the life of the property;
(b) Does not include maintenance and repair of property that is
required by damage, destruction or defect in design, or that was
otherwise not reasonably expected at the time the property was
constructed or acquired, or the addition of material that is in
the nature of the replacement of property and that arrests the
deterioration or appreciably prolongs the useful life of the
property; and
(c) Does not include street and highway construction, overlay
and reconstruction.
(11) 'Projected useful life' means the useful life, as
reasonably estimated by the unit of government undertaking the
capital construction or capital improvement project, beginning
with the date the property was acquired, constructed or
reconstructed and based on the property's condition at the time
the property was acquired, constructed or reconstructed.
(12) 'Routine obligations of ownership' means a standard of
operation, maintenance, use or care of property established by
law, or if established by custom or common law, a standard that
is reasonable for the type of property affected. + }
{ - (8) - } { + (13) + } 'Single assessment' means the
complete assessment process, including preassessment, assessment
or reassessment, for any local improvement authorized by ORS
223.387 to 223.399, or a local ordinance or resolution that
provides the procedure to be followed in making local assessments
for benefits from a local improvement upon lots that have been
benefited by all or part of the improvement.
{ - (9) - } { + (14) + } 'Special benefit only to specific
properties ' shall have the same meaning as 'special and peculiar
benefit' as that term is used in ORS 223.389.
{ - (10) 'Actual cost' means all direct or indirect costs
incurred by a government unit in order to deliver goods or
services or to undertake a capital construction project. The '
actual cost' of providing goods or services to a property or
property owner includes the average cost or an allocated portion
of the total amount of the actual cost of making a good or
service available to the property or property owner, whether
stated as a minimum, fixed or variable amount. 'Actual cost'
includes, but is not limited to, the costs of labor, materials,
supplies, equipment rental, property acquisition, permits,
engineering, financing, reasonable program delinquencies, return
on investment, required fees, insurance, administration,
accounting, depreciation, amortization, operation, maintenance,
repair or replacement and debt service, including debt service
payments or payments into reserve accounts for debt service and
payment of amounts necessary to meet debt service coverage
requirements. - }
{ - (11) 'Bonded indebtedness' means any formally executed
written agreement representing a promise by a unit of government
to pay to another a specified sum of money, at a specified date
or dates at least one year in the future. - }
{ - (12)(a) 'Exempt bonded indebtedness' means: - }
{ - (A) Bonded indebtedness authorized by a specific
provision of the Oregon Constitution; - }
{ - (B) Bonded indebtedness incurred or to be incurred for
capital construction or capital improvements that was issued as a
general obligation of the issuing governmental unit on or before
November 6, 1990; - }
{ - (C) Bonded indebtedness incurred or to be incurred for
capital construction or capital improvements that was issued as a
general obligation of the issuing governmental unit after
November 6, 1990, with the approval of the electors of the
issuing governmental unit; or - }
{ - (D) Bonded indebtedness incurred or to be incurred for
capital construction or capital improvements, if the issuance of
the bonds is approved by voters on or after December 5, 1996, in
an election that is in compliance with the voter participation
requirements of section 11 (8), Article XI of the Oregon
Constitution. - }
{ - (b) 'Exempt bonded indebtedness' includes bonded
indebtedness issued to refund or refinance any bonded
indebtedness described in paragraph (a) of this subsection. - }
{ - (13) 'Capital construction': - }
{ - (a) For bonded indebtedness issued prior to December 5,
1996, and for the proceeds of any bonded indebtedness approved by
electors prior to December 5, 1996, that were spent or
contractually obligated to be spent prior to June 20, 1997, means
the construction, modification, replacement, repair, remodeling
or renovation of a structure, or addition to a structure, that is
expected to have a useful life of more than one year, and
includes, but is not limited to: - }
{ - (A) Acquisition of land, or a legal interest in land, in
conjunction with the capital construction of a structure. - }
{ - (B) Acquisition, installation of machinery or equipment,
furnishings or materials that will become an integral part of a
structure. - }
{ - (C) Activities related to the capital construction, such
as planning, design, acquisition of interim or permanent
financing, research, land use and environmental impact studies,
acquisition of permits or licenses or other services connected
with the construction. - }
{ - (D) Acquisition of existing structures, or legal
interests in structures, in conjunction with the capital
construction. - }
{ - (b) For bonded indebtedness issued on or after December
5, 1996, except for the proceeds of any bonded indebtedness
approved by electors prior to December 5, 1996, that were spent
or contractually obligated to be spent before June 20, 1997, has
the meaning given that term in paragraph (a) of this subsection,
except that 'capital construction': - }
{ - (A) Includes public safety and law enforcement vehicles
with a projected useful life of five years or more; and - }
{ - (B) Does not include: - }
{ - (i) Maintenance and repairs, the need for which could be
reasonably anticipated; - }
{ - (ii) Supplies and equipment that are not intrinsic to the
structure; or - }
{ - (iii) Furnishings, unless the furnishings are acquired in
connection with the acquisition, construction, remodeling or
renovation of a structure, or the repair of a structure that is
required because of damage or destruction of the structure. - }
{ + (15) 'Specific request' means:
(a) An affirmative act by a property owner to seek or obtain
delivery of goods or services;
(b) An affirmative act by a property owner, the legal
consequence of which is to cause the delivery of goods or
services to the property owner; or
(c) Failure of an owner of property to change a request for
goods or services made by a prior owner of the property. + }
{ - (14) - } { + (16) + } 'Structure' means any temporary
or permanent building or improvement to real property of any kind
that is constructed on or attached to real property, whether
above, on or beneath the surface.
