74th OREGON LEGISLATIVE ASSEMBLY--2007 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 1690
House Bill 2030
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of House Interim Committee on
Revenue for Oregon Association of County Tax Collectors)
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.
Eliminates sunset date on statutory authorization for counties
to maintain property tax bankruptcy accounts, moneys from which
are used to fund increased collection costs incurred when
counties undertake to collect outstanding property taxes that are
also subject to bankruptcy court proceedings.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to funding for collection of debt in bankruptcy
proceedings; 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 Oregon:
SECTION 1. { + (1) Sections 4 and 5, chapter 190, Oregon Laws
2003, are repealed.
(2) Section 20, chapter 190, Oregon Laws 2003, as amended by
section 11, chapter 704, Oregon Laws 2003, is repealed. + }
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, Oregon Laws 2003 + }.
(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, Oregon Laws 2003 + }, the county
treasurer shall deposit all property tax moneys to an account in
the records of the county treasurer designated as the
unsegregated tax collections account. Only those moneys that will
be distributed under ORS 311.390 and interest earned from the
investment of those moneys shall be deposited to the unsegregated
tax collections account.
(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. { + 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. + }
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