Chapter 537
AN ACT
HB 2030
Relating to funding for collection of debt in bankruptcy proceedings;
creating new provisions; amending ORS 311.345, 311.385, 311.390, 311.395,
311.480 and 457.440 and sections 18 and 19, chapter 190, Oregon Laws 2003;
repealing sections 4, 5 and 20, chapter 190, Oregon Laws 2003; and prescribing
an effective date.
Be It Enacted by the People of
the State of
SECTION 1. (1)
Sections 4 and 5, chapter 190,
(2) Section 20, chapter
190,
SECTION 2.
ORS 311.480, as amended by section 7, chapter 190, Oregon Laws 2003, is amended
to read:
311.480. If a tax has
been levied against real or personal property, and thereafter and prior
to the date the tax becomes due and payable, the person against whom the tax is
charged files a petition in bankruptcy, or is adjudged a bankrupt upon an
involuntary proceeding, the tax shall become immediately due. The tax collector
of the county where the tax was levied shall prepare and present to the
bankruptcy court proof of claim of the county for the tax.
SECTION 3.
ORS 311.385, as amended by section 9, chapter 190, Oregon Laws 2003, is amended
to read:
311.385. (1) The tax
collector shall deposit all property tax moneys with the county treasurer no
later than:
(a) One business day
after:
(A) Payment of the
moneys is made in person at the office of the tax collector; or
(B) The tax collector
receives moneys collected by a financial institution or other collection
agency; or
(b) Thirty calendar days
after the payment arrives by mail in the county mail receptacle.
(2) The tax collector
shall take a receipt for all moneys deposited with the county treasurer.
(3) Property tax moneys
shall not be deposited in any account other than the unsegregated tax
collections account, except as provided in ORS 311.370 and 311.508 and
section 2, chapter 190,
(4) No later than one
business day after receiving notice of collection of tax moneys by a financial
institution or other collection agency, the tax collector shall notify the
county treasurer of the collection of those tax moneys.
(5) Except as provided
in ORS 311.370 and 311.508 and section 2, chapter 190,
(6) As used in this
section, “property tax moneys” includes all ad valorem taxes and all taxes on
property, as defined in ORS 310.140, and all other amounts specifically
authorized by law to be included on the assessment and tax roll, that are
certified for collection under ORS 310.060 or other law and any interest on
those taxes.
SECTION 4.
ORS 311.390, as amended by section 11, chapter 190, Oregon Laws 2003, is
amended to read:
311.390. (1) When the
tax collector receives the assessor’s certificate pursuant to ORS 311.115, the
tax collector shall prepare and file with the county treasurer a percentage
schedule of the ratio of taxes on property, as defined in ORS 310.140, and
other amounts to be collected, after reductions necessary to comply with
section 11b, Article XI of the Oregon Constitution, after making adjustments in
accordance with ORS 311.105 (1)(c), for each governmental unit as shown in such
certificate, compared to the total of each of those amounts. Such schedule
shall be approved by the county accountant, if one exists in the county, or by
the county clerk before filing. Except as provided in subsections (2) and (3) of
this section, the distribution of collections by the tax collector shall be
made on the basis of the ratios computed pursuant to this section. The ratios
computed pursuant to this section for a given fiscal year shall be used for the
distribution of all taxes on property or penalties that have been imposed,
collected and received for that fiscal year, regardless of the actual date of
receipt, except for moneys retained by a county to pay bankruptcy costs
under section 2, chapter 190, Oregon Laws 2003. Interest earned on moneys
in the unsegregated tax collections account shall be distributed according to
the ratio applicable to the year in which the moneys are distributed.
(2) If, after the ratios
are computed pursuant to this section, the amount of a levy or other tax on
property is changed, or a levy or other tax on property is filed with the
assessor pursuant to ORS 310.060 that had not been included in the tax
distribution schedule for that year, the tax collector shall revise the
percentages provided in subsection (1) of this section to reflect the corrected
or added levy or tax and shall adjust the amounts previously distributed and to
be distributed thereafter to reflect the revision in percentages.
(3) If, in the opinion
of the tax collector, it is not feasible to make the revisions described in
subsection (2) of this section, the tax collector shall treat the amount of the
change in levy or tax or the additional levy or tax as a separate tax
collection and segregate the moneys collected for the particular district or
districts in the periodic statement of tax collections given to the county
treasurer pursuant to ORS 311.395.