{ - (15) 'Capital improvements': - }
{ - (a) For bonded indebtedness issued prior to December 5,
1996, and for the proceeds of any bonded indebtedness approved by
electors before December 5, 1996, that were spent or
contractually obligated to be spent before June 20, 1997, means
land, structures, facilities, as that term is defined in ORS
288.805, machinery, equipment or furnishings having a useful life
longer than one year. - }
{ - (b) For bonded indebtedness issued on or after December
5, 1996, except for the proceeds of any bonded indebtedness
approved by electors prior to December 5, 1996, that were spent
or contractually obligated to be spent before June 20, 1997, has
the meaning given that term in paragraph (a) of this subsection,
except that 'capital improvements': - }
{ - (A) Includes public safety and law enforcement vehicles
with a projected useful life of five years or more; and - }
{ - (B) Does not include: - }
{ - (i) Maintenance and repairs, the need for which could be
reasonably anticipated; - }
{ - (ii) Supplies and equipment that are not intrinsic to the
structure; or - }
{ - (iii) Furnishings, unless the furnishings are acquired in
connection with the acquisition, construction, remodeling or
renovation of a structure, or the repair of a structure that is
required because of damage or destruction of the structure. - }
{ - (16) 'Maintenance and repairs, the need for which could
be reasonably anticipated': - }
{ - (a) Means activities, the type of which may be deducted
as an expense under the provisions of the federal Internal
Revenue Code, as amended and in effect on December 31, 2000, and
that keep the property in ordinarily efficient operating
condition, and that do not add materially to the value of the
property nor appreciably prolong the life of the property; - }
{ - (b) Does not include maintenance and repair of property
that is required by damage, destruction or defect in design, or
that was otherwise not reasonably expected at the time the
property was constructed or acquired, or the addition of material
that is in the nature of the replacement of property and that
arrests the deterioration or appreciably prolongs the useful life
of the property; and - }
{ - (c) Does not include street and highway construction,
overlay and reconstruction. - }
(17) 'Supplies and equipment intrinsic to a structure ' means
the supplies and equipment that are necessary to permit a
structure to perform the functions for which the structure was
constructed, or that will, upon installation, constitute fixtures
considered to be part of the real property that is comprised, in
whole or part, of the structure and land supporting the
structure.
{ - (18) 'Projected useful life' means the useful life, as
reasonably estimated by the unit of government undertaking the
capital construction or capital improvement project, beginning
with the date the property was acquired, constructed or
reconstructed and based on the property's condition at the time
the property was acquired, constructed or reconstructed. - }
{ + (18) 'Tax on property' means any tax, fee, charge or
assessment imposed by any government unit upon property or upon a
property owner as a direct consequence of ownership of that
property, but does not include incurred charges or assessments
for local improvements. As used in this subsection, 'property'
means real or tangible personal property, and intangible property
that is part of a unit of real or tangible personal property to
the extent that such intangible property is subject to a tax on
property. + }
{ + NOTE: + } Conforms structure to legislative form and
style.
SECTION 25. ORS 310.202 is amended to read:
310.202. As used in ORS 310.200 to 310.242:
(1) 'Local option taxes' means taxes described under section 11
(4) or (7)(c), Article XI of the Oregon Constitution, and does
not include serial levies or continuing levies first imposed in
the tax year beginning July 1, 1997, that merely replace serial
or one-year levies imposed in the tax year beginning July 1,
1996.
(2) 'Measure 5 assessed value rate' means the rate determined
under ORS 310.238.
(3) 'Measure 5 imposed tax estimate' means the amount
determined under ORS 310.210 solely for purposes of tax reduction
distribution and is not the amount of tax actually to be imposed
on property for the tax year.
(4) 'Measure 5 value' means the real market value of taxable
property that is not subject to special assessment or the
specially assessed value of property subject to special
assessment.
(5) 'Measure 47 comparison taxes' means taxes calculated under
ORS 310.212. The Legislative Assembly is expressly not adopting
by reference any provision of repealed Ballot Measure 47 (1996)
under ORS 310.200 to 310.242.
(6) 'Operating taxes' has the meaning given that term in ORS
310.055.
{ - (7) 'Qualified taxing district obligations' means any
portion of a local taxing district levy that is used to
repay: - }
{ - (a) Principal and interest for any bond issued before
December 5, 1996, and secured by a pledge or explicit commitment
of ad valorem property taxes or a covenant to levy or collect ad
valorem property taxes; - }
{ - (b) Principal and interest for any other formal, written
borrowing of moneys executed before December 5, 1996, for which
ad valorem property tax revenues have been pledged or explicitly
committed, or that are secured by a covenant to levy or collect
ad valorem property taxes; - }
{ - (c) Principal and interest for any bond issued to refund
an obligation described in paragraph (a) or (b) of this
subsection; or - }
{ - (d) Local government pension and disability plan
obligations that commit ad valorem property taxes and the ad
valorem property taxes imposed to fulfill those obligations. - }
{ - (8) - } { + (7) + } 'Permanent rate limit on operating
taxes' means a taxing district's maximum rate of operating taxes
allowed under section 11 (3), Article XI of the Oregon
Constitution.
{ - (9) - } { + (8) + } 'Pre-reduction Measure 50 taxes'
means the amount determined by subtracting those taxes not
subject to reduction under section 11 (3), Article XI of the
Oregon Constitution, from the Measure 5 imposed tax estimate.
{ + (9) 'Qualified taxing district obligations' means any
portion of a local taxing district levy that is used to repay:
(a) Principal and interest for any bond issued before December
5, 1996, and secured by a pledge or explicit commitment of ad
valorem property taxes or a covenant to levy or collect ad
valorem property taxes;
(b) Principal and interest for any other formal, written
borrowing of moneys executed before December 5, 1996, for which
ad valorem property tax revenues have been pledged or explicitly
committed, or that are secured by a covenant to levy or collect
ad valorem property taxes;
(c) Principal and interest for any bond issued to refund an
obligation described in paragraph (a) or (b) of this subsection;
or
(d) Local government pension and disability plan obligations
that commit ad valorem property taxes and the ad valorem property
taxes imposed to fulfill those obligations. + }
(10) 'Statutory rate limit on operating taxes' means the
maximum rate of operating taxes that may be imposed after
supplemental statutory reduction under ORS 310.222 (6).
(11) 'Urban renewal increment' has the meaning given the term
'increment' in ORS 457.010.
{ + NOTE: + } Conforms structure to legislative form and
style.
SECTION 26. ORS 310.635 is amended to read:
310.635. (1) A taxpayer who is eligible for elderly rental
assistance shall be granted the rental assistance either in the
amount determined under subsection (2) of this section or by
using the schedule for renters set forth in subsection (3) of
this section, whichever is greater. A taxpayer is eligible for
elderly rental assistance under this section if:
(a) The taxpayer is 58 years of age or older before the close
of the calendar year immediately preceding the year in which the
rental assistance is claimed;
(b) The household income of the taxpayer is less than $10,000;
(c) The gross rent of the taxpayer is in excess of 20 percent
of household income; and
(d) The taxpayer files a claim with the Department of Revenue
as required by ORS 310.657.
(2) A taxpayer eligible for elderly rental assistance under
this section shall be paid by the Department { + of Revenue + }
an amount equal to the positive difference between the taxpayer's
gross rent, not to exceed $2,100, and 20 percent of household
income.
(3) The schedule for renters referred to in subsection (1) of
this section is:
_________________________________________________________________
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Maximum
Refundable
Rent
Household Constituting
Income Property Tax
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
$ 0 - 499 $ 250
500 - 999 245
1,000 1,499 238
1,500 1,999 228
2,000 2,499 217
2,500 2,999 205
3,000 3,499 192
3,500 3,999 179
4,000 4,499 165
4,500 4,999 151
5,000 5,499 136
5,500 5,999 121
6,000 6,499 106
6,500 6,999 91
7,000 7,499 77
7,500 7,999 63
8,000 8,499 50
8,500 8,999 38
9,000 9,499 27
9,500 9,999 18
_________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
(4) The elderly rental assistance payments required by
subsection (2) of this section shall be made by the Department
{ + of Revenue + } during the month of October.
