Chapter 516
AN ACT
SB 697
Relating to property taxation; amending ORS 308.146, 308.153 and
311.234.
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.
(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.
(8)(a)
Notwithstanding subsection (1) of this section, when a building is demolished or
removed from property, for the year in which the demolishment or removal of the
building is reflected by a reduction in real market value, the maximum assessed
value of the property may be reduced to reflect the demolishment or removal of
the building.
(b) This subsection does
not apply:
(A) To any property that
is assessed under ORS 308.505 to 308.665.
(B) If the demolished or
removed 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.
SECTION 2. ORS 308.153 is amended to read:
308.153. (1) If new property is added to the assessment roll or improvements
are made to property as of January 1 of the assessment year, the maximum
assessed value of the property shall be the sum of:
(a) The maximum assessed
value determined under ORS 308.146; and
(b) The product of the
value of the new property or new improvements determined under subsection
(2)(a) of this section multiplied by the ratio, not greater than 1.00, of the
average maximum assessed value over the average real market value for the
assessment year.
(2)(a) The value of new
property or new improvements shall equal the real market value of the new
property or new improvements reduced (but not below zero) by the real market
value of retirements from the property tax account.
(b) If the maximum
assessed value of property is adjusted for fire or act of God or for
demolishment or removal of a building under ORS 308.146, the reduction in
real market value due to fire or act of God or demolishment or removal of
the building may not be considered to be a retirement under this
subsection.
(3) The property’s
assessed value for the year shall equal the lesser of:
(a) The property’s
maximum assessed value; or
(b) The property’s real
market value.
SECTION 3. ORS 311.234 is amended to read:
311.234. (1)
Notwithstanding ORS 311.205 (1)(b), the current owner
of property or other person obligated to pay taxes imposed on property may
petition the county assessor for a correction in the maximum assessed value of
the property for the current tax year, including but not limited to a
correction in the maximum assessed value of the property for demolishment or
removal of a building in the current tax year.
(2) Pursuant to a
petition filed under this section, the assessor may correct the maximum
assessed value of the property for the current tax year if there is a
demonstrated difference between the actual square footage of the property as of
the assessment date for the current tax year and the square footage of the
property as shown in the records of the assessor for the tax year.
(3) The correction made
under this section may not be proportionally different from the proportional
difference between the original square footage of the property as shown in the
assessor’s records and the actual square footage of the property as of the
assessment date for the current tax year.
(4) Notwithstanding
subsection (3) of this section, the correction made under this section may not
cause the maximum assessed value of the property to increase by more than three
percent from the maximum assessed value of the property for the preceding tax
year.
(5) A petition filed
under this section must be on the form and contain the information prescribed
by the Department of Revenue and must be filed with the county assessor on or
before December 31 of the current tax year.
(6) A decision by the
assessor pursuant to a petition filed under this section may be appealed under
ORS 305.275.
Approved by the Governor June 20, 2007
Filed in the office of Secretary of State June 21, 2007
Effective date January 1, 2008
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