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 1692
A-Engrossed
House Bill 2032
Ordered by the House April 3
Including House Amendments dated April 3
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.
Requires Department of Revenue to pay delinquent taxes,
interest { + , + } { - and - } penalties { + and fees + } on
homesteads for which property tax deferral is claimed by seniors
and persons with disabilities. Applies to delinquent taxes,
interest { + , + } { - and - } penalties { + and fees + } for
which { - claim - } { + initial application + } for homestead
property tax deferral is filed on or after January 1, 2008.
{ + Provides that deferred taxes become payable to Department
of Revenue under specified circumstances and that deferred taxes
include delinquent taxes, interest, penalties and fees. Applies
to applications for deferral filed on or after January 1,
2008. + }
A BILL FOR AN ACT
Relating to tax-deferred property; creating new provisions; and
amending ORS 311.668, 311.676, 311.684, 311.686, 311.690,
311.694 and 311.695.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 311.668 is amended to read:
311.668. (1)(a) Subject to ORS 311.670, an individual, or two
or more individuals jointly, may elect to defer the property
taxes on their homestead by filing a claim for deferral with the
county assessor after January 1 and on or before April 15 of the
first year in which deferral is claimed if:
(A) The individual, or, in the case of two or more individuals
filing a claim jointly, each individual, is 62 years of age or
older on April 15 of the year in which the claim is filed; or
(B) The individual is a disabled person on April 15 of the year
in which the claim is filed. In the case of individuals filing a
claim jointly, only one individual need be a disabled person in
order to make the election.
(b) In order to make the election described in paragraph (a) of
this subsection, the individual must have, or in the case of two
or more individuals filing a claim jointly, all of the
individuals together must have household income, as defined in
ORS 310.630, for the calendar year immediately preceding the
calendar year in which the claim is filed of less than $32,000.
(c) The county assessor shall forward each claim filed under
this subsection to the Department of Revenue which shall
determine if the property is eligible for deferral.
{ + (d) Deferring all delinquent taxes, interest and
penalties due at the time of the initial application for
deferral. + }
(2) When the taxpayer elects to defer property taxes for any
year by filing a claim for deferral under subsection (1) of this
section, it shall have the effect of:
(a) Deferring the payment of the property taxes levied on the
homestead for the fiscal year beginning on July 1 of such year.
(b) Continuing the deferral of the payment by the taxpayer of
any property taxes deferred under ORS 311.666 to 311.701 for
previous years which have not become delinquent under ORS
311.686.
(c) Continuing the deferral of the payment by the taxpayer of
any future property taxes for as long as the provisions of ORS
311.670 are met.
(3) If a guardian or conservator has been appointed for an
individual otherwise qualified to obtain deferral of taxes under
ORS 311.666 to 311.701, the guardian or conservator may act for
such individual in complying with the provisions of ORS 311.666
to 311.701.
(4) If a trustee of an inter vivos trust which was created by
and is revocable by an individual, who is both the trustor and a
beneficiary of the trust and who is otherwise qualified to obtain
a deferral of taxes under ORS 311.666 to 311.701, owns the fee
simple estate under a recorded instrument of sale, the trustee
may act for the individual in complying with the provisions of
ORS 311.666 to 311.701.
(5) Nothing in this section shall be construed to require a
spouse of an individual to file a claim jointly with the
individual even though the spouse may be eligible to claim the
deferral jointly with the individual.
(6) Any person aggrieved by the denial of a claim for deferral
of homestead property taxes or disqualification from deferral of
homestead property taxes may appeal in the manner provided by ORS
305.404 to 305.560.
(7)(a) For each tax year beginning on or after July 1, 2002,
the Department of Revenue shall recompute the maximum household
income that may be incurred under an allowable claim for deferral
under subsection (1)(b) of this section. The computation shall be
as follows:
(A) Divide the average U.S. City Average Consumer Price Index
for the first six months of the current calendar year by the
average U.S. City Average Consumer Price Index for the first six
months of 2001.
(B) Recompute the maximum household income by multiplying
$32,000 by the appropriate indexing factor determined as provided
in subparagraph (A) of this paragraph.
(b) As used in this subsection, 'U.S. City Average Consumer
Price Index' means the U.S. City Average Consumer Price Index for
All Urban Consumers (All Items) as published by the Bureau of
Labor Statistics of the United States Department of Labor.
(c) If any change in the maximum household income determined
under paragraph (a) of this subsection is not a multiple of $500,
the increase shall be rounded to the nearest multiple of $500.
SECTION 2. ORS 311.676 is amended to read:
311.676. (1) Upon determining the amount of deferred taxes on
tax-deferred property for the tax year, the Department of Revenue
shall pay to the respective county tax collectors an amount
{ - equivalent - } { + equal + } to the deferred taxes less
three percent thereof. Payment shall be made from the revolving
account established under ORS 311.701.
(2) The department shall maintain accounts for each deferred
property and shall accrue interest only on the actual amount of
taxes advanced to the county.
(3)(a) If only a portion of taxes are deferred under ORS
311.689, the department shall pay the portion that is eligible
for deferral to the tax collector and shall provide a separate
notice to the county assessor stating the amount of property
taxes that the department is paying.
(b) The notice stating the amount of property taxes paid by the
department and any other county records indicating those amounts
are not subject to the prohibitions against disclosure set forth
in ORS 314.835.
{ + (4) In addition to amounts paid under subsection (1) of
this section, the department shall pay to the respective county
tax collectors an amount equal to the total amount of delinquent
taxes, interest, penalties and fees due on tax-deferred property.
For purposes of this subsection, the total amount of delinquent
taxes, interest, penalties and fees includes all taxes, interest,
penalties and fees that are delinquent as of November 15
following the date an initial application for deferral is filed
under ORS 311.668. + }
SECTION 3. { + The amendments to ORS 311.676 by section 2 of
this 2007 Act apply to delinquent taxes, interest, penalties and
fees on homesteads for which an initial application for deferral
under ORS 311.668 is filed on or after January 1, 2008. + }
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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