(5) The elderly rental assistance granted under this section
applies to gross rent paid in the calendar year for which the
claim is filed.
(6) { - (a) - } { + The Department of Revenue may not grant
elderly rental assistance under this section:
(a) To + } a person who is, as of December 31 of the year for
which elderly rental assistance is claimed, a tenant-stockholder
of a cooperative housing corporation or a resident of a nonprofit
home for the elderly owned or being purchased by a corporation
described in ORS 307.375 { - may not be granted elderly rental
assistance - } .
(b) { - Elderly rental assistance may not be granted under
this section - } For less than $1, after offsets for all amounts
owed to the state.
(c) { - Elderly rental assistance may not be granted under
this section - } For any period during which the taxpayer's
needs were included in a payment made by the { - Adult and
Family Services Division - } { + Department of Human
Services + } pursuant to ORS 418.172. However, if it is
determined that the taxpayer's needs were included in a payment
made by the { - Adult and Family Services Division - }
{ + Department of Human Services + } under ORS 418.172 and the
taxpayer is eligible for the period for elderly rental assistance
in an amount greater than the payment, the Department { + of
Revenue + } shall grant elderly rental assistance in the amount
of the difference.
(7) Elderly rental assistance allowed pursuant to this section
is not subject to garnishment under ORS 18.600 to 18.850, except
by a government entity.
{ + NOTE: + } Identifies department; restructures subsection
(6); updates obsolete references to division.
SECTION 27. ORS 311.216 is amended to read:
311.216. (1) Whenever the assessor discovers or receives
credible information, or if the assessor has reason to believe
that any real or personal property, including property subject to
assessment by the Department of Revenue, or any buildings,
structures, improvements or timber on land previously assessed
without the same, has from any cause been omitted, in whole or in
part, from assessment and taxation on the current assessment and
tax rolls or on any such rolls for any year or years not
exceeding five years prior to the last { + certified + } roll
{ - so returned - } , the assessor shall give notice as provided
in ORS 311.219.
(2) Property or the excess cost of property, after adjustment
to reflect real market value, shall be presumed to be omitted
property subject to additional assessment as provided in ORS
311.216 to 311.232 { - , - } whenever the assessor discovers or
receives credible information:
(a) That the addition of any building, structure, improvement,
machinery or equipment was not reported in a return filed under
ORS 308.285 or 308.290; or
(b) That the cost as of January 1 of any building, structure,
improvement, machinery or equipment reported in a return required
by the assessor under ORS 308.285 or 308.290 exceeds the cost
stated in the return.
(3) If the tax collector discovers or receives credible
information or if the tax collector has reason to believe that
any property subject to taxation has been omitted from the tax
roll, the tax collector shall immediately bring this to the
attention of the assessor by written notice.
{ + NOTE: + } Updates archaic terminology; corrects
punctuation.
SECTION 28. ORS 312.060 is amended to read:
312.060. (1) Application for judgment and decree foreclosing
any tax lien shall be in writing, shall be verified, and shall
contain a succinct statement of the cause of suit. All amendments
may be made { - which - } { + that + } are permissible in any
civil action. The application for judgment and decree, together
with a certified copy of the foreclosure list, shall be filed
with the clerk of the court on the day of the first publication
of the foreclosure list.
(2) No assessment of property or charge for taxes shall be
considered invalid because of:
(a) An irregularity in an assessment roll.
(b) An assessment roll not having been made, completed or
{ - returned - } { + certified + } within the time prescribed
by law.
(c) The property having been listed or charged in an assessment
or tax roll without any name, or with a name other than that of
the owner.
(3) No error or informality on the part of any officer in
connection with assessment, equalization, levy or collection
shall vitiate or affect the assessment of the property or the
taxes thereon.
(4) Any such irregularity, informality, omission or other error
may, in the discretion of the court, be corrected to conform to
law.
{ + NOTE: + } Updates archaic terminology; corrects grammar.
SECTION 29. { + Notwithstanding any other provision of law,
ORS 314.029 shall not be considered to have been added to or made
a part of ORS chapter 316 for the purpose of statutory
compilation or for the application of definitions, penalties or
administrative provisions applicable to statute sections in that
chapter. + }
{ + NOTE: + } Removes section from inappropriate series.
SECTION 30. { + Notwithstanding any other provision of law,
ORS 314.031 shall not be considered to have been added to or made
a part of ORS 317.314 to 317.392 for the purpose of statutory
compilation or for the application of definitions, penalties or
administrative provisions applicable to statute sections in that
series. + }
{ + NOTE: + } Removes section from inappropriate series.
SECTION 31. ORS 314.210 is amended to read:
314.210. { + Profits shall be excluded from gross income for a
prior tax year if:
(1) + } { - If - } A renegotiation or repricing { - has
been or shall be - } { + is + } made in respect to a contract
with the United States or any agency { - thereof - } { + of
the United States + }, or any subcontract thereunder { - ,
which - } { + ;
(2) The contract or subcontract + } was entered into by a
taxpayer subject to a tax under any law of this state imposing a
tax on or measured by net income { + ;
(3) The taxpayer received or accrued + } { - and the amount
of - } excessive profits { - received or accrued - } under the
contract or subcontract during a { - taxable year or years
(hereafter referred to in this section as prior taxable year or
years) has - } { + prior tax year;
(4) The excessive profits were included in taxable income in
this state for a prior tax year; and
(5) The excessive profits have + } been eliminated { - , - }
and { + : + }
{ - (1) If in a taxable year ending after December 31, 1940,
a - }
{ + (a) The + } taxpayer is required to pay { - or
repay - } { + the amount of eliminated profits + } to the
United States or any agency { - thereof the amount of profits
so eliminated, - } { + of the United States; + }or
{ - (2) - } { + (b) + } { - If - } The amount of
{ + eliminated + } profits { - so eliminated - } is applied
as an offset against any other amount due the taxpayer { + . + }
{ - , - }
{ - then the profits so eliminated shall be excluded from gross
income for the prior taxable year or years if they were included
in gross income for such prior taxable year or years under any
law of this state imposing a tax on or measured by net
income. - }
{ + NOTE: + } Conforms structure to legislative form and
style; replaces outdated language.
SECTION 32. ORS 315.113 is amended to read:
315.113. (1) As used in this section:
(a) 'Crop' means the total yearly production of an agricultural
commodity, not including livestock, that is harvested from a
specified area.
