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
 
                         House Bill 2032
 
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.
 
  Requires Department of Revenue to pay delinquent taxes,
interest and penalties on homesteads for which property tax
deferral is claimed by seniors and persons with disabilities.
  Applies to delinquent taxes, interest and penalties for which
claim for homestead property tax deferral is 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 and 311.676.
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.
  (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 - }  { + the year of application + }.
  (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 and penalties due on tax-deferred property. For
purposes of this subsection, the total amount of delinquent
taxes, interest and penalties includes all taxes, interest and
penalties that are delinquent as of the date a claim 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 and penalties
on homesteads for which a claim for deferral under ORS 311.668 is
filed on or after January 1, 2008. + }
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