Chapter 520 Oregon Laws 2005

AN ACT

HB 2945

Relating to property tax exemptions for veterans; creating new provisions; amending ORS 307.250; and prescribing an effective date.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 307.250 is amended to read:

307.250. (1) Upon compliance with ORS 307.260, there shall be exempt from taxation not to exceed [$8,750] $15,000 of the assessed value of the homestead or personal property of any of the following residents of this state other than those described in subsection (2) of this section:

(a) Any war veteran who is officially certified by the United States Department of Veterans Affairs or any branch of the Armed Forces of the United States as having disabilities of 40 percent or more.

(b) Any war veteran having served with the United States Armed Forces who, as certified by one duly licensed physician, is rated as having disabilities of 40 percent or more. However, a veteran shall be entitled to the exemption granted under this paragraph only if the veteran during the calendar year immediately preceding the assessment year for which the exemption is claimed had total gross income, including pensions, disability compensation or retirement pay, or any combination of such payments from the United States Government on account of such service, of not more than[:] 185 percent of federal poverty guidelines.

[(A) $8,778 if the veteran was without a spouse or dependent child;]

[(B) $11,497 if the veteran had either a spouse or a dependent child; or]

[(C) The amount specified in subparagraph (B) of this paragraph plus $1,496 for each dependent child, if the veteran had a spouse and dependent child or children, or if the veteran had only dependent children, the amount specified in subparagraph (B) of this paragraph plus $1,496 for each additional dependent child after the first.]

(c) The surviving spouse remaining unmarried of a war veteran, but the exemption shall apply only to the period preceding the date of the first remarriage of the surviving spouse.

(2) Upon compliance with ORS 307.260, there shall be exempt from taxation not to exceed [$11,670] $18,000 of the assessed value of the homestead or personal property of any of the following residents of this state:

(a) Any war veteran who is officially certified by the United States Department of Veterans Affairs or any branch of the Armed Forces of the United States as having service-connected disabilities of 40 percent or more.

(b) The surviving spouse remaining unmarried of a war veteran, if the war veteran died as a result of service-connected injury or illness or if the war veteran received at least one year of the maximum exemption from taxation allowed under paragraph (a) of this subsection after 1981 for a veteran certified as having service-connected disabilities of 40 percent or more.

(3) [For each tax year beginning on or after July 1, 2000,] The amount of the exemption allowed under subsection (1) or (2) of this section shall equal 103 percent of the amount of the exemption for the prior tax year.

SECTION 2. The amendments to ORS 307.250 by section 1 of this 2005 Act apply to tax years beginning on or after July 1, 2006.

SECTION 3. (1) Upon compliance with section 4 of this 2005 Act, there shall be exempt from taxation up to $60,000 of the assessed value of the homestead of any resident of this state who is:

(a) Serving in the Oregon National Guard, military reserve forces or organized militia of any other state or territory of the United States; and

(b) Performing service, after a change in status from serving under Title 32 to serving under Title 10 of the United States Code, for more than 178 consecutive days during the tax year for which the exemption is claimed.

(2) For each tax year beginning on or after July 1, 2006, the amount of the exemption allowed under subsection (1) of this section shall equal 103 percent of the amount of the exemption for the prior tax year.

SECTION 4. (1)(a) Each person qualifying for the exemption under section 3 of this 2005 Act shall file with the county assessor, on forms supplied by the assessor, a claim in writing on or before April 1 of the assessment year for which the exemption is claimed, except that when the property designated is acquired after March 1 but prior to July 1, the claim for that year shall be filed within 30 days after the date of acquisition.

(b) Not later than April 10 of each year, the county assessor shall notify each qualifying person in the county who secured an exemption under section 3 of this 2005 Act in the preceding year but who did not file a claim for exemption on or before April 1 of the current year. The notice may be given on an unsealed postal card. Any person notified under this subsection may secure the exemption, if the person is still qualified, by filing a claim for exemption with the county assessor not later than May 1 of the current year. The person must include a late-filing fee of $10, which shall be deposited in the general fund of the county for general governmental expenses. If the claim for any year is not filed within the time specified, the exemption may not be allowed on the assessment roll of that year.

(2) The claim shall set out the basis of the claim and designate the property to which the exemption may apply. Claims for exemptions under section 3 of this 2005 Act shall include a statement by the claimant under oath or affirmation setting forth the basis for eligibility for the exemption. The claim shall also include an affidavit or affirmation of the claimant that the statements contained therein are true.

(3)(a) Notwithstanding subsection (1) of this section, an individual who is lawfully occupying the homestead of the qualifying person may file a claim for the exemption under section 3 of this 2005 Act at any time during the tax year if:

(A) The qualifying person died during the prior tax year; or

(B) The property was acquired after March 1 but prior to July 1 of the assessment year and the qualifying person died within 30 days of the date the property was acquired.

(b) The claim shall be allowed by the county assessor if the qualifying person met all of the qualifications for an exemption under section 3 of this 2005 Act prior to being killed in action, other than the number of consecutive days of service and the timely filing of a claim under subsection (1) of this section.

(c) If taxes on the exempt value have been paid, the taxes shall be refunded in the manner prescribed in paragraph (d) of this subsection. If taxes on the exempt value have not been paid, the taxes and any interest thereon shall be abated.

(d) The tax collector shall notify the governing body of the county of any refund required under this section and the governing body shall cause a refund of the taxes and any interest paid to be made from the unsegregated tax collections account described in ORS 311.385. The refund under this subsection shall be made without interest. The county assessor and tax collector shall make the necessary corrections in the records of their offices.

SECTION 5. Section 3 of this 2005 Act applies to qualifying persons initially ordered to federal active duty on or after January 1, 2005, and property for which an exemption is claimed for tax years beginning on or after July 1, 2005.

SECTION 6. (1) Notwithstanding the time periods set forth in section 4 (1) of this 2005 Act, for the tax year beginning on July 1, 2005, a qualifying person or lawful occupant of the homestead of a deceased qualifying person may file with the county assessor, on forms supplied by the assessor, a claim in writing within 60 days after the effective date of this 2005 Act.

(2) If taxes on the exempt value have been paid, the taxes shall be refunded in the manner prescribed in subsection (3) of this section. If taxes on the exempt value have not been paid, the taxes and any interest thereon shall be abated.

(3) The tax collector shall notify the governing body of the county of any refund required under this section and the governing body shall cause a refund of the taxes and any interest paid to be made from the unsegregated tax collections account described in ORS 311.385. The refund under this subsection shall be made without interest. The county assessor and tax collector shall make the necessary corrections in the records of their offices.

SECTION 7. This 2005 Act takes effect on the 91st day after the date on which the regular session of the Seventy-third Legislative Assembly adjourns sine die.

Approved by the Governor July 15, 2005

Filed in the office of Secretary of State July 15, 2005

Effective date November 4, 2005

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