(b) 'Riparian land' means land in this state that:
(A) Borders both a river, stream or other natural watercourse
and land that is in farm production; and
(B) Does not exceed a width of 35 feet between the land that is
in farm production and the bank of the river, stream or other
natural watercourse.
(c) 'Share-rent agreement' means an agreement in which the
person who engages in farming operations and the person who owns
the land where the farming operations are conducted share the
crop grown on that land or the profits from that crop.
(2) A taxpayer may claim a credit against the taxes otherwise
due under ORS chapter 316, 317 or 318 for 75 percent of the
market value of crops forgone when riparian land is voluntarily
taken out of farm production.
(3) A credit under this section may be claimed only if:
(a) The taxpayer owns the riparian land that is the basis of
the credit;
(b) The taxpayer is actively engaged in farming operations on
land adjacent to the riparian land;
(c) The riparian land was in farm production for the previous
tax year or a credit under this section was claimed during the
previous tax year;
(d) The conservation practices employed on the riparian land
are consistent with the agricultural water quality management
plan administered by the State Department of Agriculture in the
applicable river basin management area; and
(e) The decision to remove the riparian land from farm
production was a voluntary decision and not the result of a
federal, state or local law or government decision requiring the
riparian land to be taken out of farm production. For purposes of
this paragraph, action taken by a taxpayer under an agricultural
water quality management plan administered by the State
Department of Agriculture is not the result of a government
decision requiring the land to be taken out of farm production.
(4)(a) The amount of the credit shall be calculated by
multiplying the market value per acre of the forgone crop by the
acreage of the riparian land that is not in farm production and
multiplying that product by 75 percent.
(b) For the first tax year for which a credit is claimed under
this section, the forgone crop for which a value is determined
under this section shall be the crop grown on the land in the
previous tax year.
(c) For a tax year following the first tax year for which a
credit is claimed under this section, the forgone crop for which
a value is determined under this section shall be the crop for
which the value was determined for the { - preceding - }
{ + previous + } tax year.
(d) If a taxpayer does not claim a credit under this section
for a tax year, any credit claimed in a subsequent tax year shall
be treated as the first tax year for which a credit is claimed
under this section.
(5) Notwithstanding subsection (3)(a) and (b) of this section,
if the riparian land that is the basis of a credit under this
section is adjacent to land that is in farm production under a
share-rent agreement, the taxpayer that is engaged in farming
operations and the taxpayer that is the landowner may each claim
a credit under this section. The amount of the credit shall be
allocated to each taxpayer in the proportion that the share-rent
agreement allocates crop proceeds to each of those taxpayers. The
total amount of credit allowed to both taxpayers under this
subsection may not exceed the amount of the credit otherwise
allowable under this section if the farming operations were not
subject to a share-rent agreement.
(6) Notwithstanding subsections (3)(a) and (5) of this section,
if the taxpayer is actively engaged in farming operations and
pays the landowner in cash, the taxpayer may claim all of the
credit available under this section.
(7) The credit allowed in any one tax year may not exceed the
tax liability of the taxpayer.
(8) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular tax year may be
carried forward and offset against the taxpayer's tax liability
for the next succeeding tax year. Any credit remaining unused in
the next succeeding tax year may be carried forward and used in
the second succeeding tax year. Any credit remaining unused in
the second succeeding tax year may be carried forward and used in
the third succeeding tax year. Any credit remaining unused in the
third succeeding tax year may be carried forward and used in the
fourth succeeding tax year. Any credit remaining unused in the
fourth succeeding tax year may be carried forward and used in the
fifth succeeding tax year, but may not be used in any tax year
thereafter.
(9) In the case of a credit allowed under this section for
purposes of ORS chapter 316:
(a) A nonresident shall be allowed the credit in the same
manner and subject to the same limitations as a resident.
However, the credit shall be prorated using the proportion
provided in ORS 316.117.
(b) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085 or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed by this section shall be prorated or computed in a
manner consistent with ORS 314.085.
(c) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
(10) If a taxpayer that has claimed a credit under this section
places the riparian land for which the credit is claimed back in
farm production, the taxpayer may not claim a credit under this
section for five tax years following the year the riparian land
was placed back in farm production.
(11) The Department of Revenue may adopt rules prescribing
procedures for identifying forgone crops and for establishing the
market value of forgone crops.
{ + NOTE: + } Makes terminology consistent.
SECTION 33. ORS 315.262, as amended by section 1, chapter 867,
Oregon Laws 2001, is amended to read:
315.262. (1) As used in this section:
(a) 'Child care' means care provided to a qualifying child of
the taxpayer for the purpose of allowing the taxpayer to be
gainfully employed, to seek employment or to attend school on a
full-time or part-time basis, except that the term does not
include care provided by:
(A) The child's parent or guardian, unless the care is provided
by the parent in a { - licensed - } { + certified + } or
registered child care facility; or
(B) A child of the taxpayer who has not yet attained 19 years
of age at the close of the tax year.
(b) 'Child care expenses' means the costs associated with
providing child care to a qualifying child of a qualified
taxpayer.
(c) 'Earned income' has the meaning given that term in section
32 of the Internal Revenue Code.
(d) 'Qualified taxpayer' means a taxpayer:
(A) With at least $6,000 of earned income for the tax year;
(B) With federal adjusted gross income for the tax year that
does not exceed 250 percent of the federal poverty level; and
(C) Who does not have more than the maximum amount of
disqualified income under section 32(i) of the Internal Revenue
Code that is allowed to a taxpayer entitled to the earned income
tax credit for federal tax purposes.
(e) 'Qualifying child' means a child of the taxpayer who is
under 13 years of age, or who is a disabled child, as that term
is defined in ORS 316.099.
(2) A qualified taxpayer shall be allowed a credit against the
taxes otherwise due under ORS chapter 316 equal to the applicable
percentage of the qualified taxpayer's child care expenses
(rounded to the nearest $50).
(3) The applicable percentage to be used in calculating the
amount of the credit provided in this section shall be determined
in accordance with the following table:
_________________________________________________________________
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Applicable Federal Adjusted
Percentage Gross Income as Percent
of Federal Poverty Level
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
40 200 or less
36 Greater than 200 and less than
or equal to 210
32 Greater than 210 and less than
or equal to 220
24 Greater than 220 and less than
or equal to 230
16 Greater than 230 and less than
or equal to 240
8 Greater than 240 and less than
or equal to 250
0 Greater than 250 percent
of federal poverty level
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
_________________________________________________________________
(4) The credit shall be claimed on such form and containing
such information as may be prescribed by the Department of
Revenue.
