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 2614
 
                         House Bill 3239
 
Sponsored by Representative GALLEGOS (at the request of John
  Roach, Dennis Hooyman)
 
 
                             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.
 
  Requires Department of Revenue to waive penalties for late
filing of reports or returns or late payment of tax when
delinquency is due to mental or physical disability.
  Applies to reports, returns and payments for tax years and
reporting periods beginning on or after January 1, 2003.
  Takes effect on 91st day following adjournment sine die.
 
                        A BILL FOR AN ACT
Relating to tax penalties; creating new provisions; amending ORS
  305.145; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 305.145 is amended to read:
  305.145. (1) The Department of Revenue or a county tax
collector shall waive interest on an assessment if the taxpayer
has failed to make a timely payment or has received an incorrect
refund because:
  (a) An employee of the department or of a county tax collector
acting in an official capacity, who had knowledge of the
necessary facts, misled the taxpayer either by some erroneous
factual representation or by a course of dealing or conduct;
  (b) The taxpayer relied on the misleading factual
representation or conduct; and
  (c) The taxpayer failed to make a timely payment or has
received an incorrect refund by reason of the taxpayer's reliance
on the information or course of conduct.
  (2) Notwithstanding the provisions of subsection (1) of this
section, interest shall not be waived after the appeal period for
a final determination has expired.
  (3) The Department of Revenue may, in its discretion, upon good
and sufficient cause, according to and consistent with its rules
and regulations, upon making a record of its reason therefor,
waive, reduce or compromise any tax balance of $50 or less or any
part or all of the penalties and interest provided by the laws of
the State of Oregon which are collected by the Department of
Revenue.
   { +  (4)(a) The Department of Revenue shall waive any penalty
due upon the failure to timely file a state tax report or return
required to be filed or upon the failure to timely pay a state
tax when due, if:
  (A) The taxpayer has a mental or physical disability; and
  (B) The mental or physical disability is a primary reason for
the taxpayer's failure to timely file or pay.
  (b) The taxpayer shall apply to the Department of Revenue for a
waiver under this subsection and shall document or otherwise
substantiate the disability and the effect of the disability on
tax compliance.
  (c) An application for waiver under this subsection may not be
made more than three years after the report, return or payment
was due.
  (d) A waiver may not be granted until the taxpayer has paid all
outstanding amounts of tax and interest due. + }
  SECTION 2.  { + The amendments to ORS 305.145 by section 1 of
this 2003 Act apply to state tax reports or returns or state tax
payments due for tax years or reporting periods beginning on or
after January 1, 2003. + }
  SECTION 3.  { + This 2003 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-second
Legislative Assembly adjourns sine die. + }
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