(4) If the percentage
schedule is revised, a copy shall be filed with the county treasurer after
approval by the county accountant, if one exists in the county, or by the
county clerk.
(5) If, after the ratios
are computed under this section, a levy or tax is changed or a levy or tax is
filed with the assessor pursuant to ORS 310.060, that was not included in the
tax distribution schedule for that year, future distributions of interest shall
be based on the revised percentages that reflect the corrected or added levy or
tax. No adjustments shall be made for previously distributed interest.
SECTION 5.
ORS 311.395, as amended by section 13, chapter 190, Oregon Laws 2003, is
amended to read:
311.395. (1) The tax
collector shall make statements of the exact amounts of property tax moneys in
cash and warrants collected as follows:
(a) For the period
beginning on the first Monday following the last Friday in October through the
last Friday in November, the tax collector shall make weekly statements of
those taxes that are collected for the current tax year.
(b) For the period
beginning the first Monday following the last Friday of November through the
last Friday of October of the ensuing year, the tax collector shall make
quarterly statements of those taxes that are collected for the current tax
year.
(c) The tax collector
shall make quarterly statements of taxes collected for prior years.
(d) Notwithstanding
paragraph (b) or (c) of this subsection, if the balance in the unsegregated tax
collection account as of the close of any month for any tax year (the current
tax year or any prior tax year) exceeds $10,000 or if requested by any taxing
district, and if weekly statements are not required, then the tax collector
shall make a statement for the period since the last statement for the tax
year.
(e) If the processing of
tax payments for the current tax year received or postmarked on or before the
November 15 due date (or if the due date is extended under ORS 311.507, the due
date pursuant to the extension) is not substantially completed as of the last
Friday in November, the tax collector shall continue to make weekly statements
until the end of a week when the processing is substantially completed.
(2)(a) Each statement
shall be of taxes collected during the weekly, monthly, quarterly or other
period for which the statement is required.
(b) The statements
prepared under subsection (1) of this section shall specify the tax years for
which the payments of taxes were made.
(c) A copy of each
statement shall be filed with the county clerk and a copy shall be filed with
the county treasurer no later than the fifth business day after the last
business day of the period for which the statement is prepared. A copy of each
statement shall be retained in the office of the tax collector.
(3) For the purposes of
this section, property tax moneys are collected when:
(a) Payment is made in
person at the office of the tax collector;
(b) The tax collector
receives tax moneys or notice of tax moneys collected by a financial
institution or other collection agency;
(c) The tax collector
receives payment or notice of payment of tax moneys by the state; or
(d) The tax collector
has posted a payment that arrived by mail in the county mail receptacle.
(4) Each statement
required under subsections (1) and (2) of this section shall separately state
the amount deposited into the property tax bankruptcy account under section 2,
chapter 190, Oregon Laws 2003, for the period covered by the statement.
[(4)] (5) The statements required under subsections (1) and
(2) of this section may be made more often and for shorter periods if the tax
collector so desires but one of the statements so filed shall cover a period
coinciding with the last business day of the particular calendar month or
quarter during the period.
[(5)] (6) The county treasurer shall credit the total amount
of moneys set out in the statements prepared under subsections (1) and (2) of
this section, except for the amount deposited into the property tax
bankruptcy account under section 2, chapter 190, Oregon Laws 2003, to the
several funds for which the moneys were respectively received in accordance
with the schedule provided in ORS 311.390. The county treasurer shall keep the
moneys and warrants received from the tax collector in their respective funds.
[(6)] (7) Within five business days of receiving a statement
required by subsection (1) or (2) of this section, the county treasurer shall
distribute the amount of money set out in the statement, except for the
amount deposited into the property tax bankruptcy account under section 2,
chapter 190, Oregon Laws 2003, to the several taxing units according to the
ratios provided in ORS 311.390. The county treasurer shall distribute interest
earned on moneys in the unsegregated tax collections account at least as often
as the treasurer receives a statement from the tax collector under subsection
(1)(b) or (d) of this section. When statements are received under subsection
(1)(a) of this section, the county treasurer shall distribute interest at least
once a calendar month.
SECTION 6.