(5) In the case of a credit allowed under this section:
(a) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
(b) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
(c) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed under this section shall be prorated or computed
in a manner consistent with ORS 314.085.
(d) In the case of a qualified taxpayer who is married, a
credit shall be allowed under this section only if:
(A) The taxpayer files a joint return;
(B) The taxpayer files a separate return and is legally
separated or subject to a separate maintenance agreement; or
(C) The taxpayer files a separate return and the taxpayer and
the taxpayer's spouse reside in separate households on the last
day of the tax year with the intent of remaining in separate
households in the future.
(6)(a) If the amount allowable as a credit under this section,
when added to the sum of the amounts allowable as payment of tax
under ORS 316.187 (withholding), ORS 316.583 (estimated tax),
other tax prepayment amounts and other refundable credit amounts,
exceeds the taxes imposed by ORS chapters 314 and 316 for the tax
year (reduced by any nonrefundable credits allowable for purposes
of ORS chapter 316 for the tax year), the amount of the excess
shall be refunded to the taxpayer as provided in this subsection.
(b) Except that refunds attributable to the child care tax
credit shall be made from the moneys transferred under paragraph
(c) of this subsection, any refund described in paragraph (a) of
this subsection shall be paid from the Department of Revenue
suspense account established under ORS 293.445.
(c) Moneys necessary to make refunds attributable to the child
care tax credit shall be transferred from and are continuously
appropriated from the General Fund to the Department of Revenue
suspense account established under ORS 293.445 for the purpose of
making the refunds required under this section.
(7)(a) The minimum amount of earned income a taxpayer must earn
in order to be a qualified taxpayer shall be adjusted for tax
years beginning in each calendar year by multiplying $6,000 by
the ratio of the monthly averaged U.S. City Average Consumer
Price Index for the 12 consecutive months ending August 31 of the
prior calendar year over the monthly averaged index for the
second quarter of the calendar year 1998.
(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 adjustment determined under paragraph (a) of this
subsection is not a multiple of $50, the adjustment shall be
rounded to the nearest multiple of $50.
(d) Notwithstanding paragraphs (a) to (c) of this subsection,
the adjusted minimum amount of earned income a taxpayer must earn
may not exceed the amount an individual would earn if the
individual worked 1,040 hours at the minimum wage established
under ORS 653.025 and in effect on January 1 of the calendar year
in which begins the tax year of the taxpayer, rounded to the next
lower multiple of $50.
{ + NOTE: + } Corrects terminology in subsection (1)(a)(A).
SECTION 34. ORS 316.007 is amended to read:
316.007. It is the intent of the Legislative Assembly, by the
adoption of this chapter, insofar as possible, to { + :
(1) + } Make the Oregon personal income tax law identical in
effect to the provisions of the { - federal - } Internal
Revenue Code relating to the measurement of taxable income of
individuals, estates and trusts, modified as necessary by the
state's jurisdiction to tax and the revenue needs of the state;
{ - to - }
{ + (2) + } Achieve this result by the application of the
various provisions of the { - federal - } Internal Revenue
Code relating to the definition of income, exceptions and
exclusions therefrom, deductions (business and personal),
accounting methods, taxation of trusts, estates and partnerships,
basis, depreciation and other pertinent provisions relating to
gross income as defined therein, modified as provided in this
chapter, resulting in a final amount called 'taxable income'; and
{ - to - }
{ + (3) + } Impose a tax on residents of this state measured
by taxable income wherever derived and to impose a tax on the
income of nonresidents that is ascribable to sources within this
state.
{ + NOTE: + } Conforms structure to legislative form and
style; deletes redundant terminology.
SECTION 35. ORS 316.018 is amended to read:
316.018. The Payment-in-Kind Tax Treatment Act of 1983 (P.L.
98-4, as amended by section 1061 of P.L. 98-369) { - shall
apply - } { + applies + } for purposes of determining Oregon
taxable income under this chapter, notwithstanding that the Act
is not part of the Internal Revenue Code.
{ + NOTE: + } Clarifies terminology.
SECTION 36. ORS 316.024 is amended to read:
316.024. Section 243 of the Tax Reform Act of 1986 (P.L.
99-514) { - shall - } { + does + } not apply for purposes of
determining taxable income under this chapter.
{ + NOTE: + } Clarifies terminology.
SECTION 37. ORS 316.037 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_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
If taxable income The tax is:
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Not over $2,000 5% of
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
taxable
income
Over $2,000 but not
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
over $5,000 $100 plus 7%
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $2,000
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Over $5,000 $310 plus 9%
____NOTE_TO_WEB_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 - }
{ + that + } 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.
(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 - } { + lower + } multiple of
$50.
(2) 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) 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) 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) of this section.
{ + NOTE: + } Corrects grammar; clarifies intent.
SECTION 37a. If chapter 4, Oregon Laws 2002 (fifth special
session), is approved by the voters at the special election held
throughout this state on January 28, 2003, ORS 316.037, as
amended by section 1, chapter 4, Oregon Laws 2002 (fifth special
session), 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_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
If taxable income The tax is:
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Not over $2,000 5% of
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
taxable
income
Over $2,000 but not
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
over $5,000 $100 plus 7%
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $2,000
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Over $5,000 $310 plus 9.5%
____NOTE_TO_WEB_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 - }
{ + that + } 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.
(e) If any increase determined under paragraph (b) of this
subsection is not a multiple of $25, the increase shall be
rounded to the next { - lowest - } { + lower + } multiple of
$25.
(2) 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) 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) 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) of this section.
{ + NOTE: + } Corrects grammar; clarifies intent.
SECTION 37b. { + + } If chapter 4, Oregon Laws 2002 (fifth
special session), is approved by the voters at the special
election held throughout this state on January 28, 2003, { + + }
ORS 316.037, as amended by sections 1 and 3, chapter 4, Oregon
Laws 2002 (fifth special session), 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_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
If taxable income The tax is:
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Not over $2,000 5% of
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
taxable
income
Over $2,000 but not
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
over $5,000 $100 plus 7%
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $2,000
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Over $5,000 $310 plus 9%
____NOTE_TO_WEB_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 - }
{ + that + } 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.
(e) If any increase determined under paragraph (b) of this
subsection is not a multiple of $25, the increase shall be
rounded to the next { - lowest - } { + lower + } multiple of
$25.
(2) 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) 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) 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) of this section.
{ + NOTE: + } Corrects grammar; clarifies intent.
