Chapter 450
AN ACT
HB 2231
Relating to reassessment of damaged property for purposes of taxation;
amending ORS 308.146, 308.425 and 308.428.
Be It Enacted by the People of
the State of
SECTION 1. 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 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
governing 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.] the later of:
(A) August 1 of the
current year; or
(B) The 60th day
following the date on which the property was damaged or destroyed.
(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.
SECTION 2. ORS 308.425 is amended to read:
308.425. (1) If, during
any tax year, any real or personal property is destroyed or damaged by fire or
act of God, 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 tax collector for proration of
the taxes imposed on the property for the tax year.
(2) Application for
proration of taxes under subsection (1) of this section shall be made not later
than the end of the tax year or [30] 60
days after the date the property was destroyed or damaged, whichever is later.
(3)(a) For property that
is totally destroyed, the tax collector shall collect only one-twelfth of the
taxes imposed on the property for the tax year, for each month or fraction of a
month that the property was in existence during the tax year. The tax collector
shall cancel the remainder of the taxes imposed on the property for the tax
year.
(b) For property that is
damaged, the tax collector shall collect only one-twelfth of the taxes imposed
on the property for the tax year, for each month or fraction of a month that preceded the month during which the property was damaged.
For the month in which the property was damaged, and for each month of the tax
year thereafter in which the property remains damaged, the tax collector shall
collect that percentage of one-twelfth of the taxes imposed on the property
that the real market value or the assessed value of the property after the
damage (whichever is less) bears to the assessed value of the property before
the damage. The assessor shall advise the tax collector of the value percentage
required under this paragraph. The tax collector shall
cancel any taxes not to be collected due to this paragraph.
(4) That portion of the
property that is damaged property and that is subsequently repaired shall be
considered to be new property or new improvements to property under ORS 308.153
for the assessment year in which the repairs or replacements are first taken
into account.
SECTION 3. ORS 308.428 is amended to read:
308.428. (1) 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 by fire or act of God,
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.
(2) The person described
in subsection (1) of this section shall file an application for assessment
under this section with the county assessor on or before [August 1 of the current year.]
the later of:
(a) August 1 of the
current year; or
(b) The 60th day
following the date on which the property was damaged or destroyed.
(3) If the conditions
described in subsection (1) of this section 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.
Approved by the Governor June 18, 2007
Filed in the office of Secretary of State June 19, 2007
Effective date January 1, 2008
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