ORS 311.345, as amended by section 15, chapter 190, Oregon Laws 2003, is
amended to read:
311.345. (1) If a tax
collector fails to make settlement of the taxes included in the assessment roll
within the time required by ORS 311.395, the tax collector shall be charged
with damages in an amount equaling five percent of the amount not settled
within the time required by ORS 311.395, plus 12 percent interest per year on
the damages from the day payment should have been made of the balance of
unsettled taxes due from the tax collector.
(2) If a tax collector
neglects or refuses to pay over all moneys received for taxes to the county
treasurer, the tax collector shall, in addition to the criminal penalty
provided for in ORS 311.990 (6), be liable to pay damages in an amount equaling
10 percent of the amount not paid over, plus 12 percent interest per year on
the damages from the day payment should have been made.
(3) The moneys, damages
and interest authorized to be collected under this section may be collected by
suit upon the bond of the tax collector for the recovery of the same.
(4) If a county
treasurer neglects or refuses to distribute moneys in the unsegregated tax
collections account as required by ORS 311.395 [(5)] (6), the county treasurer shall be liable to pay
damages in an amount equaling 10 percent of the amount not distributed as
required by ORS 311.395, plus 12 percent interest per year on the damages from
the day distribution should have been made.
SECTION 7.
ORS 457.440, as amended by section 17, chapter 190, Oregon Laws 2003, is
amended to read:
457.440. During the
period specified under ORS 457.450:
(1) The county assessor
shall determine the amount of funds to be raised each year for urban renewal
within the county levied by taxing districts in accordance with section 1c,
Article IX of the Oregon Constitution, and ORS 457.420 to 457.460.
(2) Not later than July
15 of each tax year, each urban renewal agency shall determine and file with
the county assessor a notice stating the amount of funds to be raised for each
urban renewal area as follows:
(a) If the municipality
that activated the urban renewal agency has chosen Option One as provided in
ORS 457.435 (2)(a), the notice shall state that the maximum amount of funds
that may be raised by dividing the taxes under section 1c, Article IX of the
Oregon Constitution, shall be raised for the agency.
(b) If the municipality
that activated the urban renewal agency has chosen Option Two as provided in
ORS 457.435 (2)(b), the notice shall state the amount of funds to be raised by
the special levy.
(c) If the municipality
that activated the urban renewal agency has chosen Option Three as provided in
ORS 457.435 (2)(c), the notice shall state the amount of funds to be raised by
special levy in addition to the amount to be raised by dividing the taxes as
stated in the ordinance adopted under ORS 457.435 (1).
(d) If the plan is not
an existing plan, the notice shall state that the maximum amount of funds that
may be raised by dividing the taxes under section 1c, Article IX of the Oregon
Constitution, shall be raised for the agency.
(3) If a municipality
has chosen Option Three pursuant to ORS 457.435, the maximum amount of funds
that may be raised for an urban renewal agency by dividing the taxes as
provided in section 1c, Article IX of the Oregon Constitution, may be limited
by the municipality in which the urban renewal agency is located. The decision
of the municipality to limit the amount of funds to be included in the notice
filed under subsection (2) of this section shall be reflected in the certified
statement filed by the urban renewal agency with the county assessor.
(4) Not later than
September 25 of each tax year, the assessor of any county in which a joint
district is located shall provide, to the assessor of each other county in
which the joint district is located, the assessed values of the property in the
joint district that is located within the county, including the certified
statement value and the increment for each code area containing any urban
renewal area located within the joint district, and a copy of the notice filed
by the urban renewal agency for the area located within the joint district
under subsection (2) of this section.
(5) The maximum amount
of funds that may be raised for an urban renewal plan by dividing the taxes as
provided in section 1c, Article IX of the Oregon Constitution, shall be
computed by the county assessor as follows:
(a) The county assessor
shall compute the total consolidated billing tax rate for each code area in
which an urban renewal area of the plan is located.
(b) The assessor shall
determine the amount of taxes that would be produced by extending the tax rate
computed under paragraph (a) of this subsection against the increment of each
code area.
(c) The total amount
determined for all code areas containing urban renewal areas included within
the urban renewal plan is the maximum amount of funds to be raised for the
urban renewal plan by dividing the taxes.