SECTION 38. ORS 316.095 is amended to read:
316.095. (1) A resident individual shall be allowed a credit of
$800 against the taxes otherwise due under this chapter, for
installing or connecting to a sewage treatment works if:
(a) Required by an order issued, before July 1, 1989, under ORS
454.275 to 454.380 or ORS chapters 468, 468A and 468B;
(b) Required by a rule adopted, before July 1, 1989, by the
Environmental Quality Commission;
(c) Required by, installed or connected pursuant to the terms
of an intergovernmental agreement, entered into before July 1,
1989, between a local governing body and the Environmental
Quality Commission; or
(d) Required by an order { - from the Assistant Director for
Health - } under ORS 222.840 to 222.915 or 431.705 to 431.760
issued after January 1, 1988, and before July 1, 1995.
(2) To qualify for the credit under this section:
(a) Subject to subsection (4) of this section, the credit must
be claimed for the year in which the connection is made or the
costs are incurred. The credit applies to installations or
connections made on or after January 1, 1985.
(b) The taxpayer who is allowed the credit must be the person
who actually expended funds for construction or installation of
the project.
(c) The treatment works must be required by an order or rule of
the Environmental Quality Commission, required by, installed or
connected consistent with an intergovernmental agreement between
a local governing body and the Environmental Quality Commission
or required by an order or finding { - from the Assistant
Director for Health - } under ORS 222.840 to 222.915 or 431.705
to 431.760.
(d) The residence connected to the treatment works must be the
principal residence of, and owned by, the taxpayer claiming the
credit.
(3) The credit allowed in any one year shall not exceed
one-fifth of the total amount of the credit granted under this
section per qualifying residence or the tax liability of the
taxpayer.
(4) Any tax credit otherwise allowable under this section
{ - which - } { + that + } is not used by the taxpayer in a
particular year may be carried forward and offset against the
taxpayer's tax liability for the next succeeding tax year. Any
credit remaining unused in
{ - such - } { + that + } next succeeding tax year may be
carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year
may be carried forward and used in the third succeeding tax year,
and any credit not used in that third succeeding tax year may be
carried forward and used in the fourth succeeding tax year, and
any credit not used in that fourth succeeding tax year may be
carried forward and used in the fifth succeeding tax year, and
any credit not used in that fifth succeeding tax year may be
carried forward and used in the sixth succeeding tax year, and
any credit not used in that sixth succeeding tax year may be
carried forward and used in the seventh succeeding tax year, and
any credit not used in that seventh succeeding tax year may be
carried forward and used in the eighth succeeding tax year, but
may not be carried forward for any tax year thereafter.
(5) A husband and wife who file separate returns for a taxable
year may each claim a share of the tax credit that would have
been allowed on a joint return in proportion to the contribution
of each.
(6) The tax claim for tax credit shall be substantiated by
submission, with the tax return, of receipt of payment by the
taxpayer. For purposes of this subsection, 'receipt of payment '
means a canceled check or an actual receipt for payment issued by
the installing or constructing entity and issued on the date the
payment is or was actually acknowledged. The requirement for
substantiation may be waived partially, conditionally or
absolutely, as provided under ORS 315.063.
(7) This section applies for costs actually incurred for
installing or connecting to a sewage treatment works pursuant to
an order, rule or intergovernmental agreement of the
Environmental Quality Commission under ORS 454.275 to 454.380 or
ORS chapters 468, 468A and 468B.
{ + NOTE: + } Deletes reference to outdated office title;
corrects grammar.
SECTION 39. ORS 316.144 is amended to read:
316.144. A resident or nonresident individual who is certified
as eligible under ORS 442.561, 442.562, 442.563 or 442.564, and
is licensed as a physician or podiatric physician and surgeon
under ORS chapter 677, licensed as a physician assistant under
ORS chapter 677, licensed as a nurse practitioner under ORS
chapter 678, licensed as a certified registered nurse anesthetist
under ORS chapter 678, licensed as a dentist under ORS chapter
679 or licensed as an optometrist under ORS 683.010 to 683.335 is
entitled to the tax credit described in ORS 316.143 even if not a
member of the hospital medical staff if the Office of Rural
Health certifies that the individual:
(1) Has a rural practice that amounts to 60 percent of the
individual's practice; and
(2) { + (a) + } If a physician or a physician assistant, can
cause a patient to be admitted to the hospital; { - and - }
{ - (3) - } { + (b) + } If a certified registered nurse
anesthetist, is employed by or has a contractual relationship
with one of the hospitals described in ORS 316.143 (1);
{ - and - } { + or + }
{ - (4) - } { + (c) + } If an optometrist, has consulting
privileges with a hospital listed in ORS 316.143 (1). This
{ - subsection - } { + paragraph + } does not apply to an
optometrist who qualifies as a 'frontier rural practitioner,' as
defined by the Office of Rural Health.
{ + NOTE: + } Conforms structure to legislative form and
style.
SECTION 40. ORS 316.146 is amended to read:
316.146. A member of the medical staff of a type C hospital who
meets the requirements of ORS 316.144 (1) and (2) { + (a) + } is
entitled to the tax credit described in ORS 316.143 if:
(1) The hospital is isolated due to geographic conditions,
complies with rules relating to emergency response and is subject
to such other special factors as the Office of Rural Health may
prescribe; and
(2) The hospital is designated by the Office of Rural Health as
being subject to particular problems in recruiting and retaining
medical staff and is located in an area that is medically
underserved.
{ + NOTE: + } Corrects subsection reference. (See section 39
of this 2003 Act.)
SECTION 41. ORS 316.577 is amended to read:
316.577. Except as provided in ORS 316.573, declarations of
estimated tax required by ORS 316.563 (1) from individuals who
are neither farmers nor fishermen for the purpose of that section
shall be filed { - for tax years beginning on or after January
1, 1982, - } on or before April 15 of the taxable year, except
that if the requirements of ORS 316.563 (1) are first met:
(1) After April 1 and before June 2 of the taxable year, the
declaration shall be filed on or before June 15 of the taxable
year;
(2) After June 1 and before September 2 of the taxable year,
the declaration shall be filed on or before September 15 of the
taxable year; or
(3) After September 1 of the taxable year, the declaration
shall be filed on or before January 15 of the succeeding year.
{ + NOTE: + } Deletes outdated provision.
SECTION 42. ORS 316.579 is amended to read:
316.579. (1) { - For taxable years beginning on or after
January 1, 1982, - } An individual { + required to make a
declaration of estimated tax under ORS 316.563 + } shall pay the
estimated tax { - , with respect to which a declaration is
required under ORS 316.563 (1), - } as provided in subsections
(2) to (6) of this section.
(2) If the declaration is filed on or before April 15 of the
taxable year, the estimated tax shall be paid in four equal
installments. The first installment shall be paid at the time of
the filing of the declaration, the second and third on June 15
and September 15 of the taxable year, and the fourth on January
15 of the succeeding year.
