74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
HA to HB 2032
LC 1692/HB 2032-2
HOUSE AMENDMENTS TO
HOUSE BILL 2032
By COMMITTEE ON REVENUE
April 3
On page 1 of the printed bill, line 2, after '311.668 ' delete
the rest of the line and insert ', 311.676, 311.684, 311.686,
311.690, 311.694 and 311.695.'.
In line 22, restore the bracketed material and delete the
boldfaced material.
After line 26, insert:
' (d) Deferring all delinquent taxes, interest and penalties
due at the time of the initial application for deferral.'.
On page 2, line 39, delete 'and penalties' and insert ',
penalties and fees'.
In line 40, delete 'and penalties' and insert ', penalties and
fees'.
Delete line 41 and insert 'interest, penalties and fees that
are delinquent as of November 15 following the date an initial
application for deferral is filed under'.
Delete line 44 and insert 'linquent taxes, interest, penalties
and fees on homesteads for which an initial application for
deferral under'.
After line 45, insert:
' { + SECTION 4. + } ORS 311.684 is amended to read:
' 311.684. Subject to ORS 311.688, all deferred property taxes,
including accrued interest { + , penalties and fees + }, become
payable as provided in ORS 311.686 when:
' (1) The taxpayer who claimed deferment of collection of
property taxes on the homestead dies or, if there was more than
one claimant, the survivor of the taxpayers who originally
claimed deferment of collection of property taxes under ORS
311.668 dies.
' (2) Except as provided in ORS 311.683, the property with
respect to which deferment of collection of taxes is claimed is
sold, or a contract to sell is entered into, or some person other
than the taxpayer who claimed the deferment becomes the owner of
the property.
' (3) The tax-deferred property is no longer the homestead of
the taxpayer who claimed the deferral, except in the case of a
taxpayer required to be absent from such tax-deferred property by
reason of health.
' (4) The tax-deferred property, a manufactured structure or
floating home, is moved out of the state.
' { + SECTION 5. + } ORS 311.686 is amended to read:
' 311.686. Whenever any of the circumstances listed in ORS
311.684 occurs:
' (1) The deferral of taxes for the assessment year in which
the circumstance occurs shall continue for such assessment year;
and
' (2) The amounts of deferred property taxes, including accrued
interest, { + penalties and fees, + } for all years shall be due
and payable to the Department of Revenue August 15 of the year
following the calendar year in which the circumstance occurs,
except as provided in subsection (3) of this section, ORS 311.688
and 311.695.
' (3) Notwithstanding the provisions of subsection (2) of this
section and ORS 311.695, when the circumstances occur listed in
ORS 311.684 (4), the amount of deferred taxes shall be due and
payable five days before the date of removal of the property from
the state.
' (4) If the amounts falling due as provided in this section
are not paid on the indicated due date, or as extended under ORS
311.695 such amounts shall be deemed delinquent as of that date
and the property shall be subject to foreclosure as provided in
ORS 311.673 or 311.679.
' { + SECTION 6. + } ORS 311.690 is amended to read:
' 311.690. (1) All payments of deferred taxes shall be made to
the Department of Revenue.
' (2) Subject to subsection (3) of this section, all or part of
the deferred taxes and accrued interest { + , penalties and
fees + } may at any time be paid to the department by:
' (a) The taxpayer or the spouse of the taxpayer.
' (b) The next of kin of the taxpayer, heir at law of the
taxpayer, child of the taxpayer or any person having or claiming
a legal or equitable interest in the property.
' (3) A person listed in subsection (2)(b) of this section may
make such payments only if no objection is made by the taxpayer
within 30 days after the department deposits in the mail notice
to the taxpayer of the fact that such payment has been tendered.
' (4) Any payment made under this section shall be applied
first against accrued interest { + , penalties and fees + } and
any remainder against the deferred taxes. { + Deferred taxes
include delinquent property taxes, interest, penalties and fees
due at the time of filing the initial application for
deferral. + } Such payment does not affect the deferred tax
status of the property. Unless otherwise provided by law, such
payment does not give the person paying the taxes any interest in
the property or any claim against the estate, in the absence of a
valid agreement to the contrary.
' (5) When the deferred taxes and accrued interest { + ,
penalties and fees + } are paid in full and the property is no
longer subject to deferral, the department shall prepare and
record in the county in which the property is located a
satisfaction of deferred property tax lien.
' { + SECTION 7. + } { + The amendments to ORS 311.690 by
section 6 of this 2007 Act apply to applications for deferral
filed on or after January 1, 2008. + }
' { + SECTION 8. + } ORS 311.694 is amended to read:
' 311.694. (1) At the time that the property is deeded over to
the county at the conclusion of the foreclosure proceedings
pursuant to ORS 312.200 the county court shall order the county
treasurer to pay to the Department of Revenue from the
unsegregated tax collections account the amount of deferred taxes
{ - and - } { + , + } interest { + , penalties and fees + }
which were not collected.
' (2) Immediately upon payment, the county treasurer shall
notify the tax collector of the amount paid to the department for
the property which has been deeded to the county pursuant to ORS
312.200.
' { + SECTION 9. + } ORS 311.695 is amended to read:
' 311.695. (1) If the taxpayer who claimed homestead property
tax deferral dies, or if a spouse who continued the deferral
under ORS 311.688 dies, the Department of Revenue may extend the
time for payment of the deferred taxes { - and - } { + , + }
interest { + , penalties and fees + } accruing with respect to
the taxes becoming due and payable under ORS 311.686 (2) if:
' (a) The homestead property becomes property of an individual
or individuals:
' (A) By inheritance or devise; or
' (B) If the individual or individuals are heirs or devisees,
as defined under ORS 111.005, in the course of settlement of the
estate;
' (b) The individual or individuals commence occupancy of the
property as a principal residence on or before August 15 of the
calendar year following the calendar year of death; and
' (c) The individual or individuals make application to the
department for an extension of time for payment of the deferred
taxes { - and - } { + , + } interest { + , penalties and
fees + } prior to August 15 of the calendar year following the
calendar year of death.
' (2)(a) Subject to paragraph (b) of this subsection, an
extension granted under this section shall be for a period not to
exceed five years after August 15 of the calendar year following
the calendar year of death. The terms and conditions under which
the extension is granted shall be in accordance with a written
agreement entered into by the department and the individual or
individuals.
' (b) An extension granted under this section shall terminate
immediately if:
' (A) The homestead property is sold or otherwise transferred
by any party to the extension agreement;
' (B) All of the heirs or devisees who are parties to the
extension agreement cease to occupy the property as a principal
residence; or
' (C) The homestead property, a manufactured structure or
floating home, is moved out of the state.
' (3) If the department has reason to believe that the
homestead property is not sufficient security for the deferred
taxes and interest, the department may require the individual or
individuals to furnish a bond conditioned upon payment of the
amount extended in accordance with the terms of the extension.
The bond shall not exceed in amount double the taxes with respect
to which tax extension is granted.
' (4) During the period of extension, and until paid, the
deferred taxes shall continue to accrue interest in the same
manner and at the same rate as provided under ORS 311.674 (3). No
interest shall accrue upon interest.'.
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