(6)(a) The maximum
amount of funds that may be raised for an urban renewal agency as determined
under subsection (5) of this section, or the maximum amount, as determined
under subsection (2) of this section, shall be certified by the county assessor
to the tax collector. The tax collector shall include the amount so certified
in the percentage schedule of the ratio of taxes on property prepared under ORS
311.390 and filed with the county treasurer. Notwithstanding ORS 311.395 [(5)] (6), the county treasurer
shall credit the amount to the urban renewal agency and shall distribute its
percentage amount to the urban renewal agency as determined by the schedule at
the times other distributions are made under ORS 311.395 [(6)] (7).
(b) The county assessor
shall notify the urban renewal agency of the amounts received under subsection
(5) of this section or amounts received pursuant to the notice provided in
subsection (2) of this section for each urban renewal plan area. Any amounts
received by the urban renewal agency under paragraph (a) of this subsection
shall be attributed to the urban renewal plan in which the urban renewal area
is included, shall be paid into a special fund of the urban renewal agency for
the urban renewal plan and shall be used to pay the principal and interest on
any indebtedness issued or incurred by the urban renewal agency to finance or
refinance the urban renewal plan.
(7) Unless and until the
total assessed value of the taxable property in an urban renewal area exceeds
the total assessed value specified in the certified statement, all of the ad
valorem taxes levied and collected upon the taxable property in the urban
renewal area shall be paid into the funds of the respective taxing districts.
(8) The agency may incur
indebtedness, including obtaining loans and advances in carrying out the urban
renewal plan, and the portion of taxes received under this section may be
irrevocably pledged for the payment of principal of and interest on the
indebtedness.
(9) The Department of
Revenue shall by rule establish procedures for giving notice of amounts to be
raised for urban renewal agencies and for determination of amounts to be raised
and distributed to urban renewal agencies.
(10) The notice required
under this section shall serve as the notice required under ORS 310.060 for the
special levy described under ORS 457.435.
SECTION 8.
Section 18, chapter 190, Oregon Laws 2003, as amended by section 9, chapter
704, Oregon Laws 2003, is amended to read:
Sec. 18. Section
2, chapter 190, Oregon Laws 2003, applies to taxes, interest and related
penalties[:]
[(1)] due under ORS 311.405 or 311.480 on or after November 26,
2003. [the effective date of this
2003 Act and before July 1, 2008; or]
[(2) Due pursuant to an order of a bankruptcy court issued before July
1, 2008.]
SECTION 9.
Section 19, chapter 190, Oregon Laws 2003, as amended by section 10, chapter
704, Oregon Laws 2003, is amended to read:
Sec. 19. The
amendments to ORS 311.345, 311.385, 311.390, 311.395, 311.480 and 457.440 by
sections [6, 8, 10, 12, 14 and 16] 6
to 17, chapter 190, Oregon Laws 2003, apply to taxes, interest and related
penalties[:]
[(1)] due under ORS 311.405 or 311.480 on or after November 26,
2003. [the effective date of this
2003 Act; or]
[(2) Due pursuant to an order of a bankruptcy court issued before July
1, 2008.]
SECTION 10. If
this 2007 Act does not become effective until after September 1, 2007, the
repeal of section 4, chapter 190, Oregon Laws 2003, by section 1 of this 2007
Act revives sections 2 and 3, chapter 190, Oregon Laws 2003. If this 2007 Act
does not become effective until after September 1, 2007, this 2007 Act shall be
operative retroactively to that date, and the operation and effect of sections
2 and 3, chapter 190, Oregon Laws 2003, shall continue unaffected from
September 1, 2007, to the effective date of this 2007 Act and thereafter. Any
otherwise lawful action taken or otherwise lawful obligation incurred under the
authority of sections 2 and 3, chapter 190, Oregon Laws 2003, after September
1, 2007, and before the effective date of this 2007 Act, is ratified and
approved.
SECTION 11. If
this 2007 Act does not become effective until after June 29, 2007, the
amendments to section 18, chapter 190, Oregon Laws 2003, by section 8 of this
2007 Act and the repeal of section 5, chapter 190, Oregon Laws 2003, by section
1 of this 2007 Act shall be operative retroactively to that date.
SECTION 12. This
2007 Act takes effect on the 91st day after the date on which the regular
session of the Seventy-fourth Legislative Assembly adjourns sine die.
Approved by the Governor June 22, 2007
Filed in the office of Secretary of State June 27, 2007
Effective date September 27, 2007
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