(3) If the declaration is filed after April 15 and not after
June 15 of the taxable year, and is not required by ORS 316.577
to be filed on or before April 15 of the taxable year, the
estimated tax shall be paid in three equal installments. The
first installment shall be paid at the time of the filing of the
declaration, the second on September 15 of the calendar year, and
the third on January 15 of the succeeding taxable year.
(4) If the declaration is filed after June 15 and not after
September 15 of the taxable year, and is not required by ORS
316.577 to be filed on or before June 15 of the taxable year, the
estimated tax shall be paid in two equal installments. The first
installment shall be paid at the time of filing of the
declaration, and the second on January 15 of the succeeding
taxable year.
(5) If the declaration is filed after September 15 of the
taxable year and is not required by ORS 316.577 to be filed on or
before September 15 of the taxable year, the estimated tax shall
be paid in full at the time of filing of the declaration.
(6) If the declaration is filed after the time prescribed in
ORS 316.577, subsections (3) to (5) of this section shall not
apply. Instead, there shall be paid at the time of filing all
installments of estimated tax { - which - } { + that + }
would have been payable on or before such time if the declaration
had been filed within the time prescribed in ORS 316.577, and the
remaining installments shall be paid at the times at which, and
in the amounts in which, they would have been payable if the
declaration had been so filed.
(7) If a taxpayer does not file a declaration but files a
return on or before January 31 of the succeeding year and pays in
full the amount stated as due on the return:
(a) If the declaration is not required to be filed during the
taxable year, but is required to be filed on or before January
15, the return shall be considered as the declaration; and
(b) If the tax shown on the return, as reduced by the sum of
the credits against the tax allowed for purposes of this chapter,
is greater than the estimated tax shown in an earlier
declaration, or in the last amendment thereof, the return shall
be considered as the amendment of the declaration permitted by
ORS 316.563 (4) to be filed on or before January 15.
(8) In the application of this section to a taxable year
beginning on any date other than January 1, there shall be
substituted for the 15th or last day of the month specified in
this section, the 15th or last day of the corresponding month.
(9) An individual may pay an installment of the estimated tax
before the date prescribed for its payment.
(10) Any payment of estimated tax received by the Department of
Revenue shall first be applied to underpayments of estimated tax
due for any prior installment due for the taxable year. Any
excess amount shall be applied to the installment that next
becomes due after the payment was received.
{ + NOTE: + } Deletes outdated provision; corrects
punctuation; corrects grammar.
SECTION 43. { + ORS 316.729 is repealed. + }
{ + NOTE: + } Repeals obsolete provisions.
SECTION 44. ORS 317.147 is amended to read:
317.147. (1) As used in this section:
{ + (a) 'Farmworker housing' has the meaning given that term
under ORS 315.164. + }
{ - (a) - } { + (b) + } 'Lending institution' means a bank,
mortgage banking company, trust company, savings bank, savings
and loan association, credit union, national banking association,
federal savings and loan association, federal credit union
maintaining an office in this state, nonprofit community
development financial institution or nonprofit public benefit
corporation operating as a lending institution.
{ - (b) 'Farmworker housing' has the meaning given the term
under ORS 315.164. - }
(2)(a) A lending institution shall be allowed a credit against
the taxes otherwise due under this chapter for the tax year equal
to 50 percent of the interest income earned during the tax year
on loans to finance only costs directly associated with
construction or rehabilitation of farmworker housing if, at the
time the loan is made, the borrower certifies, to the
satisfaction of the lender, that upon completion of the
construction or rehabilitation and first occupation by
farmworkers, the housing will comply with all occupational safety
or health laws, rules, regulations and standards applicable for
farmworker housing and that the housing will be occupied only by
farmworkers and their immediate families.
(b) A copy of the certification described under paragraph (a)
of this subsection shall be submitted to the Department of
Revenue at the time that a credit under this section is first
claimed.
(3) The credit allowed under this section { - shall apply - }
{ + applies + } only to loans to construct or rehabilitate
farmworker housing located within this state.
(4) This credit { - shall apply - } { + applies + } only to
loans made on or after January 1, 1990.
(5) The credit allowed in any one year may not exceed the tax
liability of the taxpayer.
(6) If the loan has a term of longer than 10 years, then the
credit shall be allowed only for the tax year of the taxpayer
during which the loan is made and the nine tax years immediately
following.
(7) The credit allowed under this section { - may - }
{ + does + } not apply to loans in which the interest rate
charged exceeds 13-1/2 percent per annum.
(8) The credit allowed under this section { - shall apply - }
{ + applies + } only to interest income from the loan and
{ - may - } { + does + } not apply to any other loan fees or
other charges collected by the lending institution with respect
to the loan.
(9) The credit allowed under this section { - shall only
apply - } { + applies only + } to interest income actually
collected by the lending institution during the tax year.
(10)(a) Except as provided in paragraph (b) of this subsection,
if the lending institution sells the loan to another lending
institution, then the credit shall pass to the assignee or
transferee of the loan, subject to the same conditions and
limitations as set forth in this section.
(b) A lending institution may assign, sell or otherwise
transfer the loan to another person and retain the right to claim
the credit granted under this section if the lending institution
also retains responsibility for servicing the loan.
(c)(A) A lending institution that is not subject to taxation
under this chapter may sell or otherwise transfer the credit
allowed to the lending institution under this section to a
taxpayer that is subject to taxation under this chapter.
(B) A transferee of a credit under this section shall be
allowed the credit for the tax years that would have been
allowable to the transferor had the transfer not occurred.
(C) The Department of Revenue shall by rule establish
procedures for transferring a credit under this section.
{ + NOTE: + } Conforms structure to legislative form and
style; corrects syntax; clarifies intent.
SECTION 45. { + ORS 318.090 is repealed. + }
{ + NOTE: + } Repeals redundant provisions.
SECTION 46. ORS 321.185 is amended to read:
321.185. (1) There hereby is established in the State Treasury
in the General Fund an account to be known as the Forest Research
and Experiment Account, which account hereby is appropriated
continuously to the State Board of Higher Education for the
purposes of ORS 526.215 and 526.225.
(2) The Forest Research and Experiment Account shall consist of
{ - : - }
{ - (a) - } allocations from harvest taxes as provided in
ORS 321.015 (1).
{ - (b) All moneys received in payment of uncollected taxes,
penalties or interest under chapter 544, Oregon Laws 1947. - }
{ + NOTE: + } Deletes reference to obsolete provisions.
SECTION 47. ORS 323.365 is amended to read:
323.365. (1) The Department of Revenue for good cause may
extend { - for not to exceed 30 days - } the time for making
any report or paying any amount of tax required under ORS 323.005
to 323.482. The extension may be granted at any time provided a
request
{ - therefor - } is filed with the department within or prior
to the period for which the extension may be granted. { + The
department may not grant an extension of more than 30 days. + }
(2) Any person to whom an extension is granted shall pay, in
addition to the amount of tax, interest at the rate established
under ORS 305.220 for each month, or fraction { - thereof - }
{ + of a month + }, from the date on which the amount of tax
would have been due without the extension to the date of payment.
{ + NOTE: + } Replaces awkward language.
SECTION 48. ORS 323.505 is amended to read:
323.505. (1) A tax is hereby imposed upon the sale, storage,
use, consumption, handling or distribution of all tobacco
products in this state. The tax shall be imposed on distributors
at the time the distributor:
(a) Brings, or causes to be brought, into this state from
without the state tobacco products for sale, storage, use or
consumption;
(b) Makes, manufactures or fabricates tobacco products in this
state for sale, storage, use or consumption in this state; or
(c) Ships or transports tobacco products to retail dealers in
this state, to be sold, stored, used or consumed by those retail
dealers.
(2) The tax imposed under this section shall be imposed at the
rate of:
(a) Sixty-five percent of the wholesale sales price of cigars,
but not to exceed 50 cents per cigar; or
(b) Sixty-five percent of the wholesale sales price of all
tobacco products that are not cigars.
(3) If the tax imposed under this section does not equal an
amount calculable to a whole cent, the tax shall be equal to the
next { - highest - } { + higher + } whole cent. However, the
amount remitted to the Department of Revenue by the taxpayer for
each quarter shall be equal only to 98.5 percent of the total
taxes due and payable by the taxpayer for the quarter.
(4) No tobacco product shall be subject to the tax if the base
product or other intermediate form thereof has previously been
taxed under this section.
(5) Notwithstanding any provision of the Tobacco Products Tax
Act to the contrary, the tax imposed by this section may be paid
by the manufacturer or any other person or entity instead of the
taxpayer from whom such tax would otherwise be due. In the event
of payment by another person or entity, the taxpayer shall be
excused from payment of the amount of the tax { - which - }
{ + that + } has been so paid if, together with the return
required under ORS 323.510, the taxpayer supplies evidence
satisfactory to the department or in a form prescribed by the
department showing that such tax has been so paid.
{ + NOTE: + } Clarifies intent; corrects grammar.
SECTION 49. ORS 323.510 is amended to read:
323.510. (1) Except as otherwise provided in the Tobacco
Products Tax Act, the tax imposed by ORS 323.505 and 323.565
shall be paid by each distributor and each common carrier or
authorized person specified in ORS 323.565 to the Department of
Revenue on or before the last day of January, April, July and
October of each year for the preceding calendar quarter.
(2) With each quarterly payment, the taxpayer shall submit a
return to the department, in such form and containing such
information as the department shall prescribe.
(3) The tax, penalties and interest imposed by the Tobacco
Products Tax Act shall be a personal debt, from the time
liability is incurred, owed by the taxpayer to the State of
Oregon until paid.
(4) The returns required of distributors and common carriers or
authorized persons specified in ORS 323.565 under this section
shall be filed by all such distributors, common carriers or
authorized persons regardless of whether any tax is owed by them.
(5) { + (a) + } The department for good cause may extend
{ - for not to exceed one month - } the time for making any
return under the Tobacco Products Tax Act. The extension may be
granted at any time if a written request { - therefor - } is
filed with the department within or prior to the period for which
the extension may be granted. { + The department may not grant
an extension of more than one month.
(b) + } When the time for filing a return is extended at the
request of a taxpayer, interest { + shall be added + } at the
rate established under ORS 305.220 { - , - } for each month, or
fraction of a month, from the time the return was originally
required to be filed to the time of payment { - , shall be added
and paid - } .
{ + NOTE: + } Replaces awkward language.
SECTION 50. ORS 358.190 is amended to read:
358.190. The county historical fund is not subject to the
provisions of the Local Budget Law and shall be a continuing fund
{ - ; the amounts levied therefor shall not be deemed to be
within the limitation provided by section 11, Article XI of the
Oregon Constitution - } .
{ + NOTE: + } Deletes obsolete provision.
SECTION 51. ORS 469.685 is amended to read:
469.685. A dwelling owner served by an investor-owned utility,
as defined in ORS 469.631, or a publicly owned utility, as
defined in ORS 469.649, who applies for financing under the
provisions of ORS 316.744, 317.386 { - , 318.090 - } and
469.631 to 469.687, may use without obtaining a new energy audit
an energy audit obtained from an energy supplier under chapter
887, Oregon Laws 1977, or a public utility under chapter 889,
Oregon Laws 1977, before November 1, 1981.
{ + NOTE: + } Deletes reference to repealed section. (See
section 45 of this 2003 Act.)
SECTION 52. ORS 469.687 is amended to read:
469.687. ORS 316.744, 317.386 { - , 318.090 - } and 469.631
to 469.687 shall be known as the Oregon Residential Energy
Conservation Act.
{ + NOTE: + } Deletes reference to repealed section. (See
section 45 of this 2003 Act.)
SECTION 53. ORS 469.720 is amended to read:
469.720. (1) A dwelling owner who is or who rents to a
residential fuel oil customer { + , + } or who is or who rents to
a wood heating resident, may not apply for low-interest financing
under ORS 469.710 to 469.720 unless:
(a) The dwelling owner, customer or resident has first
requested and obtained an energy audit from a fuel oil dealer, a
publicly owned utility or an investor-owned utility or from a
person under contract with the Office of Energy under ORS
316.744, 317.111, 317.386 { - , 318.090 - } and 469.631 to
469.687;
(b) The dwelling owner first submits to the Office of Energy
written permission to inspect the installations to verify that
installation of energy conservation measures has been made;
(c) The dwelling owner presents to the lending institution a
copy of the energy audit together with certification that the
dwelling in question receives space heating from fuel oil or wood
and a copy of the written permission to inspect submitted to the
Office of Energy under paragraph (b) of this subsection; and
(d) The dwelling owner does not receive any other state
incentives for that part of the cost of the energy conservation
measures to be financed by the loan.
(2) Any dwelling owner applying for low-interest financing
under ORS 469.710 to 469.720 who is or who rents to a residential
fuel oil customer, or who is or who rents to a wood heating
resident, may use without obtaining a new energy audit any
assistance and technical advice obtained from an energy supplier
before November 1, 1981, under chapter 887, Oregon Laws 1977, or
from a public utility under chapter 889, Oregon Laws 1977,
including an estimate of cost for installation of weatherization
materials.
{ + NOTE: + } Deletes reference to repealed section. (See
section 45 of this 2003 Act.)
SECTION 54. { + ORS 478.760 is repealed. + }
{ + NOTE: + } Repeals obsolete provisions.
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